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HomeConversationsSolar rooftop systems- A cost cutting measure to reduce industrial electrcity costs

Solar rooftop systems- A cost cutting measure to reduce industrial electrcity costs

Rooftop solar projects present significant advantages for the T&A sector in BD to meet the energy crisis demand

The Bangladesh Solar & Renewable Energy Association (BSREA) plays a pivotal role in the advancement of clean energy within Bangladesh. Its activities encompass a broad spectrum aimed at fostering the growth and adoption of clean energy and energy-efficient technologies across the nation. Mr. Tofael Ahmed, Additional Managing Director of Super Star Group and General Secretary of BSREA recently conversed with Textile Focus. SSG Solar doing around 30 projects in the Textile and Apparel industries where 20 projects have already been completed During the conversation he shared with the currency renewable energy, business, challenges and BSREA activities. Read the full conversation here-

Mr.Tofael Ahmed AMD of Super Star Group
Figure: Mr.Tofael Ahmed, Additional Managing Director of Super Star Group and General Secretary of BSREA

Textile Focus: Could you please share with us the current scenario of the Rooftop solar business?

Tofael Ahmed: The rooftop solar market in Bangladesh is experiencing steady growth due to increasing energy demand, rising electricity prices, and government support. Notably, the government’s Net Metering Policy introduced in 2018 has encouraged adoption, particularly in the commercial and industrial sectors. Access to financing from institutions like the Infrastructure Development Company Limited (IDCOL) and international funding agencies has further facilitated this growth, despite challenges in grid integration, policy uncertainty, and limitations in high-rise buildings.

Textile Focus: Due to the current energy crisis, and buyers demand, most Textile factories investing in Solar, how rooftop projects help the sector?

Tofael Ahmed: Rooftop solar projects present significant advantages for the textile industry in Bangladesh, particularly amidst the current energy crisis and increased demand for sustainable practices from global buyers. These projects can notably contribute to cost reduction by offsetting grid power usage with solar energy, leading to lower operational costs. Additionally, rooftop solar offers energy security by providing a reliable source of energy, enabling factories to maintain uninterrupted operations during peak hours. Moreover, the adoption of solar energy aligns with buyer preferences for eco-friendly practices, enhancing the reputation of textile factories as environmentally responsible suppliers, thus improving their competitive edge in the global market. Furthermore, rooftop solar installations can assist textile factories in meeting the requirements for various green certifications, consequently opening up more business opportunities as international buyers prioritize suppliers with such certifications. Additionally, the availability of government incentives and favorable financing for renewable energy adoption in Bangladesh further enhances the financial viability of solar investments for textile factories. Overall, integrating rooftop solar solutions not only improves operational efficiency and sustainability but also helps textile factories align with local and international energy and environmental standards, addressing the challenges posed by the ongoing energy crisis and global buyer pressure.

Textile Focus: How do you see the Bangladesh market for Rooftop projects?

Tofael Ahmed: The rooftop solar market in Bangladesh is positioned for further growth, with both private and government sectors striving to meet renewable energy targets. Although the current total installed capacity of rooftop solar stands at approximately 162.73 MW as of December 2023, which is relatively low in light of the country’s energy needs, regulatory measures mandating new buildings to install rooftop solar systems to secure grid connections provide significant potential for expansion. Looking ahead, the prospective market size for rooftop solar in Bangladesh could be substantial, with a 2,000 MW combined capacity offering substantial benefits to the power sector by reducing expensive electricity generation costs and enhancing energy security.

Mr. Tofael Ahmed Additional Managing Director of Super Star Group
Figure: Mr.Tofael Ahmed, Additional Managing Director of Super Star Group with textile focus team.

However, to realize this potential, barriers such as high import duties on solar accessories, limited financing options, and a lack of awareness among building owners about the benefits of rooftop solar must be addressed. Critical factors for accelerating the growth of rooftop solar include improved policy support, better financing mechanisms, and capacity-building efforts. In light of the increasing demand for cleaner and more affordable energy solutions, the rooftop solar market is expected to play a central role in Bangladesh’s energy transition in the coming years.

Textile Focus: As a renewable energy solution provider, what are the Challenges you are facing?

Tofael Ahmed : Super Star Renewable Energy Limited (SSREL) faces challenges in the rooftop solar market in Bangladesh, including high initial investment costs, policy and regulatory barriers, grid infrastructure limitations, technical challenges, awareness and skilled manpower shortages, land and rooftop space limitations, maintenance issues, and currency fluctuation/import dependency. Strategic solutions involving partnerships, policy support, and innovation are necessary to overcome these obstacles and promote the growth of the rooftop solar market in the country.

In terms of challenges, we have realized that when it comes to installing rooftop solar, the initial investment becomes very significant. Currently, installing a 1 MW solar panel costs around 30 to 35 million BDT (3 to 3.5 crore taka). So, from the beginning, industry owners face this challenge. As a solution, ITCALL offers financial support if you meet their financial criteria and provides loans with easy conditions.

Super Star Solar TOP image by Rubab 2
Figure: SSG Rooftop solar system

Another major challenge is the limitation of rooftop space for solar installation. The roof where the solar panels will be installed must be vacant. However, many activities take place on rooftops nowadays, such as installing AC units, cooling towers, etc., which create space limitations as a factor. On the other hand, our entire solar system is dependent on imports. From panels to inverters, nothing is manufactured in Bangladesh; even the DC cables have to be imported. Along with these, the aluminum structures used to support the panels also need to be imported from abroad. Due to this high import dependency, inflation is having a significant impact, and there are also complexities with LCs (Letters of Credit) in banks. No bank can open an LC for us on time.

To overcome these challenges, we need to manage the initial investment and arrange loans with easy terms from banks. Moreover, since this is clean energy, the accessories need to be made more readily available. There are many industries in Bangladesh that impose certain limitations on themselves regarding the use of specific products. Once these products are brought into Bangladesh, there is no monitoring team to ensure whether the actual product has arrived, which causes further challenges. In such cases, unethical practices may arise. Therefore, we must have a team for quality-based product monetization in the face of these challenges.

Textile Focus: How does your association help the members to promote renewable energy in BD?

Tofael Ahmed: The association’s support for renewable energy in Bangladesh encompasses advocacy for favorable policies, networking opportunities, capacity building and training, market information and research, public awareness campaigns, collaboration with international agencies, and financial assistance. These initiatives provide members with necessary tools, connections, and advocacy to foster a more favorable environment for renewable energy development in Bangladesh, including access to global expertise, technology, and financial resources.

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