Bhutan Solar Report

Gain comprehensive insights into the statistics and metrics surrounding the solar production industry in Bhutan

  1. Nomade Season (2024, May 6). Monthly climate in Thimphu, Bhutan. Retrieved January 27, 2025, from https://nomadseason.com/climate/bhutan/thimphu/thimphu.html
  2. Nomade Season (2024, May 6). Monthly climate in Trashigang, Bhutan. Retrieved January 27, 2025, from https://nomadseason.com/climate/bhutan/tashigang/trashigang.html
  3. International Renewable Energy Agency (2024, July 31). Energy profile Bhutan. Retrieved January 27, 2025, from https://www.irena.org/-/media/Files/IRENA/Agency/Statistics/Statistical_Profiles/Asia/Bhutan_Asia_RE_SP.pdf
  4. Kuensel online (2022, September 3). Electricity bills to be cheaper. Retrieved January 27, 2025, from https://kuenselonline.com/electricity-bills-to-be-cheaper/
  5. Bhutan Power Corporation Limited (2023). Power data book. Retrieved January 27, 2025, from https://www.bpc.bt/wp-content/themes/bpc/assets/downloads/Power%20Data%20Book%202023.pdf
  6. South Asia Regional Initiative for Energy Integration (SARI/EI) (2016, September). Impact of Cross-Border Electricity Trade on Bhutan (Country Series). Retrieved January 27, 2025, from https://sarepenergy.net/wp-content/uploads/2022/07/Impact-of-Cross-Border-Electricity-Trade-on-Bhutan.pdf
  7. International Renewable Energy Agency (2024). Renewable energy statistics 2024. Retrieved January 27, 2025, from https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2024/Jul/IRENA_Renewable_Energy_Statistics_2024.pdf
  8. Ministry of energy and natural resources (2023, July 12). Press Release- The solar rays for brighter Bhutan. Retrieved January 27, 2025, from https://www.moenr.gov.bt/?p=13154
  9. Asian Development Bank (ADB) (2013). Renewable Energy for Climate Resilience Project. Retrieved January 27, 2025, from https://www.adb.org/sites/default/files/linked-documents/54142-001-ld-02.pdf
  10. Bhutan Electricity Authority (2022, December). MHP Tariff Review Report 2022 to 2025. Retrieved January 27, 2025, from https://era.gov.bt/wp-content/uploads/2023/12/MHPA-tariff-review-report-2022-2025.pdf
  11. Dialogue Earth (2022, June 14). Bhutan ramps up its solar ambitions. Retrieved January 27, 2025, from https://dialogue.earth/en/energy/bhutan-ramps-up-solar-energy-ambitions/
  12. Wikipedia (n.d.). Renewable energy in Bhutan. Retrieved January 27, 2025, from https://en.wikipedia.org/wiki/Renewable_energy_in_Bhutan
  13. Esmap (n.d.). Bhutan Hydropower Sector Study: Opportunities and Strategic Options. Retrieved January 27, 2025, from https://www.esmap.org/sites/default/files/esmap-files/TR_11907_South_Asia_BhutanHydropower.pdf
  14. Ministry of energy and natural resources (2023). Distribution Power Reliability and Transmission System Performance Report. Retrieved January 27, 2025, from https://era.gov.bt/wp-content/uploads/2024/05/Distribution-Power-Reliability-and-Transmission-System-Performance-Report-2023.pdf
  15. Business Bhutan (2023, August 10). Outraged by power outage. Retrieved January 27, 2025, from https://businessbhutan.bt/outraged-by-power-outage/
  16. The Buthanese (2020, November 28). Frequent power outages leave residents in the capital frustrated. Retrieved January 27, 2025, from https://thebhutanese.bt/frequent-power-outages-leave-residents-in-the-capital-frustrated/
  17. Kuensel Online (2023, May 27). 304 rural households to benefit from solar PV system. Retrieved January 27, 2025, from https://kuenselonline.com/304-rural-households-to-benefit-from-solar-pv-system/
  18. Kuensel Online (2023, July 13). Sephu hosts Bhutan’s first mega solar power plant. Retrieved January 27, 2025, from https://kuenselonline.com/sephu-hosts-bhutans-first-mega-solar-power-plant/
