Pakistan To Provide Incentives To Install Solar Power Systems

June 10, 2009

The government is likely to take initiatives to make the installation of solar power system easier and cost-effective in urban areas, so that people can cope with the mounting power crisis.

Sources said the government is considering ways to simplify solar power equipment imports and to offer special bank loans for its imports and installation. Commerce Minister Lt Col (retd) Faruk Khan and Chairman of the Parliamentary Standing Committee on Power and Energy Ministry Maj Gen (retd) Subid Ali Bhuiyan have already shared government plan for withdrawal of tax on solar panel equipment.

The formal announcement about the decision might come from a meeting scheduled to be held at the Ministry of Power tomorrow (Tuesday), according to the sources. Grameen Shakti, which has already introduced the solar power system in the countrys rural areas, recently came up with a proposal to bring the country's urban areas under the solar power system on a small scale in the face of growing electricity crisis.

The government is considering the proposal positively and is planning to withdraw duty and VAT on imports of solar power equipment so that people can easily install solar panels, Managing Director of Grameen Shakti Dipal Chandra Barua told UNB.

He said a meeting in this regard would be held at the Ministry of Power and Energy tomorrow (Tuesday).

"Our representatives will be there as there'll be discussion on how the solar system can be made easier and popular in urban areas as done in villages," he said. "The final decision on a duty cut for imports of solar panels and other equipment might come from the meeting."

Sharing his plan to bring the urban areas under solar power system, Dipal said it would initially be introduced in Dhaka city and if it was found to be successful, then the plan would be expanded in other cities and towns where demand for power is high.

He said there would be nearly a dozen of packages, ranging from Tk 60,000 to 1,40,000, for those interested in installing solar power systems.

"It depends on the capacity of clients, as they'll have to make full payment for the design, as weve not found any fund for the project so far," he said. Dipal said if they received any funds, then they would be able to provide the design on a loan basis, which they were now applying at the village level.

They were paying the total cost over a three-year timeframe. However, he said they would provide maintenance services for three years to their clients.

Replying to a question, Dipal said the government might formulate a policy to purchase additional power for the national grid from solar power system users. He said electric bulbs, television, computers, ceiling fans and water pumps can be made operational from the solar power under different packages to be offered to clients.

"We´ve already talked to Bangladesh Bank (BB) Governor Dr Atiur Rahman and he expressed his interest in it," he said.

Quoting the central bank boss, he said the government was thinking about providing special loans for the installation of solar power systems, so that the entire process could be made simpler and popular.

Earlier, experts said the solar power system could be the best option for mitigating the country´s worsening power problem. They believe that the solar power system has a bright prospect in Bangladesh, but this potential still remains untapped simply for lack of proper government initiative.

Dipal believes 50 per cent people in the country could be brought under the power supply network through the solar power system within the next seven years if the government wantedto do so.

The government, in its energy policy that came to light in January this year, mentioned expanding renewable power to villages, sub-towns and metropolitan cities. It also suggested the withdrawal of duty and taxes from the import of such equipment.