Cabinet approves ordinance to boost rooftop solar power system

The approval was granted during the 25th Cabinet meeting held on Sunday (October 18), subject to vetting by the Legislative and Parliamentary Affairs Division.

To reduce dependency on imported fossil fuels in the power sector, minimize subsidy burdens, ensure energy security, and achieve Sustainable Development Goals (SDGs), the Power Division formulated the 'National Renewable Energy Development Strategy Paper 2026-2030'.

The government previously announced incentives to achieve the target of installing 3,000 MW to 4,000 MW of rooftop solar power before the upcoming summer. To implement this target, directives were issued to install solar power systems under the Operational Expenditure (OPEX) model funded by investors on rooftops of government, semi-government, autonomous, local government institutions, and state-owned companies.

Provisions were also made for institutions with independent earnings to install solar power systems under the Capital Expenditure (CAPEX) model based on future revenue considerations.

According to Power Division data, existing legislation lacks specific provisions for long-term arrangements up to 15 years—such as electricity pricing, offering power shares as rooftop rent, and maintenance—when installing solar systems through service providers under the OPEX model.

Similarly, specific legal framework gaps exist under current laws for setting up solar systems and obtaining services via service providers under the CAPEX model.

Consequently, the draft ordinance was framed and submitted to the Cabinet to create the required legal framework for investment, contracts, tariff determination, and maintenance activities in this sector.

The lack of specific provisions in the Public Procurement Act 2006, Invest Bangladesh Act 2026, and Electricity Act 2018 was cited as a major reason for drafting the ordinance.

-SA