Industries Opt for Solar Energy as NEA Fails to Ensure Quality Power Supply

Frustrated by the unreliable and poor-quality electricity supply from the Nepal Electricity Authority (NEA), industries in the Sunsari-Morang Industrial Corridor are increasingly turning to solar power as a long-term solution.

To combat frequent problems such as low voltage, load fluctuations, and unscheduled power cuts on industrial feeders that disrupt production, industrialists are now heavily investing in rooftop solar panels. This shift is particularly pronounced during the dry winter season when the NEA struggles to meet demand. With no high-capacity transmission line connected, the authority is unable to compensate for the shortfall even through imports from India.

The economic incentive is clear. According to Amit Rathi, Secretary of the Morang Chamber of Commerce and Industry, the cost of producing solar power is approximately Rs 4 per unit, half of the NEA's industrial tariff of Rs 8 per unit. This cost-effectiveness has made solar energy an attractive proposition, with over 40 industries in the corridor having already installed solar units.

While the initial investment is significant—around Rs 40 million for a 1-megawatt solar plant—it is quickly offset by savings on electricity bills. The annual electricity bill for 1 megawatt of power from the NEA exceeds Rs 80 million. Rathi noted that solar plants can handle the full load from 8 am to 3 pm, after which industries can seamlessly switch back to grid power.

The installation drive is currently underway at several major industries, including Asian Thai Foods, Asian Biscuit, Premier Wire, and Pashupati Industries, with projects totaling approximately 3 megawatts.

Mahesh Jaju, operator of Asian Thai Foods, stated that his 2-megawatt solar plant will be completed within a month, making his factory energy self-sufficient during daylight hours. "Problems like low voltage, erratic supply, and industrial feeder cuts during the dry season have severely impacted our operations," he said. "Solar energy has proven to be an effective solution to these problems."

Abhishek Dahal, Senior Technical Engineer at Prime Renewable, the company installing the plants, confirmed that work is progressing rapidly, with the project at Asian Thai Foods expected to be completed within 15 days.

The adoption of solar energy is further fueled by the NEA's net-metering policy for industrial rooftop projects. This system allows industries to feed excess electricity back into the national grid. Industries like Arihant Multifiber, Arihant Polypack, and Premier Wire are among those leading the charge, with several more, including Swastik Rolling and Pashupati Iron & Steel, preparing to follow suit.

Sanjay Kumar Sah, a manager at the installation company, stated that the cost for a 1-megawatt plant ranges from Rs 38 million to Rs 40 million, excluding VAT. The recent Birat Trade Expo in Morang saw a massive interest in solar energy, with preliminary agreements signed for plants totaling around 6 megawatts, according to Amit Sharada, Secretary of the Morang Chamber of Commerce and Industry and coordinator of the expo.

The benefits are already being realized by early adopters. Suyash Pyakurel, operator of MM Plastic Industry in Biratnagar, which has been using solar energy for four years, reported a significant reduction in production costs. "When water levels drop in the dry season, solar energy becomes a reliable alternative," he said.

Chudamani Bhattarai, General Manager of the Chamber of Industries Morang, noted that industrialists now view solar energy not just as a dry-season stopgap, but as a long-term energy solution. "The ability to produce their own power and sell the surplus to the authority for additional income is a game-changer," he said. With a per-unit cost difference of about Rs 4 compared to grid power, and the NEA's provision to purchase surplus solar power at up to Rs 5.94 per unit, the financial case for solar continues to strengthen.