MSEDCL curbs on capacity nod, to hit consumers, says solar energy industry

Nagpur: The solar energy industry raised strong objections to what it termed new restrictions on rooftop solar capacity approvals in Maharashtra, warning that the move will hit domestic and small consumers the hardest and stall future expansion plans.In a formal representation, the All India Renewable Energy Association (AIREA) wrote to the Ministry of New and Renewable Energy (MNRE), seeking urgent intervention over what it called an "arbitrary" policy shift by Maharashtra State Electricity Distribution Company Limited (MSEDCL).
According to the association, since February 13, solar vendors were unable to obtain approvals for higher rooftop solar capacities as per consumer demand. Earlier, households could install solar systems based on their sanctioned load, approved by MSEDCL itself, and anticipated future requirements. However, approvals are now reportedly restricted based on the average electricity consumption of the last 12 months, a change that the industry claimed was introduced without any official circular or stakeholder consultation.AIREA said the new rule is affecting 50-60% of booked residential solar projects across the state. The decision is particularly impacting small households and middle-class consumers who plan to increase electricity usage in the future by purchasing electric vehicles, air conditioners, or other appliances. Many families that previously limited consumption due to high power tariffs are now unable to install larger solar systems to meet their expected needs.AIREA director Saket Suri said that MSEDCL, which already charges among the highest power tariffs in the country despite being state-owned, is now arbitrarily changing policy related to the Central govt's solar subsidy programme. "Despite sanctioned load, the website of MSEDCL is not allowing consumers to install rooftop solar of that capacity, rather calculating the average consumption of past 12 months and giving approval to that only. It is the duty of the discom to approve any solar capacity till the sanctioned load. This will affect the consumers of all categories, including household, commercial as well as industrial," said Suri.The association claimed that newly-constructed homes are also among the worst-affected. With minimal consumption history, such households are granted approvals for very small capacities despite having sufficient rooftop space and sanctioned load for larger installations. AIREA said this could discourage adoption at a time when rooftop solar is gaining momentum in Maharashtra.Power and solar expert Sudhir Budhay said the new restriction contradicts existing regulatory principles. "For billing, demand charges are levied on sanctioned load, but for solar approvals only past consumption is being considered. This goes against net metering provisions and the Electricity Act, which allows consumers to generate power for their own use," he said. Budhay added that the move punishes energy-efficient households, as families that reduced usage through efficient appliances now risk getting smaller solar approvals, limiting their ability to scale up.The association also expressed concern over reports that multiple solar installations on a single rooftop are discouraged in some areas, affecting joint families living on the same premises with separate meters.AIREA urged MNRE and the Maharashtra Electricity Regulatory Commission (MERC) to intervene, stating that the sudden cap on capacity expansion will slow rooftop solar adoption, impact vendors' business commitments, and increase dependence on costly grid power for domestic and small consumers across the state.Senior officials from MSEDCL told TOI they would look into the issue raised by industry stakeholders.