Background and Rationale for the Program In 2003 Bangladesh was in the midst of a huge electricity access challenge – the national access rate was 37%, with over fifteen million rural households lacking access to electricity. It was estimated that achieving universal electricity access would take 30 years, owing to slow grid expansion and severe power shortages.

The Government had already recognised the value of SHS and had eliminated import duty on solar home systems (SHS) in 2000. In 2003, they launched the Infrastructure Development Company Ltd (IDCOL) SHS program to further support the uptake of SHS. IDCOL is a government-owned financial intermediary with a mandate to provide long-term financing for private infrastructure projects. Together, these government actions created strong demand for off-grid solar among the population, which contributed to the program’s success. The IDCOL SHS program became one of the most successful off-grid electrification programs ever, leading to the sale of over four million solar home systems over 15 years.