Maharashtra Open Access Regulatory Policies

Maharashtra Open Access Regulatory Policies

Open Access and renewable energy development in Maharashtra are regulated by the Maharashtra Electricity Regulatory Commission (MERC) under a comprehensive framework of state regulations, tariff orders, and central government policies.

The state’s electricity sector is governed through the MERC Multi-Year Tariff (MYT) Order for FY 2025-26 to FY 2029-30, the MERC Review Order issued in June 2025, the MERC Grid Interactive Rooftop Renewable Energy Generating Systems Regulations and First Amendment Regulations, 2023, the MERC Distribution Open Access Regulations and subsequent amendments, the Maharashtra Electricity Supply Code, the Green Energy Open Access Rules, 2022, and the Electricity Act, 2003.

Green Energy Open Access (GEOA) is available to consumers with a minimum sanctioned load or contract demand of 100 kW, in accordance with the Green Energy Open Access Rules, 2022.

Consumers with loads below 100 kW may participate through consortium or aggregated arrangements where the combined demand meets the prescribed eligibility threshold.

The state supports multiple renewable energy procurement structures, including Captive, Group Captive, and Third-Party Open Access models.

Net Metering is available across residential, commercial, industrial, and institutional consumer categories.

Under the 2023 regulatory amendments, renewable energy system capacities can extend up to 5 MW for consumers connected at High Tension (HT) and Extra High Voltage (EHV) levels.

Group Net Metering is permitted for multiple electricity connections belonging to the same legal entity. However, different individuals, family members, or unrelated corporate entities cannot aggregate their connections under this framework.

Banking of renewable energy is permitted in Maharashtra, although the state follows a relatively restrictive monthly banking framework.

Unused banked energy generally lapses at the end of each monthly settlement cycle, making Maharashtra less flexible than states that permit annual banking arrangements.

A significant regulatory issue emerged in 2025 when MSEDCL proposed limiting withdrawal of banked solar energy to solar generation hours only.

This restriction was subsequently stayed by the Bombay High Court, and under the interim arrangement, consumers may continue drawing banked energy during non-solar hours, except during designated peak periods.

The final regulatory position on banking withdrawal remains an important area of ongoing policy development and could significantly influence Open Access economics for industrial consumers operating round-the-clock facilities.

Banking charges for HT consumers are currently set at 7.5% of banked energy, equivalent to applicable wheeling losses at the HT level.

For Low Tension (LT) consumers, banking charges are generally 12% of banked energy, corresponding to wheeling losses applicable at the LT level.

Grid Support Charges (GSC) are currently not applicable to Net Metering consumers until cumulative rooftop solar installations in Maharashtra exceed 5,000 MW.

Similarly, wheeling and transmission charges applicable to Group Net Metering projects remain waived until the state reaches the 5,000 MW rooftop solar threshold.

Surplus energy credits that remain continuously unutilized are subject to a 50% credit refund mechanism intended to prevent excessive accumulation of unused energy credits.

Applications for rooftop solar and Net Metering systems can be submitted through the MSEDCL online portal or through the PM Surya Ghar portal for eligible residential consumers.

The approval process includes technical feasibility assessment, installation approval, inspection, synchronization, and final commissioning.

MERC has repeatedly emphasized the need for timely implementation and has issued directions to MSEDCL regarding delays in processing applications and issuing implementation circulars.

Open Access consumers are required to obtain approvals through the centralized Green Energy Open Access portal, along with approvals involving MSEDCL and the State Load Despatch Centre (SLDC), Maharashtra.

Long-term power procurement arrangements require execution of a Power Purchase Agreement (PPA) with the renewable energy generator.

Under Green Energy Open Access provisions, energy allocation percentages are generally declared at the beginning of the financial year and cannot be modified during the year.

Although regulatory timelines exist, approval delays have historically been a challenge in Maharashtra’s Open Access market.

Open Access consumers are also subject to various network and regulatory charges, including transmission charges, wheeling charges, Cross Subsidy Surcharge (CSS), and additional surcharges where applicable.