  19. Druk Green Power Corporation Limited (2024, August 30). Sephu solar farm’s capacity enhanced to 22.38 MW. Retrieved January 27, 2025, from https://www.drukgreen.bt/sephu-solar-farms-capacity-enhanced-to-22-38-mw/
  20. International Renewable Energy Agency (2019, December). Renewables readiness assessment, Kingdom of Bhutan. Retrieved January 27, 2025, from https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2019/Dec/IRENA_RRA_Bhutan_2019.pdf
  21. Bhutan Today (2021). Off-grid Solar Power: Lighting the rural lives. Retrieved January 27, 2025, from http://www.bhutantoday.bt/off-grid-solar-power-lighting-the-rural-lives/
  22. The Buthanese (2023, July 1). 500KV ground-mounted and grid-tied Solar PV project at Dechencholing. Retrieved January 27, 2025, from https://thebhutanese.bt/500kv-ground-mounted-and-grid-tied-solar-pv-project-at-dechencholing/
  23. World salaries (n.d.). Average Salary in Bhutan for 2025. Retrieved January 27, 2025, from https://worldsalaries.com/average-salary-in-bhutan/
  24. World salaries (n.d.). Average Solar Photovoltaic Installer Salary in Bhutan for 2025. Retrieved January 27, 2025, from https://worldsalaries.com/average-solar-photovoltaic-installer-salary-in-bhutan/
  25. World salaries (n.d.). Average Solar Energy Systems Engineer Salary in Bhutan for 2025. Retrieved January 27, 2025, from https://worldsalaries.com/average-solar-energy-systems-engineer-salary-in-bhutan/
  26. Worldometers (n.d.). Bhutan population. Retrieved January 27, 2025, from https://www.worldometers.info/world-population/bhutan-population/
  27. Kuensel Online (2024, February 6). Businesses to appeal to govt. after significant hike in State land lease rate. Retrieved January 27, 2025, from https://kuenselonline.com/businesses-to-appeal-to-govt-after-significant-hike-in-state-land-lease-rate/
  28. Asian Development Bank (ADB) (n.d.). Water Flagship Program Support Project. Retrieved January 27, 2025, from https://www.adb.org/sites/default/files/linked-documents/42173-017-fa.pdf
  29. Housinng (n.d.). Commercial space. Retrieved January 27, 2025, from https://housinng.bt/property-type/commercial-space/
  30. Statista (2024, September). Non-life insurances – Bhutan. Retrieved January 27, 2025, from https://www.statista.com/outlook/fmo/insurances/non-life-insurances/bhutan
  31. European Investment Bank (2024, April 17). Bhutan: Supporting reliable, green energy for communities – EIB provides €150 million in financing for renewable energy investment. Retrieved January 27, 2025, from https://www.eib.org/en/press/all/2024-153-supporting-reliable-green-energy-for-communities-in-bhutan-eib-provides-eur150-million-in-financing-for-renewable-energy-investment
  32. Electricity regulatory authority (2024). Licensing Regulations for Solar Power Plant. Retrieved January 27, 2025, from https://era.gov.bt/wp-content/uploads/2024/06/Solar-License-1.pdf
  33. Druk Green Power Corporation Limited (2024, September 25). ADB invests USD 30 million in Bhutan’s solar energy vision. Retrieved January 27, 2025, from https://www.drukgreen.bt/adb-invests-usd-30-million-in-bhutans-solar-energy-vision/
  34. Mitigation Action Facility (n.d.). Bhutan – Solar Power Solutions. Retrieved January 27, 2025, from https://mitigation-action.org/projects/bhutan-solar-power-solutions/
  35. Asian Development Bank (ADB) (n.d.). Delivering clean and sustainable energy through solar power in Bhutan. Retrieved January 27, 2025, from https://www.adb.org/news/videos/delivering-clean-and-sustainable-energy-through-solar-power-bhutan
  36. Bhutan Trust Fund for Environmental Conservation (n.d.). Bhutan Solar Initiative Project (BSIP). Retrieved January 27, 2025, from https://www.bhutantrustfund.bt/public_page/post_details/7

