Net Metering in Bangladesh: Everything You Need to Know Before Going Solar

If you’re planning a rooftop solar installation in Bangladesh in 2026, understanding net metering isn’t optional — it determines how much solar capacity you can install, how you get credited for surplus generation, and in many cases, whether installing solar is even mandatory for your building. This guide explains Bangladesh’s current net metering framework in plain language, based on the Net Metering Guidelines 2025 and subsequent circulars.

What is Net Metering?

Net metering is a billing arrangement that lets a solar system owner receive credit on their electricity bill for surplus power exported to the national grid. In simple terms: you generate solar power, you use what you need in real time, and any extra is automatically sent to the grid — for which your utility credits your account. At the end of the billing cycle, you’re only billed for your net consumption (total grid usage minus solar exported), hence the name.

What Changed Under the Net Metering Guidelines 2025

In August 2025, the Government of Bangladesh approved an updated Net Metering Guidelines that significantly expanded the framework compared to the previous rules:

• Sanctioned load eligibility increased from 70% to 100%. Previously, your net-metered solar system’s AC capacity could not exceed 70% of your sanctioned electrical load. Under the new guidelines, you can now install a system sized up to your full sanctioned load.
• Single-phase consumers are now eligible. Previously, only three-phase connections could participate in net metering. The 2025 guidelines opened the program to single-phase consumers as well — a major expansion for smaller commercial premises and households.
• All consumer categories and voltage levels are covered, including Low Tension (LT) residential, irrigation, small industry, and commercial/office connections; Medium Tension (MT) residential, commercial, and industrial; High Tension (HT) general use, commercial, and industrial; and Extra-High Tension (EHT) connections across all categories.

Mandatory Rooftop Solar Requirements

Net metering in Bangladesh is no longer purely voluntary for everyone. A December 2025 Power Division circular made rooftop solar installation under net metering mandatory for buildings with at least 1,000 square feet of usable roof space when applying for a new electricity connection, with the requirement running for a minimum of 20 years. Key thresholds include:

• Three-phase connections with an allocated load of 10kW or more must install a net-metering solar system of at least 3kW (3,000 watts).
• Industrial and commercial consumers with an allocated load of 10kW or more must install a solar system with capacity equal to at least 20% of their approved load.
• Existing buildings increasing their sanctioned load must comply with the same requirement based on the additional approved load.
• New residential, educational, healthcare, industrial, and commercial buildings are generally required to install net-metered solar as a condition of securing a new grid connection, with buildings having more than roughly 92.2 square metres of roof area specifically named in related guidance.
• Consumers may voluntarily install solar capacity up to 100% of their permitted load, even where the mandatory minimum is lower.

This is a fundamental shift: for many new commercial and industrial connections, rooftop solar isn’t a savings opportunity to consider someday — it’s a prerequisite for getting connected to the grid at all.

Who Can Apply for Net Metering?

To be eligible for a net metering connection, you generally need to:

• Be a legitimate, active consumer of a distribution utility (BPDB, BREB, DESCO, DPDC, WZPDCL, or NESCO)
• Have no outstanding electricity bills at the time of application
• Generate electricity from a renewable source — solar is by far the most common, though the framework covers renewables broadly
• Ensure your system’s AC capacity does not exceed your sanctioned load (or, for medium-voltage 11kV+ connections, does not exceed 80% of your transformer’s rated capacity, unless a special larger-capacity application is submitted)

Even buildings that installed solar before the 2025 guidelines were introduced can apply to have their existing systems converted into the updated net metering framework.

How to Apply: Step by Step

1. Design your system — work with a SREDA-compliant installer to produce the required single-line diagram (SLD), earthing diagram, string diagram, and layout plan, along with a system sizing and energy yield report.
2. Use SREDA-approved equipment — always verify your inverter and panel brands against SREDA’s approved product list (solar.sreda.gov.bd) before purchasing. Non-approved equipment is a common reason applications are rejected.
3. Clear all outstanding bills — applications are automatically rejected if there are unpaid dues on the account at submission time.
4. Submit your application through the official net metering portal at nem.powerdivision.gov.bd. You’ll receive a login ID and password via SMS and email to track your application.
5. Utility review — the distribution utility verifies and either accepts or returns your application, typically within about 5 working days.
6. Field inspection — an inspector visits the site to review the proposed installation area and connection point. Clear your rooftop of obstructions beforehand, and prepare a shading analysis if water tanks or other structures affect your panel layout.
7. Approval and installation — once approved, installation proceeds, followed by final commissioning and meter installation.

Special Cases Worth Knowing

A few situations come up often enough to be worth addressing directly:

Tenant-occupied commercial buildings: Where a building owner and the operating business are different entities, net metering eligibility and the financial benefit typically attach to whichever party holds the electricity connection account — this is an important point to clarify contractually before installation, particularly under OpEx/third-party financing arrangements involving multiple stakeholders.

Multi-building industrial complexes: Large industrial parks with several buildings on a single sanctioned load may need to coordinate solar sizing across the whole complex rather than building-by-building, since the sanctioned-load ceiling applies at the connection level.

Buildings exceeding their sanctioned load with solar generation: Where a facility’s roof area could technically support more solar capacity than its sanctioned load allows, the guidelines provide for a special application process to install a larger system — though this requires additional utility review and is not guaranteed to be approved at any size requested.

