Industry figures indicate the expansion of the Bangladeshi grid is hitting demand for the solar home systems which have traditionally generated power for homes formerly out of reach of the electricity network.
The government has set a very low bar of achieving just 10% of its electricity supply from renewables as it tenders for consultants to advise it on how to incorporate intermittent generation into the national grid.
Officials in Dhaka frustrated by the lack of progress on several PV projects have decided to punish tardy developers by setting new power prices which reflect the falling costs of solar project development.
The cash injection will itself help provide affordable financing for solar and other renewables projects in the power hungry south Asian nation. The national railways operator is doing its bit for solar too.