The hilly state of Himachal Pradesh, with nearly 2.15 million cattle and 0.7 million buffalo, has the potential to install 0.64 million biogas plants of 1 m(3) size. These plants could generate nearly 4.90 x 105 m(3) of biogas, equivalent to 3.07 x 10(5) L kerosene per day to meet domestic energy needs of nearly one-fourth of its rural population. During 1982-1998 only 12.8% of this potential was achieved. The percent of possible potential achieved in plant installations in 12 districts of this state, namely Bilaspur, Chamba, Hamirpur, Kangra, Kinnaur, Kullu Lahul-Spiti, Mandi, Shimla, Sirmour, Solan, and Una, are 35.35, 1.70, 20.96 8.67, 1.54, 6.96 0.00, 18.49 3.84 8.521, 18.29 and 13.23%, respectively. There is a need to strengthen biogas promotion, particularly in the districts of Kangra, Mandi, Solan, and Una, which range from mid-hill to low-hill terrain and which have large potential due to high concentration of bovine population. Increased costs and comparatively low rate of subsidies has resulted in a decreasing rate of plant installation annually, from 3500 during 1987-1992 to fewer than 1200 during 1995-1998. The percentage of functioning plants was 82% in 1987-1988 but has decreased to 63%. To ensure proper installation and functionality of plants, we discuss the needed improvements in the biogas promotion program.