Nepal Rooftop Solar Subsidy: 2023 Guideline Details and What to Expect for 2026

As Nepal pushes toward its renewable‑energy targets, rooftop solar continues to attract homeowners, businesses, and factories looking to cut electricity bills and reduce carbon footprints. In 2026 the Alternative Energy Promotion Centre (AEPC) is expected to roll out an updated subsidy framework, but the official gazette notification or guideline for this year has not been publicly released as of August 2026. The most recent verifiable document is the AEPC “Rooftop Solar Photovoltaic Systems – Subsidy Guideline” dated 2023, which remains the basis for current program details. This article outlines what is known from that source, highlights where the 2026 updates may differ, and walks readers through the application process and realistic financial outcomes.

Understanding the Current Subsidy Framework

Until the AEPC publishes a 2026‑specific guideline, the figures cited below should be treated as the latest officially confirmed values (2023) with the caveat that they could change when the new notification appears. Prospective applicants are advised to check the AEPC website (aepc.gov.np) or contact their local AEPC office for any amendments before submitting an application.

Subsidy Percentages and Caps (2023 Guideline)

The 2023 guideline specifies the following subsidy structure:

• Residential systems: 40 % of the benchmark cost, capped at NPR 150,000.
• Commercial systems: 30 % of the benchmark cost, capped at NPR 500,000.
• Industrial systems: 20 % of the benchmark cost, with no explicit upper cap mentioned in the public document.

These percentages apply to the benchmark cost defined by AEPC for each technology tier. If the 2026 update revises these numbers, the changes will be reflected in the official gazette.

Eligibility Criteria (2023 Guideline)

To qualify for the subsidy, an applicant must meet all of the following conditions, as stated in the AEPC 2023 guideline:

• Have a valid electricity connection from Nepal Electricity Authority (NEA) or a licensed distribution utility.
• Use a vendor or installer that is on the AEPC‑approved list of solar service providers.
• Install a system whose capacity does not exceed the technology‑specific limits: residential ≤ 10 kW, commercial ≤ 100 kW, industrial ≤ 250 kW.
• Submit a complete application package, including a site‑assessment report, single‑line diagram, and proof of ownership or lease of the premises.

Any updates to these criteria in 2026 will be announced through the AEPC portal; applicants should verify the latest requirements before preparing documents.

Step‑by‑Step Application Process

Although the exact online portal may evolve, the core steps for availing the rooftop solar subsidy have remained consistent:

1. Site assessment and vendor selection – Engage an AEPC‑approved vendor to evaluate your roof’s orientation, shading, and structural suitability, and to obtain a quotation that includes the benchmark cost.
2. Document preparation – Gather the required documents: recent electricity bill, citizenship certificate, land ownership/lease agreement, vendor’s AEPC approval certificate, and the technical design sheets.
3. Online submission – Log in to the AEPC subsidy portal (as of August 2026 the portal is at subsidy.aepc.gov.np; verify the URL on the AEPC site in case it changes), fill out the application form, upload the documents, and submit.
4. Technical verification – AEPC officials (or a designated third‑party auditor) will visit the site to confirm that the proposed system matches the submitted design and complies with safety standards.
5. Approval and installation – Upon clearance, you may proceed with installation. The vendor must use AEPC‑approved panels and inverters.
6. Subsidy claim – After installation, submit the completion report, photographs, and the final invoice. AEPC will then disburse the subsidy amount directly to the vendor or reimburse the applicant, depending on the chosen payment route.

The entire process, from submission to subsidy receipt, typically takes approximately 6‑8 weeks if all paperwork is in order. This estimate is based on applicant feedback and AEPC communications; actual timing may vary.

Expected Financial Benefits

Financial returns depend on system size, local solar irradiation, and the prevailing electricity tariff. Because the 2026 tariff has not been confirmed, the figures below are illustrative only and should be simulated by your vendor using current rates.

• Residential (3‑5 kW) – Typical installations can offset a noticeable portion of the monthly bill, with payback periods generally in the range of several years after the subsidy is applied.
• Commercial (20‑50 kW) – Larger systems tend to deliver proportionally higher annual savings, often shortening the payback horizon compared with smaller setups.
• Industrial (100‑200 kW) – Very large installations can achieve substantial cost reductions, though the exact payback varies widely with load profiles and tariff structures.

Assumptions commonly used for such estimates include a 25‑year panel lifespan and about 0.5 % annual degradation.

Things to Keep in Mind

• Ensure the vendor provides a performance guarantee and after‑sales service; the subsidy does not cover maintenance.
• Check whether your local municipality requires any additional permits for rooftop installations.
• If you plan to expand the system later, verify that the initial design allows for future scaling without violating the subsidy size limits.

Staying informed through the AEPC website and maintaining clear communication with your installer will help you avoid delays and maximize the benefit of the program.

Disclaimer

Important: The subsidy percentages, caps, capacity limits, portal URL, and processing times described here are based on the AEPC 2023 guideline and publicly available information as of August 2026. The 2026 guideline may introduce changes. Always verify the latest details on aepc.gov.np or by contacting your local AEPC office before you apply.

FAQ

When will the 2026 guideline be published?

AEPC has not announced a firm date. Monitor the AEPC news section or subscribe to their newsletter for the official release.

Can I apply if my system exceeds the capacity limits?

No. The 2023 guideline caps residential at 10 kW, commercial at 100 kW, and industrial at 250 kW. Any 2026 revision will state new limits.

Is the subsidy paid to me or the installer?

Either route is possible. The application form lets you choose direct disbursement to the vendor or reimbursement to the applicant.

What if my municipality requires a building permit?

Obtain that permit before the AEPC technical verification visit; otherwise the verification may be delayed.

Ready to Go Solar?

If you’re considering a rooftop system, start by shortlisting AEPC‑approved vendors and requesting a site assessment. Once you have a benchmark‑cost quotation, you’ll be in a strong position to submit a complete application the moment the 2026 guideline goes live.

As Nepal’s solar market matures, the rooftop subsidy remains a key lever for accelerating clean‑energy adoption. By confirming the latest eligibility rules, preparing a complete application, and estimating realistic savings, homeowners and businesses can make a confident move toward solar power in 2026 and beyond.