Gain comprehensive insights into the statistics and metrics surrounding the solar production industry in Bangladesh
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Bangladesh Solar Report
Gain comprehensive insights into the statistics and metrics surrounding the solar production industry in Bangladesh
Key points
Yearly sunshine (sun hours per year)
Bangladesh receives an average of 3.8-6.42 kWh/m2/day of solar radiation across different regions of the country.
Sunshine Duration
kWh per kWp installed
Average cost per kWh from utility company
At the wholesale level, the current average price is $0.0598 USD, while at the retail level, the price are $0.076075 USD.
Reliability of electrical power supply grid
The reliability of the electrical power supply grid in Bangladesh has been a significant challenge. Here’s an overview of the reliability of Bangladesh’s power grid:
Detailed Information
The total installed renewable energy capacity in Bangladesh is approximately 650.53 megawatts (MW). Specifically, solar energy contributes 459 MW.
The country plans to generate 4,100 MW of clean energy by 2030, consisting of 2,277 MW from solar.
The average costs of different electricity generation sources in Bangladesh:
Coal
The cost of coal-fired power generation in Bangladesh averaged approximately 4.78 U.S. cents per kWh.
Natural Gas
Cost of generation is ranging from 0.017595 USD/kWh to 0.035785 USD/kWh.
Solar Energy
Heavy Fuel Oil (HFO)
A much more expensive option compared to natural gas, costing around 0.15181 USD/kWh on average.
Diesel
The most expensive option, with an average cost of 0.317475 USD/kWh.
Overall Context
In figure 02, all the percentages of various electricity generation sources are given for year 2022- 2023.
As of 2020, 96.20% of the population in Bangladesh has access to electricity, which is a significant improvement from previous years. However, it’s essential to note that the country still faces challenges related to power outages, especially in rural areas. These outages can last for about 4-6 hours per day, and during summer, they may extend to 6-8 hours.
By 2018, the SHS program had sold over 4.1 million units, bringing electricity services to approximately 20 million people in Bangladesh.
There are 1,262 MW of renewable energy projects under construction across 30 different projects, with further plans for 8,668 MW of projects in the planning phases. The country has achieved a renewable energy capacity of 1,194 MW, predominantly from solar energy.
The Solar Home System (SHS) program is an off grid program in Bangladesh.
By 2018, the Solar Home System (SHS) program in Bangladesh had achieved significant milestones, including:
Furthermore, market projections indicate that the solar energy market in Bangladesh is poised for substantial growth, with a projected compound annual growth rate (CAGR) of 7.63% from 2024 to 2028. This growth is expected to result in a market volume of 0.51 billion kilowatt-hours by 2028, underscoring the country’s increasing adoption of solar energy solutions.
Forecasted On-Grid Projects
In 2023, Bangladesh approved a significant amount of large-scale photovoltaic (PV) projects, totaling 2.19 GW. Here are some key details about the approved projects:
While specific data for the solar industry is limited, wages in the broader renewable energy sector are generally slightly higher than the manufacturing sector average. According to industry estimates, entry-level technicians and workers in the renewable energy sector can expect wages approx. USD 135-170 per month.
As of 2024, the population of Bangladesh stands at approximately 174.7 million people.
Some industry estimates suggest that overhead costs for solar panel manufacturing in Bangladesh could be around 15-20% of the total production cost. This is lower than the typical overhead costs in more developed countries, which can range from 25-35%. Here are some insights into overhead costs for solar panel manufacturing in Bangladesh:
Rent/Facility Costs
Bangladesh generally has lower rental and facility costs compared to many other countries. Industrial rental rates in major cities like Dhaka can range from $2-5 per square meter per month.
Utilities
Electricity and other utility costs in Bangladesh are relatively low. The industrial electricity tariff is around $0.08-0.10 per kWh.
Labor Overhead
Labor costs in Bangladesh’s manufacturing sector are relatively low, which can help keep overhead costs related to administrative, supervisory, and support staff lower.
