# Government Grants Duty-Free Status to Solar Power Equipment Imports

*The government has removed import duties on key solar power equipment to reduce electricity costs and promote renewable energy.*

June 13, 2026 · Bangladesh

## At a glance

- Government removes import duties on key solar power equipment.
- Expected to lower solar power production costs by 25 to 30 percent.
- Duty-free benefits will be in effect until June 2031.

The government has removed import duties on key solar power equipment to reduce electricity costs and promote renewable energy. This move is expected to lower solar power production costs by 25 to 30 percent. The duty-free benefits will be in effect until June 2031.

Finance Minister Amir Khosru Mahmud Chowdhury announced this in his budget speech in the Jatiya Sangsad on Thursday. He said, 'To promote the solar power sector, which is the most important and safest source of renewable and sustainable energy, I propose to issue a new notification making the import duties, regulatory duties, supplementary duties, and advance tax on key solar power equipment zero percent.'

The duty exemption is expected to provide relief from 30 to 70 percent of duties on solar power equipment. This will create a positive impact on investment in the renewable energy sector and enhance the country's energy security. It is estimated that at least 60 jobs will be created for every megawatt of renewable energy produced. This move is expected to create significant employment in the sector and help achieve the target of producing 10,000 megawatts of electricity from renewable sources in the next five years.

The Bangladesh Sustainable and Renewable Energy Association President Mustafa Mahmud welcomed the government's policy decision. He said this shows the government's sincerity towards the renewable energy sector. He also emphasized the need to avoid bureaucratic hurdles that could hinder the implementation of this policy.

The duty-free benefits for mounting structures, lithium cells, battery packs, and battery energy storage systems will be withdrawn after June 30, 2028, to encourage domestic production and industrial development in these areas. The government also proposed providing duty-free benefits for the production of environmentally friendly batteries, including lithium-ion and sodium-ion batteries, until June 30, 2030.

Khondaker Golam Moazzem, Research Director at the Centre for Policy Dialogue (CPD), said the government has moved away from its long-standing trend of favoring fossil fuels. He added that removing duties will provide relief to investors and financiers. He suggested that the duty-free benefits should be maintained until domestic industries are established, which could be up to five years.

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Source: https://pulsetoday.com.bd/en/bangladesh/solar-power-equipment-imports-duty-free-benefits