Solar power may boost SME’s growth

Small and medium enterprises (SMEs) operating in industrial estates under the Bangladesh Small and Cottage Industries Corporation (BSCIC) could significantly cut emissions, lower costs, and boost competitiveness by adopting rooftop solar energy, according to a new study.

The research, conducted by Change Initiative, finds that decentralised solar systems could reduce more than 14.09 million tonnes of carbon dioxide annually.

At the same time, SMEs could earn up to $0.40 million each year through carbon credits while cutting operating expenses by 30–50 percent.

The study also highlights that shifting to clean energy would help exporters meet increasingly strict global environmental standards, strengthening their position in international markets.

Speaking at a press briefing in Dhaka, the organisation’s chief executive M. Zakir Hossain Khan noted that SMEs dominate Bangladesh’s industrial landscape accounting for over 90 percent of units, employing around 85 percent of the workforce, and contributing 25–30 percent to GDP.

However, with about 95 percent of electricity still generated from fossil fuels, these enterprises remain highly exposed to global energy shocks.

He said Bangladesh could boost renewable energy to 20 percent within a year through a fast-track plan, adding that funding would be manageable with efficient use and strict oversight.

The country could mobilise up to $10 billion through development support and carbon-related taxes.
Focusing on key sectors such as tannery, plastics, packaging, and light engineering, the study also identifies barriers like high upfront costs, limited financing, and lack of technical capacity.

It recommends cluster-based solutions, innovative financing models, and stronger institutional coordination to accelerate solar adoption.