Big businesses turn to solar power, could generate 600MW themselves

One of the country’s leading industrial groups, DBL Group, has installed solar power generation units with a combined capacity of 5.5MW on the rooftops of seven of its garment and textile factories. It also plans to install 16MW of solar power capacity at 10 more factories, including ceramic and garment factories. Of this, 8MW is expected to come into operation this year and the rest next year.

Speaking to Prothom Alo, DBL Group Vice Chairman MA Rahim said, “We are investing rapidly in solar power because of energy security concerns at our various establishments and pressure from foreign buyers to reduce carbon emissions. With new technologies, solar power installation now takes less time than before. The cost of rooftop solar power at our factories is Tk 6 to Tk 6.50 per unit.”

Like DBL Group, big industrial groups are now rapidly turning to solar power. Solar power installation began a decade ago under government policies and pressure from foreign buyers to reduce carbon emissions. As the energy crisis has intensified and fuel prices have continued to rise, large industrial groups have increased their investment in solar power over the past three years.

Officials of several companies involved in solar power installation said most of the large solar plants installed on industrial rooftops have been set up over the past two years. Solar power units with a combined generation capacity of more than 600MW have already been installed at various industrial establishments. Most of these are in export-oriented garment factories.

Although rooftop solar power cannot meet the entire electricity demand of industrial facilities, it can help keep factories operational for up to three to four hours. Solar power meets 5 per cent to 15 per cent of a factory’s total electricity demand, although the share is higher at some factories. As a result, rooftop solar power at these industrial facilities has helped reduce pressure on electricity from the national grid during the daytime, according to officials involved in solar power generation.

Sources said Abul Khair Steel, Walton, Ha-Meem Group, PRAN-RFL Group, BSRM, Youngone Group, Meghna Group of Industries (MGI), Pacific Jeans Group, Team Group, DBL Group, Rising Group, Urmi Group, Microfiber Group, Palmal Group, Apex Footwear, Karnaphuli Shoe Industries and Masco Group, among others, have already installed solar power units of various capacities at their factories.

The growth in rooftop solar power capacity at industrial and commercial establishments in Bangladesh can be gauged from a report by the US-based Institute for Energy Economics and Financial Analysis (IEEFA).

A report published by the organisation on 4 August said, “While government data reports 418.1 megawatts (MW) of rooftop solar capacity till June 2026, IEEFA estimates it has reached 667MW in 239 establishments, including groups of companies. If the assessment were to include units below 0.15MW, Bangladesh’s rooftop solar capacity might already be around 1,000MW. This growth has contributed to a slight decline in daytime power demand, based on comparisons between 16 April–11 June 2024 and the same period in 2026.”

Leading industrial group PRAN-RFL plans to generate more than 100MW of solar power from the rooftops of its various factories. It is already generating 35MW at 20 factories. At least another 30MW could be added this year. In addition to meeting the needs of its own factories, two of its factories are supplying electricity to the national grid.

Another major group, Akij Bashir Group, is increasing rooftop power generation at its factories. A 21MW generation capacity has been developed at its Janata Jute Mills. The jute mill is now meeting 100 per cent of its electricity demand from its rooftop. A 13MW solar power unit has been installed on the rooftop of Akij Glass’s factory in Habiganj, including an 8MW battery system. This allows the factory to receive electricity at night as well. The company began generation in 2022. Akij Bashir is now generating a total of 75MW of electricity from rooftops. Work is currently under way to add another 28MW of capacity.

Meghna Group of Industries (MGI) has installed solar power units with a combined generation capacity of 64.84MW on the rooftops of its various factories. This meets around 5 per cent of the electricity demand of its factories. The company plans to install another 50MW of solar power capacity. If completed, its total solar power generation capacity will rise to around 115MW.

Speaking to Prothom Alo, MGI Director Tanveer Mostafa said, “For a long time, renewable energy generation and use have been among our priorities. We are exploring creative ways to generate solar power not only on factory rooftops but also on building facades, boundary walls and lighting systems on road dividers.”

“We are gradually converting private cars and commercial vehicles to electric vehicles. During periods of natural gas shortages, we are exploring reliable ways to use LPG at power plants. These initiatives cannot solve the national energy crisis. However, they will help reduce our dependence on energy resources,” he added.

Omera Solar, a subsidiary of East Coast Group, has installed solar power units with a combined capacity of 130-140MW on the rooftops of 100 industrial facilities since 2021. It is currently installing rooftop solar power systems at 12 industrial facilities. Once these are operational, they will generate another 20MW of electricity.

