MERC Draft Proposes A Tariff Of Rs 2.82/kWh Tariff for Rooftop Solar In Maharashtra

Setting the regulatory groundwork ahead of the upcoming fiscal year, the Maharashtra Electricity Regulatory Commission (MERC) has issued a draft suo motu order proposing generic renewable energy (RE) tariffs and Average Power Purchase Cost (APPC) benchmarks for FY 2026–27.

The draft order, which will come into effect from April 1, 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 toward competitive bidding mechanisms.

Rooftop Solar Surplus Tariff at Rs 2.82/kWh

MERC has proposed a generic tariff of Rs 2.82 per kWh for surplus electricity exported from solar rooftop photovoltaic (PV) systems under net-metering and net-billing arrangements.

The Commission linked this tariff to the lowest discovered tariffs under the Mukhyamantri Saur Krishi Vahini Yojana (MSKVY) 2.0, where bids ranged between Rs 2.82/kWh and Rs 3.10/kWh. According to the regulator, rooftop systems are primarily designed for self-consumption, and therefore any excess generation injected into the grid should be compensated at the prevailing competitive market floor rather than higher subsidized rates.

The proposed tariff will be mandatory for distribution licensees and the power procured through this mechanism will be eligible for meeting their Solar Renewable Purchase Obligation (RPO) targets.

Shift Toward Competitive Bidding

The draft order reiterates that the regulatory framework is moving firmly toward 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 renewable energy projects, and new biomass or co-generation plants are expected to be discovered through market-based bidding.

Stakeholder Consultation

MERC has invited objections, comments, and suggestions from stakeholders, including renewable energy developers, distribution companies, the Maharashtra Energy Development Agency (MEDA), and consumer groups till MArch 20.

The Commission will review stakeholder submissions before issuing the final tariff order, with the new rates expected to be applicable from April 1, 2026.