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MERC Clarifies That Net Metering and Open Access Can Operate Together Under Existing Regulations

The Maharashtra Electricity Regulatory Commission (MERC) has ruled that rooftop solar installations operating under the Net Metering mechanism can simultaneously avail Open Access, clarifying that the two arrangements are not mutually exclusive under the prevailing regulatory framework.

The ruling was issued in response to a petition filed by Hatsun Agro Product Ltd. (HAPL), which sought Net Metering treatment for its 983 kW rooftop solar system at its Solapur industrial facility, despite procuring power through Open Access. MERC has directed the Maharashtra State Electricity Distribution Company Limited (MSEDCL) to extend Net Metering–based energy credit adjustments to the consumer and to reconcile past electricity bills along with applicable interest, with the revised amounts to be reflected in the subsequent billing cycle.

In its submission, HAPL contended that following the notification of the Distribution Open Access (Second Amendment) Regulations, 2023, the earlier requirement mandating Gross Metering during Open Access periods no longer applied. The amendment removed the restrictive proviso and introduced Regulation 3.4, which explicitly allows rooftop renewable energy systems under Net Metering to function alongside Open Access arrangements.

MERC agreed with this interpretation, observing that from November 10, 2023, the effective date of the amended regulations, Open Access billing must account for Net Metering adjustments rather than Gross Metering. The Commission noted that the regulatory intent was to encourage integrated renewable energy sourcing and not to disadvantage consumers adopting multiple clean energy mechanisms.

MSEDCL had opposed the petition on procedural grounds, arguing that HAPL had not applied for Green Energy Open Access through the State Load Despatch Centre (SLDC), the designated nodal agency under the revised framework. As a result, the utility claimed that the consumer was not eligible for Net Metering benefits during simultaneous operation.

However, the Commission pointed out that implementation delays by MSEDCL could not be cited as a reason to deny legitimate regulatory benefits to a consumer that had already received Open Access approvals. MERC also referred to earlier proceedings where MSEDCL had agreed to provide Net Metering–based adjustments to similarly placed consumers, stating that differential treatment in comparable cases was not permissible.

While clarifying that the ruling remains subject to the outcome of MSEDCL’s pending clarificatory petition in Case No. 232 of 2024, MERC emphasized that, until a final decision is reached, energy settlement must continue on a Net Metering basis in line with the existing regulations.

The order is being viewed as a significant relief for commercial and industrial consumers operating rooftop solar systems alongside Open Access procurement, as it removes regulatory ambiguity, restores confidence in rooftop solar investments, and reinforces MERC’s stance that policy evolution should facilitate—rather than obstruct—clean energy adoption.

By affirming the coexistence of Net Metering and Open Access, the decision strengthens regulatory certainty, supports industrial energy optimisation, and underscores the Commission’s commitment to ensuring that genuine renewable energy use is not hindered by procedural bottlenecks.