|Policy status:||In Force|
|Date Effective:||2016 (May)|
|Policy Type:||Economic Instruments>Fiscal/financial incentives>Grants and subsidies|
|Policy Target:||Multiple RE Sources>Heating, Multiple RE Sources>Power|
|Policy Sector:||Electricity, Heating and Cooling|
|Size of Plant Targeted:||Small|
|Agency:||Ministry of Population and Environment, Alternative Energy Promotion Centre (AEPC)|
The Policy aims to develop the renewable energy sector and encourage very poor households to use renewables by providing subsidy for deployment.
It revises the subsidy determinded in the Renewable Energy Subsidy Policy – 2012 and Urban Solar System Subsidy and Credit Mobilization Guidelines. The subsidy amount is expected to cover 40% of the total costs; with around 30% coming from credit and around 30% from private sector investment and/or community or households contribution (cash or in kind).
The policy primarily focusses on off-grid applications and provides subsidies for mini/micro hydropower, improved water mill, solar energy (home systems, mini-grids, grid connected), biogas, biomass energy, wind energy and wind-solar hybrids. Detail of the subsidy for each technology type is provided in the policy document. The subsidy amount differs according to technology and the region - with higher subsidy being offered for remote areas. Selected examples are:
Solar PV mini-grid:
For technologies producing electricity output, the subsidy is not only given for equipment and civil work but also, where applicable, for development of distribution infrastructure.
Subsidy will also be provided for installation of solar PV systems in grid connected areas with irregular supply. This includes subsidies for solar street lighting in urban and rural areas and for solar PV systems in households, public educational institutions, public health facilities and religious places.
A subsidy delivery mechanism will be prepared by the Alternative Energy Promotion Centre (AEPC) and implemented after approval from the Ministry.
In order to view a full version of the Renewable Energy Subsidy Policy of Nepal please click here.
Last modified: Tue, 07 Feb 2017 14:57:19 CET