Bangladesh is moving toward a new era of sustainable power. Electricity demand is rising faster than ever. But fossil fuels are depleting, costly, and environmentally harmful. That’s why solar power generation has become one of the most promising industries in Bangladesh.
This project profile explains the potential, cost, profitability, and setup requirements of a Solar Power Generation Project in Bangladesh, with complete financial and technical insights.
Why Solar Power?
The most important reason to invest in solar energy is sustainability. Bangladesh receives abundant sunlight — on average, 4–6.5 kWh/m²/day across most regions. Therefore, solar power can significantly reduce dependency on imported fuels.
Besides that, government policies encourage private investment in renewable energy. The Sustainable and Renewable Energy Development Authority (SREDA) and Bangladesh Power Development Board (BPDB) are providing incentives and purchase guarantees under the Net Metering Policy and Power Purchase Agreements (PPA).
Therefore, a solar power generation business can be both profitable and environmentally responsible.
Project Summary
| Particulars | Details |
|---|---|
| Project Title | Solar Power Generation Project |
| Project Type | Renewable Energy (Solar PV) |
| Capacity | 1 MW (Expandable) |
| Location | Any Industrial or Rural Area in Bangladesh |
| Project Owner | Private Limited Company / Partnership |
| Total Project Cost | BDT 7.80 Crore (Approx.) |
| Expected Project Life | 25 Years |
| Power Purchase Rate | BDT 8–10 per kWh (Negotiable under PPA) |
| Payback Period | 6–8 Years |
| Internal Rate of Return (IRR) | 18%–22% |
| Break-Even Point | Year 5 |
| Major Buyer | BPDB / Local Industrial Consumers |
Solar Energy Potential in Bangladesh
Bangladesh lies between 20°–26°N latitude, which means it gets direct sunlight for nearly 300 days a year. That’s almost 2100–2300 sunshine hours annually.
Most important, the government has targeted 10% of total electricity generation from renewable sources by 2030. According to SREDA, Bangladesh’s solar potential is 30,000 MW.
Existing Installed Capacity (as of 2025)
| Category | Installed Capacity (MW) | Key Notes |
|---|---|---|
| Grid-Tied Solar Plants | 300+ | Rapid growth with government incentives |
| Rooftop Solar Systems | 250+ | Mostly industrial and commercial |
| Solar Home Systems (SHS) | 220+ | Installed in rural and off-grid areas |
| Solar Irrigation Pumps | 50+ | Agricultural sector |
| Total Solar Capacity | 820+ MW | Increasing by ~20% annually |
Therefore, investors can confidently enter this sector with stable demand, reliable technology, and government support.
Technical Feasibility
Components Required
| Component | Description | Quantity (for 1 MW) |
|---|---|---|
| Solar PV Modules | High-efficiency monocrystalline panels (550W–600W) | 1,820–1,900 pcs |
| Inverters | Grid-tied string inverters, 100 kW each | 10 units |
| Mounting Structure | Aluminum/galvanized iron frames | As required |
| Battery Storage (Optional) | Lithium-ion or Lead-acid batteries | As per design |
| Transformer | Step-up 415V/11kV | 1 unit |
| Cables and Wiring | Copper cables with MC4 connectors | As required |
| Monitoring System | SCADA / IoT-based performance monitoring | 1 set |
| Civil and Electrical Work | Foundations, cabling, fencing | As required |
Besides that, periodic cleaning and preventive maintenance ensure maximum energy yield.
Land Requirement
For a 1 MW solar power plant, land requirement is approximately 3–4 acres.
| Parameter | Requirement |
|---|---|
| Land Area | 3–4 Acres |
| Land Type | Flat, open land with no shading |
| Ownership | Leased or purchased |
| Location Preference | Near grid substation or industrial zone |
Project Cost Estimate (in BDT)
Capital Expenditure (CAPEX)
| Item | Amount (BDT) |
|---|---|
| Solar PV Modules | 3,80,00,000 |
| Inverters | 60,00,000 |
| Mounting Structures | 35,00,000 |
| Transformer & Electrical Works | 45,00,000 |
| Cables, Junction Boxes & Accessories | 25,00,000 |
| Land Development & Civil Works | 40,00,000 |
| SCADA & Monitoring System | 10,00,000 |
| Transportation & Installation | 20,00,000 |
| Engineering & Consultancy | 15,00,000 |
| Miscellaneous & Contingency | 20,00,000 |
| Total Capital Cost (Approx.) | 6,50,00,000 |
Working Capital Requirement
| Item | Amount (BDT) |
|---|---|
| Salaries and Wages | 12,00,000 |
| Maintenance & Cleaning | 6,00,000 |
| Office and Admin | 5,00,000 |
| Insurance & Licensing | 3,00,000 |
| Spare Parts & Replacement | 4,00,000 |
| Contingency | 5,00,000 |
| Total Working Capital (Yearly) | 35,00,000 |
Total Project Cost Summary
| Description | Amount (BDT) |
|---|---|
| Capital Cost | 6,50,00,000 |
| Working Capital | 35,00,000 |
| Pre-Operational Expenses | 20,00,000 |
| Grand Total Project Cost | 7,80,00,000 |
Financing Pattern
| Source | Amount (BDT) | Percentage |
|---|---|---|
| Equity (Owner’s Contribution) | 2,30,00,000 | 30% |
| Bank Loan / Project Finance | 5,50,00,000 | 70% |
| Total Investment | 7,80,00,000 | 100% |
Banks such as IDCOL, BBL, DBBL, and IFIC Bank already finance renewable energy projects under concessional interest rates (8–10% per annum).