Converting a pre-2025 solar installation: Buildings that installed solar before the updated guidelines can apply to bring their existing system into the current net metering framework, potentially gaining the benefit of the expanded 70%-to-100% sanctioned load allowance retroactively for future capacity additions.

CapEx vs OpEx: How You Can Finance a Net-Metered System

There are two common ownership models for net-metered solar in Bangladesh:

CapEx (Capital Expenditure): You purchase and own the system outright. You bear the full upfront cost but capture 100% of the long-term savings and net metering credit.

OpEx (Operational Expenditure) / Third-Party Investment: A third-party investor installs and owns the solar system on your rooftop at their own cost. You sign a power purchase agreement to buy the electricity generated, typically at a rate below your standard retail tariff — meaning savings from day one with no upfront capital outlay. This model requires a tripartite agreement between the consumer, the investor, and the distribution utility, and is widely used by factories and large commercial buildings precisely because it removes the capital barrier.

Why This Matters for Industrial and Commercial Consumers Specifically

Bangladesh has more than 7,000 RMG factories with large, well-suited rooftop areas, and the Infrastructure Development Company Limited has estimated that fully utilizing RMG, textile, and other industrial rooftops could generate around 5,000 MW of solar capacity nationally. For factory owners, the 2025 guidelines’ move to 100% sanctioned-load eligibility (up from 70%) means a meaningfully larger system — and therefore meaningfully larger savings — is now possible on the same electrical connection than was allowed before.

For a deeper look at how factories specifically benefit, see Top 5 Benefits of Rooftop Solar for Commercial Buildings in Bangladesh and How to Calculate Rooftop Solar ROI for Your Factory in Bangladesh.

Common Application Mistakes to Avoid

• Using non-SREDA-approved inverter or panel brands — always cross-check against the approved product list before purchasing
• Applying with outstanding electricity bills — clear all dues first, or the application is automatically rejected
• Oversizing without checking sanctioned load — your system’s AC capacity cannot exceed your sanctioned load (with the medium/high-voltage transformer exception noted above)
• Skipping a proper shading analysis — rooftop obstructions like water tanks can affect both system output and field inspection approval
• Not budgeting for battery storage if backup matters to you — net metering alone does not provide power during a grid outage; pairing with a BESS does. See Solar + BESS Hybrid: The Ultimate Energy Solution for Bangladeshi Industries for that combination.

Net Metering vs Just Installing Solar Without It

Technically, it’s possible to install solar without applying for net metering, but doing so generally means any surplus generation is simply wasted rather than credited, and in many cases violates the connection conditions for new or expanded grid connections under recent circulars. For nearly all commercial and industrial installations in Bangladesh today, applying for net metering is both the compliant and the financially sensible path.

Frequently Asked Questions

How much solar capacity can I install under the 2025 guidelines? Up to 100% of your sanctioned electrical load (an increase from the previous 70% limit), or up to 80% of your transformer’s rated capacity for medium/high-voltage connections, unless you apply for a special larger-capacity exception.

Is net metering mandatory for my building? For many new connections, increasingly yes. Buildings with 1,000+ square feet of usable roof space face a mandatory net-metering solar requirement when applying for a new electricity connection, and industrial/commercial consumers with 10kW+ sanctioned loads face minimum solar capacity rules tied to that load.

Can single-phase residential and small commercial consumers apply for net metering? Yes — this is one of the major changes under the 2025 guidelines, which extended eligibility to single-phase consumers for the first time.

What happens if I have outstanding electricity bills? Your net metering application will be automatically rejected. Clear all dues before submitting.

Where do I apply for net metering in Bangladesh? Through the official portal at nem.powerdivision.gov.bd, with equipment verified against SREDA’s approved product list at solar.sreda.gov.bd.

Can I install solar with battery storage and still use net metering? Yes — many hybrid solar + BESS systems are designed to work alongside net metering, exporting surplus generation while also storing energy for backup and evening use.

How long is a net metering agreement valid for? Recent circulars tie the mandatory rooftop solar obligation to a minimum 20-year period for qualifying buildings, reflecting the typical operational lifespan of a well-maintained solar installation. Always confirm the specific term and renewal conditions applicable to your connection category with your distribution utility.

Key Takeaways

• The Net Metering Guidelines 2025 raised sanctioned-load eligibility from 70% to 100% and opened the program to single-phase consumers.
• Rooftop solar is now mandatory for many new connections on buildings with 1,000+ square feet of roof area, and for industrial/commercial consumers with 10kW+ sanctioned loads.
• Applications go through nem.powerdivision.gov.bd, with equipment verified against SREDA’s approved product list.
• CapEx and OpEx financing models both exist, with OpEx removing the upfront capital barrier entirely.
• Clearing outstanding bills and using SREDA-approved equipment are the two most common points where applications fail.

Get Help With Your Net Metering Application

Navigating SREDA-compliant system design and the net metering application process requires both engineering and regulatory expertise, and small errors — an unapproved inverter brand, an outstanding bill, an incomplete shading analysis — are the most common reasons applications get delayed or returned for correction. Fakir Technologies handles the full process for Rooftop Solar Energy clients across Bangladesh, from system design through utility approval. See our Top 10 Rooftop Solar Energy Companies in Bangladesh overview, and contact our solar team to start your net metering application.