Research Article

Harnessing solar energy in Nepal: financial viability and barriers to adoption

¹ Faculty of Environmental Management, Prince of Songkla University, Hat Yai, Songkhla 90110, Thailand
² Human Resources Management, Rastriya Banijya Bank, Kathmandu, Nepal
³ Research and Innovation Division, Seed NanoTech International Inc., Brampton, ON, Canada

^* e-mail: sabita.bhandari@rbb.com.np

Received: 7 May 2025
Received in final form: 28 October 2025
Accepted: 10 November 2025

Abstract

This study investigates the potential for solar energy to promote sustainable development in Nepal, focusing on financial viability, socioeconomic impact, and adoption issues in urban, rural, and remote areas. Using a mixed-methods approach, the study combines household surveys, expert interviews, statistical evaluations, and policy analysis. The findings show that solar adoption has effectively reduced reliance on fossil fuels and increased electricity availability, particularly in marginalized populations. However, fundamental impediments remain, such as high startup expenses, low public awareness, insufficient maintenance infrastructure, and inconsistent policy implementation. Surveyed families reported significant cost savings and increased energy security, but adoption trends differed by region. Urban areas benefited from stronger infrastructure and financial support, whereas outlying regions faced persisting logistical and economic challenges. Although government subsidies reduced budgetary restrictions, inefficiencies in distribution and ambiguous qualifying requirements limited their effectiveness. Experts stressed the need of local technical skills and ongoing maintenance support. Economic assessments, such as cost-benefit and levelized cost of electricity (LCOE) analyses, show that solar energy becomes more cost-effective over time. The paper concludes with recommendations for targeted legislative reforms, enhanced subsidy systems, and more public-private collaboration to increase solar adoption. These initiatives are vital for achieving Nepal's energy security goals and advancing its commitments to environmental sustainability.