In order to promote rural electrification through Solar Energy (Solar Home Systems and Small Solar Home Systems) and Mini-Grid Electrification throughout Nepal as per Government of Nepal's Subsidy for Renewable (Rural) Energy, 2006, Government of Nepal has made arrangement to provide direct and indirect subsidy through Energy Sector Assistance Programme (ESAP) supported currently by Governments of Denmark and Norway. Similarly, Rural Energy Development Programme supported by the World Bank and UNDP is implementing enabling programme with community Micro Hydro as the entry point in 25 districts of Nepal. Government of Nepal will make necessary additional arrangements as necessary to achieve the development targets and objectives.

A Solar Energy Coordination Committee under the chairpersonship of the Executive Director of AEPC will be formed for carrying out coordination, networking, and advisory activities related to the development of rural electrification through solar energy in Nepal. The other members of the committee are representatives from the MoEST, AEPC, ESAP, Solar Electric Manufactures’ Association Nepal (SEMAN), Renewable Energy Test Station (RETS), Regional Renewable Energy Service Centre (RRESC), other ongoing solar projects, academic institution, financial and social intermediaries. The coordination committee will advise Solar energy Support Programme (SSP) on policy formulation, coordination, and networking. The SSP will be responsible for matters related to implementation activities such as promotion, dissemination, quality assurance and monitoring of solar energy systems. Its main objective of the SSP is to provide technical assistance to SHS manufacturers, distributors, and household users of Solar Home Systems (SHS) and Small Solar Home Systems (SSHS) and assist REF in disbursement of subsidy on technical matters. Since the end-users of SHS and SSHS are peoples in rural areas, it is appropriate to promote it through competitive market. The activities of the SSP will be as follows:

1. To develop healthy SHS & SSHS market and to avoid possibility of subsidy topping up by maintaining close liaison with relevant stakeholders and partner organizations and strengthening distribution networks of SHS and SSHS (e.g., Solar Tuki).
2. To strengthen and implement procedures for qualification of companies and their agents/dealers who will be responsible for manufacturing, distribution, installation, after sales service qualify them based on the criteria.
3. To qualify consultants who will be hired and entrusted for inspection of SHS and SSHS based on criteria approved by the REF Executive Committee.
4. To facilitate interaction between companies, their networks and users to ensure that users get quality products and services in reasonable price through competitive market.
5. To support human resource development of companies and its networks and other relevant organisations.
6. To establish the quality standards (National Interim Photovoltaic Quality Assurance, NIPQA) for solar energy system components and update it as per technological advancement.
7. To monitor the field installation in collaboration with qualified consultants, RRESC and NGOs.
8. To work towards promoting appropriate credit mechanism to increase access and affordability of rural poor to purchase SHS and SSHS.
9. To facilitate the activities related to Used Battery Management.
10. To ensure the minimum demand level so that the after sales service for the SHS and SSHS installed is created.
11. To facilitate activities related to the management of the "Used Battery".
12. To ensure minimum demand for after sales services of the installed SHS and SSHS.
13. To conduct regional promotion campaigns in financially less attractive and remote areas.
14. To conduct survey, reviews, and other studies related to solar energy. SSP will seek supports of local government institutions in promoting SHS and certifying VDC closeness criteria. Renewable Energy Test Station (RETS) will be responsible for laboratory and field testing of the Solar Energy components and certify the NIPQA complying components. Similarly, Council for Technical Education & Vocational Training (CTEVT) will carry out skill testing and certifying of Solar Electric Technicians Level I and II. Private companies and its networks will be responsible for importing, manufacturing, distribution, after sales services of system and pay RETS for its services related to quality testing and certification.