Key points

  • All figures have been converted into USD

Yearly sunshine (sun hours per year)

Bhutan averages approximately 3,100 to 3,300 hours of sunshine per year, depending on the region. For instance, Thimphu has about 3,162 hours annually, while Trashigang records around 3,272 hours. 12

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kWh per kWp installed

The average annual electricity production from solar photovoltaic (PV) systems in Bhutan is approximately 1,200 to 1,500 kWh per kWp installed. 3

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Average cost per kWh from utility company

The average cost per kWh from utility companies in Bhutan is approximately $0.031 for residential consumers, which applies uniformly for consumption up to 100 kWh.

For higher consumption, the rate remains at $0.031 per kWh for low voltage consumers, while medium and high voltage consumers pay around $0.019 per kWh.

This tariff is valid until June 30, 2025. 4

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Reliability of electrical power supply grid

Bhutan enjoys relatively strong power reliability compared to other South Asian countries. While it faces challenges such as seasonal power shortages and distribution losses, the country leverages its abundant hydropower resources by exporting a significant portion to India.

Nearly all of Bhutan’s electricity is generated through hydropower, which, despite its cyclic nature, gives the country a favorable position in the region when it comes to energy reliability and sustainability.

Although Bhutan has achieved 99.97% rural electrification, continuous improvements are needed to maintain long-term reliability. Investments in smart grid technologies will be key to boosting operational efficiency and minimizing outage durations. 56

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Detailed Information

  • All figures have been converted into USD

    • Total solar panel production capacity (installed)

    Total installed solar photovoltaic (PV) capacity in Bhutan was approximately 1 MW. 7

    Total solar panel production capacity (projected)

    The Alternative Renewable Energy Policy (AREP), launched in 2013, initially set a solar energy target of 5 MW by 2025. 8

    However, newer initiatives have set more ambitious goals, with Bhutan aiming to reach a solar energy capacity of 500 MW by the end of 2025 and 1 GW by 2030. 9

    Average costs of various electricity generation sources (coal, natural gas, solar, etc)

    • Hydropower plants: 0.044 – 0.045 $/kWh 10
    • Solar plants: 0.035 – 0.049 $/kWh 11

    Percentages of various electricity generation sources (coal, natural gas, solar, etc)

    • Hydropower: 99% 12
    • Renewable energy (solar, biogas, wind): 1% 13

    Average daily availability of electricity from the national grid (measured in hours)

    The average daily availability of electricity from Bhutan’s national grid is approximately 23 hours. 14

    Power outages in Bhutan can be frequent, with reports indicating that residents may experience five to six outages a day, sometimes lasting for extended periods. Specific areas, such as Panbang, have reported outages that can last an entire day, particularly during peak demand seasons like summer. Factors contributing to these outages include weather conditions, infrastructure limitations, and the susceptibility of long grid lines to faults from natural causes like lightning and falling trees. 15

    In 2023, the Bhutan Power Corporation (BPC) reported a System Average Interruption Frequency Index (SAIFI) of 18.96 times/customer/year and a System Average Interruption Duration Index (SAIDI) of 18.58 hours/customer/year. The government aims to modernize the grid, targeting a 20% reduction in these indices by 2025. 16

    Number of residential solar panel installations

    In 2021, there were 170 kW in home-lighting systems in Bhutan. There is also an ongoing project to install solar photovoltaic systems in 304 rural households in 11 villages. 1117

    Total number of solar farms (installed and projected)

    Bhutan currently has one major solar farm, the Sephu Solar Project, with initial capacity of 17.38 MW, additionally increased to 22.38 MW. 18

    The government has selected seven locations nationwide for the installation of solar farms, with an estimated cost of $300 million, seeking funding and technical support from the Asian Development Bank (ADB). 19

