Virtual Net-Metering Option for Bangladesh: An Opportunity for Another Solar Boom like Solar Home System Program

Abstract

This study explores the virtual net-metering (VNM) option for enabling inclusive investment opportunities in renewable energy for self-consumption in Bangladesh. It focuses on consumers, such as households and businesses in multi-family and multi-story buildings, who cannot participate in traditional net-metering policy due to technical and space constraints. The study adopted the classical socket parity method to identify suitable consumers for VNM. Then it determined the consumer benefits of using VNM by calculating the net present cost (NPC) and discounted payback period. The results reveal that several consumer categories can significantly save on electricity costs through VNM. For example, commercial consumers can save more than 50% of their electricity bills by investing in a VNM-enabled remote solar power plant with a discounted payback period of fewer than six years. The discussion articulates more comprehensive benefits of VNM. It addresses challenges for renewable energy development by identifying local opportunities. Therefore, this research can help initiate policy dialogues and create momentum for citizen investments in the energy transition. The proposed approach can also be used to analyze the economic feasibility and potential of VNM in other countries.