Govt to study plan to charge power duty on rooftop solar units

Nagpur: The Maharashtra govt has decided to examine the possibility of slapping a levy on rooftop solar and self-generated power, which are currently exempt. A committee is being set up to study the issue. However, energy and solar experts have warned the move could undermine Maharashtra's clean energy transition and impose additional financial burdens on consumers across segments.A govt resolution on Tuesday announced the formation of a committee to study the applicability of electricity duty under the Maharashtra Electricity Duty Act, 2016, on emerging consumption models such as rooftop solar (RTS) and behind-the-meter (BTM) systems. The panel will also examine the levy on grid support charges and explore a shift from fixed duty rates to a percentage-based structure.The move follows an order by the Maharashtra Electricity Regulatory Commission (MERC) allowing the Maharashtra State Electricity Distribution Company Ltd (MSEDCL) to impose grid support charges on rooftop solar consumers with capacity above 10kW. The govt is now considering whether electricity duty should also be applied on such charges.Sources from the MSEDCL said that the new panel will mull over all types of solar consumers and then come to a decision.Solar expert Sudhir Budhay termed the proposal "deeply troubling", cautioning that it risks placing fresh financial burden on households, small businesses and industries that have invested in renewable energy. "For households, rooftop solar has been a practical way to cut electricity bills and reduce dependence on rising tariffs. Imposing duty on self-consumed solar power will erode these savings and discourage adoption," said Budhay, adding that it is like govt levying charges on citizens pulling water from own well.He also raised concerns over the composition of the committee, which is largely dominated by officials from MSEDCL and the electrical inspectorate. He argued that the absence of independent experts, consumer representatives and public stakeholders raises questions about neutrality, especially since electricity duty impacts state revenues while grid support charges benefit distribution companies."This is not just a technical issue. It affects lakhs of consumers and the future of distributed solar in the state. Any decision must be based on transparent analysis and wider consultation," he said.The officials said the committee has been tasked with studying the financial and policy implications of the proposed changes, including their impact on state revenue and financial health of discoms. It will also examine possible exemptions and measures to balance renewable energy promotion with revenue considerations.The panel has been asked to submit its report within 10 days, even as the proposal has already sparked a debate over the future of rooftop solar adoption in Maharashtra.
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