Nepal’s large solar potential blocked by policy and bordersCEFR A2
4 Nov 2025
Adapted from Sonia Awale, Global Voices • CC BY 3.0
Photo by Calum Hill, Unsplash
An EMBER report in October 2025 shows renewables have overtaken coal, and most of the rise came from solar. Nepal has a large technical solar potential: 432 gigawatts, and more than 300 days of sunshine each year. Hydropower potential is 42,000 megawatts, but glaciers and glacial lake floods make some hydropower sites less stable.
Domestic rules limit solar. The government caps solar at 10 percent, while solar currently supplies 5 percent. Solar tariffs are NPR 5 (USD 0.035) per unit with competitive bidding. Hydropower gets NPR 6.5 (USD 0.046) per unit and no bidding, which discourages some solar investment.
Border concerns and regional politics have stopped projects near Mustang and other areas. Possible steps include raising the cap to 30 percent and using more rooftop solar.
Difficult words
- energy — Power used to provide light or heat.
- potential — Possible ability or capacity.
- production — The process of making something.
- climate — The typical weather conditions of an area.
- investment — Money put into something for future profit.
Tip: hover, focus or tap highlighted words in the article to see quick definitions while you read or listen.
Discussion questions
- Why is solar energy important for Nepal's future?
- How can the government improve energy policies?
- What challenges does hydropower face due to climate change?
Related articles
South Asia: climate risks, money and the green transition
South Asia faces severe climate damage in Pakistan and Nepal while it seeks funds for adaptation and clean energy. International finance, private carbon markets and Chinese technology shape the region’s green transition and its challenges.
