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

11 Mar 2026 CW Team

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.

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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.

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