Bangladesh Rooftop Solar Incentive 2026: How the Tk 10.50 Per Unit Rate Works

Bangladesh has announced a special incentive for eligible battery-backed rooftop solar systems. Under the programme, customers can receive Tk 10.50 for each unit of surplus electricity exported to the national grid.

One unit means one kilowatt-hour (kWh). However, the most important point is this: the Tk 10.50 rate is for surplus electricity supplied to the grid after your own consumption, not for every unit produced by your solar panels.

The incentive is designed to encourage rooftop solar, battery storage and cleaner energy use across homes, commercial buildings and industries. The announcement states that eligible systems installed by 28 February 2027 may receive Tk 10.50 per exported unit until 28 February 2030. Government announcement

Tk 10.50 rooftop solar incentive at a glance

• Rate: Tk 10.50 per exported kWh or unit
• Eligible system: Rooftop solar system with battery storage
• What is paid for: Surplus electricity exported after self-consumption
• Installation deadline: 28 February 2027
• Incentive period: Until 28 February 2030
• Payment: Through the customer’s banking channel every three months
• Equipment requirement: Solar panels, batteries, inverters and meters must comply with BSTI and SREDA technical standards

The government used a benchmark production cost of Tk 8 per unit for battery-backed rooftop solar. Adding a 20% return and an 11.25% premium produces the Tk 10.50 rate:

Tk 8 + Tk 1.60 + Tk 0.90 = Tk 10.50 per unit

This is a policy calculation. It does not mean every solar installation will cost Tk 8 per unit, nor does it guarantee a specific profit for every customer.

What does “surplus electricity” mean?

A rooftop solar system first supplies electricity to the building where it is installed. For example, a factory may use solar electricity for machinery, lights and cooling during the day. A home may use it for fans, lights, refrigerators and other daytime loads.

If the solar system produces more electricity than the building needs at that moment, the extra electricity may be sent to the national grid through an approved net-metering connection. That exported portion is called surplus electricity.

There are two financial benefits:

1. Solar electricity used directly in your building can reduce electricity bought from the grid.

2. Eligible surplus electricity exported to the grid can receive the Tk 10.50-per-unit incentive.

Therefore, customers should not calculate revenue by multiplying all solar generation by Tk 10.50. Much of the generated electricity may be consumed directly on site.

What is net metering?

Net metering is the system that allows electricity customers to generate renewable energy, use it at their premises and export extra power to the grid through a two-way meter.

The Power Division’s official net-metering portal outlines an online process: select the electricity distribution company, provide the consumer account number, submit project details, complete the utility inspection and receive approval before connection. Official net-metering portal

A rooftop solar system should not be connected for grid export without proper approval. The utility may inspect the site, confirm the equipment, check safety provisions and install or approve the required bidirectional meter.

The customer should keep copies of:

• Net-metering application
• Utility approval letter
• Equipment specifications
• Installation checklist
• Commissioning report
• Meter information
• Bank-account details
• Electricity bills and export records

Why battery storage matters

The Tk 10.50 incentive is specifically linked to rooftop solar systems with battery storage. Batteries can store electricity produced during the day for later use, depending on the approved system design and operating rules.

A battery-backed system may help customers manage electricity use more effectively, but batteries also add cost and require careful planning. Before choosing a battery, customers should request written details about:

• Battery chemistry and usable capacity
• Warranty period
• Expected cycle life
• Heat-performance suitability
• Battery-management system
• Fire and electrical safety features
• Inverter compatibility
• Maintenance and replacement plan

A low-cost system is not always a low-cost investment over its lifetime. The quotation should separately show the cost of panels, inverter, batteries, mounting structure, wiring, protection equipment, installation, meter, maintenance and future battery replacement.

SREDA’s role in rooftop solar

SREDA means the Sustainable and Renewable Energy Development Authority. It is Bangladesh’s specialist authority for renewable energy and energy efficiency.

SREDA does not directly pay the Tk 10.50 export incentive. Its role is to support the rooftop solar ecosystem through technical standards, information, renewable-energy planning, approved-equipment resources and the National Solar Help Desk.

