1. Net Metering – Solar Roof Top Solution

2. Outline Current Context Current situation of existing solar system
What is the current energy scenario and where the opportunities are
Current situation of existing solar system
Many stranded solar rooftops that are not utilized
Potential of solar rooftop
What is the potential of solar rooftop in Kathmandu
Support Required from government level
How can government support to scale on grid solar
Financing and Incentivization
Innovative financing and incentive models/structure
Reliable Grid Supply: Today Nepal has reliable electricity supply from the grid, though unexpected small power cuts still occur occasionally. The power cuts (load shedding) typically doesn’t last very long (unless there are unexpected physical damage to power lines). We expect this new reliability in power supply to continue with power cuts becoming even less frequent.
The type of solar system that was previously designed for previous long-shedding hours were for storage and for dealing with load shedding. In the current context of more reliable power supply, the system design must be modified to utilize the reliable grid supply.
Increasing electricity tariff: Nepali electricity consumers are likely to witness increasing electricity tariffs in the future. Electricity tariffs are currently too low for NEA. A 20% tariff increase was put in place two years ago. Another proposal for a 20% increase in tariffs is pending before the tariff commission and is likely to announced. With the reduction in load shedding, there will be growing pressure for future increases in tariffs to offset the high cost of imports from India.
In this context, solar systems must be designed to help reduce expenditures on electricity. Our analysis reveals that the economics of the proposed solar system is already very compelling. Higher tariffs will only make it even more compelling.
Stranded Solar Rooftop: Since the grid is reliable now, 99% of the solar system installed are not being utilized. The inverters are directly by passing the solar and supply electricity from the grid.

3. Present Situation

4. Current Context Reliable Grid Supply Stranded Solar Rooftops
Increasing Cost of Electricity
Grid supply has improved a lot in recent times. There is almost no power outages
Almost 50MW in roof top solar are stranded in Kathmandu alone due to end of load shedding
With improved supply and high cost of import from India the cost of electricity is on the rise
Reliable Grid Supply: Today Nepal has reliable electricity supply from the grid, though unexpected small power cuts still occur occasionally. The power cuts (load shedding) typically doesn’t last very long (unless there are unexpected physical damage to power lines). We expect this new reliability in power supply to continue with power cuts becoming even less frequent.
The type of solar system that was previously designed for previous long-shedding hours were for storage and for dealing with load shedding. In the current context of more reliable power supply, the system design must be modified to utilize the reliable grid supply.
Increasing electricity tariff: Nepali electricity consumers are likely to witness increasing electricity tariffs in the future. Electricity tariffs are currently too low for NEA. A 20% tariff increase was put in place two years ago. Another proposal for a 20% increase in tariffs is pending before the tariff commission and is likely to announced. With the reduction in load shedding, there will be growing pressure for future increases in tariffs to offset the high cost of imports from India.
In this context, solar systems must be designed to help reduce expenditures on electricity. Our analysis reveals that the economics of the proposed solar system is already very compelling. Higher tariffs will only make it even more compelling.
Stranded Solar Rooftop: Since the grid is reliable now, 99% of the solar system installed are not being utilized. The inverters are directly by passing the solar and supply electricity from the grid.

5. Solar as back-up
In recent years, urban Nepal adopted solar powered battery back-up energy solution
The solution was a direct result of long hours of load shedding.
There is an estimated MW of roof top solar installed in Kathmandu Valley alone
Reliable Grid Supply: Today Nepal has reliable electricity supply from the grid, though unexpected small power cuts still occur occasionally. The power cuts (load shedding) typically doesn’t last very long (unless there are unexpected physical damage to power lines). We expect this new reliability in power supply to continue with power cuts becoming even less frequent.
The type of solar system that was previously designed for previous long-shedding hours were for storage and for dealing with load shedding. In the current context of more reliable power supply, the system design must be modified to utilize the reliable grid supply.
Increasing electricity tariff: Nepali electricity consumers are likely to witness increasing electricity tariffs in the future. Electricity tariffs are currently too low for NEA. A 20% tariff increase was put in place two years ago. Another proposal for a 20% increase in tariffs is pending before the tariff commission and is likely to announced. With the reduction in load shedding, there will be growing pressure for future increases in tariffs to offset the high cost of imports from India.
In this context, solar systems must be designed to help reduce expenditures on electricity. Our analysis reveals that the economics of the proposed solar system is already very compelling. Higher tariffs will only make it even more compelling.
Stranded Solar Rooftop: Since the grid is reliable now, 99% of the solar system installed are not being utilized. The inverters are directly by passing the solar and supply electricity from the grid.

