The government is set to purchase power to be generated from solar panels to be set up on rooftops of houses in urban areas. Such power will be added to the national grid.
With an aim to popularise solar power in urban grid zones, the government has finalised a policy draft on such purchase technically called 'feed in tariff' (FIT) system, officials have said.
As per experts' estimate under the FIT system, at least 500 megawatt power would be generated every year.
Md Shafique Uddin, Director of the Renewable Energy Division, the Bangladesh Power Development Board (BPDB) said the government, as a part of its renewable energy policy against the backdrop of global warming situation, is going to adopt the system to encourage people to invest money in installing solar plants at their house premises or on rooftops.
He said, "We have finalised the draft and a further study is going on and it would be submitted to the higher authority shortly."
Dipal Chandra Borua, President of the Bangladesh Solar Renewable Energy Association (BSREA), said along with the FIT, the government may also adopt net metering system under which the generated power could be diverted to the grid with a payment system.
Mr Borua said the net metering may also encourage the urban people to invest in generating solar power on their rooftops and in house premises.  Â
Solar power is becoming the fastest-growing energy source in Bangladesh.
According to sources, more than 3.3 million solar home systems (SHS) are now generating more than 150 megawatts of solar power.
Apart from the SHS, more than 100 solar irrigation pumps (SIP), mini grids, street lamps, based transceiver station towers for mobile operators and other sources are generating more than 50 megawatt electricity.
With supports from the world's different financial institutions, solar power in Bangladesh is becoming popular changing the socio- economic status in the rural areas. This has replaced 200,000 tons of kerosene and heavy fuel oil having an estimated value of US$ 250 million per year, sources in the renewable energy sector said.
According to the Infrastructure Development Company Limited (IDCOL) sources, more than 3.3 million SHS have generated 150 megawatt electricity till August 2014 in remote and rural off-grid zones. This has marked a 58 per cent growth per year.
The BPDB official said, "We have taken a few solar power mega projects in different districts to generate 50 megawatt electricity within 2017."
Abu Md. Iqramul Hasan, monitoring officer of the IDCOL said, "We have a target to finance 6 million SHS by 2017, with an estimated generation capacity of 220 MW of electricity."
The IDCOL, the BPDB and other public and private institutions are likely to produce more than 300 megawatt solar power both in rural and urban areas by 2017.
The IDCOL started solar renewable energy programme in 2012 with credit and grant support from the World Bank.
Later, GIZ, KfW, ADB, IDB, GPOBA, JICA, USAID and DFID came forward with additional financial support for expansion of the IDCOL's SHS Programme.
Mr. Hassan said currently more than 65,000 SHSs are now being installed every month under the programme with average year-to- year installation growth of 58 per cent.
The BPDB official also said along with formulating the FIT, they are moving ahead in setting up a 30 megawatt solar power plant on the bank of the river Dharala and several small plants in different parts of the country.
He said under the FIT policy, the government will purchase solar power from private entrepreneurs at a certain price for supply to the national grid. Â
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