MERC Fixes Generic Tariff For Rooftop Solar At Rs 2.82/Unit

MERC Fixes Generic Tariff For Rooftop Solar At Rs 2.82/Unit

The Maharashtra Electricity Regulatory Commission (MERC) has set a generic tariff of Rs 2.82/kWh for surplus rooftop solar power, according to its latest suo motu order. The move follows the expiry of the MERC (Terms and Conditions for Determination of Renewable Energy Tariff) Regulations, 2019.

As per the regulatory requirement, MERC must notify generic tariffs for rooftop solar projects and determine variable charges for biomass and non-fossil fuel co-generation projects—unlike utility-scale solar, where tariffs are discovered through competitive bidding.

MSEDCL’s Submjssions In The Case 

In its submission, the state discom MSEDCL said it had adopted tariffs in the range of Rs 2.90/unit to Rs 3.10/unit for procuring 7,783 MW. It also referenced a March 2024 reverse auction where the lowest discovered tariff was Rs 2.69/kWh.

MERC noted it has taken the most recent tariffs into account for deciding the generic rate applicable to surplus rooftop solar power under net-metering and net-billing arrangements.“It is pertinent to note that recently, the Commission in its Order dated 11 March 2025 in Case No.7 of 2025 has adopted the tariff ranging between Rs. 2.82/kWh – Rs 3.10/kWh for 5008 MW Solar projects under MSKVY 2.0 scheme. The e-reverse auction for said tendering exercise is conducted between 14 August 2024 to 15 October 2024,” it added to describe the baseline tariff it is taking for adopting the new generic tariff for rooftop solar.

MERC emphasized that since the Case No. 7 of 2025 represents the latest tariff discovery, it has formed the basis for the current order on rooftop solar surplus energy procurement.

Final Ruling By MERC 

In its final ruling, the Commission clarified that surplus from rooftop solar installations is generally unplanned and negligible, resulting from weather variations. Such surplus, when procured by the distribution licensee, contributes to meeting Renewable Purchase Obligations (RPOs).“The Commission notes that under Net-metering and Net-Biling arrangement it is expected that consumer will install Rooftop PV for self-consumption only and would not have a planned surplus except for only a negligible unintended quantum, more due to climatic/weather factors. Such surplus power procured by the Distribution Licensee is used for meeting its RPO. Hence, the Commission deems it fit to use the latest tariff rate discovered for Grid Scale Solar project as a Generic Tariff for procurement of surplus energy from Rooftop PV projects.”

“The Commission notes that in its Order dated 11 March 2025 in Case No. 7 of 2025, it has adopted tariffs discovered in the range of Rs. 2.82/kWh to Rs.3.10/kWh under ‘Mukhyamantri Saur Krishi Vahini Yojana 2.0’. Accordingly, the Commission hereby notifies Rs. 2.82/kWh as a Generic Tariff rate for procurement of surplus power from Rooftop-PV projects under net-metering and net-billing arrangement for FY 2025-26. It is mandatory for Distribution Licensees to procure such surplus power which would in any case be counted towards meeting their Solar RPO,” the final judgment of MERC read.