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Bangladesh’s small and medium enterprises (SMEs) could reduce operating costs by up to 50% through rooftop solar, while strengthening export competitiveness by meeting environmental standards, a new study shows.

The report by Change Initiative highlights decentralised solar as a key solution for cutting energy costs and reducing dependence on volatile fossil fuel imports.

High stakes for SMEs

SMEs dominate Bangladesh’s industrial landscape—accounting for over 90% of industrial units, employing around 85% of the workforce, and contributing up to 30% of GDP.

Yet প্রায় 95% of their energy relies on fossil fuels, leaving them exposed to global price shocks.

Big savings, cleaner output

The study finds rooftop solar installations can lower operational costs by 30–50% while significantly reducing carbon emissions.

Targeted interventions in industrial estates under the Bangladesh Small and Cottage Industries Corporation could cut emissions by over 14 million tonnes annually and generate up to $0.40 million in carbon credit revenue.

Key sectors—including tannery, plastics, packaging and light engineering—show strong potential for emission reductions, ranging from 15% to nearly 50%.

Untapped solar potential

Researchers say even limited adoption could deliver major gains. Using just 10% of available space in industrial estates could generate around 57 megawatts of solar power, producing প্রায় 83,000 MWh annually and cutting emissions significantly.

“While global conflicts threaten energy supply, our factory rooftops remain unused,” said a lead researcher, urging faster adoption of solar solutions.

Policy push needed

The study calls for policy support, including tax incentives, innovative financing and carbon pricing mechanisms to accelerate the transition.

It also points to examples from countries like China, India and Vietnam, which have leveraged renewable energy to stabilise industrial growth.

A path to energy security

Researchers argue that scaling up solar adoption can reduce import dependence, lower production costs and enhance long-term competitiveness.

With rising global energy uncertainty, they say Bangladesh has an opportunity to shift toward energy self-reliance while supporting sustainable industrial growth.