Regulatory Restructuring Suppresses Growth of Solar Open Access in Maharashtra

Regulatory Restructuring Suppresses Growth of Solar Open Access in Maharashtra

December 11, 2025

The solar open access market in the state of Maharashtra has seen a considerable leveling-off in terms of project implementation and adoption due to certain changes brought about by the regulatory authorities that have had an impact on incentives and implemented operational limitations, as cited in a recent report. Although it contributes about 17 % to the country’s total solar open access capacity, certain changes have made it necessary for developers and businesses to rethink.

As per reports, cumulative open access capacity in India stood at 27.9 GW in September, with Maharashtra as its second-largest contributor. Nevertheless, new cumulative instances within the state touched 165 MW, with an 80 percent drop on a quarter-on-quarter and 43 percent drop on a yearly basis. Industry watchers have pointed out that changes in energy banking norms, times-of-the-day tariffs, and additional open access charges have led to undermining the cost benefits enjoyed by C&I businesses. As per the new rules, constraints on banking surplus solar energy and more rigid time-of-use rules have considerably diminished the value of surplus generation, making it more difficult for C&I consumers to match solar generation with peak demands. The new rate structure also does not provide significant discounts for solar hours and instead levies higher rates for peak hours. Cross-subsidy and wheeling rates, transmission losses, and higher rates for solar energy banking have cumulatively driven up the delivered cost of solar energy via open access services, making it attractive for solar energy proponents to pursue smaller-sized solar energy projects with matched daytime PPA contracts or abandon solar energy projects altogether.

These developments have added to anxieties about stability. Although recent interventions have made up for some previous energy and banking system flexibility, unpredictability remains a factor that keeps large projects at bay. It is against this background that it becomes essential for clearer and more consultative guidelines based on market understanding and consensus to maintain Maharashtra as an indispensable market for solar open access.