SREDA’s practical support includes:

• Net-metering information and resources
• Information on approved solar modules and grid-tied inverters
• Solar calculation tools
• National Solar Help Desk support
• Technical standards and quality guidance

The incentive notification requires solar panels, batteries, inverters, meters and related equipment to meet BSTI and SREDA standards. Customers should verify the exact model numbers of proposed equipment rather than accepting a vague statement such as “SREDA approved.” SREDA rooftop solar programme

SREDA also supports safety requirements. For example, grid-connected inverters need anti-islanding protection so that electricity is not fed into the grid during an outage. This protects utility workers and nearby residents.

IDCOL’s role: finance and project support

The correct name is IDCOL, not ITCOL.

IDCOL stands for Infrastructure Development Company Limited. It is a government-owned specialised non-bank financial institution that has been financing rooftop solar projects in Bangladesh since 2017.

IDCOL’s financing programme is separate from the Tk 10.50 incentive. The government incentive is a payment for eligible surplus electricity exported to the grid. IDCOL may support eligible customers through financing, technical compliance monitoring, project-development support and performance monitoring.

IDCOL’s published rooftop-solar finance information includes:

• Loan amount: Up to 80% of project cost
• Loan tenor: Up to 10 years
• Grace period: One year for principal repayment
• Repayment: Monthly
• Published fixed interest rates: 5.0% per year with a 75% bank guarantee, or 5.5% per year with a 50% bank guarantee

These are published programme terms, not automatic approval. Final financing depends on project assessment, borrower eligibility, security requirements, financial strength and IDCOL’s current policies. IDCOL rooftop solar finance programme

IDCOL supports two main business models.

CAPEX model

Under CAPEX, the building or factory owner owns the solar system. The owner invests equity and may arrange a loan.

Benefits may include lower grid-electricity purchases, control over the asset and the ability to export eligible surplus electricity.

RESCO or OPEX model

Under RESCO/OPEX, a third-party Renewable Energy Service Company installs and owns the solar system. The roof owner provides roof space and buys electricity under an agreement.

This option can be useful for businesses that want solar energy but prefer not to invest the full capital cost themselves.

Who can benefit from rooftop solar?

The incentive can be relevant for homes, offices, factories, shops, hospitals, educational institutions and commercial buildings. Strong candidates often have:

• High daytime electricity demand
• A large, unshaded roof
• Long-term ownership or control of the building
• Reliable electricity-consumption records
• Capacity to complete approval and installation before the deadline
• Willingness to use compliant equipment
• A realistic maintenance and financing plan

Industrial facilities can be especially suitable because many factories have large roofs and significant daytime loads. Export-oriented manufacturers may also benefit from lower operational emissions and renewable-energy reporting.

However, a rooftop solar project should not be selected only because it sounds profitable or environmentally friendly. The roof condition, shading, load profile, electrical infrastructure, financing cost, fire safety and maintenance responsibility all matter.

Example: calculating export revenue

Suppose a qualifying system exports 500 units of verified surplus electricity to the grid during a covered billing period.

500 units × Tk 10.50 = Tk 5,250

This is only an example of the incentive calculation. It is not a guarantee of earnings.

Actual exports depend on sunlight, weather, shading, daytime electricity demand, system size, battery operation, meter readings, equipment performance and utility approval.

The calculation also does not include loan instalments, maintenance cost, insurance, taxes, battery replacement or other project expenses.

How to plan a rooftop solar project

1. Review at least 12 months of electricity bills

Collect one year of bills, consumption history, tariff details, meter type and allocated load. A factory should use interval data if available.

This helps identify when electricity is used, not just how much is used each month.

2. Assess the roof

Check roof ownership, structural condition, waterproofing, shading, usable space, drainage, access, fire routes and future construction plans.

For large systems or older buildings, a structural assessment is highly advisable.

