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MERC Upholds Grid Support Charges for Rooftop Solar Systems Above 10 kW

The Maharashtra Electricity Regulatory Commission (MERC) has rejected a petition by renewable energy consultant Sudhir Budhay seeking the removal of grid support charges on rooftop solar systems between 10 kW and 1 MW. The Commission ruled that these charges are a lawful regulatory mechanism introduced under the MERC (Grid Interactive Rooftop Renewable Energy Generating Systems) Regulations, 2019, and amended in 2020. It emphasized that the charges aim to recover legitimate costs incurred by distribution licensees, including grid maintenance, standby support, and grid stability.

The petitioner argued the charges were redundant due to existing banking fees and claimed they discriminated against mid-sized consumers—those above 10 kW but under 1 MW—who do not fall under the open access regime. However, MERC dismissed this, stating that regulatory structures differ by consumer category and that the current framework aligns with national renewable energy policies.

The Commission also noted that the charges are not currently applicable, as they will only be enforced once the state’s cumulative rooftop solar capacity surpasses 5,000 MW. As of now, Maharashtra has not reached this threshold, rendering the petition premature. MERC reiterated its stance that smaller residential consumers (up to 10 kW) are exempt to encourage adoption, while larger users are governed by separate open access regulations with their own fee structures.

This ruling reinforces MERC’s commitment to balanced grid cost recovery while supporting structured rooftop solar growth.