This paper describes the Photovoltaic solar electricity generating capacity in Nepal. Although Nepal is rich in hydropower, currently only about 17% of the total population has access of electricity. The majority of the population who are living in the rural mountainous parts of Nepal is still deprived of electricity. The relatively high insulation throughout the year and geographical situation encourage for the development of PV energy in the country. The monthly mean solar radiation analysis shows that April and January receive the highest and the lowest solar radiation respectively. The PV installation rate has increased dramatically in the last five years due to relative decrease in PV module cost and government subsidy. PV technology is reliable because of its simplicity, extremely low maintenance cost and point-of-use installation possibility. The widespread use of PV will help to reduce CO2 emission and consequently contributes towards better environment.

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