Paradigm Shifts in Regulatory Framework Governing Solar Net Metering in Maharashtra & Distribution Licensee’s Perspective

Penetration of solar photo voltaic systems in Indian market is driven by national level targets coupled with budgetary supported schemes. The Government of India (GoI) vide its notification dated 8 March 2019 has set the ambitious target of 40 GW Rooftop Solar (RTS) capacity addition. Initially projects were planned with timeline up to 2022 end but post Covid-19 pandemic, the said timeline is extended till 31 March 2026. Moreover, GoI announced PM Surya Ghar: Muft Bijali Yojana in February-2024, which aims to install RTS systems for 10 million households. As on 31 March 2025, Maharashtra achieved 3298.20 MW of RTS capacity addition. In Maharashtra, MERC (State Regulator) has rolled-out Regulations enabling grid connectivity to RTS systems. The scope of Net Metering arrangement is widened further through successive regulatory amendments permitting Virtual Net Metering and Group Net Metering. Although MERC Regulations allows Net Metering facility to all MNRE approved technologies, more than 99% Net Metering installations are dominated by RTS systems. The paper critically examines the regulatory framework of Net Metering in Maharashtra in respect of RTS systems. Further, opportunities & challenges from Distribution Licensee’s perspective are deliberated.