1. State Regulatory Authority

Electricity and open access in Maharashtra is regulated under the following:

• MERC (Maharashtra Electricity Regulatory Commission) — the apex regulator for the state.
• MERC Multi-Year Tariff (MYT) Order, Case No. 217 of 2024, dated 28 March 2025 — sets tariffs for FY 2025-26 to FY 2029-30 for MSEDCL.
• MERC Review Order, Case No. 75 of 2025, dated 25 June 2025 — revises and corrects the March 2025 MYT order on several points including domestic tariff rates and banking rules.
• MERC (Grid Interactive Rooftop Renewable Energy Generating Systems) Regulations and First Amendment Regulations, 2023 — governs net metering, group net metering, and rooftop solar connections.
• MERC (Distribution Open Access) Second Amendment Regulations, 2023 — covers Green Energy Open Access rules for consumers.
• Maharashtra Electricity Supply Code — operational rules for all electricity consumers in the state.

2. Eligibility

• Green Energy Open Access: Consumers with a contract demand or sanctioned load of 100 kW or more are eligible, as per the central Green Energy Open Access Rules, 2022.
• If a single consumer is below 100 kW, they can form a group or consortium to collectively meet the 100 kW threshold.
• Net Metering: Available to all consumer categories (residential, commercial, industrial). The system capacity can go up to 5 MW for consumers connected at High Tension (HT) or Extra High Voltage (EHV) levels as per the 2023 amendment.
• Group Net Metering: Available only for multiple connections belonging to the same legal entity — individual names, family members, or different corporate entities cannot form a group.
• Applicable models: Captive, Group Captive, and Third-Party sale under open access.

3. Banking

• Banking cycle is monthly — unused banked energy lapses at the end of each month. This is a significant restriction compared to states that allow annual banking.
• MSEDCL had proposed in the MYT order to restrict banking to solar hours only (meaning you could only draw banked energy during the day). This restriction was stayed by the Bombay High Court in 2025. Under the stay, the older framework applies — banked energy can be drawn any time except peak hours.
• Banking charges for High Tension net metering consumers: 7.5 percent of energy banked (in kind) — this equals the wheeling loss at the HT level.
• Banking charges for Low Tension net metering consumers: 12 percent of energy banked (in kind) — this equals the wheeling loss at the LT level.
• Grid Support Charges (GSC) for net metering consumers: Not levied until total rooftop solar installations in Maharashtra reach 5,000 MW (as of 2025, this threshold has not yet been crossed).
• Wheeling and transmission charges for Group Net Metering are waived until total rooftop solar in Maharashtra reaches 5,000 MW.
• Surplus energy credits at end of settlement period: 50 percent credit refund rule applies — if credits accumulate continuously without consumption offset, 50 percent is refunded to limit excess buildup.

4. Application and Approval Process

For Net Metering and Rooftop Solar:

• Apply online through the MSEDCL portal or the national PM Surya Ghar portal for residential consumers.
• The approval process in Maharashtra is known to take longer than states like Karnataka — typically around twice the standard timeline. MERC has noted MSEDCL’s delay in issuing implementation circulars and has directed MSEDCL to comply.

For Open Access (High Tension consumers):

• Application goes to the State Load Despatch Centre (SLDC, Maharashtra) and MSEDCL through the centralized Green Energy Open Access portal.
• Power Purchase Agreement (PPA) needs to be signed with the renewable energy generator.
• Energy allocation percentages under Green Energy Open Access must be declared at the start of the year and cannot be changed mid-year.
• MSEDCL has historically been slow in processing open access approvals — MERC has flagged this and directed MSEDCL to comply with regulatory timelines.

Open Access Charges 

Key Regulatory Developments to Watch (2025)

• Bombay High Court stay on MSEDCL’s banking restrictions is still in force as of mid-2025. The final MERC order on this issue will determine whether consumers can draw banked solar energy only during solar hours or at any time. This significantly affects the economics of open access solar for night-shift industries.
• MERC Review Order (Case No. 75 of 2025) — revised the March 2025 MYT order substantially. Domestic tariffs will rise by about 5 percent from July 2025 onwards, despite the initial announcement of a reduction.
• Before signing any long-term open access PPA in Maharashtra, it is important to include regulatory fallback clauses that address what happens if banking rules change or CSS or wheeling charges are revised.

Market Insight — Maharashtra

Opportunities:

• Massive industrial base — Pune, Nashik, Aurangabad , Nagpur, Solapur, Kolhapur — auto, pharma, textiles, chemicals, food processing, steel, paper.
• Highest open access solar consumption in India — the market is already established and mature, which means more developers, better pricing, and easier off-take arrangements.
• Data centers and semiconductor manufacturing are booming in the state. These are large, round-the-clock consumers with sustainability mandates — ideal for long-term solar PPAs.
• Maharashtra has a large coastline — wind energy resources are also available in coastal and hilly districts. Many open access consumers combine solar and wind in hybrid arrangements.

Challenges:

• MSEDCL has a track record of delaying open access approvals and being slow to issue implementation circulars. The MERC has repeatedly had to direct MSEDCL to comply.
• Banking restrictions are still uncertain due to the ongoing court case. Industries that need power during night shifts or non-solar hours face risk if banking is restricted to solar hours.
• Cross subsidy surcharge in Maharashtra is among the higher ones in India, especially for commercial and non-industrial consumers. This reduces the savings from open access for commercial buyers.
• Monthly banking cycle (instead of annual) is less flexible — consumers need to be careful about generation and consumption matching within each month.
• Regulatory complexity is high — multiple amendments, review orders, and court cases make it harder to give definitive cost estimates for long-term contracts.

Strategic View

• Maharashtra is one of India’s largest electricity markets and is regulated by the Maharashtra Electricity Regulatory Commission (MERC), headquartered in Mumbai.
• The main distribution company serving most of Maharashtra (outside Mumbai city) is MSEDCL, also known as Mahavitaran. Mumbai city is served separately by Tata Power and Adani Electricity. This document focuses on MSEDCL’s service area.
• In March 2025, MERC passed a landmark Multi-Year Tariff (MYT) Order covering FY 2025-26 to FY 2029-30 — for the first time in Maharashtra’s history, tariffs were set to decrease overall by around 10 percent in FY 2025-26 relative to earlier levels. This was later revised upward slightly in June 2025 due to errors found in the original computation.
• Maharashtra is one of the largest consumers of open access solar power in India. The Green Energy Open Access market is active and growing, but it is also one of the more complex states to navigate because of regulatory changes and MSEDCL’s historically slow implementation of open access rules.
• There is an ongoing Bombay High Court stay (as of mid-2025) on MSEDCL’s restrictions on when banked solar energy can be drawn down — this is an important regulatory watch point for any open access agreement being signed in the state.
• Hotels, resorts, and guest houses have been reclassified from commercial to industrial tariff category as of the 2025 MYT order, which significantly reduces their electricity costs and also makes them more attractive solar open access targets.
• Data centers and semiconductor units have also been reclassified as industrial consumers, making them eligible for lower rates and a 10 percent discount on wheeling charges if they opt for 100 percent green energy.