Installation of solar power needs financing

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Bangladesh has been experiencing acute shortage of power for a long period. Every day demand for power is increasing with the increase in population. Although, in the face of huge demand, generation of power through solar panels is scanty, still it may contribute a lot if people come up with the initiative to switch to solar power with the help of the Bangladesh Bank. It is a pleasure to note that Bangladesh Bank is encouraging installation of solar power system as part of its Corporate Social Responsibility (CSR) under which it has taken up a refinancing scheme.
The central bank itself set up a 20.3 kw solar power system on the roof top of its head office for the purpose of its own use in the face of the continuing power crisis. This is the first time, any central bank in the world has set up a solar power system to tackle the crisis, reduce carbon emission and provide psychological encouragement to people of all walks of life.
Since the national grid is incapable of meeting the total demand for power supply, installation of solar power system is an environment-friendly initiative that can contribute to reducing the crisis. Bangladesh Bank has called upon commercial banks to install such systems at their head offices and branches, which will be considered as a CSR activity.
It is reported that Bangladesh Bank is providing a refinancing facility to commercial banks at 5.0 per cent interest rate against loans for installation of solar power systems both in rural and urban areas. This is the first ever loan to be disbursed among the urban people for solar power system installation. Twenty commercial banks would provide such loans at maximum 10 per cent interest rate.
The central bank is willing to help any local company interested to produce solar panels locally. In the meantime Bangladesh Bank has provided Tk 350 million to Rahimafrooz for producing solar panels.
At present, solar power is popular with rural people but not with urban residents. Urban people should think about it and install such systems at their houses and firms.

Shajedul Alam Md. Firoz &
E. M. Mainuddin Palash
Exim Bank Ltd.
Motijheel Branch, Dhaka.
E-mail: palashi7@yahoo.com