6. Stranded Roof Top Solar
In the current context of reliable grid supply, the solar roof tops that were installed are all stranded
Some customers are utilizing their solar by manually managing the grid and solar
There is a huge potential to bring these stranded system on to the main grid
Reliable Grid Supply: Today Nepal has reliable electricity supply from the grid, though unexpected small power cuts still occur occasionally. The power cuts (load shedding) typically doesn’t last very long (unless there are unexpected physical damage to power lines). We expect this new reliability in power supply to continue with power cuts becoming even less frequent.
The type of solar system that was previously designed for previous long-shedding hours were for storage and for dealing with load shedding. In the current context of more reliable power supply, the system design must be modified to utilize the reliable grid supply.
Increasing electricity tariff: Nepali electricity consumers are likely to witness increasing electricity tariffs in the future. Electricity tariffs are currently too low for NEA. A 20% tariff increase was put in place two years ago. Another proposal for a 20% increase in tariffs is pending before the tariff commission and is likely to announced. With the reduction in load shedding, there will be growing pressure for future increases in tariffs to offset the high cost of imports from India.
In this context, solar systems must be designed to help reduce expenditures on electricity. Our analysis reveals that the economics of the proposed solar system is already very compelling. Higher tariffs will only make it even more compelling.
Stranded Solar Rooftop: Since the grid is reliable now, 99% of the solar system installed are not being utilized. The inverters are directly by passing the solar and supply electricity from the grid.

7. Size of Existing Stranded Systems
Majority of stranded systems are less than 500W
Easy hanging fruits are bigger systems, we should be able to bring them to the grid without much fuss
50 MW
Reliable Grid Supply: Today Nepal has reliable electricity supply from the grid, though unexpected small power cuts still occur occasionally. The power cuts (load shedding) typically doesn’t last very long (unless there are unexpected physical damage to power lines). We expect this new reliability in power supply to continue with power cuts becoming even less frequent.
The type of solar system that was previously designed for previous long-shedding hours were for storage and for dealing with load shedding. In the current context of more reliable power supply, the system design must be modified to utilize the reliable grid supply.
Increasing electricity tariff: Nepali electricity consumers are likely to witness increasing electricity tariffs in the future. Electricity tariffs are currently too low for NEA. A 20% tariff increase was put in place two years ago. Another proposal for a 20% increase in tariffs is pending before the tariff commission and is likely to announced. With the reduction in load shedding, there will be growing pressure for future increases in tariffs to offset the high cost of imports from India.
In this context, solar systems must be designed to help reduce expenditures on electricity. Our analysis reveals that the economics of the proposed solar system is already very compelling. Higher tariffs will only make it even more compelling.
Stranded Solar Rooftop: Since the grid is reliable now, 99% of the solar system installed are not being utilized. The inverters are directly by passing the solar and supply electricity from the grid.

8. Grid Connection 50MW Can be grid connected within a year
Reliable Grid Supply: Today Nepal has reliable electricity supply from the grid, though unexpected small power cuts still occur occasionally. The power cuts (load shedding) typically doesn’t last very long (unless there are unexpected physical damage to power lines). We expect this new reliability in power supply to continue with power cuts becoming even less frequent.
The type of solar system that was previously designed for previous long-shedding hours were for storage and for dealing with load shedding. In the current context of more reliable power supply, the system design must be modified to utilize the reliable grid supply.
Increasing electricity tariff: Nepali electricity consumers are likely to witness increasing electricity tariffs in the future. Electricity tariffs are currently too low for NEA. A 20% tariff increase was put in place two years ago. Another proposal for a 20% increase in tariffs is pending before the tariff commission and is likely to announced. With the reduction in load shedding, there will be growing pressure for future increases in tariffs to offset the high cost of imports from India.
In this context, solar systems must be designed to help reduce expenditures on electricity. Our analysis reveals that the economics of the proposed solar system is already very compelling. Higher tariffs will only make it even more compelling.
Stranded Solar Rooftop: Since the grid is reliable now, 99% of the solar system installed are not being utilized. The inverters are directly by passing the solar and supply electricity from the grid.
Innovation in models and effort will be required to get them grid connected,
will take longer

