Cabinet approved Special Solar Power Installation Ordinance 2026 on October 18 to facilitate rooftop solar systems and reduce dependence on imported fossil fuels.
<cite index="21-2">The Cabinet on October 18 gave approval to the draft Special Solar Power Installation Ordinance, 2026, for facilitating rooftop solar power installations to reduce dependence on imported fossil fuels and cut subsidies in the power sector.</cite> <cite index="22-1">The government is targeting 3,000-4,000 megawatts of solar capacity before next summer.</cite>
<cite index="22-4,22-7">Existing laws lack specific provisions on key issues including long-term electricity pricing, rooftop rental payments, and maintenance responsibilities. The Public Procurement Act, 2006, the Invest Bangladesh Act, 2026, and the Electricity Act, 2018, do not specifically cover solar installation and service arrangements.</cite>
<cite index="22-5,22-6">The ordinance provides for two investment models: Under the operational expenditure (OPEX) model, private investors bear installation costs and provide electricity to the building owner. Under the capital expenditure (CAPEX) model, the building owner or another entity funds the installation and owns the system.</cite>
<cite index="26-3">Cabinet Secretary Nasimul Ghani said the draft ordinance received both policy-level and final approval at the cabinet's 25th meeting, chaired by Prime Minister Tarique Rahman at the Secretariat.</cite> <cite index="26-7">Solar projects will be allowed on government and private buildings, as well as on unused land.</cite>