A bill titled “The Special Solar Power Installation Act, 2026” has been placed in parliament, proposing special provisions to accelerate the expansion of solar power installations in both public and private institutions.
The bill was placed today (10 November) and subsequently referred to the relevant parliamentary standing committee for scrutiny.
Deputy Speaker Barrister Kaiser Kamal presided over the parliamentary session. Opposition Jamaat-e-Islami lawmakers opposed the bill after it was tabled in parliament.
Under the proposed law, purchases of goods and related services worth up to Tk5 crore under the capital expenditure model for solar power installations will be allowed through the Limited Tendering Method (LTM). The use of the Electronic Government Procurement (e-GP) system will not be mandatory in such cases.
According to the law, solar power systems with a maximum capacity of five megawatts can be installed on rooftops, courtyards, unused land adjacent to buildings and water bodies owned or used by government, semi-government and autonomous bodies, local government institutions, state-owned companies and residential buildings.
However, large-scale ground-mounted solar power projects will remain outside the purview of the law.
The law is deemed to have come into effect on 19 October. It replaces the Special Solar Power Installation Ordinance, 2026, promulgated on the same day.
All activities and measures undertaken under the ordinance will be considered as having been taken under the new law.
Solar power installation in two models
The law introduces two investment models for solar power installation – the Operational Expenditure (OPEX) model and the Capital Expenditure (CAPEX) model.
Under the OPEX model, a service provider will install, operate and maintain a solar power system at a suitable location provided by the customer using its own financing. The share or cost of the electricity generated will be adjusted in accordance with the terms of the agreement.
Under the CAPEX model, the institution will purchase and install the solar power system using its own funds and retain ownership of the facility. However, only institutions with their own funds or regular income will be eligible to adopt this model, subject to an assessment of their future financial viability. The law gives priority to the OPEX model.
To select service providers, the competent authority will prepare district-wise lists of eligible companies. Customers will select service providers through a competitive process from among the enlisted companies.
However, customers will also be allowed to install solar power systems through companies selected through open tender, without engaging a service provider under the prescribed arrangement.
Tripartite agreement made mandatory for solar power installations
A tripartite agreement among the customer, service provider and competent authority will be mandatory for the installation and operation of solar power systems under the law. The government will determine the standard agreement format and its terms and conditions through a gazette notification.
The agreement must clearly define the responsibilities for installing, operating, maintaining and repairing the solar power system, as well as replacing its equipment.
It will also cover the distribution of generated electricity, the minimum share of power reserved for the customer’s consumption, pricing of surplus electricity, bill payments and settlement of accounts through net metering.
In addition, the agreement must include arrangements for the safe collection, transportation, recycling and disposal of solar equipment that has reached the end of its lifespan or become unusable.
The law also provides for implementing take-back schemes through manufacturers, suppliers or service providers to ensure the proper management and disposal of such equipment.
National Policy Council to be formed under prime minister’s leadership
A National Policy Council, headed by the prime minister, will be formed to provide policy guidance for the speedy implementation of solar power initiatives. The council will include the ministers, state ministers or deputy ministers of the ministries of Power, Energy and Mineral Resources, Finance, and Law, Justice and Parliamentary Affairs. Other members will include the Cabinet secretary, principal secretary to the prime minister, secretaries of the Finance Division and Economic Relations Division, chairman of the National Board of Revenue (NBR), and secretary of the Power Division. The Power Division secretary will serve as the council’s member-secretary.
The council will provide policy guidance to expand solar power generation and achieve national renewable energy targets, coordinate activities among different ministries and agencies, and review progress on net metering, incentives, tariff structures and investment models.
Technical and coordination committees will also be formed at the district level, headed by deputy commissioners, and at the upazila level, led by upazila nirbahi officers (UNOs).
The upazila committees will submit monthly progress reports, while the district committees will submit reports every three months to the respective higher-level committees.
Up to five years in jail for theft, damage to solar power equipment
The law provides for a maximum of three years’ imprisonment, a fine of Tk50,000, or both for stealing solar power systems or their components. The same punishment will apply to anyone who knowingly buys, sells or possesses stolen solar equipment.
Anyone found damaging any component of a solar power system may face up to five years’ imprisonment, a fine of Tk5 lakh, or both. The law also provides for a maximum of three years’ imprisonment, a fine of Tk5 lakh, or both for providing an illegal connection to another person without written permission from the competent authority.
Similarly, obstructing any official, employee or service provider engaged in the installation, connection, inspection or maintenance of a solar power system will be punishable by up to three years’ imprisonment, a fine of Tk5 lakh, or both.
Offences under the law will be tried by courts of first-class magistrates or metropolitan magistrates. If the offences are included in the schedule of the Mobile Court Act, they may also be tried by mobile courts.
Scope to sell surplus electricity to national grid
The law allows surplus electricity generated by solar power systems to be supplied to the national grid through net metering. Customers will be able to feed excess electricity into the grid after meeting their own power requirements. The amount of electricity supplied to the grid during a specified billing period will be adjusted against their electricity bills. If any surplus remains after the adjustment, customers will be eligible to receive payment for it at a tariff determined by the government.
The statement of objectives and reasons of the bill says an incentive has been announced to purchase surplus electricity supplied to the grid from rooftop solar power systems by 28 February 2027. However, Section 9 of the law empowers the government or an authorised agency to announce and introduce incentive programmes related to net metering.
Besides, the Sustainable and Renewable Energy Development Authority (SREDA) will maintain a database of installed solar power systems on its website and regularly monitor whether they remain operational.
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