    Off-grid market demand for solar panels (current and projected)

    Electrification with off-grid solar home systems and stand-alone generators together account for 1%. 11

    The off-grid market demand for solar panels in Bhutan, particularly in rural areas, is significant and projected to grow significantly as the government aims to enhance energy access in rural areas. 20

    The Aja Ney solar PV project is the first of its kind, featuring a battery storage system and operating entirely off-grid. It is designed to benefit more than 34 households, as well as community facilities such as guest houses and temples. 21

    On-grid market demand for solar panels (current and projected)

    11181922

    Bhutan has approximately 1,450 kW of solar power connected to the grid, including following projects:

    • Rubesa Solar Plant: A 180kW grid-tied solar PV plant
    • Dechencholing Solar Project: A 500kW ground-mounted, grid-tied solar PV plant
    • Centenary Farmers Market (CFM) Rooftop Solar: A 250kW grid-tied rooftop solar

    The Sephu Solar Project should contribute an additional capacity of 22.38 MW since the end of 2024.

    Bhutan has implemented a net metering system, allowing households with solar installations to feed excess energy back into the grid, promoting renewable energy use and enhancing energy security in rural areas.

    Average monthly income of workers in solar industry (labor cost)

    • The average monthly salary in Bhutan is approximately $433. 23
    • Solar Photovoltaic Installer: the average monthly salary is approximately $270. 24
    • Solar Energy Systems Engineer: the average monthly salary is approximately $417. 25

    Population of the country

    The current population of Bhutan is 794,489. 26

    Average overhead costs of solar panel production (with a brief breakdown)

    Estimate for Factory Rent 27

    The average rent for industrial spaces and warehouses in Bhutan has seen significant increases recently, ranging between $0.12 to $0.58 per square meter, depending on the location and condition of the property.

    Industrial Electricity Rates 4

    In Bhutan, the electricity rates for industrial and business consumers are structured as follows:

    • High Voltage (HV): The rate is $0.019 per kWh, with a potential increase of 20% impacting industries like ferrosilicon and cement.
    • Medium Voltage (MV): The energy charge is also $0.019 per kWh.
    • Low Voltage (LV): The tariff varies, with $0.015 per kWh for the first 100 kWh and $0.031 per kWh thereafter.

    These rates are applicable until June 30, 2025, as per the current regulations.

    Water Costs 28

    In Bhutan, urban water supply tariffs are generally based on a volumetric system, with prices varying among districts, typically ranging from $0.023 to $0.051 per cubic meter.

    Salaries and Wages 2425

    Monthly salaries of workers in solar industry in Bhutan ranges from $270 to $417, depending on the position.

    Rent for Office Space 29

    In Bhutan, the price for office space rental varies from $174 to $290 monthly, depending on size and amenities.

    Insurance 30

    The average spending per capita for non-life insurance in Bhutan is estimated to be approximately $791.70 in 2025.

    A summary of the energy infrastructure

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    Energy Mix

    The country has a significant hydropower potential of around 30,000 MW, with 23,760 MW identified as economically feasible. Besides hydropower, Bhutan aims to diversify its energy mix with solar, wind, biomass, and geothermal energy.

    Key Institutions

    • Department of Renewable Energy: Formulates policies to promote renewable energy technologies.
    • Bhutan Electricity Authority (BEA): Regulates the electricity sector and promotes renewable energy projects like rooftop solar through net metering guidelines.
    • Ministry of Economic Affairs: Oversees economic development, including energy infrastructure projects.

    Export / Import

    Bhutan exports surplus hydropower to India, with agreements to export up to 10,000 MW.

    However, during dry seasons Bhutan imports power from India to meet domestic energy deficits.

    Key Projects

    • Hydropower Projects: Notable projects include the Chukha, Kurichhu, Basochhu, Tala, and Mangdechhu hydropower plants.
    • EIB Financing: Supports the installation of 310 MW of hydropower and solar power generation capacity to serve communities in remote regions.

