Renewable energy benefits limited to select groups: BSREA

Staff Correspondent,

The Bangladesh Sustainable and Renewable Energy Association (BSREA) has alleged that tax and duty incentives announced for the renewable energy sector in the FY2026-27 budget are being restricted to a limited number of companies, leaving most consumers and businesses outside the scope of the benefits.

Speaking at a press conference at the Dhaka Reporters Unity on Sunday, BSREA leaders warned that Bangladesh would struggle to achieve its renewable energy targets unless the relevant Statutory Regulatory Orders (SROs) issued by the National Board of Revenue (NBR) are revised.

BSREA President Mostafa Al Mahmud said the incentives mainly favour certain solar power producers and companies operating under the RESCO model, while residential users, solar irrigation projects, small businesses, importers, distributors and EPC firms receive little or no benefit.

He argued that the current framework covers only around 20-22 per cent of electricity consumers, excluding a large segment of the market. According to the association, misconceptions have also emerged that duties on solar equipment have been fully removed, while in reality most products remain subject to existing tax and duty structures.

The association further criticised the absence of meaningful incentives for solar irrigation, solar street lighting and battery energy storage systems (BESS), despite Bangladesh having around 1.7 million diesel-powered irrigation pumps that could be converted to solar energy.

BSREA warned that under the current policy structure, Bangladesh may achieve only 2,000-3,000 MWp of solar capacity by 2030, far below its target of 10,000 MWp. It called for duty-free imports of renewable energy equipment, extended tax holidays, and greater support for residential, agricultural and small commercial users.

"Renewable energy is not a privilege for a select business group, it is directly linked to the country's energy security," Mahmud said, urging policymakers to make incentives accessible to all stakeholders in the sector.

2026-27 budget are being restricted to a limited number of companies, leaving most consumers and businesses outside the scope of the benefits.

Speaking at a press conference at the Dhaka Reporters Unity on Sunday, BSREA leaders warned that Bangladesh would struggle to achieve its renewable energy targets unless the relevant Statutory Regulatory Orders (SROs) issued by the National Board of Revenue (NBR) are revised.

BSREA President Mostafa Al Mahmud said the incentives mainly favour certain solar power producers and companies operating under the RESCO model, while residential users, solar irrigation projects, small businesses, importers, distributors and EPC firms receive little or no benefit.

He argued that the current framework covers only around 20-22% of electricity consumers, excluding a large segment of the market. According to the association, misconceptions have also emerged that duties on solar equipment have been fully removed, while in reality most products remain subject to existing tax and duty structures.

The association further criticised the absence of meaningful incentives for solar irrigation, solar street lighting and battery energy storage systems (BESS), despite Bangladesh having around 1.7 million diesel-powered irrigation pumps that could be converted to solar energy.

BSREA warned that under the current policy structure, Bangladesh may achieve only 2,000-3,000 MWp of solar capacity by 2030, far below its target of 10,000 MWp. It called for duty-free imports of renewable energy equipment, extended tax holidays, and greater support for residential, agricultural and small commercial users.

"Renewable energy is not a privilege for a select business group; it is directly linked to the country's energy security," Mahmud said, urging policymakers to make incentives accessible to all stakeholders in the sector.

The press conference was attended by BSREA Senior Vice-President Zahidul Alam, Vice-President M A Taher, General Secretary Engr. Mohammad Ataur Rahman Sarkar Rozel, Director (Finance) Nitai Pada Saha, Tofayel Ahmed, representatives of Super Star Group, along with other leaders of the association.