Rising electricity costs and unreliable natural gas supplies can put significant pressure on manufacturing budgets in Bangladesh. For garment factories, textile mills, and other export-oriented industries, reducing energy expenses is an important step toward protecting profit margins.
One opportunity that many factories overlook is their rooftop. Large factory roofs can be used to generate electricity through solar photovoltaic (PV) systems, reducing dependence on grid electricity and creating long-term savings.
With suitable system design, industrial rooftop solar can offer an attractive return on investment (ROI). Bangladesh’s Net Metering Guideline 2025 also provides a framework for eligible consumers to export surplus renewable electricity to the grid and receive energy credits.
What Is Solar PV, and How Does It Work?
Solar photovoltaic panels convert sunlight into electricity. When installed on a factory rooftop, these panels generate power that can be used by production machinery, lighting, cooling systems, and other electrical equipment.
During sunny working hours, the factory can use solar electricity directly and purchase less power from the grid. When solar production exceeds demand, eligible grid-connected systems can export surplus electricity through an approved net-metering arrangement.
This makes rooftop solar particularly useful for factories that operate during daylight hours and have significant electricity demand.
What Is the ROI of Rooftop Solar for Factories in Bangladesh?
The return on investment depends on installation cost, electricity tariffs, solar generation, daytime energy consumption, maintenance, and applicable net-metering arrangements.
For some industrial projects, a payback period of 3.5 to 5 years may be achievable. However, this is an indicative estimate, not a guaranteed result. A proper feasibility study is necessary to calculate the expected return for each facility.
The basic calculation is:
Simple payback period = Initial investment ÷ Annual net savings
For example, if a factory invests BDT 5 million in a rooftop solar system and saves BDT 1 million annually after relevant operating costs, its simple payback period would be five years.
After recovering the initial investment, the system can continue generating electricity and producing financial benefits. Solar panels typically have long service lives, although their output gradually declines and components such as inverters may require maintenance or replacement.
How Does Net Metering Benefit Industrial Solar Users?
Bangladesh’s Net Metering Guideline 2025 allows eligible electricity consumers to generate renewable power, consume it on-site, and export surplus electricity to the distribution grid.
For example, a factory may generate more electricity than it needs during a sunny holiday. Instead of allowing that surplus to go unused, an approved net-metered system can export it to the grid.
Under the current guideline, electricity credits can carry forward between billing periods, with remaining credits settled at the end of the applicable three-month settlement period under the prescribed rules. Exported electricity should not automatically be assumed to offset every imported unit at the full retail tariff.
Factories should review the applicable tariff, settlement rules, connection requirements, and technical limits before investing. The official net-metering application portal provides information about the application process.
Can You Install Solar Without Investing Upfront?
Yes. Factories can explore an OPEX or RESCO model when they prefer to avoid the initial capital expenditure.
Under this arrangement, a solar developer or investor finances, installs, and maintains the system under a contractual agreement. The factory purchases the electricity generated at an agreed rate, which may be lower than its applicable grid tariff.
This model can help businesses preserve working capital for production, machinery, inventory, and other priorities.
However, savings depend on the contracted electricity price, agreement duration, maintenance responsibilities, payment terms, and the factory’s consumption profile. Review these conditions carefully before signing an agreement.
How Rooftop Solar Supports Sustainability Goals
In addition to financial savings, rooftop solar can help factories reduce emissions associated with purchased grid electricity.
Using solar electricity on-site can reduce Scope 2 emissions when calculated under the applicable greenhouse gas accounting method. Solar generation records can also support environmental reporting and buyer assessments, including relevant energy and emissions sections of the Higg Facility Environmental Module (Higg FEM).
Factories responding to renewable electricity commitments should also maintain appropriate documentation and ensure that renewable energy attributes are not claimed by more than one party.
Why a Technical Assessment Matters Before Installation
Before installing rooftop solar, factory management should evaluate the site’s technical and financial suitability.
Important considerations include roof strength, available installation area, shading, panel orientation, electrical infrastructure, daytime electricity demand, and utility connection requirements.
A well-designed system should match the factory’s operating profile while meeting applicable safety and net-metering standards. Oversizing a system without reviewing export conditions can reduce its financial attractiveness.
Plan Your Rooftop Solar Project With Hexa Engineering Limited
Rooftop solar can turn unused factory space into a valuable energy asset. With proper planning, it can reduce electricity expenses, improve energy independence, and support sustainability reporting.
Hexa Engineering Limited can help factories evaluate rooftop solar opportunities through technical assessments, system layout planning, feasibility analysis, and guidance on applicable net-metering requirements.
Contact Hexa Engineering Limited to discuss your factory’s rooftop solar potential and develop a practical plan for long-term energy savings.
Make your factory rooftop work for your business with Hexa Engineering Limited.
1 Comment
Thank you for this important information.