Bangladesh has established a $123 million fund to finance rooftop solar and other renewable energy projects as the government seeks to address persistent power shortages. The Finance Division announced the fund on Wednesday, with the money reallocated from the development budget for the current fiscal year. The fund will provide concessional loans for renewable energy projects at the residential, institutional and industrial levels.
The Power Division is also seeking financing from development partners, including the Asian Development Bank, the Japan International Cooperation Agency and the World Bank. The government aims to deploy 4 GW of rooftop solar capacity before next summer. Infrastructure Development Company Ltd. (IDCOL), Bangladesh Infrastructure Finance Fund Ltd. (BIFFL) and Palli Karma-Sahayak Foundation (PKSF) will distribute the funds. Eligible projects include new, expanded and upgraded renewable energy installations, such as net-metered rooftop PV systems, solar home systems, industrial solar arrays and solar irrigation pumps.
The initiative aligns with the Renewable Energy Development Policy 2026–2030, which targets a 20% share of renewables in Bangladesh's electricity generation mix by 2030. Finance Division Joint Secretary Anarul Kabir said the initiative is intended to provide affordable financing on favorable terms for renewable energy installations, including rooftop PV systems. Bangladesh currently has 1,852 MW of installed renewable energy capacity, including 1,473 MW of solar, indicating substantial room for growth if the 4 GW rooftop target is met.
What remains unknown is the specific interest rate, loan tenor, or allocation split among the three distributing institutions. The report does not detail how much of the $123 million will go to rooftop solar versus other renewable energy projects, nor does it specify the timeline for disbursement. The success of the 4 GW target also depends on securing additional international financing, the status of which has not been confirmed.