The rapid expansion of the solar energy industry in Nepal within the last ten years that started in 1993 is because of the hopeless situation that the majority of Nepalis are forced to live in.

One can see many villages where electric poles have been erected, wires connected and villagers have done electric wiring in their homes but the government has not supplied electricity to these villages for over a decade.

Many people in the world might find it strange that nearly 60 percent of Nepalis are still forced to live in darkness without electricity, roads and many other basic amenities; and 20 percent of Nepalis among the lucky 40 percent who have electricity are either supplied by a community owned micro-hydro power plant or are supplied by a tiny solar panel hoisted on their roofs, and batteries ranging from 10 to 120 kilowatts.

Micro-hydro power plants and solar lighting systems are equally popular in Nepal, but the relative ease of installation and individual ownership is making solar energy more popular.

Compared to a regular grid price of 6 Rupees (Rs)/ per kilowatt unit of electricity (0.08 US cents), solar energy currently costs around Rs. 15/ to Rs. 20/ kilowatt (0.19-0.26 US cents), but people are still buying it because they have no other alternative. The only alternative is kerosene or expensive gas lamps that require hauling from urban centers, a process that takes days to reach rural villages atop rugged hills and the Himalayas. The alternative solar energy source on the other hand simply requires a one-time investment and the family gets light for nearly 10 years without any interruption.