MERC ruling on surplus power to jolt rooftop solar consumers
   Date :07-Jan-2026
 
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Staff Reporter:
 
APART from many changes coming into effect from the new financial year, the rooftop solar consumers in Maharashtra will be jolted as new tariff relating to surplus power would kick into effect, that virtually puts paid to their efforts to opt for green power. Maharashtra Electricity Regulatory Commission (MERC) has slashed the tariff for surplus power to Rs 2.82/unit, that earlier used to be in range of Rs 3.30 to 3.50/unit.
 
What’s more surprising is that Commission changed the ground rules, wherein it used to every year derive rate for surplus power transferred to grid. Instead, from April 1, the new tariff would hold good for a period of 5 years. The order came when activists working to protect consumers’ interest were busy with multi-year tariff petition. So only six objections were filed, mostly from biogas sector, on the petition that was taken suo-motu by the Commission.
 
Analysing the order, Sudhir Budhay, an authority in renewable energy field, said mostly, the small commercial and industrial units that are having rooftop solar unit, would be impacted. More so, when the Grid Support Charge (GSC) comes into effect. The same would be when MSEDCL achieves 5 MW solar power capacity. Post GSC, the rate for consumers is going to fall to Rs 0.72 for LT consumers, which effectively puts paid to consumers efforts to support the Central Government’s initiative to achieving target of 50 GW of renewable power.
 
As of now, household rooftop units will not be affected. But they too will feel the heat when GSC component implementation starts on part of MSEDCL. As of now, the solar power capacity in State has reached 3.5 MW and reaching 5 MW target is not much difficult. In a way, it all depends on the rulers as even if they declare it tomorrow, there is no way to challenge the same, said Budhay. About the fixed rate, he said, the main disadvantage is that the benefit of indexing effect, the same calculation on which MSEDCL every year jacks up power tariff, will not be available from now to the consumers.