Analysts at a current occasion in Dhaka referred to as for the removing of excessive import duties on photo voltaic merchandise in Bangladesh, as this would cut back PV system costs by as much as 11%.
The authorities of Bangladesh at present applies 26.2% import obligation on photo voltaic panels, 37% tax on photo voltaic inverters, and 58.6% import obligation on mounting constructions. But in keeping with a number of analysts at an occasion in Dhaka final week, these excessive import duties are a significant impediment to photo voltaic deployment in Bangladesh.
“We request the federal government to chop duties on photo voltaic merchandise within the upcoming funds to assist develop the sector,” Dipal C. Barua, chairman of the Bright Green Energy Foundation (BGEF), stated pv journal.
He stated the discount in import duties might scale back the price of PV programs, particularly within the residential and business and industrial (C&I) segments, in addition to the photo voltaic irrigation enterprise.
“With the fee discount of 10% or extra, garment manufacturing unit house owners are extra fascinated by organising rooftop photo voltaic,” stated Barua. “Distributed photo voltaic manufacturing is drastically affected by the excessive obligation of photo voltaic merchandise.”
Barua, former president of the Bangladesh Solar and Renewable Energy Association, stated a current drop in photo voltaic module costs has helped offset the impression of the duties to some extent.
“But whereas excessive duties have lastly elevated the costs of photo voltaic merchandise, banks have proven little curiosity in opening letters of credit score since Bangladesh skilled a extreme scarcity of {dollars} within the final two years,” he added.
Atiur Rahman, former central financial institution governor, echoed Barua’s sentiment.
“Government ought to take away duties and taxes on such photo voltaic inputs in order that the price of putting in photo voltaic programs is lowered by 8% to 11% aiming to develop photo voltaic power in BangladeshRahman stated.
Khondker Morshed Millat, a college member on the Bangladesh Institute of Bank Management, stated photo voltaic entrepreneurs want the precise tax incentives to benefit from accessible inexperienced finance from business banks and non-banks. monetary establishments.
Nasif Shams, director of Institute on Energy of University on Dhakastated that tax incentives must also be launched to assist scale back the costs of photo voltaic power programs.
Figures from the International Renewable Energy Agency (IRENA) present that Bangladesh may have deployed 767 MW of photo voltaic by the top of 2023, up from 524 MW by the top of 2022.
Bangladesh authorities have accepted 2.1 GW of photo voltaic by 2023, together with 630 MW in December 2023 alone. In April of this yr, the federal government accepted the development of three extra photo voltaic crops, every with a capability of 100 MW.
This content material is protected by copyright and is probably not reused. If you wish to cooperate with us and wish to reuse a few of our content material, please contact: editors@pv-magazine.com.