Maharashtra Solar Open Access Growth Slows Following New Energy Banking Limits and Tariff Rules

Maharashtra Solar Open Access Growth Slows Following New Energy Banking Limits and Tariff Rules

December 11, 2025

Growth in Maharashtra’s solar open access market has slowed sharply after changes to energy banking rules and time‑of‑day electricity pricing made surplus solar power less valuable for commercial users, industry data shows. The state, which until recently was among India’s largest markets for open access solar, witnessed a sharp quarterly fall in installations, with rising costs and shrinking savings for new projects denting consumer appetite.

Under previous rules, solar producers were allowed to “bank” excess power with the grid, drawing it back in when needed, which helped businesses balance out daytime solar output with their demand in the evening. The revised rules, on the other hand, restrict when banked energy can be drawn, eroding flexibility and cutting financial benefits. Meanwhile, a revised seasonal ToD tariff structure shows lower rates in the daylight but much higher charges during peak evening hours.

Added to other open access charges namely, cross‑subsidy surcharges, wheeling charges and transmission losses – the delivered cost of open access solar power is now near or over the standard utility rate during peak periods, undermining the economic rationale for new solar projects.

Analysts also said that all these changes have convinced many companies to shrink the size of planned solar agreements and focus on only daytime demand to avoid creating surplus energy that may go unused. Smaller businesses, in particular, are increasingly abandoning renewable energy in favor of short‑term grid power due to higher charges and delays in approval that led to postponed or cancelled renewable energy plans.

These regulatory changes saw Maharashtra’s third‑quarter solar open access capacity additions drop steeply compared to earlier quarters, raising concerns that open access growth in the state will continue to lag behind its underlying demand unless clearer and more stable rules are put in place.