RMG Rooftops Can Generate 1,768 MW Solar Power: CPD
The ready-made garment (RMG) industry in Bangladesh has enormous potential for rooftop solar energy, according to a recent analysis by the Center for Policy Dialogue (CPD), which estimates that 3,320 facilities may produce up to 1,768.3 megawatt-peak (MWp) of power. The report ‘Rooftop Solar in the RMG Sector: Investment Opportunities in the Context of Chinese FDI’, which was presented at the Bangladesh-China Renewable Energy Forum, finds that 2,303 enterprises are bankable, needing an estimated $188.2 million investment. Under the direction of Dr. Khondaker Golam Moazzem, the study team used Google Open Buildings data to examine 9.72 million square meters of rooftop area.
Nearly 85% of Bangladesh’s export revenue comes from the RMG industry; hence, the project is essential. Gas shortages and unstable power grids are now causing significant production delays in factories. Adoption of renewable energy is crucial for preserving global export competitiveness at a time when international buyers are enforcing stringent carbon reduction mandates.
CPD classified 509 factories as ‘Ready for Investment’, 1,359 as ‘Investable with Assistance’, and 427 as needing structural or regulatory changes under a blended finance scenario. Ha-Meem Group’s solar project has effectively cut its plant diesel usage by about 60%, proving the model’s feasibility.
High commercial lending rates, however, continue to be a major barrier. According to CPD, 613 manufacturers are investment-ready with a 6.5% green rate, but that figure decreases to zero at a 10.5% commercial rate. Long SREDA approvals, expensive collateral requirements, and missing structural certifications are further impediments. CPD suggests expediting SREDA approvals, grouping smaller companies into multi-megawatt projects, and offering 5–7% concessional loans through IDCOL.
