Maharashtra Government Forms Committee to Review Electricity Duty on Rooftop Solar Users

The Maharashtra government has issued an order to constitute a committee to examine the applicability of electricity duty under the Maharashtra Electricity Duty Act, 2016, particularly for rooftop solar (RTS) consumers and emerging decentralised power systems.

The decision comes amid a rapid increase in rooftop solar installations driven by central and state subsidy schemes, along with the growth of “behind-the-meter” (BTM) power generation such as captive and storage-based systems. These developments have significantly altered traditional electricity consumption patterns, prompting the need to reassess how electricity duty is levied.

Under the existing law, electricity duty is charged on overall consumption, which includes fixed charges, energy charges, fuel adjustment charges, and reliability charges. However, with consumers increasingly generating and consuming their own power, the current framework requires revision.

The move also follows a recent order by the Maharashtra Electricity Regulatory Commission (MERC), which allowed Maharashtra State Electricity Distribution Company Limited (MSEDCL) to levy Grid Support Charges on rooftop solar systems with a capacity above 10 kW. The government will now examine whether electricity duty should also be applied to these charges and determine an appropriate rate structure.

The newly formed committee, comprising senior officials from the energy department, MSEDCL, and the electrical inspectorate, has been tasked with conducting a comprehensive review and submitting recommendations to the government.

Key areas of study include the applicability of electricity duty on self-consumption and net-metered electricity, duty implications for rooftop solar and BTM consumers, and the feasibility of shifting from a fixed rate to a percentage-based duty structure. The panel will also assess the financial and policy impact of such changes on state revenues and the financial health of distribution companies.

Additionally, the committee will explore possible exemptions or incentives for specific consumer categories, while balancing the need to promote renewable energy and maintain revenue stability. The panel has been directed to submit its report within 10 days.