Nepali government has formed a sub-committee to develop an effective and efficient subsidy distribution mechanism for installation of solar panels at homes in urban areas.

According to Monday's myrepublica.com, the cabinet of ministers, some days ago, had approved a decision to give a grant amount of 10,000 Nepali rupees (some US$125) to each household in urban areas that agree to install solar panels. This was to give some relief to people bearing the brunt of 12 hours of power outage every day.

The sub-committee, which comprises board members of Alternative Energy Promotion Center (AEPC), will conduct a study and determine effective ways to distribute the subsidy. It will also finalize a location or locations from where to start giving away the grant amount.

"We believe everything will be finalized by the end of this week," a reliable source of AEPC told the website. "We will then start distributing the subsidy."

The government has set a target of installing solar panels in one million urban households that have access to power grids of Nepal Electricity Authority or any other electricity supplier. However, in the initial phase, it plans to cover 100,000 households.

As per the plan, the households applying for the grant amount would need to install a solar panel of at least 20 watts. It would have to come with an appropriate battery and charge controller, and would have to be able to light at least three bulbs and power a radio. A set such as the kind that the government has in mind costs around 17,000 rupees (some US$212.5).