Bangladesh Proposes Tax Incentives for Solar Power Expansion
The Bangladeshi government is set to introduce tax exemptions for solar power producers to boost investment and renewable energy generation. This initiative aligns with the country's goal to enhance its renewable capacity from 1,745MW to 3,700MW by 2030, amid rising electricity demand and energy security concerns.
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The National Board of Revenue (NBR) is considering a measure that would provide income tax exemptions for solar electricity producers until June 30, 2035. Effective from July 1, 2026, eligible companies must adhere to the Net Metering Guidelines 2025.
Companies consuming solar-generated electricity may receive a 5% tax rebate on their electricity bills. Current renewable energy capacity stands at approximately 1,745MW, with solar accounting for over 1,450MW.
Despite the proposed incentives, experts warn that challenges such as high import duties and financing constraints may hinder sector growth. Industry stakeholders call for additional policy support to maximize investment and ensure the successful transition to renewable energy.
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