In a strategic move to balance agricultural preservation with renewable energy goals, Nepal is exploring the production of solar energy by installing panels over its extensive network of irrigation canals. This innovative approach, often called canal-top solar, has gained significant momentum, with a government study committee recently finalizing recommendations to promote the practice as a key national strategy.
This initiative is part of a broader push to diversify the country’s energy mix. A pilot program, developed in collaboration with the Asian Development Bank (ADB), is set to demonstrate the concept’s viability.
A Pilot Project Paves the Way for Solar canals Nepal
The initial pilot project will receive financial and technical support from the Asian Development Bank (ADB), with an expected cost of around $1.5 million. The ADB’s backing is crucial for providing the necessary capital and expertise to ensure a successful rollout.
The project will focus on the Sikta Irrigation Project in the Banke district. Solar panels will be installed along a stretch of the 15-kilometer main canal, utilizing existing cross-drainage structures for mounting. The goal for this initial phase is to generate 1 MW of clean energy.
The implementation will occur in two phases: the first involves the installation of the solar panels, and the second will focus on connecting the generated electricity to the national grid, contributing to the nation’s power supply.
The Dual Benefits of Canal-Top Solar for Solar canals Nepal
Covering irrigation canals with solar panels offers a compelling combination of benefits. The primary advantage is generating renewable electricity without consuming valuable agricultural land—a key driver behind the government’s recent policy push. This dual-use approach addresses the critical challenge of land scarcity for large-scale solar farms.
Beyond energy generation, the project offers significant environmental co-benefits:
- Water Conservation: The shade from the panels reduces water evaporation from the canals, a crucial benefit in a country reliant on its water resources for agriculture and hydropower.
- Improved Panel Efficiency: The cooling effect from the water flowing beneath the panels can slightly increase their energy conversion efficiency.
- Reduced Maintenance: By blocking sunlight, the panels can inhibit weed growth within the canals, potentially lowering canal maintenance costs.
If the 1 MW pilot in Banke proves successful, the model could be replicated across the country, playing a vital role in helping Nepal target 10,000MW of solar energy by 2035.
Challenges and Implementation Hurdles for Solar canals Nepal
While the potential is significant, the path forward includes several challenges. The initial solar panel manufacturing plant cost breakdown shows that such specialized installations can have high upfront costs. Securing sustainable funding and ensuring the long-term technical feasibility are paramount.
Furthermore, the policy landscape is still evolving. While some government committees are actively promoting the concept, other reports have mentioned draft regulations that could potentially restrict it. This highlights the need for clear, unified regulations and strong inter-agency coordination between the ministries of Energy, Irrigation, and Agriculture. Proper planning for the maintenance of the panels and the integration of power into the national grid will be critical for long-term success. Understanding the basics of solar panel manufacturing and the specific engineering requirements for these installations will be essential.
The ADB’s support will be instrumental in navigating these early hurdles, helping establish a proven model for future renewable energy initiatives in Nepal.
Prospects for Solar Energy in Nepal’s Solar canals
Nepal’s exploration of canal-top solar aligns with a growing global trend. Countries like Italy, with its “Canalvoltaico” projects, are demonstrating the technical and economic viability of this approach. By leveraging existing infrastructure, Nepal is taking a progressive step on its renewable energy journey, a crucial part of the impressive plan that targets the essential 2035 goal.
This initiative is a cornerstone of the country’s strategic effort to diversify its energy mix beyond its traditional reliance on hydropower, as seen with other unique solar project approvals in 2025. Success could attract further investment into the broader Nepal Solar Panel Manufacturing sector and help integrate the country into global renewable energy markets, building on milestones like Nepal’s first I-REC solar project.
With strong government backing and support from international partners, Nepal is well-positioned to turn its vast irrigation networks into a powerful source of clean, sustainable energy.
To learn more about the technical and financial aspects of bringing solar projects to life, from the initial concept to a fully operational plant, explore our free e-course on solar manufacturing.