Production and Revenue Estimation
Energy Output and Revenue Projection (1 MW Plant)
| Year | Expected Output (kWh) | Tariff (BDT/kWh) | Annual Revenue (BDT) |
|---|---|---|---|
| 1 | 1,600,000 | 8.00 | 1,28,00,000 |
| 2 | 1,590,000 | 8.00 | 1,27,20,000 |
| 3 | 1,580,000 | 8.00 | 1,26,40,000 |
| 4 | 1,570,000 | 8.00 | 1,25,60,000 |
| 5 | 1,560,000 | 8.00 | 1,24,80,000 |
| 6–10 | Decreasing by 0.5% yearly | 8.00 | Average 1,23,00,000 |
| Average Annual Revenue | — | — | BDT 1.25 Crore |
Operating Expenses (Yearly)
| Expense Head | Amount (BDT) |
|---|---|
| Salaries & Wages | 12,00,000 |
| Repair & Maintenance | 6,00,000 |
| Land Lease / Rent | 10,00,000 |
| Insurance | 3,00,000 |
| Administration | 5,00,000 |
| Miscellaneous | 4,00,000 |
| Total Operating Cost | 40,00,000 |
Profitability Analysis
| Particulars | Amount (BDT) |
|---|---|
| Annual Revenue | 1,25,00,000 |
| Operating Expenses | 40,00,000 |
| Depreciation (10%) | 65,00,000 |
| Interest (on loan) | 55,00,000 |
| Net Profit Before Tax | 30,00,000 |
| Tax @10% | 3,00,000 |
| Net Profit After Tax | 27,00,000 |
Projected Cash Flow (5 Years Summary)
| Year | Net Cash Inflow (BDT) | Cumulative (BDT) |
|---|---|---|
| 1 | 25,00,000 | 25,00,000 |
| 2 | 35,00,000 | 60,00,000 |
| 3 | 45,00,000 | 1,05,00,000 |
| 4 | 55,00,000 | 1,60,00,000 |
| 5 | 65,00,000 | 2,25,00,000 |
Payback Period: ~6.5 years
Project Life: 25 years
Cumulative Net Profit (25 years): BDT 12–15 Crore (Approx.)
Environmental and Social Benefits
Solar power projects do not emit greenhouse gases. Each megawatt of solar energy reduces 1,200 tons of CO₂ per year.
Besides that, it creates employment opportunities for technicians, engineers, and maintenance workers. Therefore, it helps both the environment and the economy grow together.
Risk and Mitigation
| Risk | Mitigation Strategy |
|---|---|
| Weather Variability | Use efficient panels with high performance ratio |
| Equipment Failure | Schedule preventive maintenance |
| Tariff Fluctuation | Secure long-term PPA with BPDB |
| Land Issues | Lease land under clear legal documentation |
| Policy Changes | Maintain compliance with SREDA and BERC regulations |
Implementation Schedule
| Phase | Activity | Duration |
|---|---|---|
| 1 | Feasibility Study and Land Selection | 2 Months |
| 2 | Engineering Design and Procurement | 3 Months |
| 3 | Installation and Testing | 3 Months |
| 4 | Grid Connection and Trial Run | 1 Month |
| Total Implementation Time | — | 9 Months |
Economic Viability Indicators
| Indicator | Value |
|---|---|
| IRR | 20% |
| NPV (10 years @ 10%) | BDT 1.5 Crore |
| Payback Period | 6.5 Years |
| DSCR | 1.6 |
| Break-Even Point | 60% Capacity Utilization |
Government Incentives
- Tax Holiday: Up to 10 years for renewable energy projects.
- Duty Exemption: On imported solar panels and inverters.
- Soft Financing: Through IDCOL and Green Transformation Fund.
- Carbon Credit Opportunity: Through international sustainability programs.
Therefore, investors enjoy long-term financial and environmental benefits.
Future Expansion Plan
Once a 1 MW plant performs well, it can be scaled to 5 MW or 10 MW easily by adding parallel units. Industrial consumers like textile mills, ceramic factories, and export-oriented businesses are already switching to solar under net metering.
Therefore, a forward-looking investor can plan for future capacity expansion.
Conclusion
The Solar Power Generation Project in Bangladesh is not just profitable — it’s essential for sustainable growth. With abundant sunlight, government incentives, and growing industrial demand, this sector is set to grow exponentially over the next decade.
By investing in solar energy, entrepreneurs contribute to clean power, economic development, and energy independence for the nation.
📞 Call to Action
We prepare bankable project profiles for solar power and all other industrial projects in Bangladesh and abroad.
Whether you’re planning a 1 MW solar farm, a commercial rooftop system, or a hybrid renewable project, our expert consultants at China Bangla Engineers & Consultants Ltd. (CBECL) are ready to help you with:
✅ Feasibility Studies
✅ Financial Projections
✅ Machinery Sourcing
✅ Engineering Design
✅ Project Loan Documentation
👉 Contact us today to get your custom-made, bank-ready project profile.
Email: [email protected]
Website: www.cbecl.com
Phone: +8801716-752370
Invest smart. Power the future with solar energy.