Tax on solar panels can be removed if needed, Prime Minister Sheikh Hasina said at a meeting of the Executive Committee of the National Economic Council (ECNEC) on Tuesday. 

During a media briefing with reporters after the meeting at the NEC Bhaban, Planning Minister MA Mannan also said the PM had instructed quick use of foreign loans. 

A number of loan agreements had been signed, but those were still waiting to be released.

The PM had asked this process be expedited, he said.

Amid an electricity crunch, underlined by a summer of frequent blackouts, businesses have been crying out for power as electricity production has been hit hard. 

Against this backdrop, the government is eying to generate 40% of its total electricity from renewable sources by 2041 even though it now produces only 3% from renewables, such as solar, wind and hydro power.

The rooftop solar system offers a ray of light in achieving this target despite some shortcomings, among which are a lack of adequate land and a low speed wind, s Mahmood Malik, immediate past first executive director and chief executive officer at Infrastructure Development Company Limited (IDCOL), told The Business Standard in an earlier conversation. 

The authorities are now trying to make use of the on-grid rooftop solar system to increase the contribution of renewable energy to the total energy mix. 

Power distribution companies are encouraging industrial consumers to set up such projects on unused rooftops. 

Rooftop solar has been becoming a popular choice for industries to minimise electricity cost.

As many as 1,703 firms and factories have installed rooftop solar systems under net metering model since 2018 to minimise energy costs and reduce carbon emission.