Parliament takes up bill to speed up solar power expansion

Parliament takes up bill to speed up solar power expansion

The government today introduced the Special Solar Power Installation Bill, 2026 in Parliament, seeking to establish a special legal framework to speed up the expansion of solar power systems across the country.

The bill, which replaces an ordinance issued in October, also sparked a debate over the government’s use of ordinances while Parliament was functional.

Power and Energy Minister Iqbal Hassan Mahmood placed the bill before the House. It was later referred to the relevant parliamentary committee for examination and submission of a report within three working days.

The Special Solar Power Installation Ordinance, 2026 was promulgated on October 19 and laid before Parliament yesterday. It is now being replaced by the bill in line with constitutional requirements.

Under the proposed law, solar power systems may be installed on a priority basis at suitable locations under the OPEX (Operational Expenditure) model. Institutions with their own funds or regular revenue streams will also be allowed to install systems under the CAPEX (Capital Expenditure) model, subject to future financial viability.

The bill requires tripartite agreements among consumers, service providers and relevant authorities. It also allows limited tendering for goods and related services under the CAPEX model, subject to a ceiling of Tk 5 crore. The use of the electronic government procurement (e-GP) system will not be mandatory for these procurement processes.

The proposed law also provides for a National Policy Council to guide the implementation of solar power projects and District Technical and Coordination Committees at the local level. Anyone convicted of stealing electricity or equipment from a special solar power system may face up to three years’ imprisonment, a fine of up to Tk 50,000, or both.

In the statement of objects and reasons, the power minister said the government had formulated the National Renewable Energy Development Strategy 2026-2030 to meet rising electricity demand, reduce dependence on imported fossil fuels, strengthen energy security and achieve national renewable energy targets.

He said incentives had been announced for purchasing surplus electricity generated by rooftop solar systems and supplied to the national grid by February 28 next year.

According to the minister, existing laws and regulations did not provide enough opportunities to install solar power systems on rooftops, courtyards and other suitable spaces at government, semi-government, autonomous, local government and state-owned institutions, as well as residential buildings.

The ordinance was issued to facilitate the rapid installation of solar systems under both OPEX and CAPEX models. It also included provisions for selecting service providers, tripartite agreements, special procurement procedures, net-metering incentives and coordination at national and local levels.

Before the bill was introduced, Jamaat-e-Islami lawmaker Nazibur Rahman objected to the promulgation of the ordinance, saying it had undermined Parliament’s legislative authority.

He said bypassing Parliament and its Standing Committee on Law, Justice and Parliamentary Affairs amounted to a serious infringement of parliamentary sovereignty.

Nazibur said the renewable energy strategy had been adopted in July and rooftop solar incentives announced on September 1, while Parliament was still in session. The session ended on September 10. He questioned why the government had waited until October 19 to issue the ordinance instead of bringing the proposed legislation before Parliament earlier.

Responding to the criticism, Law Minister Md Asaduzzaman described Nazibur’s interpretation as misleading. He said that when Parliament was not in session, the President could promulgate an ordinance based on his satisfaction, which fell within the President’s constitutional discretion.

“Parliament is sovereign in the lawmaking process and the President cannot interfere with that process. But under Article 93(1), Parliament has no authority to question the President’s satisfaction in issuing an ordinance,” the minister said.

Following the exchange, Iqbal Hassan Mahmood further explained the rationale behind the bill.