Entrepreneurs in Bangladesh’s solar energy sector claim the banks’ complex and conditional financing system is a major obstacle to the expansion ofrooftop solar system installation.
However, banks are calling the financing risk very high due to delays in returning investments, despite instructions from the central bank.
A discussion titled ‘Unveiling Solar Rooftop Finance: Towards a Sustainable Energy Future’ at a hotel in Dhaka recently highlighted challenges and prospects of this sector.
Bangladesh Bank Deputy Governor Nurun Nahar said the government will soon unveil a set of incentive programs to expand solar power.
Thediscussionwasjointlyorganizedby the Bangladesh Sustainable and Renewable EnergyAssociation(BSREA) andActionAid Bangladesh. Naharsaid, ‘BangladeshBankhasbeen involved in solar plants since 2008.
Rooftop solar is now essential for our country.
A policy of 20 percent solar powerisbeing introducedinEPZs, EZs, and other economic zones. ‘New instructions are being issued for commercial banks and financial institutions.
The BPDB will take the initiative to launch cluster-based franchises in all divisional cities, including Dhaka and Chattogram. ‘An escrow system will be introduced to ensure payment security.’Efforts are under way to launch solar power projects in the public-private partnership (PPP) model using unused railway land,she added.
Alamgir Morshed, chief of Infrastructure Development Company Limited (IDCOL), said the company will take the lead in financing rooftop solar projects, though banks’ participation could encourage mixed investments.