The government has issued the Special Solar Power Installation Ordinance, 2026, allowing solar power projects with a capacity of up to five megawatts to accelerate the expansion of renewable energy across the country.
The Ministry of Law, Justice and Parliamentary Affairs published the ordinance in the official gazette on Monday.
The ordinance establishes a framework for solar installations on rooftops, courtyards, unused land, tea gardens, water bodies and agricultural land under agrivoltaic systems. It also provides for financing under the operating expenditure (OPEX) model, net metering, service provider selection and project monitoring.
Penalties have also been introduced for theft, vandalism, illegal connections and obstruction of solar installation, inspection and maintenance work.
Under the ordinance, solar systems can be installed at government, semi-government, autonomous and local government institutions, government-owned companies and residential properties. Installations will also be permitted on building rooftops, parking lots, garages and commercial and industrial facilities, as well as through floating solar and agrivoltaic technologies.
Solar systems with a capacity of up to five megawatts will qualify as special solar power systems under the ordinance. However, large-scale ground-mounted solar power projects will remain outside its scope.
The ordinance prioritises the OPEX model, under which a service provider finances, installs, operates and maintains a solar power system. The cost is settled through a contractual arrangement based on the electricity generated, the value of the power supplied or an agreed share of the output.
Customers with sufficient funds may instead install systems using the capital expenditure (CAPEX) model, financing the projects themselves.
The designated authorities will maintain district-wise lists of service providers through a simplified process. Customers will be able to select providers through competitive procedures or open tenders.
A tripartite agreement involving the customer, service provider and designated authority will be required for each special solar installation. The agreement will follow a government-approved standard template and specify land-use rights, equipment quality, electronic waste management, manufacturers' take-back schemes for discarded equipment, electricity tariffs and net-metering arrangements.
To speed up implementation, the ordinance allows procurement of goods and services worth up to Tk 5 crore through a limited tendering process under the CAPEX model. The use of the electronic government procurement (e-GP) system will not be mandatory for these procurement activities.
The Sustainable and Renewable Energy Development Authority (SREDA) will maintain online records of all special solar power systems and regularly monitor whether the panels and systems remain operational. The government will also introduce incentives related to net metering to help achieve national renewable energy targets.
A National Policy Council, chaired by the prime minister, will be established to coordinate solar power expansion and policy implementation. Its members will include ministers or state ministers and senior secretaries from relevant ministries, including finance, law and power.
District-level technical and coordination committees will also be formed under the chairmanship of deputy commissioners. These committees will include police superintendents, local engineers and district-level heads of electricity agencies, and will submit reports to the national council every three months.
At the upazila level, technical and coordination committees led by upazila nirbahi officers (UNOs) will oversee implementation. They will report to the district committees every month.
The ordinance sets out penalties for offences involving solar power systems and equipment. Theft of electricity or equipment, as well as buying, selling or possessing stolen items, is punishable by up to three years in prison, a fine of Tk 50,000, or both.
Vandalising or damaging solar panels and related equipment carries a maximum penalty of five years' imprisonment or a fine of up to Tk 5 lakh.
Illegal connections made without written permission from the designated authority, as well as obstructing personnel engaged in solar installation, inspection or maintenance, are punishable by up to three years' imprisonment or a fine of up to Tk 5 lakh.
Cases may be tried by first-class magistrates or metropolitan magistrates. In certain circumstances, mobile courts may also adjudicate the offences.
The ordinance further states that no civil or criminal case, or other legal proceedings, may be brought against the government, designated authorities or relevant officials and employees for actions taken in good faith under the ordinance, even where such actions cause harm or create a risk of harm.