MERC Approves Rooftop Solar Rollout for 2.11 Lakh Low Income Households in Maharashtra

The Maharashtra Electricity Regulatory Commission (MERC) has approved Maharashtra State Electricity Distribution Company Ltd.’s (MSEDCL) proposal to implement the Utility Led Aggregation (ULA) model for 2,11,206 low income households under the PM Surya Ghar: Muft Bijli Yojana and the State’s Swayampurna Maharashtra Aawasiya Rooftop Solar (SMART) Scheme.

The Commission issued its order allowing MSEDCL to proceed with the installation of individual rooftop solar systems for eligible Below Poverty Line (BPL) and Economically Weaker Section (EWS) households across Maharashtra. The proposal is expected to support approximately 211 MW of rooftop solar capacity.

MSEDCL had filed the petition before MERC on August 10, 2026, seeking regulatory approval for the ULA model. The distribution company subsequently filed an interlocutory application for urgent hearing, following which MERC heard the main petition along with the application on August 13.

The project has an estimated total cost of INR 959.93 crore. Under the proposed funding structure, 60 percent of the cost will be met through Central Financial Assistance (CFA), while the State Financial Assistance will account for 30 to 35 percent. The remaining 5 to 10 percent will be contributed by beneficiaries, in line with the limits prescribed under the MNRE’s ULA guidelines.

Of the 2,11,206 beneficiaries, 1,27,362 are BPL households, while 83,844 are households belonging to the Scheduled Caste and Scheduled Tribe categories under the EWS segment. Consumer contributions have been capped at INR 2,500 for BPL households and INR 5,000 for the SC/ST EWS category, with the remaining financial support coming from Central and State assistance.

The rooftop solar systems will comprise individual 1 kWp installations. MSEDCL stated that the systems would be implemented through 43 vendors selected through a transparent tender process at a discovered rate of INR 45,450 per kW.

The installations will comply with the MERC Grid Interactive Rooftop Renewable Energy Generating Systems Regulations, 2019. The implementation framework also includes beneficiary onboarding and data tagging through a bidirectional application programming interface between MSEDCL and the national PM Surya Ghar portal.

MSEDCL will require the rooftop systems to be equipped with M2M SIM or Wi Fi enabled data loggers, while minimum generation performance criteria will also be incorporated. Empanelled vendors will provide five years of comprehensive operation and maintenance services for the installed systems.

The SMART scheme was announced by the Maharashtra Government to solarize 5 lakh BPL and EWS households consuming less than 100 units of electricity per month. The scheme is intended to provide up to 100 units of free electricity each month while also reducing the State Government’s electricity tariff subsidy burden.

MSEDCL had aligned the State scheme with the Central Government’s ULA model under PM Surya Ghar and submitted the proposal to the Ministry of New and Renewable Energy (MNRE). MNRE granted in principle approval on July 27, 2026, for solarization of 2,11,206 households, subject to formal approval from the State Electricity Regulatory Commission.

MERC noted that the proposed scheme would provide social benefits to economically weaker consumers without creating a financial burden on MSEDCL. The Commission also observed that the installations would be carried out in compliance with the applicable rooftop solar regulations.

While approving the proposal, MERC directed MSEDCL to ensure that the scheme is implemented within the timeline prescribed by MNRE so that the project remains eligible for Central Financial Assistance. The implementation is targeted for completion by March 31, 2027.

The Commission clarified that its approval is limited to permitting implementation of the ULA model within the applicable regulatory framework and does not constitute approval of any financial liability, subsidy disbursement, procurement process or expenditure beyond the scope presented before the Commission.

With the approval, MSEDCL can now proceed with the ULA based rooftop solar programme for the identified 2,11,206 low income households in Maharashtra under PM Surya Ghar and the SMART scheme.