3. Compare detailed proposals

Ask more than one EPC contractor for a complete proposal. Each proposal should include:

• Panel model and warranty
• Inverter model and warranty
• Battery model, capacity and warranty
• Expected annual generation
• Self-consumption and export assumptions
• Mounting structure
• Electrical protection equipment
• Monitoring system
• Net-metering support
• Maintenance plan
• Exclusions and additional costs

Do not choose solely based on the lowest price. A cheap offer may exclude compliant batteries, metering, safety equipment, roof work or after-sales support.

4. Verify compliance

Confirm that the proposed equipment meets the necessary BSTI and SREDA requirements. Also check the installer’s experience, legal registration, technical team, warranties and previous projects.

Never rely only on verbal assurances of “government approval.”

5. Confirm the latest official rules

The Power Division has published both a rooftop-solar incentive notification and a later clarification, as well as a Net Metering Guideline 2026 notice. The latest official documents and utility instructions should always take priority over old news reports or marketing claims. Power Division rooftop solar documents

6. Apply before installation

Use the official net-metering application process and obtain the utility’s approval before commissioning the system for grid export.

If the equipment model, battery design, capacity or connection point changes, confirm the change with the utility.

7. Maintain the system

Rooftop solar is a long-term asset. Monitor generation, export readings, battery status and inverter alerts. Schedule proper cleaning and maintenance. Compare actual performance with the installer’s estimate.

Questions to ask before signing an agreement

• Is this exact system eligible for the current Tk 10.50 incentive?
• Does the quotation include the required battery-storage system?
• How much generation is expected to be self-consumed?
• How much is expected to be exported?
• Are those assumptions based on real load data?
• Which panel, inverter, battery and meter models will be installed?
• How is equipment compliance documented?
• Who will manage net-metering approval and utility coordination?
• Who is responsible for maintenance?
• What happens if the battery needs replacement?
• What are the loan interest rate, fees, security conditions and repayment schedule?
• Who bears the risk if policy conditions change?

Common misunderstandings

“The government will pay Tk 10.50 for every solar unit I generate.”
No. The announced rate applies to eligible surplus electricity exported after self-consumption.

“IDCOL gives everyone a Tk 10.50 solar subsidy.”
No. IDCOL provides financing and project support. It is separate from the export incentive.

“SREDA installs rooftop solar systems.”
No. SREDA provides standards, information and support resources. A qualified EPC company installs the system.

“Any solar panel will qualify.”
No. Equipment must meet BSTI and SREDA standards, and the utility must approve the installation.

“A high export forecast guarantees fast payback.”
No. Financial results depend on capital cost, financing, self-consumption, export level, battery life, maintenance and system performance.

Frequently asked questions

Is one unit equal to one kilowatt-hour?

Yes. One electricity unit normally means one kilowatt-hour or kWh.

What is the incentive deadline?

The original announcement states 28 February 2027 for eligible battery-backed rooftop solar installations. Confirm the latest interpretation with the relevant utility before investing.

How long does the Tk 10.50 rate apply?

The announcement states that eligible exported electricity can receive the rate until 28 February 2030.

Is a battery required?

The special Tk 10.50 incentive concerns rooftop solar systems with battery storage. A standard grid-tied system without a battery should not be assumed eligible.

Who pays the incentive?

The distribution company records export information and handles payment through the stated banking process.

Where can customers seek help?

Customers can use the Power Division’s net-metering portal, their electricity distribution company and SREDA’s National Solar Help Desk. National Solar Help Desk

Conclusion

Bangladesh’s Tk 10.50-per-unit rooftop solar incentive can create a meaningful opportunity for customers who install compliant battery-backed systems, use solar electricity on site and export verified surplus power.

The key is to understand that the incentive is only one part of the project’s value. A good rooftop solar investment should be based on real electricity demand, roof suitability, compliant equipment, utility approval, reliable maintenance and a transparent financial model.

SREDA supports standards and technical confidence. IDCOL can support eligible projects with financing and monitoring. The Power Division and electricity distribution companies remain central to current incentive conditions, net-metering approval and payment administration.