9. The Big Potential for Roof Top Net Metering Solution

10. Kathmandu Valley Potential
Number of roof tops
500,000
Average size of roof tops
684 sq. feet
Potential size of each system
5kW
Total potential
2,500 MW
Reliable Grid Supply: Today Nepal has reliable electricity supply from the grid, though unexpected small power cuts still occur occasionally. The power cuts (load shedding) typically doesn’t last very long (unless there are unexpected physical damage to power lines). We expect this new reliability in power supply to continue with power cuts becoming even less frequent.
The type of solar system that was previously designed for previous long-shedding hours were for storage and for dealing with load shedding. In the current context of more reliable power supply, the system design must be modified to utilize the reliable grid supply.
Increasing electricity tariff: Nepali electricity consumers are likely to witness increasing electricity tariffs in the future. Electricity tariffs are currently too low for NEA. A 20% tariff increase was put in place two years ago. Another proposal for a 20% increase in tariffs is pending before the tariff commission and is likely to announced. With the reduction in load shedding, there will be growing pressure for future increases in tariffs to offset the high cost of imports from India.
In this context, solar systems must be designed to help reduce expenditures on electricity. Our analysis reveals that the economics of the proposed solar system is already very compelling. Higher tariffs will only make it even more compelling.
Stranded Solar Rooftop: Since the grid is reliable now, 99% of the solar system installed are not being utilized. The inverters are directly by passing the solar and supply electricity from the grid.
Even if 10% of the households adopt the technology in next 5 years, Kathmandu roof tops will generate 250 MW of electricity which is almost equivalent to Indian imports today

11. Support Required to Accelerate the Process

12. Ease in Application Process
Issues Faced
What will be helpful
Lack of clarity in NEA on how to process the net metering application
Confusion in processing household net metering applications
Lack of clarity on which technology will be allowed
There is lack of clarity on required documentation
Clear Process
Step 1 – Step 2 – Step 3 – Step 4
Clarity on required documentation
Clarity on technology
Ease of Application (online if possible) most people do not adopt the technology due to difficult process
Reliable Grid Supply: Today Nepal has reliable electricity supply from the grid, though unexpected small power cuts still occur occasionally. The power cuts (load shedding) typically doesn’t last very long (unless there are unexpected physical damage to power lines). We expect this new reliability in power supply to continue with power cuts becoming even less frequent.
The type of solar system that was previously designed for previous long-shedding hours were for storage and for dealing with load shedding. In the current context of more reliable power supply, the system design must be modified to utilize the reliable grid supply.
Increasing electricity tariff: Nepali electricity consumers are likely to witness increasing electricity tariffs in the future. Electricity tariffs are currently too low for NEA. A 20% tariff increase was put in place two years ago. Another proposal for a 20% increase in tariffs is pending before the tariff commission and is likely to announced. With the reduction in load shedding, there will be growing pressure for future increases in tariffs to offset the high cost of imports from India.
In this context, solar systems must be designed to help reduce expenditures on electricity. Our analysis reveals that the economics of the proposed solar system is already very compelling. Higher tariffs will only make it even more compelling.
Stranded Solar Rooftop: Since the grid is reliable now, 99% of the solar system installed are not being utilized. The inverters are directly by passing the solar and supply electricity from the grid.

13. Application Documents
Clear Process
Application Documents
Technical Documents
Submission
Follow-up
Approval
Reliable Grid Supply: Today Nepal has reliable electricity supply from the grid, though unexpected small power cuts still occur occasionally. The power cuts (load shedding) typically doesn’t last very long (unless there are unexpected physical damage to power lines). We expect this new reliability in power supply to continue with power cuts becoming even less frequent.
The type of solar system that was previously designed for previous long-shedding hours were for storage and for dealing with load shedding. In the current context of more reliable power supply, the system design must be modified to utilize the reliable grid supply.
Increasing electricity tariff: Nepali electricity consumers are likely to witness increasing electricity tariffs in the future. Electricity tariffs are currently too low for NEA. A 20% tariff increase was put in place two years ago. Another proposal for a 20% increase in tariffs is pending before the tariff commission and is likely to announced. With the reduction in load shedding, there will be growing pressure for future increases in tariffs to offset the high cost of imports from India.
In this context, solar systems must be designed to help reduce expenditures on electricity. Our analysis reveals that the economics of the proposed solar system is already very compelling. Higher tariffs will only make it even more compelling.
Stranded Solar Rooftop: Since the grid is reliable now, 99% of the solar system installed are not being utilized. The inverters are directly by passing the solar and supply electricity from the grid.

