Solar Equipment Imports Rise as Nepal Pushes to Expand Solar Energy Share

As the government intensifies efforts to increase the share of solar power in Nepal’s energy mix, imports of solar equipment have risen sharply in recent years.

Solar energy entrepreneurs say the sector has received fresh momentum after former Minister for Energy, Water Resources and Irrigation Kulman Ghising initiated the process to remove the minimum 10 percent cap on solar power under the energy mix policy. The move has raised expectations of greater solar integration into the national grid.

According to the Department of Customs, Nepal imported 76,800 solar panels worth Rs 585.86 million during the first five months of the current fiscal year (mid-July to mid-December 2025). In contrast, during the same period of fiscal year 2022/23, imports stood at just 37,144 panels valued at Rs 265.8 million.

Imports have also increased on an annual basis. Customs data show that a total of 192,500 solar panels worth Rs 1.75 billion were imported in the previous fiscal year.

Bharat Kumar Malla, president of the Nepal Solar Power Producers’ Association, said investment in solar energy has increased after the government began chanelling solar power in the national grid in line with the energy mix policy. “Given the policy direction, growth in solar panel imports is natural,” he said.

He also pointed to a policy decision made by the Nepal Electricity Authority (NEA) in between mid-November and mid-December to encourage local governments to produce solar power. Under the policy, the NEA has agreed to purchase up to 1 megawatt of surplus solar electricity generated by local governments at a rate of Rs 5.39 per unit.

According to the Department of Electricity Development, 96 projects with a combined capacity of 2,112 megawatts have so far received survey licenses for solar power generation. Of these, 12 projects with a total capacity of 533.5 megawatts obtained survey permits after mid-May alone.

Similarly, 13 projects with a combined capacity of 85.6 megawatts have received generation licenses till date.

Malla said the government has placed high priority on solar energy to manage peak daytime demand, ensure decentralized power supply in areas with damaged transmission lines, and reduce dependence on electricity imports. With falling technology costs, shorter construction timelines, and environmental benefits, he expects solar power to occupy a much larger share of Nepal’s energy balance in the coming years.