Banks, NBFIs urged to boost rooftop solar financing in Bangladesh

Commercial banks and non-bank financial institutions (NBFIs) can play a pivotal role in unlocking the potential of rooftop solar by introducing innovative financial products—such as leasing, project financing, ‘pay-as-you-save’ models, and green bonds—that reduce risks and ensure sustainable returns, stakeholders said at a roundtable.

Despite the vast potential of rooftop solar in Bangladesh, progress has stalled mainly due to a lack of financing, they noted.

Although there are some incentives in this sector, they have not proved immediately effective. Financing and risk management remain the key obstacles, according to stakeholders.

The remarks came on Tuesday at a discussion titled “Unveiling Solar Rooftop Finance: Towards a Sustainable Energy Future” held at the Westin Hotel in the capital.

The event was jointly organised by the Bangladesh Sustainable and Renewable Energy Association (BSREA) and ActionAid Bangladesh.

BSREA President Mostafa Al Mahmud presided over the event, while ActionAid Bangladesh Country Director Farah Kabir moderated the session. The keynote paper was presented by Khondkar Morshed Millat, former Director of the Sustainable Finance Department at Bangladesh Bank.

Also present were representatives from the Power Division, SREDA, IDCOL, power distribution companies, commercial banks, NBFIs, development finance institutions (DFIs), development partners, renewable energy sector leaders, and civil society representatives.

BSREA President Mostafa Al Mahmud said, “The new policy has set a target to generate 20 per cent of total electricity from renewable sources by 2030 and 30 per cent by 2040. Within this, there is a target to install 3,000 MW of rooftop solar by December 2025. But despite the potential, financing remains the biggest obstacle. Currently, only 5.6 per cent of electricity comes from renewable energy, which is far less compared to our neighbouring countries.”

He added, “At present, there is no alternative to rooftop solar. It is the most rapidly implementable, sustainable, and effective solution. The countless rooftops of government institutions, hospitals, educational institutions, and commercial and industrial factories are waiting to be transformed into clean power plants.”

Speakers at the event emphasised that collective initiative is needed to make the national rooftop solar program successful. The Power Division and SREDA should make policies more transparent, stable, and private sector-friendly. Distribution utilities must simplify net metering and ensure grid connectivity.

The industrial sector and developers need to prepare reliable project pipelines and maintain implementation standards. Most importantly, development partners should extend support through blended finance, risk guarantees, and globally proven models.

Stakeholders also stressed that rooftop solar finance is the next frontier of renewable energy in Bangladesh.

They proposed preparing a rooftop solar green finance roadmap, introducing green bonds, blended finance, and results-based financing models, and forming a Green Finance Taskforce with the participation of the government, banks, the private sector, and DFIs.

sajibur@gmail.com