Providing access to electricity to a large section of rural population in Nepal has traditionally been a challenging exercise. This has been exacerbated by difficult geography, poor-socio-economic profile of rural Nepal and moreover by the on-going energy crisis. This chapter conducts an objective assessment of the renewable energy-based off-grid electricity sector in Nepal, with specific focus on micro-hydro-based mini-grid systems by applying a mixed method research design built on both qualitative and quantitative research techniques. While the country’s experiences of developing micro-hydro- and solar energy-based off-grid interventions are captured by qualitative analysis, a standard techno-economic analysis of a micro-hydro mini-grid project is conducted to explore the possibility of introducing additional productive loads and to examine the cost efficacy of generating energy from micro-hydro vis-à-vis solar. Assessment of off-grid electrification options reveals that despite visible progresses, there still exist multiple roadblocks to scale up.