Net metering is a billing mechanism that allows solar users to send surplus electricity generated by their rooftop solar panels back to the grid. The exported energy is then adjusted against electricity consumed from the grid, effectively reducing monthly electricity bills.
For example, if a household generates 150 units of solar energy but consumes 300 units in a month, only the remaining 150 units are billed. This adjustment mechanism makes solar investments financially attractive and helps homeowners recover their installation costs faster.
Across Maharashtra, rooftop solar systems typically generate around 1,400–1,500 units annually per kW of installed capacity, making net metering a major factor in overall savings.
Info Source: https://www.renovapulseenergy.com/post/how-to-apply-for-net-metering-in-maharashtra
- Net Metering Under MSEDCL
Maharashtra State Electricity Distribution Company Limited is the largest electricity distributor in Maharashtra, serving most suburban and semi-urban regions. Its net metering framework follows regulations issued by MERC.
Under the MSEDCL system:
- Solar energy exported to the grid is credited in the monthly bill.
- The credited units are adjusted against the consumer’s electricity consumption.
- Consumers are generally allowed to install systems based on their historical electricity consumption.
However, the approval process with MSEDCL can sometimes be slower compared to private utilities due to large consumer volumes and administrative procedures. There have also been cases where regulatory bodies had to intervene to ensure proper implementation of net-metering benefits for consumers.
Despite these challenges, MSEDCL continues to support rooftop solar expansion across Maharashtra, especially in residential areas.
What is Solar Net Metering?
Solar net metering is an arrangement that allows residential and commercial customers to get credits on their utility bills for the energy they return to the utility grid. Essentially, when the solar panel systems produce more electricity than customers use, they send the excess electricity to the grid. As a result, customers receive a bill that reflects only the net energy consumed.
Key Features of Net Metering
- Credits for surplus electricity exported to the grid
- Reduced energy bills for consumers
- Seamless grid integration of renewable power
- Encouragement for self-consumption and sustainability
Charges On Rooftop Solar
Another proposed change relates to rooftop solar net-metering. State electricity regulatory commissions may allow distribution companies to levy facility charges on systems above 5 kW, while exempting smaller installations. The ministry said the measure aims to address the issue of net-metering consumers not contributing proportionately to fixed network costs, which can lead to higher cross-subsidisation by other retail consumers. The facility charges would help utilities recover costs linked to network losses and storage deployment.
Net Metering Policy in Maharashtra (2026 Update)
The Maharashtra Electricity Regulatory Commission (MERC) allows net metering for homes and businesses.
- Consumers can install solar PV systems on rooftops
- They can send extra power to the grid
- Credit will show in the next electricity bill
Eligibility:
- The system must be connected to Maharashtra State Electricity Distribution Company Limited (MSEDCL)
- Rooftop solar system should be MNRE-approved
- System size up to 1 MW
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