14. Awareness Programs
Government level awareness programs will be very helpful as a marketing strategy for net metering
Except for people within energy sector, there is little awareness about net metering
If government promotes solar roof top net metering solution in a large scale, the adoption rate will be much higher
Reliable Grid Supply: Today Nepal has reliable electricity supply from the grid, though unexpected small power cuts still occur occasionally. The power cuts (load shedding) typically doesn’t last very long (unless there are unexpected physical damage to power lines). We expect this new reliability in power supply to continue with power cuts becoming even less frequent.
The type of solar system that was previously designed for previous long-shedding hours were for storage and for dealing with load shedding. In the current context of more reliable power supply, the system design must be modified to utilize the reliable grid supply.
Increasing electricity tariff: Nepali electricity consumers are likely to witness increasing electricity tariffs in the future. Electricity tariffs are currently too low for NEA. A 20% tariff increase was put in place two years ago. Another proposal for a 20% increase in tariffs is pending before the tariff commission and is likely to announced. With the reduction in load shedding, there will be growing pressure for future increases in tariffs to offset the high cost of imports from India.
In this context, solar systems must be designed to help reduce expenditures on electricity. Our analysis reveals that the economics of the proposed solar system is already very compelling. Higher tariffs will only make it even more compelling.
Stranded Solar Rooftop: Since the grid is reliable now, 99% of the solar system installed are not being utilized. The inverters are directly by passing the solar and supply electricity from the grid.

15. Innovative Financing Mechanisms
Without financing this sector is not going to scale
NEA should partner with Energy Service Company to design innovative financing
Should encourage new models and opportunity
Reliable Grid Supply: Today Nepal has reliable electricity supply from the grid, though unexpected small power cuts still occur occasionally. The power cuts (load shedding) typically doesn’t last very long (unless there are unexpected physical damage to power lines). We expect this new reliability in power supply to continue with power cuts becoming even less frequent.
The type of solar system that was previously designed for previous long-shedding hours were for storage and for dealing with load shedding. In the current context of more reliable power supply, the system design must be modified to utilize the reliable grid supply.
Increasing electricity tariff: Nepali electricity consumers are likely to witness increasing electricity tariffs in the future. Electricity tariffs are currently too low for NEA. A 20% tariff increase was put in place two years ago. Another proposal for a 20% increase in tariffs is pending before the tariff commission and is likely to announced. With the reduction in load shedding, there will be growing pressure for future increases in tariffs to offset the high cost of imports from India.
In this context, solar systems must be designed to help reduce expenditures on electricity. Our analysis reveals that the economics of the proposed solar system is already very compelling. Higher tariffs will only make it even more compelling.
Stranded Solar Rooftop: Since the grid is reliable now, 99% of the solar system installed are not being utilized. The inverters are directly by passing the solar and supply electricity from the grid.

16. Innovative Incentive Programs
Fiscal Incentive
Generation Incentive
Incentive that gives tax benefits to the asset owners
Incentive which will be based on generation by the system
100% depreciation benefit in the first year
Mechanism to sell depreciation benefit by a household to an institution (happens all over the world)
If a certain threshold is hit within a year then the installer gets certain type of benefits
High incentive for storage based systems. There a lot of stranded batteries which could be utilized
Reliable Grid Supply: Today Nepal has reliable electricity supply from the grid, though unexpected small power cuts still occur occasionally. The power cuts (load shedding) typically doesn’t last very long (unless there are unexpected physical damage to power lines). We expect this new reliability in power supply to continue with power cuts becoming even less frequent.
The type of solar system that was previously designed for previous long-shedding hours were for storage and for dealing with load shedding. In the current context of more reliable power supply, the system design must be modified to utilize the reliable grid supply.
Increasing electricity tariff: Nepali electricity consumers are likely to witness increasing electricity tariffs in the future. Electricity tariffs are currently too low for NEA. A 20% tariff increase was put in place two years ago. Another proposal for a 20% increase in tariffs is pending before the tariff commission and is likely to announced. With the reduction in load shedding, there will be growing pressure for future increases in tariffs to offset the high cost of imports from India.
In this context, solar systems must be designed to help reduce expenditures on electricity. Our analysis reveals that the economics of the proposed solar system is already very compelling. Higher tariffs will only make it even more compelling.
Stranded Solar Rooftop: Since the grid is reliable now, 99% of the solar system installed are not being utilized. The inverters are directly by passing the solar and supply electricity from the grid.

17. We hope to collaborate to make Nepal an energy prosperous country
Thank you
We hope to collaborate to make Nepal an energy prosperous country