2,815MW Solar Power Potential on Garment Factory Roofs

Bangladesh’s garment factories have the potential to generate around 2,815 megawatts of solar power from their rooftops, according to a study by the Centre for Policy Dialogue (CPD). Tapping the potential would require around Tk 126.69 billion ($1.03 billion) in investment and could meet nearly 14% of the sector’s total electricity demand.

The findings were presented at a CPD discussion at BRAC Centre in Dhaka on Thursday. The study, titled “Industrial Rooftop Solar in RMG Sector,” analysed data from 3,320 garment factories, including a survey of 350 factories.

The study found that the RMG sector, which accounts for around 85% of Bangladesh’s export earnings, is facing severe gas and electricity shortages. Many factories are operating at only 30–40% of their production capacity because of the energy crisis.

Although renewable energy currently accounts for only 3% of the sector’s electricity use, rooftop solar could significantly reduce dependence on grid power. The average cost of rooftop solar generation is estimated at Tk 3.04 per unit, less than half the cost of grid electricity.

The study identified 2,303 factories with capacities of 300kW or more as promising sites for rooftop solar installations. These factories could attract around $188.2 million in investment.

CPD Research Director Khondaker Golam Moazzem said around 9.7 million square metres of rooftop space in the garment sector could be used for solar installations, with potential generation of around 1,768MW. He said the sector’s gradual shift towards rooftop solar could reduce energy pressure and support decarbonisation.

The study warned that rooftop solar projects become less viable when commercial lending rates exceed 10.5%. It recommended continued concessional financing, particularly green financing at around 6.5% interest, to encourage more factories to adopt solar power.

Global buyers such as H&M, Inditex, Walmart, Gap and M&S are increasingly prioritising environmentally friendly production, making renewable energy increasingly important for Bangladesh’s garment industry.

Ha-Meem Group’s Head of Power and Energy Tanul Chakraborty said the company had installed around 29.2MW of rooftop solar, meeting 15% of its electricity demand and about 6% of its overall energy demand. He noted that rooftop space is limited because most garment factories are multi-storey.