Empty stores and crowded corridors: How the solar market ran out in a week

Shopkeeper: I don't have any solar items, go to the next store.

Me: I'm not actually a customer, I just want to talk to you.

Shopkeeper: Go to the next store.

This is how we were, rather rudely, shown the door at the solar market. And this pretty much summarises the present situation at the country's largest solar wholesale markets: Kaptan Bazar Complex and Sundarban Square Super Market in Nawabpur, Dhaka.

As the ongoing dollar crisis left two-third power plants of the country either shut or running on reduced capacity due to shortage of fuel, people are crowding the solar market looking for alternatives. But in the past week, stores have mostly run out of goods, and businesses are in the dark whether the situation will improve in the coming weeks.

Meanwhile, prices have gone up, and many customers are returning empty-handed.

The storekeeper who directed us to the next store was selling rechargeable electric fans only, yet he did not have time to answer our queries. There was packaging going on in full swing, as products headed for courier services, to be delivered to different parts of the country.

The next shop was thronged by customers, as it had solar panels in stock. One customer, who hailed from Meherpur, was looking for 100 watt solar panels, but the shopkeeper said there were no panels below 250 watt.

"I have a small cattle farm in Meherpur. Saving the lives of the cows in this sweltering heat has become a big headache, because we get power for only 8 to 10 hours a day. Now I'm planning to set up a solar system," said the customer, Tariq Ahmed, who is also a lawyer.

As he did not find the items he wanted, Tariq headed for another corner of the market.

The shopkeeper, Sarwar Chowdhury, said ever since the coal-powered plants shut down and power cuts became rampant, sales of solar power items, such as photovoltaic panels, batteries and inverters, skyrocketed. At the same time, prices shot up.

"Against the increased demand, supply is inadequate. Opening LC (Letter of Credit) has become difficult due to dollar crunch, so importing items to meet the growing demand is also very difficult," Sarwar, who is also an importer of solar products such as solar powered street lamps, told The Business Standard.

"The price of a battery, which was Tk16,500 a week ago, has shot up to Tk21,000. The price of solar panels was around Tk40 per watt, which is now Tk55," he added.

Some popular brands, of course, were selling at Tk65-70 per watt.

Sarwar did not have any battery and solar inverter in his store, but directed us to an underground store which is the usual dealer for batteries.

The shelves at the store, Shanto Battery and Solar, were half full. Or half empty. 

Sajal, the battery dealer, was visibly frustrated. He did not even want to be photographed, but later allowed us to take photos of his shelves.

"The demand for batteries is super high. Our target is to sell 100 batteries every day, but we are getting 10 from the company," said Sajal. The high demand and low supply led to the price hikes as well, added Sajal.

Just across the road, Sundarban Square Super Market is also facing a similar situation. On the ground floor, a customer was looking for a battery of a specific local brand. As he asked for it at the World Power Engineering, the seller said the item is 'out of market.'

Bangladesh's battery market is mostly dominated by local manufacturers, so the dollar crisis should not impact the industry.

The seller, Rakib, said, "Battery manufacturers can't continue their manufacturing due to load-shedding, hence the shortage."

Over the last week, Bangladeshi Facebook groups discussing solar items and IPS have been buzzing with members looking for suggestions on solar systems and asking for prices. Many members were posting photos of their newly purchased solar systems. They were apparently content being able to beat the power cuts.

Lately, as the solar market became volatile, frustrations grew.

Masud Sarker Rana has been providing paid consultancy service for solar home systems for quite some time. He experienced the whole thing first hand.

"About a week ago, I saw loads of solar items in Kaptan Bazar Complex. The day before yesterday, only a few items were left," said Masud.

"It is hard to find quality products at this moment. Products enter the market from one side, and exit through the other, fast. People are knocking me relentlessly. It's insane!" Masud told TBS.

Given the dollar crunch, where will the market end up in another week or two?

"If the crisis continues, we will have to close the shops after another week," Sarwar Chowdhury said.

Joynal Abedin, the secretary of Kaptan Bazar Complex Building-1 Owners Association, was less decisive.

"It depends on a number of factors. If load-shedding continues, the crisis at the solar market will worsen. If the weather gets a bit more comfortable, the demand for solar systems might normalise, and the crisis might be over," Joynal said.