Maharashtra Government Reviews Electricity Duty for Rooftop Solar Users
Maha forms panel to review electricity duty on rooftop solar users
Hindustan Times
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The Maharashtra government has formed a committee to review the electricity duty on rooftop solar users amid rising criticism from consumers and the renewable energy sector. This review, initiated on April 21, 2026, aims to reassess the duty structure in light of the growing adoption of decentralized solar power generation in the state.
- 01Maharashtra forms a committee to review electricity duty on rooftop solar users.
- 02The review responds to changing consumption patterns due to increased rooftop solar installations.
- 03Electricity duty currently applies to overall consumption, including various charges.
- 04Proposed Grid Support Charge could raise electricity costs for housing societies.
- 05The review aligns with the state's shift towards decentralized and renewable energy sources.
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In response to mounting criticism from consumers and the renewable energy sector, the Maharashtra government has established a committee to evaluate the electricity duty imposed on rooftop solar (RTS) users. This decision, formalized through a government resolution on April 21, 2026, aims to reassess the existing duty structure as decentralized power generation gains traction across the state. Currently, the Maharashtra State Electricity Distribution Company Limited (MSEDCL) levies electricity duty on total consumption, which includes fixed charges, energy charges, and reliability charges. However, the rapid increase in rooftop solar installations, spurred by both central and state subsidies, has disrupted traditional electricity usage patterns. Following a recent ruling by the Maharashtra Electricity Regulatory Commission allowing grid support charges for rooftop systems above 10 kW, the government is now considering whether the electricity duty should also apply to these charges. The committee will conduct a thorough assessment of the financial, technical, and policy implications of the proposed duty on emerging energy consumption models. Additionally, MSEDCL has suggested a Grid Support Charge of ₹1.96 per unit on surplus solar power consumed for common services in residential complexes, which could significantly elevate annual electricity costs for housing societies. This proposal has elicited strong reactions from stakeholders in the renewable energy sector and consumer advocacy groups.
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The review and potential changes to electricity duty could lead to increased costs for consumers relying on rooftop solar, impacting their energy expenses and adoption of renewable energy solutions.
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