    Some of the government regulations surrounding solar panel production

    Licensing Regulations for Solar Power Plants (2024): These regulations aim to ensure the creation of adequate solar generation capacity, transparency, and fairness in enforcement actions by the authority. 20

    Alternative Renewable Energy Policy (2013): This policy defined renewable energy capacity targets, including solar photovoltaics, to 20 MW by 2025. It emphasizes the need for rapid investments to meet these targets. 32

    Government initiatives in solar panel production (includes investments and subsidies)

    Distributed Solar for Public Infrastructure Project: Supported by the Asian Development Bank (ADB), this project involves installing solar panels on public buildings to generate up to 35 MW of energy. It aims to enhance energy security and promote solar technologies. 31

    Green Energy Investment Project: This project focuses on installing 30 MW of solar PV systems and aims to strengthen the regulatory framework for renewable energy. It includes establishing a Green Financing Framework to support investments by Energy Service Companies (ESCOs) and promote sustainable energy solutions. 33

    Sephu Solar Project: Supported by the Asian Development Bank (ADB) with over $18 million in grants and loans, alongside $1 million from the Government of Bhutan, this project will establish Bhutan’s first utility-scale solar farm with a capacity of 22.38 MW. It aims to diversify the country’s energy mix and reduce reliance on imported power. 34

    EIB financing renewable energy project: Supported by the European Investment Bank (EIB) with a €150 million loan, this initiative aims to develop approximately 310 MW of new renewable energy capacity through small to mid-size run-of-river hydropower plants and solar photovoltaic installations. The project seeks to diversify Bhutan’s energy mix, enhance energy security, and provide reliable, green energy to remote communities. 35

    Notable solar projects in the country (installed and projected)

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    Sephu Solar Project

    • Capacity: 38 MW
    • Location: Sephu, Wangdue Phodrang District
    • Year: Construction began in 2023, expected completion by 2025
    • Investor: Funded primarily by the Asian Development Bank (ADB)
    • Details: This is Bhutan’s first utility-scale solar farm. It can generate approximately 25 million units of energy annually, enough to power about 3,476 households. This project aims to complement hydropower, especially during lean seasons when energy imports from India. are necessary. By integrating this solar energy into the national grid, the project will reduce reliance on external electricity sources and improve energy security for rural communities. 

    Bhutan Solar Initiative Project (BSIP)

    • Capacity: Various (393 panels at Centenary Farmer’s Market and 784 panels at Dechencholing)
    • Location: Thimphu
    • Year: First phase completed in mid-2023
    • Investor: Supported by Project-related Investment (PRI) program under the Bhutan Trust Fund for Environmental Conservation (BTFEC)
    • Details: The project has generated approximately 380,000 kWh over seven months, contributing to energy security and reducing the need for electricity imports during winter. It also provides hands-on training for local engineers and promotes the solar industry in Bhutan.

    Some of the notable solar companies (plus brief details on what they do)

    Dunk Green Power Corporation

    • Headquarters: Thimphu, Bhutan
    • Website: https://www.drukgreen.bt/
    • Details: Although primarily focused on hydropower, DGPC is expanding into solar energy projects, including the installation of solar panels to complement hydropower generation and enhance energy security during dry seasons.

    Tashi Solar

    • Headquarters: Thimphu, Bhutan
    • Website: https://www.tashigroup.bt/
    • Details: Part of a larger conglomerate, Tashi Solar focuses on renewable energy projects including solar panel installations and has contributed to various community-based solar initiatives.

    JB Solar Solutions

    • Headquarters: Thimphu, Bhutan
    • Website: https://jbsolarhub.com/
    • Details: This company focuses on providing affordable solar solutions for rural electrification and has been instrumental in deploying solar home systems in remote villages.

    ZenPhen Solar

    • Headquarters: Thimphu, Bhutan
    • Website: https://zhenphen.com/
    • Details: The company specializes in sustainable energy products and services, including solar water heating systems and photovoltaic installations for residential and commercial use.

Solar News Related to Bhutan

Bhutan Renewable Energy News

Bhutan Renewable Energy Grows with €150M Loan

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