Rapid grid expansion and lack of coordination weakened Bangladesh's solar transition, says think tank
Poor Planning Left 3 Million Solar Home Systems Defunct: CPD
Nearly half of Bangladesh's six million Solar Home Systems are now non-functional, according to a CPD study. The report blames unplanned grid expansion and policy gaps, and recommends converting legacy systems into hybrid or grid-tied models.
June 23, Tuesday, a post-budget seminar in Gulshan highlighted findings from the "SHS Survey 2025" conducted by the Centre for Policy Dialogue (CPD). The study found that nearly three million out of six million Solar Home Systems (SHS) installed across Bangladesh are now non-functional.
The paper was presented by CPD Research Associate Atikuzzaman Sajid. CPD Research Director Khondaker Golam Moazzem chaired the event. Chief Whip of the Parliament Nurul Islam Moni attended as the chief guest.
According to the study, off-grid electrification began in 2003 through Infrastructure Development Company Limited (IDCOL). The programme received funding from the World Bank, ADB and JICA and was implemented through around 30 partner NGOs.
A record 853,000 systems were installed in 2013. However, between 2014 and 2018, rapid expansion of the national grid without long-term planning sharply reduced the demand for Solar Home Systems. Annual installations dropped by 99.6 percent to only 3,455 units in 2018.
The report said the systems had limited capacity and were mainly used for lighting and mobile charging. Consumers gradually shifted to grid electricity.
It also identified a major coordination failure. Solar loans and installations continued while rural grid expansion moved ahead without prior notice. This created losses for partner NGOs and financiers. Discarded batteries and panels are now creating environmental risks.
The survey found that around 47 percent of installed systems are currently inactive. No policy framework exists to integrate them with the national grid through hybrid or transition models.
CPD recommended modernising legacy Solar Home Systems instead of abandoning them. Earlier, the programme helped bring electricity to more than 20 million people in remote areas.
The think tank also suggested removing import duties on solar panels and inverters, simplifying residential net metering, creating a legal framework for solar asset financing and easing green refinancing procedures.
Other recommendations include connecting irrigation pumps to the grid, allowing surplus power sales, gradually reducing diesel subsidies and forming a national coordination committee under SREDA.
CPD also called for converting old and non-functional systems into hybrid or grid-tied models.
//DBTech/DPO/DHE//
