Bangladesh’s ready-made garment (RMG) industry is facing obstacles in expanding rooftop solar power due to steep import duties on equipment, industry insiders say. The sector, which contributes nearly half of the country’s exports, could save the Government around Taka 2,500 crore annually on fuel imports by switching to renewable energy, but high costs are delaying large-scale adoption.
The Government has pledged to raise the share of renewable energy in national power generation to 20% by 2030, up from about 5% now. However, import taxes on some solar components are as high as 62–77%, while essential items such as panels and inverters are taxed at just 1%. Entrepreneurs say this inflates installation costs by roughly one-third, making solar setups 30–50% more expensive than in India.
“By generating electricity through solar in the private sector, we are helping save foreign currency. The Government should support this transition with subsidies,” said Fazlee Shamim Ehsan, managing director of Fatullah Fashions Limited, a platinum-certified green factory in Narayanganj aiming for net-zero carbon within five years.
NZ Textile Limited, one of the country’s largest textile mills, has installed around 10 MW of solar power and plans to expand to 30 MW. Its managing director, Saleudh Zaman Khan, said, “A project costing Taka 2 crore in India ends up costing Taka 3 crore here due to taxes, making it harder to remain cost-competitive.” Rising Group, generating 4 MW currently, also cited import duties as a major hurdle.
Despite Government policies promoting renewable energy, incentives for the RMG sector remain limited. While conventional private power producers enjoy reduced duties, renewable users face procedural challenges and high upfront costs. Officials have cited concerns over misuse and protection of domestic manufacturers as reasons for keeping import taxes high.
Industry experts say Bangladesh’s textile and garment rooftops could accommodate up to 2,000 MW of solar capacity, meeting nearly 20% of the sector’s electricity demand. This shift would reduce energy costs, save foreign exchange, and help exporters meet green compliance requirements imposed by major markets like the EU under the Carbon Border Adjustment Mechanism and other sustainability regulations.
Entrepreneurs urge the Government to waive duties on key solar components and offer targeted incentives to accelerate the RMG sector’s renewable energy transition, which would ultimately strengthen competitiveness and support national economic goals.
Bharat Tex Special Report 2026 
