The government gives a subsidy of up to 75 percent of the total installation cost for a community solar system in a remote area if installed by schools, health posts, temples, animal husbandry or adult literacy classes.

According to Saroj Rai, Solar Energy Program Coordinator at the Energy Sector Assistance Program (SEAP), the subsidy is given to the people through an Interim Rural Electricity Fund (IREF) created with 10 percent funds from the government and 90 percent funds from the Danish aid agency DANIDA.
Subsidy is given to those villages and households where there is no chance of getting regular electricity supplies either from a regular power grid or from a micro-hydro within the next five years.
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