Taxation
Here’s a summary of the energy infrastructure in Bangladesh:
Electricity Generation
Transmission & Distribution
Renewable Energy
Energy Access
Energy Imports
Here’s a summary of the key regulations surrounding solar panel production in Bangladesh:
Renewable Energy Policy
Bangladesh has established a comprehensive Renewable Energy Policy in 2008, providing a framework for promoting renewable energy sources, including solar energy. The policy’s primary objectives are to facilitate private sector participation, offer fiscal incentives, and create a conducive environment for the development and implementation of renewable energy projects. By providing a supportive policy framework, Bangladesh aims to harness the potential of renewable energy sources, including solar energy, to contribute to the country’s energy mix and mitigate climate change.
Incentives and Tax Benefits
Renewable Energy Targets
Bangladesh has set a target to generate 40% of its electricity from renewable sources by 2041, which includes a significant contribution from solar power. This target drives policies and regulations to support the domestic solar industry.
Net Metering
Bangladesh has a net metering policy that allows residential, commercial, and industrial consumers to install grid-connected solar systems and sell excess electricity back to the grid. This policy aims to promote decentralized solar power generation.
Quality Standards
The Bangladesh Standards and Testing Institution (BSTI) has established quality standards for solar panels and related components. Manufacturers must comply with these standards to ensure product quality and safety.
Renewable Energy Development Authority
The Sustainable and Renewable Energy Development Authority (SREDA) is the primary regulatory body responsible for overseeing and promoting renewable energy projects, including solar power, in Bangladesh.
Financial Support and Subsidies
Research and Development
Skill Development Programs
The government, in collaboration with industry partners and educational institutions, has launched training programs to develop skilled technicians and workers for the solar panel manufacturing industry.
Net Metering and Rooftop Solar Programs
Solar Home Systems (SHS)
Program Overview
Bangladesh has the largest off-grid solar power program in the world, which offers experiences and lessons for other countries to expand access to clean and affordable electricity. By harnessing solar power, the program enabled 20 million Bangladeshis to access electricity.
Partnership
The World Bank supported the program through the Rural Electrification and Renewable Energy Development (RERED) Project, working with the Infrastructure Development Company Ltd (IDCOL) to implement the program. IDCOL combined infrastructure financing with micro-financing and private sector solar electrification initiatives.
Incentives for Domestic Solar Industry:
The regulatory code 155 provides import duty exemptions for solar cells, modules and lanterns. As the table 01 shows, the duties for other wind and solar equipment are also relatively low.
Table 01: Duties for other wind and solar equipment
Equipment | Import duty |
Photovoltaic cells, even if they are assembled into modules or panels | 0% |
Solar powered lantern/lamps having no provision for electrical power | 0% |
Complete photovoltaic systems | 1% |
Wind power generators | 1% |
Solar water heater with insulated storage tank | 10% |
Here are some notable solar power projects, both current and planned, in Bangladesh:
Sundarganj Solar Power Plant (32.4 MW)
Panchagarh Solar Park (8.8 MW)
Kaharole Solar Power Plant (7.4 MW)
Teknaf Solar Power Plant (3.5 MW)
Solar Home Systems (SHS) Program
Bangladesh has installed over 6.2 million solar home systems in rural off-grid areas, primarily through the Infrastructure Development Company Limited (IDCOL) program.
Purbachal Solar Park (100 MW)
Feni Solar Park (60 MW)
Jamalpur Solar Park (50 MW)
Rooftop Solar Program
Net Metering Program
Here’s a summary of some local companies:
Solarland Bangladesh Co. Ltd.
Solar Electro Bangladesh Ltd
SOLShareÂ
Alfanar Group
Solar News Related to Bangladesh
Your First Step In Solar Production
In 2021, the global market size of solar power was valued at 167.83 billion USD, and it is projected to grow from 234.86 billion USD in 2022 to 373.84 billion USD by 2029, exhibiting a CAGR of 6.9% during the forecast period.
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