Nagpur: Maharashtra Electricity Regulatory Commission (MERC) has proposed a new regulatory framework for renewable energy and energy storage systems, including changes to grid-interactive rooftop solar systems. Experts raised concerns over the impact of the proposed banking mechanism, additional charges and treatment of existing solar rooftop consumers.The draft framework — Grid Interactive Rooftop Renewable Energy Systems, 2026 — issued for public consultation is aimed at accelerating renewable energy and energy storage deployment while ensuring grid reliability, affordable tariffs and financial sustainability of distribution companies. MERC said Maharashtra’s renewable generation has grown 25% over the past year, including 36% growth in solar and 12% in wind.The commission has proposed the framework to help the state meet 50% of its electricity demand from renewable sources by FY2029-30 and move towards 65% by FY2035-36. The state’s Renewable Energy and Energy Storage Policy envisages 100GW of renewable capacity and 100GWh of storage, with at least 10% of demand to be met through energy storage such as battery systems and pumped hydro.For rooftop solar consumers, however, experts said some of the proposed changes could alter the economics of systems, particularly for those installing more than 3kW solar capacity, commercial and industrial users.“Majority of the middle class households have installed 3.3Kv and above rooftop solar. Under the proposed framework, excess generated units will be lapsed in the same month against current policy of carrying it forward and eventually getting paid at the end of the year,” said solar expert Sudhir Budhay.One of the major concerns is the proposed banking mechanism. Under the draft, systems up to 3kW would have annual banking, while those between 3kW and 10kW would move to monthly settlement. Larger systems would have four, eight, 12 or 24 banking slots depending on their capacity, with systems above 5MW eventually moving towards 15-minute scheduling.Experts said the move to monthly settlement for systems between 3kW and 10kW could reduce the benefit of carrying surplus solar generation over longer periods. They suggested that annual banking should continue at least up to 10kW for domestic consumers.Experts also said the draft could result in surplus energy above 3kW lapsing at the end of the applicable banking period. They have sought a mechanism allowing consumers to carry forward the surplus or receive compensation for it.Experts say that the draft also proposes fixed and variable banking charges, with the former linked to capacity and the latter to the energy actually banked. They claimed that these additional charges could affect the financial viability of rooftop solar projects, particularly for commercial and industrial consumers. They have sought transparent, cost-based and capped charges after detailed public consultation.Budhay said rooftop solar consumers who invested under the existing regulations should retain their rights for the original contracted capacity, with any new framework applying only to additional capacity in case of future expansion.MERC, meanwhile, said the proposed framework seeks to balance the interests of consumers, distribution licensees and renewable energy developers, while improving grid management and promoting greater renewable energy adoption.The draft regulations are available on the MERC website. MERC has invited suggestions and objections from consumers, industry stakeholders, developers, utilities, experts and the public. Comments on the draft regulations can be submitted by Oct 12, while counter-submissions can be made up to Oct 15.
