+
MERC Proposes Rs Two Point Eight Two Per kWh Tariff for Rooftop Solar
POWER & RENEWABLE ENERGY

MERC Proposes Rs Two Point Eight Two Per kWh Tariff for Rooftop Solar

The Maharashtra Electricity Regulatory Commission has issued a draft suo motu order proposing generic renewable energy tariffs and Average Power Purchase Cost benchmarks for FY 2026–27. The draft is proposed to come into effect from April one, 2026 under the MERC (Terms and Conditions for Determination of RE Tariff) Regulations, 2019. The Commission noted that the scope for generic tariff determination is steadily shrinking as more renewable energy projects move towards competitive bidding mechanisms.

The draft proposes a generic tariff of Rs two point eight two per kWh for surplus electricity exported from rooftop photovoltaic systems under net-metering and net-billing arrangements. The Commission linked this rate to the lowest discovered tariffs under the Mukhyamantri Saur Krishi Vahini Yojana two point zero, where bids ranged between Rs two point eight two per kWh and Rs three point one zero per kWh. The regulator emphasised that rooftop systems are primarily designed for self-consumption and that excess generation injected into the grid should be compensated at the prevailing competitive market floor rather than at higher subsidised rates.

The draft makes the proposed tariff mandatory for distribution licensees and specifies that power procured under this mechanism will be eligible for meeting Solar Renewable Purchase Obligation targets. It reiterates a shift towards tariff discovery through competitive bidding under Section 63 of the Electricity Act. As a result, generic tariff determination is now largely restricted to rooftop solar surplus power and variable charges for legacy biomass plants while tariffs for utility-scale solar, wind, hybrid projects and new biomass or co-generation plants are expected to be discovered through market-based bidding.

The Commission has invited objections, comments and suggestions from stakeholders including renewable energy developers, distribution companies, the Maharashtra Energy Development Agency and consumer groups until March 20. The regulator stated that stakeholder submissions will be reviewed before issuing the final tariff order and that the new rates are expected to be applicable from April one, 2026. The draft therefore sets regulatory groundwork ahead of the upcoming fiscal year while signalling a continued move towards market-based tariff discovery.

The Maharashtra Electricity Regulatory Commission has issued a draft suo motu order proposing generic renewable energy tariffs and Average Power Purchase Cost benchmarks for FY 2026–27. The draft is proposed to come into effect from April one, 2026 under the MERC (Terms and Conditions for Determination of RE Tariff) Regulations, 2019. The Commission noted that the scope for generic tariff determination is steadily shrinking as more renewable energy projects move towards competitive bidding mechanisms. The draft proposes a generic tariff of Rs two point eight two per kWh for surplus electricity exported from rooftop photovoltaic systems under net-metering and net-billing arrangements. The Commission linked this rate to the lowest discovered tariffs under the Mukhyamantri Saur Krishi Vahini Yojana two point zero, where bids ranged between Rs two point eight two per kWh and Rs three point one zero per kWh. The regulator emphasised that rooftop systems are primarily designed for self-consumption and that excess generation injected into the grid should be compensated at the prevailing competitive market floor rather than at higher subsidised rates. The draft makes the proposed tariff mandatory for distribution licensees and specifies that power procured under this mechanism will be eligible for meeting Solar Renewable Purchase Obligation targets. It reiterates a shift towards tariff discovery through competitive bidding under Section 63 of the Electricity Act. As a result, generic tariff determination is now largely restricted to rooftop solar surplus power and variable charges for legacy biomass plants while tariffs for utility-scale solar, wind, hybrid projects and new biomass or co-generation plants are expected to be discovered through market-based bidding. The Commission has invited objections, comments and suggestions from stakeholders including renewable energy developers, distribution companies, the Maharashtra Energy Development Agency and consumer groups until March 20. The regulator stated that stakeholder submissions will be reviewed before issuing the final tariff order and that the new rates are expected to be applicable from April one, 2026. The draft therefore sets regulatory groundwork ahead of the upcoming fiscal year while signalling a continued move towards market-based tariff discovery.

Related Stories

Gold Stories

Next Story
Products

Interio by Godrej launches modular workplace solutions

Interio by Godrej has launched Workscapes, a modular workplace solutions category designed to help organisations configure and adapt workspaces to changing requirements. The portfolio combines mobile and compatible furniture and support elements that can be rearranged across different work modes without changes to fixed layouts.Workscapes includes Collaboration Tables, Privacy Solutions, Mobile Markerboards and Space Dividers, Power Solutions, Storage and Support Elements, Meeting and Presentation Tools, and Seating Elements. The range is designed for focused work, collaboration, informal disc..

Next Story
Infrastructure Urban

CAFE-III Gives Auto Industry Investment Clarity

The government’s new Corporate Average Fuel Economy (CAFE-III) norms have provided the automobile industry with a clearer framework for technology investments, according to industry representatives. The framework seeks to balance environmental objectives with flexibility for manufacturers while encouraging the adoption of flex-fuel vehicles and biofuels. Society of Indian Automobile Manufacturers (SIAM) President Shenu Agarwal said the five-year framework would give automakers greater predictability to plan investments and accelerate innovation. He said the regulation established annual targ..

Next Story
Infrastructure Energy

Mines Ministry to Auction Two Offshore Mineral Blocks in Andaman Sea

The Ministry of Mines will launch an auction of two offshore mineral blocks in the Andaman Sea on Thursday, seeking to unlock India’s offshore mineral potential and strengthen long-term mineral resource security. The blocks will be offered under a composite licence, which permits exploration and development activities in accordance with the applicable regulatory framework. The ministry said the auction was intended to encourage systematic exploration, attract investment and promote the use of advanced technologies for offshore mineral exploration and development. The initiative is also aimed..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code