Sustainability & ComplianceTKT-389C

Solar adoption in Bangladesh RMG stalls despite power cost pressure

Bangladesh's garment sector has clear cost and buyer-compliance reasons to install solar, yet uptake remains low. The Daily Star examines the structural barriers slowing adoption.

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September 28, 2026
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What is holding back solar in Bangladesh’s garment industry? - The Daily Star
What is holding back solar in Bangladesh’s garment industry? - The Daily StarAI-generated

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  1. The Daily Star has published an analysis questioning why solar adoption in Bangladesh's garment industry remains slow despite pressures on energy cost and reliability.

  2. The report indicates barriers to solar deployment are structural rather than technical, concerning the commercial and regulatory conditions around installation.

  3. Buyer decarbonisation commitments now depend on verifiable factory-level energy data, making supplier solar capacity a vendor-selection and compliance item.

Bangladesh's garment industry — the country's dominant export earner and one of the world's largest ready-made garment (RMG) supply bases — continues to lag on solar deployment, a question The Daily Star has put at the centre of its latest coverage of the sector's energy sourcing.

The report frames a straightforward commercial puzzle. Bangladesh's garment factories face chronic grid pressure, energy cost volatility and buyer scrutiny on decarbonisation, yet solar generating capacity across the industry remains far below what those pressures would suggest. The Daily Star's analysis asks what, specifically, is holding the sector back.

The question matters for the sourcing tier it concerns. Bangladesh's RMG sector supplies many of the largest apparel buyers in Europe and North America, and those buyers have moved emissions targets down into supplier scorecards. Factory-level energy sourcing — including on-site solar — has shifted from a marketing claim to a compliance and vendor-selection item. A supplier that cannot document lower-carbon energy production risks losing ground in allocation decisions as brands tighten scope 3 accounting.

At the same time, energy reliability is a production issue, not only a reporting one. Power interruptions and grid instability carry direct costs in output and delivery schedules for garment manufacturers. Solar, particularly rooftop installations on the large industrial buildings typical of Bangladeshi garment parks, is the most obvious on-site option.

So why has uptake stayed slow? The Daily Star's framing indicates the barriers are structural rather than technical — a signal that the answers lie in the commercial and regulatory conditions around installation, not in the availability of solar hardware itself. For trade readers, that distinction is decisive. If the obstacle were equipment or engineering, buyers could address it through supplier financing or technical assistance. If the obstacle is structural — financing terms, payback periods, institutional friction, land and grid-connection constraints — then the fix requires action from lenders, regulators and the government, with buyers playing a smaller role.

For sourcing executives, the story lands at a specific point in the decision chain. Brands sourcing from Bangladesh have committed to emissions reductions that depend on supplier energy mixes. Those commitments now have to be traceable to actual generating capacity at named factories, not to industry-level pledges. Where solar installation stalls, buyers will face a gap between reported supply-chain targets and verifiable energy data from their Bangladeshi vendor base.

For factory owners, the calculus is equally direct. Investment in on-site solar competes with capacity investment, wage commitments and compliance spending for limited capital. The Daily Star's reporting suggests the investment case has not closed on its own — which points to the financing and policy instruments that would change the payback calculation.

The compliance decision the news forces: apparel buyers with Bangladeshi suppliers should verify, factory by factory, what share of production runs on grid power versus on-site renewable generation, and treat solar capacity data as part of routine vendor due diligence. Factory groups, meanwhile, should treat any policy or financing instrument that shortens solar payback as a capacity decision with the same weight as new sewing lines.

The Daily Star's full analysis sets out the specific constraints it identifies in the Bangladeshi market.

via Google News: Garment factories (Source)

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James Calloway

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Market editor covering industry trends and analytics at Softgoods Report.

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