Maharashtra's Solar Policy Faces Industry Backlash Over Grid Support Charges
The Vidarbha Industries Association (VIA) has issued a stark warning, labeling the Maharashtra Electricity Regulatory Commission's (MERC) latest order as an "anti-industry tariff structure" that could deliver a "death blow" to rooftop solar installations across the state. The association contends that the decision to impose Grid Support Charges (GSC) on gross solar generation will severely undermine the viability of net-metering projects and erode confidence in renewable energy investments among industrial players.
Reinstated Tariff Structures Ignore Court Directives
In a detailed statement, VIA highlighted that MERC has effectively reinstated the same tariff frameworks that were part of its June 25, 2025, review order. This order was previously quashed by the Bombay High Court for bypassing mandatory public consultation processes. Although fresh hearings were conducted following judicial directions, VIA claims that inputs from industry stakeholders were largely disregarded, raising concerns about procedural fairness and transparency in regulatory decision-making.
Call for Government Intervention to Safeguard Industries
Urging immediate intervention from Chief Minister Devendra Fadnavis, VIA President Prashant Mohota emphasized that swift steps are necessary to prevent adverse impacts on industrial operations. The association argues that without corrective measures, the new policies could disrupt business continuity and deter future investments in the state's energy sector.
Rising Power Costs and Economic Implications
VIA further contested assertions by the Maharashtra State Electricity Distribution Company Limited (MSEDCL) that tariffs have not increased. By factoring in fixed demand charges, Fuel Adjustment Cost (FAC), and Tax on Sale (ToS), the effective landed cost of power for industrial consumers now exceeds ₹11 per unit. This positions Maharashtra as one of the costliest states for electricity, potentially hampering industrial competitiveness and economic growth.
Grid Support Charges Penalize Self-Consumption
A major point of contention is the introduction of Grid Support Charges on rooftop solar systems. The order mandates levying GSC on gross generation rather than only on surplus power exported to the grid. VIA terms this move regressive, arguing that it penalizes consumers for power generated and consumed within their own premises, despite them already paying demand charges. This could hurt the financial viability of net-metering models and dampen enthusiasm for renewable energy adoption.
Revised Banking Provisions Add to Financial Strain
The association also raised objections to revised banking provisions for open access to solar consumers. Under the new rules, banked energy can be utilized for only eight hours daily, a significant reduction from the previous 17 hours, with any unused power lapsing at month-end. The retrospective implementation from July 2025 could lead to substantial financial liabilities for industries, further straining their operational budgets.
VIA's warnings underscore a growing tension between regulatory policies and industrial sustainability, calling for a balanced approach to support both renewable energy goals and economic vitality in Maharashtra.
