The Alternative Energy Promotion Centre (AEPC) is responsible to review and update federal level renewable energy (RE) policies including for subsidy. This preliminary policy analysis is carried out by the Nepal Renewable Energy Programme (NREP) to develop policy recommendations for sub national governments. As sub national governments do not have their own energy/RE policies, the analysis focuses on existing federal ones. The planned Provincial Energy Coordination Committee (PECC) in the Provinces (2, 5 and Karnali) will be used as a platform to promote the provincial level policy recommendations into action. A methodology has also been proposed in this paper that will be used for the full federal level policy review.