The Bangladesh Solar and Renewable Energy Association (BSREA) has raised serious concerns over the interim government’s decision to cancel 37 solar power projects, warning that the move has significantly undermined foreign investor confidence in the country’s renewable energy sector.

The projects, previously awarded Letters of Intent (LoIs) under special provisions in electricity and energy laws, were scrapped by the interim government in recent months.

At a press conference held on Saturday at the Dhaka Reporters Unity (DRU), BSREA leaders urged authorities to reconsider and reinstate the cancelled projects, citing a negative ripple effect on current and future investments.

“Foreign investors are losing trust,” said BSREA President Md Mostafa Al Mahmud during the event. “The cancellation of projects that had already secured approximately $300 million in investment has sent a discouraging message to the international community. This decision must be re-evaluated to restore confidence.”

The organisation’s leaders pointed out that the lack of investor interest in 55 newly tendered solar power projects is evidence of the growing distrust. According to them, many tenders received only a single bid, while some attracted no bidders at all.

Also in attendance were BSREA General Secretary Engr Mohammad Ataur Rahman, senior vice President Zahidul Alam, vice president MA Taher and Engr SK Mohammad Ruhul Amin, and Treasurer Nitai Pada Saha.

Despite the setback, BSREA welcomed the release of the “Renewable Energy Policy 2025”, describing it as a “historic milestone” that could pave the way for sustainable transformation in the energy sector. The policy includes mandates for solar panel installations on all government buildings — a step the association believes will boost the sector’s development.

The organisation also praised the government’s decision to reduce import duty on inverters from 10% to 1%, but emphasised the need for similar tax relief on other critical solar equipment such as mounting structures, DC cables, controllers, batteries, and solar water pumps.

“An investor-friendly tax and tariff structure is essential to support the growth of the solar industry in Bangladesh,” the leaders stressed.

BSREA highlighted the country’s growing reliance on imported energy due to declining domestic natural gas reserves. “In the face of this reality, the expansion of renewable energy is not just a choice but a necessity,” they said.

The press conference also shed light on challenges in implementing net metering policies. According to BSREA, grid connection approvals are often delayed by bureaucratic hurdles, sometimes taking several months. They called for a streamlined, consumer-oriented process to address this issue.

In addition, the association criticised customs authorities for evaluating imported solar panels and components based on weight instead of the standard proforma invoice (PI) value, resulting in inflated tax assessments. “This practice is disconnected from market realities and is unjust,” they said.

BSREA outlined a series of demands to promote a healthier investment climate. These include the exemption of 7.5% trade VAT on solar panels and accessories, tax reductions on lithium-ion batteries, and the formulation of a roadmap to implement the High Court's directive mandating rooftop solar panels on all buildings. The association also called for the establishment of a dedicated cell under the Ministry to monitor and implement rooftop solar policies, along with the enforcement of effective restrictions on the import of substandard solar products.

The leaders concluded by expressing their willingness to partner with the government in achieving Bangladesh’s renewable energy targets for 2040.

Meanwhile, the Centre for Policy Dialogue (CPD), a leading think tank, has recently also recommended the government reassess the cancellation of the solar projects. CPD emphasised the need for a more stable and incentivised framework to attract foreign investment in the renewable energy sector.