Nepal has a great potential for at least four type of solar energy technology: grid-connected PV, solar water heaters, solar lanterns and solar home systems. Nepal receives solar radiation of 3.6-6.2 kWh/m2 / day with roughly 300 days of sun a year, making it ideal for solar energy. In spite of good resource availability, Nepal is looking in solar installation. There are 943 medium-six solar PV units provide 1.2 MW of electricity for the communications sector, with 155,000 units of solar lanterns in use constituting 737 kWp of capacity and 225,000 of solar home systems are used throughout Nepal across 2600 villages with an output of 5.36 MW.

Given the high solar radiation received at various sites of Nepal, Solar PV installation should definitely be considered as a viable option generation capacity and meet the electricity demand in Nepal in a clean manner. Regular PV technology advancement and increasing global demand are resulting in cheaper methods of producing PV modules and increase in module efficiency. As a result of falling technology prices costs of fossils fuels PV power plants are increasingly attracting large investors in setting up the Solar PV plant.