Nepal Electricity Authority (NEA), will pay for the ‘excess energy’ generated by a consumer from installation of solar energy system.
For the first time in the country, the government has provisioned a ‘net metering’ system that would allow anybody to bank on own energy generated from the installation of solar photo voltaic system for later use or share for credits from NEA through the connection to the national grid system.
Already, the net metering is practiced in countries like USA, Germany and Japan to promote consumers’ participation in producing electricity from renewable energy.
Ram Sharan Mahat, Finance Minister, in his budget speech announced that the NEA would buy the excess energy to encourage the public to use solar energy system, to produce electricity in large scale in Kathmandu.
However, the government will finalize the rate of power purchase with the individual institution who takes part in promotion.
Ram Prasad Dhital, officiating executive director, Alternative Energy Promotion Center, stated, “This is a breakthrough in the promotion and development of renewable energy sector in the country.”
The annual budget has prioritized the utilization of various renewable sources to meet energy need and contribute to the mitigation of the ongoing energy. The provision of net metering will have to focus on self-consumption and reduction in use of state-supplied energy to reduce the NEA transaction cost.
It is estimated that Kathmandu gets around 300 sunny days a year which is feasible to generate around 2,100 MW of energy for grid connection.