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MERC Allows Simultaneous Net Metering and Open Access for Rooftop Solar Consumers

The Maharashtra Electricity Regulatory Commission (MERC) has ruled that rooftop solar consumers can continue availing net metering even while using open access, directing Maharashtra State Electricity Distribution Company Limited (MSEDCL) to extend net metering benefits to Hatsun Agro Products despite the company procuring power through open access.

The Commission has ordered MSEDCL to revise Hatsun’s electricity bills from November 2023 onward, applying net metering instead of gross metering, and to reconcile the resulting financial impact with applicable interest.

Case Background

Hatsun Agro Products, an MSEDCL consumer, installed a 983 kW rooftop solar system at its factory premises and received grid connectivity under a net metering arrangement in September 2022.

Alongside its rooftop installation, Hatsun also procures renewable energy through open access under captive power purchase agreements with third-party solar generators, in line with the Distribution Open Access Regulations, 2016. From November 2023, the company began availing short-term open access while continuing to operate its rooftop solar system.

The dispute arose when MSEDCL denied net metering benefits once Hatsun began using open access, settling rooftop solar generation under gross metering and crediting energy at generic tariff rates. Hatsun argued that this resulted in significant financial losses and violated the regulatory framework applicable after November 2023.

Arguments by the Parties

Hatsun contended that the Distribution Open Access Second Amendment Regulations, 2023, explicitly permit simultaneous availing of open access and net metering. The company highlighted that the earlier provision mandating gross metering during open access periods had been intentionally removed by the Commission. It also stated that it met the eligibility criteria, including having a contract demand exceeding 1 MVA.

MSEDCL opposed the petition, arguing that Hatsun had not applied for open access through the green energy open access nodal agency portal and claimed that only consumers using this framework were eligible for net metering benefits during open access. The utility also cited regulatory ambiguity and referred to a clarification petition it had filed before MERC, which was pending at the time.

Commission’s Findings

MERC noted that while earlier regulations required gross metering during open access periods, this position changed decisively with the Second Amendment Regulations, 2023. The Commission held that the revised regulations clearly allow rooftop solar consumers to avail open access and net metering concurrently, with no ambiguity after November 10, 2023.

On procedural issues, the Commission observed that MSEDCL itself delayed implementing the 2023 amendment, issuing its operational circular only in September 2024, following regulatory directions. MERC ruled that consumers cannot be denied substantive regulatory benefits due to administrative delays by the distribution licensee.

The Commission also rejected MSEDCL’s argument regarding the pending clarification petition, stating that filing a clarification request does not suspend the operation of duly notified regulations. It further noted that MSEDCL had extended net metering benefits to similarly placed consumers, and therefore could not deny the same treatment to Hatsun.

Final Order

MERC concluded that from November 10, 2023, MSEDCL was legally obligated to apply net metering to Hatsun’s rooftop solar system even during periods when open access was availed. Billing the consumer under gross metering after this date was found to be contrary to the regulations.

Accordingly, the Commission directed MSEDCL to:

• Revise Hatsun’s bills from November 2023

• Reconcile financial impacts jointly with the consumer

• Provide credit adjustments along with applicable interest