Bangladesh sees surge in use of solar energy

Last year, close to 40,000 units a month were installed on average across the country; this year installations have surged to 55,000 a month, according to Ruhul Quddus, head of the Rural Services Foundation, a Bangladeshi charity. His charity is installing 11,000 solar power systems a month, up from 8,000 a month last year, he said.

Altogether, 30 percent more homes are using solar power in Bangladesh than a year ago – a change driven by a rise in purchasing capacity and falling prices.

 “Rural people now want to improve their quality of life,” including by trading kerosene lamps for solar and using the latest electrical appliances, said Abser Kamal, chief executive office of Grameen Shakti, a pioneering organisation in renewable energy in Bangladesh.

Per capita income has been rising in Bangladesh in recent years as the country’s growth rate has improved. During the last fiscal year, per capita hit income hit $848 a year, up from $676 three years ago, according to government figures. The country’s growth rate during the last fiscal year was 6.32 percent, and this year the government is targeting growth of 7.2 percent.

Installing solar power in their homes helps families with a variety of tasks, Kamal said.

“By using a solar home system they now can work long hours, can keep shops open a longer time, their children’s can study for a longer period, and they also can watch television and recharge their cell phone handsets,” he said.

Kamal’s organisation is responsible for installing about 60 percent of the new solar units being sold in Bangladesh, or about 25,000 a month. By October, the organization hopes to have installed a million units across the country.

Raihan Alam, a rickshaw puller in Nischintapur village in Bangladesh’s southeastern Chandpur district, in April bought a solar home system (SHS) to light his house, paying 20,000 taka (about $250). The money came from earnings from land he inherited from his father and from savings.

“Our village has grid electricity but the government stopped providing new household connections for a long time. So I had no option but to buy a SHS to light my house,” said Alam, the father of two children who attend school.

Before buying the solar system, “my daughters were less interested in studying long into the night by the blunt light of a kerosene lamp and they went to sleep early. Now they are happy to continue studying longer than usual with the sharp light of SHS,” he said.

He said he now also hoped to buy a television set for entertainment in his house.

Alam’s brother Amirul Islam is also saving to buy a solar energy system for his house as his family members are also eager to get better-quality lighting.

Since 2003 the World Bank has provided more than $300 million to support the solar home system program of the Infrastructure Development Company Limited (IDCOL), a state-run organization that promotes renewable energy under the Rural Electrification and Renewable Energy Development (RERED) project.

At present, renewable energy sources contribute only 55 megawatts of energy to the country’s energy production. But the government aims to increase that to 500 megawatts by 2015 as part of its social commitment to provide electricity to all by 2020.

World Bank funding has helped make the solar energy systems more attractive to families but cutting their cost by about $28 and supporting payment in installments for up to three years.

Rural households can now buy the systems from non-governmental organizations for a 10 to 15 percent down payment, with the remaining payments made in monthly installments over two or three years. The average price of a 50 watt-peak solar home system is about Tk 25,000 ($312).

“With a 50 watt-peak capacity of SHS, one can light four lamps, one television set, and charge cell phone handsets,” said Ruhul Quddus of Rural Services Foundation, one of the installers of systems.