Bangladesh's Solar Market: A Core Answer to Power Shortages
Bangladesh continues to struggle with chronic power shortages. As of 2025, installed generation capacity stands at roughly 28,000MW against peak demand of about 16,000MW, but planned outages remain frequent, especially in rural areas. To address this structural gap, the government has made renewable energy, and solar power in particular, a central part of its energy strategy.
Under the revised Renewable Energy Policy 2008 framework, Bangladesh aims to source 10% of total power generation, or about 4,100MW, from renewables by 2030. Solar is expected to account for roughly 70% of that total, equivalent to about 2,900MW. With cumulative solar installations still around 800MW, the country needs an additional 2,100MW over the next five years, pointing to rapid expansion in the import market for solar equipment.
Solar Market Segments
Solar Home Systems and Off-Grid Solutions
Bangladesh operates the world's largest Solar Home System (SHS) program. Led by IDCOL (Infrastructure Development Company Limited), the initiative has brought SHS installations to around 6 million households and significantly improved rural access to electricity. The SHS market is now entering a mature phase, but replacement demand and capacity upgrades continue to create business opportunities.
Utility-Scale Solar
Government-backed utility-scale solar development is gaining momentum. BPDB (Bangladesh Power Development Board) and SREDA (Sustainable and Renewable Energy Development Authority) are tendering large solar projects through the IPP model, and multiple projects in the 50MW to 200MW range are already under development.
Rooftop Solar for Commercial and Industrial Users
Rooftop solar installations are rising quickly across garment factories and commercial buildings. Since the introduction of net metering, companies can consume power on-site and feed excess electricity back into the grid, substantially improving project economics. Global buyers' RE100 requirements are also accelerating solar adoption in Bangladesh's ready-made garment sector.
Solar Equipment Import Trends
Bangladesh remains highly dependent on imported solar panels, inverters, and BOS (balance of system) equipment. The table below outlines the estimated size of each import segment, principal supplier countries, and Korea's current position.
| Product | Import Value | Key Suppliers | Korean Share | Growth |
|---|---|---|---|---|
| Solar panels | $380M | China 85%, India 8% | 1.5% | 20% |
| Inverters | $85M | China 60%, Germany 15% | 5% | 22% |
| Batteries (ESS) | $65M | China 70%, Korea 8% | 8% | 30% |
| Structures / mounting | $35M | China 75%, India 15% | 2% | 18% |
| Cables / connectors | $20M | China 65%, Taiwan 15% | 3% | 15% |
| Monitoring systems | $15M | China 50%, Germany 20% | 7% | 25% |
Export Strategies for Korean Solar Companies
Korea is home to globally competitive solar and energy companies such as Hanwha Solutions (Q CELLS), LG Energy Solution, and Hyundai Energy Solutions. Rather than competing head-on with low-cost Chinese panels, Korean suppliers are better positioned to focus on high-efficiency, high-durability products and project-based package offerings.