Rooftop Solar Subsidy Scheme 2026 in Nepal: Eligibility, Application Process and How to Estimate Savings

Nepal's push for rooftop solar has gained real momentum over the past few years, and the 2026 subsidy scheme from the Alternative Energy Promotion Centre (AEPC) is shaping up to be the most accessible version yet. If you own a home, run a small business, or manage a public institution, there's a good chance you qualify for support that can shave a significant chunk off the upfront cost. The trick is knowing how the pieces fit together — eligibility, paperwork, the subsidy itself, net metering with the Nepal Electricity Authority (NEA), and what the numbers actually look like for your roof.

Note: As of this writing (11 September 2026), AEPC's official 2026 guideline/notice has not been publicly released. The policy details, subsidy rates, and procedural steps below reflect the 2025 structure and recent-year patterns. We'll update this article once the 2026 notice is published. Always verify current figures on AEPC's website or with an approved vendor before committing.

Who can apply

The 2025 guideline kept the door open for three main groups, and the 2026 version is expected to follow a similar framework. Residential property owners top the list — whether the house is in your name or you hold a long‑term lease with the landlord's consent. Small and medium enterprises (SMEs) registered with the Department of Industry or local authorities are also eligible, provided the installation serves their own consumption. Public schools, health posts, and government offices round out the category. There's no published income ceiling for households, but system size caps apply: residential installations typically max out at 10 kWp, while SMEs and institutions can go higher depending on sanctioned load and roof area. The AEPC notice also specifies that the property must fall within NEA's distribution network and that the applicant hasn't already claimed a subsidy for the same premises.

Step‑by‑step through the AEPC portal

Applications run through AEPC's online system, and the workflow is straightforward if you gather documents beforehand. Start by creating an account on the portal, then fill the detailed form — property details, sanctioned load from your NEA bill, proposed system capacity, and vendor information. Required uploads include a clear copy of citizenship or firm registration, land ownership certificate or notarized lease agreement, a single‑line diagram prepared by the vendor, and a priced quotation from an AEPC‑listed installer. Once submitted, AEPC's technical team reviews the design; you may get queries on shading analysis or inverter sizing. In practice, approvals take two to four weeks if paperwork is clean. After the green light, you sign a tripartite agreement with AEPC and the vendor (based on the 2025 model), then proceed with installation.

How the subsidy reaches you

The recent scheme uses a post‑installation reimbursement model. You (or the vendor on your behalf) pay the full cost upfront. After commissioning, a joint inspection by AEPC and NEA verifies the system matches the approved design and that net metering is activated. Once the completion certificate is issued, the subsidy amount is transferred directly to your bank account. The per‑kilowatt‑peak rate is set annually in the guideline; recent years have used a tiered structure with higher rates for smaller residential systems and a sliding scale for larger commercial capacities. Exact 2026 figures will be published in the official notice — check AEPC's website or your vendor for the current schedule before signing any contract.

Net metering: the other half of the equation

A subsidy lowers the capital barrier, but net metering determines the ongoing return. Every subsidised rooftop system must enroll in NEA's net metering program. You'll sign a power purchase agreement (PPA) that lets you export surplus daytime generation to the grid and import at night, with a bidirectional meter recording both flows. The export‑import tariff is unified — you're credited at the same retail rate you pay for consumption. NEA's residential and SME tariff slabs vary by consumption band; check the latest NEA tariff order for the current rates. Credits roll over monthly; any net export at the end of the fiscal year is settled at a lower avoided‑cost rate. Meter installation and testing are handled by NEA's distribution centre, and the cost is usually borne by the applicant unless your vendor includes it in the package.

Putting together a savings estimate

You don't need a fancy spreadsheet to get a ballpark figure. Start with your average monthly consumption from the last 12 NEA bills — say 350 units for a typical urban household. A 5 kWp system in Kathmandu Valley yields roughly 4,500–5,000 kWh annually. This aligns with the World Bank Global Solar Atlas and AEPC/NAST solar resource maps, which show 4.5–5 peak sun hours daily on average for the Valley. At current retail tariffs, that generation offsets around Rs. 35,000–45,000 per year. Subtract the subsidy you'll receive — for a 5 kWp residential system, the 2025 rate would have put this in the neighbourhood of Rs. 300,000–400,000; the 2026 rate is to be confirmed — from the installed cost. Market estimates as of early 2026 suggest quality installations run roughly Rs. 120,000–140,000 per kWp for Tier‑1 panels and reputable inverters with local service support (rough figure based on vendor quotes collected in Q1‑Q2 2026; prices vary by brand, warranty, and inclusion of net‑metering hardware). The net outlay divided by annual savings gives your simple payback; most households land between four and six years. Lifetime savings over 25 years, even accounting for inverter replacement and gradual panel degradation, often exceed the initial investment by a factor of two or three. For SMEs with higher daytime loads, the maths looks even better because self‑consumption displaces the highest slab rates.

A few practical tips

Pick a vendor from AEPC's approved list — they know the paperwork and their quotes already factor in the subsidy structure. Insist on Tier‑1 panels and an inverter with local service support; warranty claims are smoother that way. Schedule the NEA meter application in parallel with installation to avoid delays. And keep every receipt, test report, and correspondence; the reimbursement claim needs a complete paper trail. The scheme isn't perfect — processing can lag during peak seasons, and the post‑install model means you need capital upfront — but for anyone with a suitable roof and a decent electricity bill, the 2026 package makes rooftop solar the clearest financial case it's been in years.

Published 11 September 2026. This article will be updated when AEPC releases the official 2026 subsidy guideline.