There is a policy conflict with Maharashtra’s solar energy aspirations. While the state government is contemplating a nighttime rate increase to control its power distribution expenses, the national government’s PM Surya Ghar Yojana seeks to increase rooftop solar by providing homes with up to 300 units of free energy each month.
Many customers who used solar energy to reduce their electricity costs are now concerned that new regulations would drive up the cost of sustainable energy.
Shelkewadi farmer Chandrakant Shelke, 49, says, “We only pay ₹130 a month, but we have no idea how much they may charge us in the near future.” Who can forecast how the government would charge us and change the tariff in light of new laws? ”
Shelkewadi is a community in the Kolhapur district of Maharashtra that runs entirely on solar energy. It is a model community that is progressive, self-sufficient in solar energy, and well-known for its clean energy status. The Maharashtra State Electricity Board’s (MSEB) planned modifications to time-of-day (ToD) pricing, however, have the locals concerned. They fear that these accusations may destroy the years of work they have put into sustainable energy.
There is more than one village where this ambiguity exists. Many rooftop solar customers, small-scale resellers, and commercial users in Maharashtra are perplexed by the state government’s changing approach and new fees. Customers of commercial and industrial rooftop solar (RTS) are having difficulty with the high upfront cost of renewable energy, long payback periods, and lack of offset benefits.
Entrepreneurs claim that regulations favor large-scale utilities
A new time-of-day framework for the power rules has been suggested by the Maharashtra State power Board and Regulating Commission. According to the plan, rooftop and other solar power would have the lowest price between 9 a.m. and 5 p.m. However, a greater tariff would suddenly be available for the surplus solar power that users would normally send to the grid in anticipation of using it at night. Solar customers would essentially pay more at night.
At the moment, the state grid receives any excess power produced by individual users. After then, consumers take electricity from the grid, and the units they export during the day are credited against the units they use at night. The manner this excess solar energy is stored and utilized later, as well as the financial effects on customers, may alter as a result of the new legislation.
Rooftop solar entrepreneurs claim that these rules favor large-scale utilities and benefit discoms (distribution corporations) and are not consumer-friendly. This would reduce the incentive to install rooftop solar and make it unfeasible for those who have already installed solar in anticipation of net metering and other advantages.
“The Maharashtra government recently provided an extra incentive of up to 30% subsidy for rooftop solar clients who are below the poverty line and are utilizing less than 100 units per month,” said solar entrepreneur Rajendra Patil. However, MSEB has also suggested that solar-powered energy be offset only during daylight off-peak hours. As a result, rooftop solar users are unable to offset (balance out energy consumption) during nighttime peak hours, when the majority of houses and businesses use electricity. In other words, users are unable to utilize solar power produced earlier in the day to balance out usage at night.
He continued by saying that while the discoms continue to make money after installing solar rooftop, MSEB targets rooftop and open access customers in a way that prevents them from receiving an offset. “In the meantime, utility-scale solar plants that benefit discoms are being favored and promoted by MSEB and the state government.”
In Maharashtra, this ToD structure will effectively deter rooftop adoption and increase the payback period.
Patil further contends that the policies are changing fast, generating uncertainty and lack of faith in the state discom, as well as its revised norms and regulations. “The rooftop solar has already had an influence on MSEB’s earnings,” he adds, “and that’s why the discom is introducing new revenue-generating techniques by restricting rooftop users from obtaining benefits.”
State and federal policies are at odds
The goal of the federal government’s rooftop solar policy and financing support under the PM Surya Ghar Yojana was to increase the number of rooftop solar systems in India. However, state-level discoms sustained losses in income and began suffering. Over the last several years, they have implemented banking charges, peak hour variable prices, and exclusions for industrial and commercial users.
“The discom is indirectly fighting rooftop solar by introducing discriminatory rules to deter or limit users, resulting in solar being uneconomical,” Patil argues. “This is a violation of the original agreement between rooftop users and Maharashtra State Distribution Company Limited (MSDCL), which was to deliver zero bills or simply meter rentals. As of 2025, all customers—aside from residential customers—are being charged for consumption during peak hours.
A petition submitted by Sudhir Budhay, a renewable energy consultant, and the National Solar Energy Federation of India, has challenged the grid support and banking costs, claiming that this may cause up to 30% drop in new rooftop solar installations.
State’s uncertain policy on rooftop solar
From 2.82 GW in 2014 to 100 GW in 2025, India’s solar power capacity has expanded by 3,450 % in this time frame. But this expansion has come with a cost – state discoms’ diminishing revenues. In an effort to recoup losses, some states, including Maharashtra, have begun modifying consumer pricing.
According to Samir Gandhi, a Pune-based solar energy advocate, “the smart meter deployment program pushes customers to utilize solar energy during solar hours, while the discom buys electricity at higher prices during off-solar hours and makes users to pay bills for peak-hour consumption.” “They are changing the objectives, requesting that you utilize solar power, but then raising the cost of grid electricity once the sun sets.”
He stated that commercial and industrial clients who invested in rooftop solar systems in 2022-2023 risk the same one-sided agreement change. “It seems the government is changing policies for political reasons without consulting the customer, and consumers are frightened to trust the government.”
Indusbridge financial consultant Ajay Jain voiced worries, stating that investors need solid, long-term policies to protect their assets. “The public is worried about the government’s plan to deploy smart meters since the same distrust is evident with them.”
Storage of batteries to fight tariffs
Battery Energy Storage Systems (BESS) are becoming a viable response to growing tariffs as energy price becomes more volatile.
“The pattern of solar and non-solar hours has altered; the ToD reform has a twofold impact on rooftop solar systems,” said Bhavani Singh Rathore, a renewable energy coach with experience in BESS. An imbalance results from this. Customers may make good use of this self-generated energy. On the other hand, energy use decreases during high-tariff hours after sunset. Customers must purchase pricey grid electricity if storage is not available.
He also discussed a potential way to make up for exorbitant energy costs. Customers may store self-generated solar energy throughout the day (9 am–5 pm) and release it during costly peak hours by installing even a tiny BESS equipment. This enables them to take use of solar power 24/7 and avoid expensive energy during peak hours. Maharashtra has turned into India’s proving ground for real-time energy intelligence, and those that embrace storage early will spearhead the shift toward net-zero energy lifestyles, according to Rathore, who also said that integrating lithum-ion BESS with an appropriate energy management system is crucial.
