Solar PV industry is with a history of just about 35 years. With high pace development the technology has become a reliable and free energy source for all. So Nepal has also incorporated the technology as a means of development in its national plan. With The decisions for supporting Solar energy development came about as a result of detailed investigation involving interview with solar PV industries, I/NGOs and leading other organizations . AEPC has been carrying various activities of which the Solar Energy Support Program(SSP) is the major. SSP is funded jointly by Danida, Norwegian Government and Government of Nepal. SSP has already installed 87,245 solar home system (SHS) by the end of 2007and has planned to install approximately 150, 000 SHS by the month of March 20012 on a demand driven basis.

With the financial support from Danida/ESAP, RETS was established in the year 2001 with Nepal Academy of Science & Technology (NAST). It is a part of the Solar energy Support Program of AEPC/ESAP.

For the promotion of SHS systems and PV industry, an Rural Energy Fund (REF) has been set up to administer the subsidy.