Speaking to Prothom Alo, Omera Solar Chief Executive Officer (CEO) Masudur Rahim said the highest number of rooftop solar installations at industrial facilities took place over the past two years due to the worsening energy crisis. Solar power plants have a lifespan of 20-25 years. Once the investment is made, there is little expenditure apart from maintenance. Moreover, the cost is half or less than that of grid electricity. This is why industrial entrepreneurs are becoming increasingly interested in solar power.

Leading garment manufacturer Rising Group has installed solar power units with a combined capacity of 14MW on the rooftops of six industrial facilities. As a result, rooftop solar power is meeting up to 60 per cent of the electricity demand at two garment factories. At two spinning mills, 15 per cent of their electricity demand is being met by rooftop solar power.

Rising Group Managing Director (MD) Mahmud Hasan Khan told Prothom Alo, “Our spinning mill in Manikganj had been suffering from a gas shortage for a long time. We eventually installed solar power at the factory in 2019, largely out of necessity, to address the crisis. Later, we installed solar power at our other factories from a genuine business perspective. This is because the cost of generating solar power is nearly half that of grid electricity.”

It has been learnt that the current price of electricity for small industries is Tk 12.73 per unit. For large factories, the average price is Tk 12.85 per unit for medium-voltage connections and Tk 12.75 per unit for high-voltage connections. During peak demand at night, however, the price per unit of electricity is close to Tk 16. In contrast, the cost of generating rooftop solar power is around Tk 4 to Tk 8 per unit.

Superstar Renewable Energy has so far implemented rooftop solar power projects at 90 industrial facilities. The total generation capacity of these projects is around 100MW. The company is currently installing solar power systems on the rooftops of more than 10 industrial facilities. Once operational, these will generate 20MW of electricity.

Speaking to Prothom Alo, Superstar Renewable Energy Chief Executive Officer (CEO) Mezanur Rahman said it cost Tk 50 million to install a 1MW solar power unit on a rooftop five years ago. The cost has now fallen somewhat to Tk 40 million. However, installing it on the ground costs close to Tk 80 million.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) recently conducted a survey of 424 garment factories. All the owners expressed interest in installing rooftop solar power at their factories. However, they identified limited access to financing as the main obstacle.

Several garment factory owners said European Union (EU) garment buyers have set a condition for reducing carbon emissions from production by 30 per cent by 2030. As a result, manufacturers producing garments for EU buyers are under pressure to install solar power. However, the high cost makes it challenging for medium-sized entrepreneurs to install solar power units.

Speaking to Prothom Alo, BGMEA President Mahmud Hasan Khan said loans for solar power installation are available at an interest rate of 5 per cent from Bangladesh Bank’s Green Transformation Fund and 6 per cent from Infrastructure Development Company Limited (IDCOL). However, obtaining an IDCOL loan requires a 100 per cent bank guarantee. The interest rate on loans should be reduced, or the repayment period should be extended from seven years to nine years. This would enable owners of medium-sized industries to install solar power units at their factories.

Although Bangladesh has been talking about prioritising electricity generation from renewable energy for a decade, generation has not increased significantly. The country had set a target of generating 10 per cent of its total electricity from renewable energy by 2021. As the target was not achieved, a new target was set in 2025.

The current government has set a target of increasing the share of renewable energy in the country’s total electricity generation to 20 per cent by 2030. As part of this initiative, the government has withdrawn import duties, regulatory duties, supplementary duties and advance tax on imports of key solar power equipment in the current fiscal year’s budget. However, a number of conditions must be met to receive the benefits.

Officials of companies installing solar power systems said the duty-free facility for importing solar power equipment for industrial installations could reduce costs by 15 per cent. If that happens, the cost of installing 1MW of solar power could fall from Tk 40 million to around Tk 35 million.

A study by the private research organisation Centre for Policy Dialogue (CPD) said there is potential to generate around 1,768MW of solar power from the rooftops of 3,320 garment factories in the country. Of these, 500 factories are ready to begin solar power generation. With various incentives, another 1,300 factories could begin generating solar power in the shortest possible time.

Speaking to Prothom Alo, CPD Research Director Khondaker Golam Moazzem said, “For a long-term solution to the energy crisis, we need to increase domestic gas supplies, renewable energy and electrified economic activities. To expand rooftop solar power from large industries to small and medium-sized factories, low-interest loans must be arranged."

"Green bonds could be issued on the stock market for this purpose. There are also many low-cost funds available internationally. These funds can be brought in to finance solar power installations. In this case, Bangladesh Bank will have to provide guarantees. Two years ago, we found that there were $34 billion in low-cost funds available globally that Bangladesh could access,” he added.