NMB Bank has signed a private power purchase agreement with Saral Urja Nepal Private Limited for a 50 kw grid-tie solar roof-top with net metering. The grid-tie solar roof-top will be placed in NMB Bank’s head office in Babarmahal, Kathmandu. Under the power purchase agreement, SUN will install, own and operate the solar roof-top for 15 years. NMB will purchase all the electricity generated from the solar roof-top at a price lower than their retail grid electricity tariff with no up-front investment.
“This initiative reaffirms NMB’s commitment to expanding and financing renewable energy in Nepal. Not only will part of our own electricity requirements be met through solar, we will also use this to expand financing of solar roof-top solutions across Nepal,” said Sunil KC, CEO, NMB Bank.
Over the 20 years’ life of NMB’s solar roof-top system, NMB will pay a lower price per unit from solar than from the grid. The 50 kW will also help to avoid 2 Million kWh imports and reduce imports by Rs two crores over the project’s life.
“We welcome the decision of Nepal Electricity Authority to allow net metering, a system that allows users to connect their solar system to the grid and export the excess electricity to the grid. Net metering has opened up tremendous opportunities for Nepal to diversity its generation base, reduce electricity costs to consumer, avoid imports and help build a more reliable electricity grid,” said Bishal Thapa, Managing Director of Saral Urja Nepal. The agreement between NMB and SUN is also intended to expand financing of such solar roof-top systems across Nepal.
