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The Government of Bangladesh has reduced the import duty on solar inverters from 10% to just 1% in a strategic move to promote solar energy adoption and reduce the overall cost of clean power projects. The policy took effect on June 22 following the passage of the national budget for fiscal year 2025-26.

Officials stated that the reduction will significantly lower project costs and stimulate greater investment in the renewable energy sector. The domestic solar industry had long advocated for this change, calling it essential to scale up deployment.

“Inverters represent roughly 15% of a solar project’s cost,” said Dipal C. Barua, chairman of the Bright Green Energy Foundation. “Lowering the duty will enhance affordability and accelerate adoption.”

Mostafa Al Mahmud, president of the Bangladesh Sustainable and Renewable Energy Association (BSREA), noted that the duty cut responds to long-standing demands from clean energy stakeholders voiced at various government forums. He added that the move will also lead to reductions in related taxes and called for increased availability of energy storage solutions to ensure stable green power generation.

The government is also reviewing its net-metering policy to better support rooftop solar adoption for households and businesses.

Despite growing interest in solar, the Bangladesh Power Development Board (BPDB) struggled to attract bidders earlier this year, when it launched 41 solar tenders between December 2024 and January 2025. Deadlines were extended multiple times, but no bids were received—highlighting the urgent need for policy and market reforms.