It is not enough, however, for the denizens of Kathmandu to have just light, with increased dependency on electric-powered appliances. Candles and flashlights are no longer adequate. People need power.
Akshay Sthapit, one of the founders of Harilo.com, created his own wind turbine out of plumbing pipes. “It’s small and produces enough to power my computer and router,” he says, as he always needs to be online. Sthapit also installed an inverter two years ago that he felt was necessary.
The shift to generators and inverters were short-term solutions that ended up being more detrimental in the long run. Shortage of expensive fossil fuel made generators unaffordable and inverters ended up draining the grid, increasing bills and decreasing supply. Sthapit is planning to install solar panels in his house, and Kiran’s residence will be solar-powered in a few weeks. Solar energy thus appears to be a viable, long-term and environmentally friendly solution.
Dating 17 years back, Lotus Energy introduced solar options to Nepal but focused more on rural areas. Lotus’s efforts shifted to include Kathmandu a decade ago when load shedding became more of an issue. Although primarily catering to NGOs and expatriates, “I’d say there’s been a three to four times increase of Nepali customers in the last year,” says Assistant Solution Sales Coordinator, Manish Bajracharya.
Lotus does not compromise on quality and that is apparent in the cost. A single portable light comes at Rs 3,500 and multiple solar lights are Rs 20,000 – 65,000. Hybrid systems that use solar energy as well as NEA’s grid are between Rs 500,000 – 600,000 and full solar systems are in the Rs 800,000 – 900,000 range. Currently, the full payment has to be made upfront in cash but Bajracharya adds, “We’re collaborating with banks for customized packages that customers can pay in installments.”
Gham Power, although under a year old, already provides a financing plan with Clean Energy Development Bank with five packages. Dinesh Dulal, Senior Relations Officer at the bank, says “We try to make minimum hassle,” and after opening an account and after a brief background check to make sure the customer is capable of making payments, the paperwork can be completed within 48 hours.
The most basic plan at Gham Power is Rs 75,000 without financing or Rs 1,990 per month over three years, subject to 12% interest if paid in installments. Larger packages are available with financing of up to five years. Moon
Pradhan, Director, Sales& Marketing, says that even though solar is expensive, she encourages the more affordable hybrid system that charges the battery using both solar energy as well as the grid.
Two and a half years old Solar Solutions, on the other hand, strongly endorses full solar system. Although more expensive than the hybrid, Managing Director Raj K Thapa explains, “Due to the erratic load shedding schedules in Nepal, the hybrid system stresses and decreases battery life.” He points out that batteries end up being about a third of the total cost and therefore the longevity of battery life is worth taking into consideration. On top of that, he adds, “With full solar system, you’re independent of the grid, which means you’re leaving more energy for others and not draining the already limited supply.”
Solar Solutions also has a financing plan, but at Rs 40,000–60,000 for just lights and full solar systems ranging from Rs 150,000–350,000, it is not cheap. A few clients have even hit close to Rs 900,000–1,000,000 in total costs. However, the burden on the pocket is lightened with a 7.5% interest financing plan at Laxmi Bank which can be spread over three to five years.
Despite being “capital intensive,” Thapa anticipates the solar industry will increase tenfold in the next two years. He attributes the solar movement to several factors, “The first reason is the failure of invertors,” he says and adds, “The availability of invertors has also declined, generators are expensive, candle prices have increased and now, people are embracing technology.”
To help with the burden of the costs, the government of Nepal waives tax and VAT which translates to 25-30% saving for the customer. Even with financing and support from the government, Saryat Deoja, Director and Strategic Planner at Solar Solutions, says, “Solar is an investment, you can’t take shortcuts. With financing, middle class families can afford solar,” but adds, “There are no other ways of cutting down the costs unless we open up an assembly factory ourselves, and even that won’t imply significant reductions.”
Even with other alternate energy options being essentially ineffective, and even with the aid of banks and solar companies, there remains hundreds of thousands of residents who haven’t considered alternate options.
Pankaj BK, 28, who has been driving taxies for five years, says, “I use candles at home and car battery to charge my phone.” BK says inverters are out of his price range and solar seems even farther off.
The question remaining, therefore, is not how beneficial solar energy is, or whether it could pave a way out of the energy crisis but ultimately whether the average people of Kathmandu can actually afford it.
In the meantime, the energy crunch is at it’s worst.
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