Rooftops, water bodies and tea gardens now open to private solar investors

New ordinance sets rules for solar projects up to 5 megawatts, covering contracts, financing, e-waste and penalties for theft

If you own a rooftop, you can now put solar panels on it under a clear set of government rules, with or without your own money.

The rules come from a new ordinance the government issued on Monday. Titled the “Special Solar Power Installation Ordinance, 2026”, it covers solar projects of up to 5 megawatts on rooftops, courtyards, unused land, tea gardens and water bodies.

It also covers floating solar panels and “agrivoltaics”, a setup where crops grow beneath or beside the panels.

Large ground-mounted solar farms are not covered in the rules.

As the war in the Middle East keeps global energy prices volatile and exposes the country’s heavy dependence on imported fuel, the authorities are pushing to ramp up cleaner power generation.

To cut its dependence on imported fuel, the government wants 3,000-4,000 megawatts of renewable capacity before next summer. Small, scattered projects across the country are meant to deliver a large share of it.

To pay for renewable power, the ordinance offers two models.

In the first, called OPEX, a solar company pays for the installation, runs it and is paid back through the electricity the panels produce. The building owner puts up no money upfront. In the second model, called CAPEX, the owner pays for the system and keeps it.

Either way, customers on net metering can send surplus power to the national grid. The electricity is credited against their bills, and they may also be paid for it at rates the government sets.

Every project under the OPEX model must be backed by an agreement signed by the customer, the solar company and a government authority.

It will have to follow a standard government template and specify who can use the roof or land, the quality of equipment, the price of electricity, net-metering terms, and what happens to equipment when it is thrown away.

Under the new rules, the contract must include e-waste management and “take-back” schemes, under which manufacturers collect their discarded equipment.

Energy specialists say the provision is important because the country still struggles to manage electronic waste, a problem that has grown with the boom in battery-run auto-rickshaws and rising demand for electric vehicles (EVs).

On the other hand, for CAPEX projects, the ordinance allows buyers to purchase goods and services worth up to Tk 5 crore through “limited tendering”.

Limited tendering means inviting a select group of suppliers rather than the open market. The government’s online procurement system e-GP will not be compulsory for such purchases as it aims to move quickly.

Shafiqul Alam, lead energy analyst at the Institute for Energy Economics and Financial Analysis, said the ordinance reflects the government’s commitment to expanding renewable energy, particularly rooftop solar.

But he called for clarification of the procurement provisions, particularly whether limited tendering requirements would apply to private industries installing solar panels on their own premises.

“Your industry, on your roof, what will you use, what specification? It matches with the Bangladesh standard, that’s it,” he said. “Now, you can take it through tender, or you can give it directly.”

He also noted that three-party agreements already existed under net metering, so the ordinance mainly streamlines the process.

On e-waste, he welcomed the inclusion of the issue but said further frameworks will be needed to make the provisions effective.

Mostafa Al Mahmud, president of the Bangladesh Sustainable and Renewable Energy Association (BSREA), said solar panel waste will grow as installations spread, and the country will need proper systems for collecting, recycling and disposing of it.

“If e-waste is generated and there is no proper process for disposing of it, and if it harms the environment, then there is no benefit to the initiative,” he told The Daily Star.

He added that recycling could create investment opportunities and employment if managed properly.

CONCERN OVER FINANCING, PROCUREMENT

Mostafa raised two other concerns about the new rules.

He said expensive loans could push up the cost of the electricity produced. He also said that if procurement is not transparent, genuine investors or genuine businesspeople could be pushed out by political favouritism.

Therefore, he called for a broader law covering all renewable technologies and project sizes, which he said would draw more local and foreign investment.

Meanwhile, Shafiqul said the government will need to build further frameworks to make the e-waste rules work.

Under the ordinance, stealing solar electricity or equipment carries up to three years in prison, a fine of Tk 50,000, or both. Buying, selling or holding stolen equipment draws the same punishment.

Damaging panels or equipment can bring up to five years in prison or a fine of up to Tk 5 lakh. Making illegal connections, or obstructing workers who install, inspect or maintain systems, carries up to three years or a Tk 5 lakh fine.

Cases will go to first-class or metropolitan magistrates, and some can be heard in mobile courts.

A National Policy Council headed by the prime minister will guide policy. District and upazila committees will coordinate on the ground, and the Sustainable and Renewable Energy Development Authority (SREDA) will keep records of installed systems and check that they are working.