The Cabinet on Sunday gave in-principle and final approval to the draft Special Solar Power Installation Ordinance, 2026, for facilitating rooftop solar power installations to reduce dependence on imported fossil fuels and cut subsidies in the power sector.
The draft ordinance was placed before the Cabinet by the Power Division and approved subject to vetting by the Legislative and Parliamentary Affairs Division.
The cabinet meeting was held at the Bangladesh Secretariat in the afternoon with Prime Minister Tarique Rahman in the chair.
Cabinet Secretary Nasimul Ghani briefed reporters after the meeting.
According to the Cabinet Division, the Power Division has formulated the ‘National Renewable Energy Development Strategy 2026–2030’ with the objectives of reducing reliance on imported fossil fuels, cutting down subsidies in the power sector, ensuring greater energy security, and achieving Sustainable Development Goals.
The government has already announced incentives to install 3,000 to 4,000 megawatts of rooftop solar power before the next summer to enhance energy security and help achieve sustainable development goals.
Under the government's directives, solar power systems are to be installed on the rooftops of all government, semi-government, autonomous and local government institutions, as well as government-owned companies, under the Operational Expenditure (OPEX) model, with financing provided by investors.
Institutions that generate their own revenue will also have the option of installing rooftop solar systems under the Capital Expenditure (CAPEX) model, taking their future income into consideration.
However, the existing framework lacks specific rules governing long-term electricity pricing, the sharing of electricity as rooftop rent and maintenance arrangements when rooftop solar systems are installed through service providers under the OPEX model. Such arrangements may involve electricity use agreements lasting 15 years.
Besides, there are no specific provisions under the Public Procurement Act, 2006, the Invest Bangladesh Act, 2026, or the Electricity Act, 2018, over the installation of rooftop solar systems through service providers under CAPEX model and receiving the services.
In this context, the Power Division formulated the draft ordinance to establish a specific regulatory framework for rooftop solar power installations and related services.
Meanwhile, the Cabinet approved the proposal for Bangladesh's accession to the Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade.
The convention provides a framework for international cooperation in the import, export and management of hazardous chemicals and pesticides.
The convention, adopted on September 10, 1998, has remained effective since February 24, 2004 and currently has 167 member countries.
Except for Bangladesh and Bhutan, all other SAARC member countries have already ratified or acceded to the convention, according to the Cabinet Division.