Nagpur: The Maharashtra Electricity Regulatory Commission (MERC) has issued a suo motu draft order proposing the generic renewable energy tariff for the financial year 2026–27 and has invited objections and suggestions from stakeholders.
According to sector experts, the proposed tariff framework will also apply to surplus and inadvertent power exported under net metering, gross metering and net billing mechanisms, a move that could significantly impact rooftop solar consumers across Maharashtra.
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Solar consultant Sudhir Budhay has urged rooftop solar system owners to actively participate in the consultation process before the March 20, 2026 deadline. The draft has been issued under the MERC (Terms and Conditions for Determination of Renewable Energy Tariff) Regulations, 2019, and is available on the Commission’s official website.
Stakeholders may submit objections or suggestions in English or Marathi through the ‘E-Public Consultation’ section on MERC’s portal, via email, or by sending a hard copy to the Commission’s Mumbai office before 6 pm on March 20. An e-public hearing through video conferencing is scheduled for March 24, 2026. Those wishing to present their views orally must indicate the same while filing submissions, as no separate notice for the hearing will be issued.
Budhay pointed out that this consultation follows MERC’s April 2025 order, which fixed the rooftop solar generic tariff at ₹2.82 per kWh. He argued that the rate was derived from tariffs discovered for large, ground-mounted solar projects under schemes such as the KUSUM scheme and MSKVY, despite rooftop solar installations having distinctly different and generally higher cost structures.
“Rooftop solar systems are decentralised and small-scale. Their per-unit installation and maintenance costs are significantly higher than multi-megawatt utility-scale solar farms. Treating both segments alike discourages rooftop adoption,” Budhay said.
Explaining the mechanism, he noted that net metering is intended to allow consumers to utilise solar power generated during the day to offset their electricity consumption. Only surplus energy, when generation exceeds usage, is exported to the grid and credited at the generic tariff.
For instance, if a 5 kW rooftop system produces 25 units in a day and the consumer uses 15 units while exporting 10 units, compensation is provided only for those 10 exported units. “This is not commercial trading of electricity. It is merely fair compensation for unavoidable excess generation,” he clarified.
Citing market trends, Budhay highlighted that rooftop solar projects implemented for Railways and Metro networks have discovered tariffs ranging between Rs 3.25 and Rs 4.35 per kWh. Similarly, REMCL rooftop tenders conducted in 2017 yielded tariffs between Rs 2.39 and Rs 4.00 per kWh. These figures, he said, demonstrate that rooftop solar economics differ substantially from large utility-scale projects.
With MERC now in the process of finalising tariffs for FY 2026–27, Budhay appealed to rooftop solar owners, housing societies, commercial establishments and other stakeholders to file detailed objections and suggestions within the stipulated time frame to ensure that the final tariff structure promotes sustainable growth of decentralised solar energy in Maharashtra.
