As many as 300 households in Kathmandu Valley have installed solar home systems through bank loans. Similarly, more than 500 households have received cash subsidy from the government.
“Due to increasing load-shedding hours coupled with energy crisis resulting from Indian blockade, many people have installed high capacity solar system that can power their induction stoves or water pumps,” Mukesh Ghimire, solar component manager at Alternative Energy Promotion Center (AEPC), told Republica.
Solar systems with capacity of 1 KW to 1.5 KW, which cost Rs 250,000 to Rs 300,000, can power induction stoves and water pumps, according to Ghimire. But such equipment should not be run at the same time, added Ghimire.
Not only high-capacity solar system, Kathmandu denizens are also installing solar systems of 100W to 200W capacity that lights up their homes and allows phone charging, among others. These systems cost between Rs 40,000 and Rs 50,000.
Solar systems of medium capacity, or 300W to 500W, light up homes and also power desktop computer and television. “The demand of this system is high as one can enjoy cash subsidy upon installation of this system,” said Ghimire.
Solar home system of medium capacity costs between Rs 100,000 to Rs 150,000.
Cash subsidy scheme started from the beginning of the current fiscal year i.e mid-July 2015. Statistics of APEC shows as many as 500 households have already received cash subsidy. Only the consumers installing solar systems with capacity of 500W or more can enjoy cash subsidy.
Prem Neupane, managing director of Sipradi Energy, said number of households interested to install solar home system is increasing in recent days.
Four commercial banks -- Civil Bank, NMB Bank, Himalayan Bank and Nepal Investment Bank - are financing up to 90 percent of the cost of solar home system. Households installing solar home system of 100W to 200W capacity can enjoy interest subsidy of up to 75 percent. Such subsidy for
institutional buyers, however, has been set at 50 percent. Interest subsidy will lower interest rates to a maximum of 2.25 percent.
Around 300 households have already taken bank loans to install solar system and the number is growing with each passing day, according to suppliers. Yam Prasad Gautam, chairman of Dhaulagiri Solar and Electronic Company, said some consumer have rejected subsidy saying that it is full of hassles.
AEPC deposits such cash subsidy into bank accounts of consumers but only after completing lengthy documentation process that includes verification of the use of certified equipment as well as recommendation of installation by local administration.
Ghimire, however, argues that the procedure is hassle-free. “We are releasing subsidy after consumers submit us some photographs of installations and monthly electricity bills,” he added.
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