The government of Bangladesh has introduced a tariff of BDT 10.50 ($0.086)/kWh for surplus electricity from eligible rooftop solar systems operating under the country’s net-metering regime.

The government’s Power Division announced the incentive package on Tuesday.

“To ensure sustainable energy security, the government has taken extensive initiatives to promote renewable energy. As part of this, a special incentive package has been announced for installing rooftop solar power systems with batteries,” the Power Division said.

It said the maximum generation cost for rooftop solar systems with battery storage has been set at BDT 8 ($0.065)/kWh, based on current market prices and bids submitted in recent tenders.

Under the incentive scheme, the government will add a 20% profit margin and an 11.25% premium to the benchmark generation cost. “If any consumer can produce solar power at lower than the said cost, the saved amount will be considered as the consumer’s profit,” the Power Division said.

Consumers that install rooftop solar systems by Feb. 28, 2027, and supply surplus electricity to the grid under Bangladesh’s Net Metering Guidelines 2025 will qualify for the incentive tariff for three years, through Feb. 28, 2030.

Power distribution utilities will maintain records of participating consumers, the amount of electricity supplied to the national grid, and payment data, including incentive payments. The payments will be transferred to consumers’ bank accounts every three months.

The government has said it wants to install at least 5 GW of solar capacity through net metering by next summer to help address electricity shortages. Daily power shortages have exceeded 3 GW during periods of high summer demand, resulting in widespread power cuts in urban and rural areas.

Mostafa Al Mahmud, president of the Bangladesh Sustainable and Renewable Energy Association (BSREA), said the government appears increasingly committed to expanding renewable energy generation as the country faces disruptions to oil and gas supplies.

He said the government held discussions with private-sector renewable energy producers in late August, during which industry representatives proposed incentives to encourage consumers to install rooftop solar systems.

“Within a week, the government announced the incentive, which is a welcome move,” Mahmud said.

According to the Institute for Energy Economics and Financial Analysis (IEEFA), Bangladesh’s rooftop solar capacity has exceeded 1 GW.