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The cabinet has given policy and final approval to the draft of the Special Solar Power Installation Ordinance, 2026, aimed at facilitating rooftop solar power installations through public and private initiatives.
The approval was granted at the cabinet’s 25th meeting on Monday (October 19), subject to vetting by the Legislative and Parliamentary Affairs Division.
The initiative aims to reduce dependence on imported fossil fuels in the power sector, ease subsidy pressure, strengthen energy security and help achieve the Sustainable Development Goals.
The Power Division has formulated the National Renewable Energy Development Strategy 2026–2030 to support these objectives.
The government has already announced incentives to install 3,000–4,000 megawatts of rooftop solar capacity before next summer.
Under the plan, solar systems will be installed on the rooftops of government, semi-government, autonomous and local government institutions, as well as state-owned companies, using the operational expenditure (OPEX) model, in which investors finance the installations.
Institutions with their own revenue sources will also be able to use the capital expenditure (CAPEX) model, taking their future earnings into account.
According to the Power Division, existing laws lack specific provisions governing long-term electricity pricing, payments to institutions for rooftop use and maintenance under the OPEX model, as well as the installation and servicing of solar systems under the CAPEX model.
The proposed ordinance seeks to establish a clear legal framework for investment, contractual arrangements, electricity pricing and maintenance. The government cited gaps in the Public Procurement Act, 2006, the Invest Bangladesh Act, 2026, and the Electricity Act, 2018, as reasons for drafting the ordinance.
