Renewable energy technology adoption among apparel exporters in Bangladesh: Current state and future pathways
Apparel exporters in Bangladesh face pressure to adopt renewable energy technologies, but only 31% of factories have implemented them, mostly rooftop solar with low capacity. Economic benefits and environmental concerns drive adoption, while high upfront costs remain the main barrier, highlighting the need for government and industry support.
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Rabbani-Policy-Brief-October-2025.pdf
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- Apparel exporters in Bangladesh already face considerable pressure from buyers to adopt RET. Investment in rooftop solar panels represents a win-win proposition, providing both a reliable power source and reduced overall energy costs.
- Our findings indicate that RET adoption amongst apparel exporters remains low: only 31% of factories have adopted RET (predominantly rooftop solar), with very low average capacity. Half of all solar installations do not even contribute to production processes.
- The primary drivers for adoption are economic benefits from lower energy costs and environmental considerations.
- Financial barriers, particularly large upfront installation costs, have been reported as the principal obstacles, especially for smaller factories.
- Concerted support from both government and industry bodies is essential to accelerate RET adoption. Access to finance specifically designed for RET investment can help the industrial sector become more sustainable, meet buyer expectations, and contribute towards the country's NDC commitments.