New Incentive for Rooftop Solar: BDT 10.50 Per Unit for Grid Supply

Opportunity to receive a fixed price for up to three years for supplying surplus electricity to the national grid after self-consumption.

The government has announced a new special incentive package to boost investment in rooftop solar power systems. It has been decided that those who install battery-backed rooftop solar systems and supply their surplus electricity to the national grid after meeting their own demand will receive BDT 10.50 per unit.

The Power Division stated that this initiative aims to increase the use of renewable energy and ensure the country's long-term energy security. A gazette notification on this matter was issued on September 1.

Why BDT 10.50 Per Unit?

According to calculations by the Power Division, considering current market prices and various tender values, the maximum cost of producing rooftop solar power with batteries has been set at BDT 8 per unit.

Adding a 20% profit and an 11.25% premium to this amount, the price for electricity supplied to the grid has been fixed at BDT 10.50.

In this case, if a producer can generate electricity at a lower cost, they will also have the opportunity to receive the saved amount as an incentive.

For example, if a producer generates electricity at a cost of BDT 9 per unit and supplies it to the national grid, they will receive an additional BDT 1.50 as an incentive, alongside the fixed BDT 10.50.

Who Will Receive This Benefit?

According to the 'Net Metering Guidelines, 2025,' rooftop solar power systems must be installed by February 28, 2027.

Customers who supply their surplus generated electricity to the national grid after self-consumption will be eligible for this benefit. They will have the opportunity to receive BDT 10.50 per unit for electricity supplied to the grid until February 28, 2030.

However, this special incentive will not be applicable for new systems installed after the specified deadline.

How Will Payments Be Made?

The concerned power distribution companies will maintain customer data and calculate the amount of electricity supplied to the national grid. They will also keep records of electricity prices and incentive amounts.

The incentive funds will be disbursed to customers' bank accounts or mobile banking accounts. There will be no provision for cash incentive payments.

Equipment Standards Mandatory

All equipment used in establishing rooftop solar systems, including solar panels, batteries, inverters, and meters, must comply with the technical standards set by BSTI and the Sustainable and Renewable Energy Development Authority (SREDA).

Additionally, policy support for the program will be provided by the Power Division's 'One-Stop Service Centre'. For necessary information and assistance, customers can also contact the district and sub-district level offices of their respective power distribution companies.

As per the Power Division's notification, this special incentive program has been effective from September 1, 2023.