Rural electrification is an integral component of poverty alleviation and rural development of a nation. In Bangladesh, photovoltaic (PV) technology in the form of solar home systems (SHS) has been widely applied for rural electrification purposes. This paper focuses on the prospects, constraints and solutions of photovoltaic (PV) market growth in Bangladesh. Bangladesh is known to possess a good potential for renewable energy, particularly solar energy that is abundant and can fruitfully be harnessed. Several private entrepreneurs, Infrastructure Development Company Limited (IDCOL), some government agencies and a number of non-governmental organisations (NGOs) are working to install solar PV in rural Bangladesh to meet basic energy needs. The application of PV technology for rural electrification is indirectly increasing the income as well as the living standard of the rural poor. The paper will be organised in total seven sections. Section 1 and section 2 present the location and current status of Bangladesh, resource potential, objectives and market development. This is followed by analysis of solar PV in Bangladesh, including technical design, common PV use, IDCOL SHS program in Section 3. Section 4 identifies case studies and success stories of Bangladesh improving quality of life for project beneficiaries. Sections 5 and 6 include financing structure and SHS product features and prices. Section 7 is the important topic, where it is illustrated reducing subsidy is necessary and future plans on reducing subsidies, whereas Section 8 depicts the implementation challenges of solar PV. Finally, key conclusions are drawn in Section 9. The purpose of the paper is to present the case study of Bangladesh where Solar Home Systems installations has experienced explosive growth and created a $200 million PV market. The case of Bangladesh could be replicated and launched in other parts of Asia to bolster the PV market.