Wheeling charges for intra-state HT consumers typically range between ₹0.60 and ₹0.80 per unit depending on feeder category and location.

Transmission charges are generally around ₹0.20 per unit for intra-state transactions.

Cross Subsidy Surcharge remains applicable for Third-Party Open Access transactions and generally ranges between ₹0.80 and ₹1.20 per unit depending on consumer category and voltage level.

Additional Surcharges are also applicable as determined through periodic MERC tariff orders.

The landed cost of Open Access solar power in Maharashtra generally ranges from approximately ₹4.00 to ₹4.80 per unit, depending on project location, contract tenure, energy profile, and applicable regulatory charges.

Data centers and semiconductor manufacturing facilities opting for 100% renewable energy procurement may benefit from a 10% discount on wheeling charges under current regulatory provisions.

Several important regulatory developments continue to shape Maharashtra’s renewable energy market.

The ongoing Bombay High Court proceedings regarding banking restrictions remain one of the most significant regulatory issues affecting Open Access project economics.

The MERC Review Order issued in June 2025 substantially revised portions of the March 2025 Multi-Year Tariff Order, including domestic tariff structures and banking-related provisions.

As a result, domestic electricity tariffs increased by approximately 5% from July 2025 despite initial indications of tariff reductions.

Given the frequency of regulatory amendments and reviews, Open Access consumers are generally advised to incorporate appropriate change-in-law and regulatory adjustment clauses within long-term Power Purchase Agreements.

Maharashtra represents one of India’s largest and most mature renewable energy and Open Access markets.

The state possesses a substantial industrial base spanning Pune, Nashik, Aurangabad, Nagpur, Solapur, Kolhapur, and several other manufacturing clusters.

Industries including automotive manufacturing, pharmaceuticals, textiles, chemicals, food processing, steel, and paper continue to drive renewable energy demand.

Maharashtra remains among the largest consumers of Open Access solar power in India, creating a highly competitive market characterized by strong developer participation, competitive pricing, and well-established procurement structures.

The rapid growth of data centers and semiconductor manufacturing facilities has further strengthened demand for long-term renewable energy procurement.

The state’s diverse renewable energy resource base also supports hybrid solar-wind projects, particularly in coastal and elevated regions with favorable wind conditions.

Despite these advantages, Maharashtra’s Open Access market faces several challenges.

Approval delays and implementation bottlenecks have historically affected project development timelines.

Regulatory uncertainty surrounding banking provisions continues to create risk for industries requiring significant energy consumption during non-solar operating hours.

Cross Subsidy Surcharge levels remain relatively high compared to several competing states, reducing overall savings available through Third-Party Open Access arrangements.

Monthly banking provisions also limit flexibility compared to states offering annual settlement frameworks.

The state’s regulatory environment is among the most dynamic in India, with frequent amendments, review orders, and judicial interventions requiring continuous monitoring by market participants.

Maharashtra is one of India’s largest electricity markets and is regulated by the Maharashtra Electricity Regulatory Commission (MERC), headquartered in Mumbai.

The principal distribution utility serving most of the state is Maharashtra State Electricity Distribution Company Limited (MSEDCL), commonly known as Mahavitaran.

Within Mumbai city, electricity distribution services are primarily provided by Tata Power and Adani Electricity under separate regulatory arrangements.

In March 2025, MERC issued a landmark Multi-Year Tariff Order covering FY 2025-26 through FY 2029-30, initially projecting an overall reduction in tariffs relative to historical levels.

Subsequent revisions through the June 2025 Review Order partially adjusted these reductions following the identification of computational and regulatory corrections.

Hotels, resorts, guest houses, data centers, and semiconductor manufacturing facilities have benefited from revised tariff classifications that improve their competitiveness and strengthen the economics of renewable energy procurement.

Maharashtra’s combination of strong industrial demand, mature Open Access markets, expanding renewable energy capacity, and favorable long-term energy transition policies positions the state as one of India’s most important renewable energy markets.

While regulatory complexity remains higher than in many other states, the scale of opportunity continues to attract significant investment in Open Access solar, hybrid renewable energy projects, rooftop solar systems, and Green Energy Open Access participation.