Bangladesh Eliminates Import Taxes on Solar and Energy Storage Equipment

Bangladesh has announced a major package of renewable energy incentives by eliminating import taxes on a broad range of solar and energy storage equipment.

The policy is expected to reduce equipment costs, improve project economics, and encourage new investment across residential, commercial, industrial, and utility-scale solar projects.

For international suppliers, EPC contractors, and project developers, the announcement reflects Bangladesh’s continued efforts to accelerate renewable energy deployment while creating a more attractive investment environment.

Bangladesh Introduces Major Renewable Energy Incentives

Electricity demand in Bangladesh has continued to grow alongside industrial development and urban expansion. To support future energy demand while reducing reliance on imported fossil fuels, the government has introduced a new package of tax incentives for renewable energy equipment.

Under the latest policy, several import-related taxes have been reduced to zero, including:

• Import Duty
• Regulatory Duty
• Supplementary Duty
• Advance Tax
• Advance Income Tax

Previously, imported solar products were subject to multiple layers of taxation, increasing overall project costs. Removing these charges can significantly improve the economics of future solar investments.

Which Solar Products Are Included?

The incentives apply to a wide range of equipment used in modern photovoltaic and energy storage projects.

• Solar PV modules
• Grid-tied inverters
• Hybrid inverters
• Lithium batteries
• Battery Energy Storage Systems (BESS)
• Solar mounting structures
• Related balance-of-system equipment

By covering both generation and storage equipment, the policy supports the wider adoption of complete solar-plus-storage systems rather than standalone PV projects.

Among the products covered are solar PV modules, inverters, lithium batteries, and complete solar and energy storage solutions, making integrated renewable energy projects more economically attractive.

Tax Incentives Planned Through 2035

The policy is designed to provide long-term certainty for investors rather than acting as a short-term stimulus.

Stable policy support allows developers to evaluate projects with greater confidence, particularly in the commercial, industrial, and utility-scale sectors where investment decisions often span several years.

Long-term visibility on import costs also helps distributors, EPC contractors, and equipment suppliers plan future business expansion within the Bangladesh market.

How Will the New Policy Impact the Solar Industry?

Lower Equipment Costs

Solar equipment represents a significant portion of total project investment. Eliminating import-related taxes can reduce upfront capital costs and improve overall project returns.

For commercial and industrial users, lower equipment costs may shorten the payback period and improve the financial attractiveness of switching to solar energy.

More Competitive Solar Projects

Reduced import costs make it easier for developers to move projects from planning to construction. Rooftop systems, factory installations, and utility-scale projects all stand to benefit from improved project economics.

Lower investment barriers may also encourage a broader range of businesses to consider renewable energy for the first time.

Energy Storage Gains Momentum

Including batteries and energy storage equipment within the incentive package reflects the growing importance of storage technology alongside solar generation.

As more renewable energy capacity comes online, battery storage can help improve self-consumption, provide backup power, reduce peak demand, and enhance overall grid flexibility.

For Bangladesh, this creates a stronger foundation for future solar-plus-storage deployment.

Opportunities for International Solar Suppliers

The latest policy is likely to increase demand for imported renewable energy equipment across multiple market segments.

Manufacturers supplying high-efficiency solar modules, hybrid inverters, lithium batteries, and integrated energy storage systems may benefit from expanding project activity in the years ahead.

• High-efficiency solar modules
• N-type TOPCon solar panels
• Hybrid inverters
• Residential lithium battery systems
• Commercial and industrial BESS
• Containerized energy storage solutions

With lower import costs and growing electricity demand, Bangladesh is becoming an increasingly attractive market for international suppliers looking to expand their presence in South Asia.

Bangladesh’s Renewable Energy Market Is Worth Watching

While the announcement focuses on import tax reductions, it also highlights Bangladesh’s broader commitment to expanding renewable energy capacity and attracting long-term investment.

As electricity demand continues to rise, policies that improve project affordability are expected to support further growth across both solar generation and energy storage.

If you would like a broader overview of the country’s renewable energy sector, read our Bangladesh Solar Market Guide, which explores market trends, investment opportunities, government policies, and the growing role of battery energy storage systems.

Privind înainte

Bangladesh’s latest policy represents another positive step toward expanding renewable energy while creating a more competitive environment for solar investment.

As a manufacturer of photovoltaic modules, hybrid inverters, lithium batteries, and commercial energy storage systems, Bluesun Solar continues to support customers worldwide with reliable products and complete solar solutions tailored to different market needs.