MERC Proposes New Rooftop Renewable Energy Rules

The Maharashtra Electricity Regulatory Commission (MERC) has proposed a new regulatory framework for grid-interactive rooftop renewable energy generating systems in Maharashtra, covering net metering, net billing, group net metering, virtual net metering and gross metering arrangements.

Under the draft Maharashtra Electricity Regulatory Commission (Grid Interactive Rooftop Renewable Energy Generating Systems) Regulations, 2026, new grid-interactive rooftop renewable energy generating systems and behind-the-meter systems above 100 kW would be required to have an Energy Storage System (ESS). The draft specifies a minimum ESS equivalent to 50 percent of the installed renewable energy capacity with two hours of storage, or 25 percent with four hours of storage, or such capacity as may be specified by the Commission. It also proposes a minimum ESS capacity of 1 kWh per kW of installed renewable energy capacity up to 2030 and 2 kWh per kW thereafter.

The proposed regulations would allow eligible consumers to install renewable energy generating systems up to their contracted demand or sanctioned load under net metering, net billing and gross metering arrangements. Consumers would also be permitted to opt for group or virtual net metering subject to specified conditions. Behind-the-meter systems would not be subject to the contracted demand or sanctioned capacity limit, but would not be permitted to inject electricity into the grid.

The draft proposes that the cumulative capacity of renewable energy generating systems under net metering, net billing, group net metering and gross metering connected to a distribution transformer or feeder should not exceed 70 percent of its rated capacity. Distribution licensees may permit capacity beyond this limit after carrying out a detailed load study.

The framework also proposes different banking arrangements based on contracted renewable energy capacity. Consumers with contracted RE capacity of up to 3 kW would be eligible for annual banking without banking time slots or fixed and variable banking charges. For larger capacities, banking would be settled monthly, with the number of banking slots increasing with contracted RE capacity.

For consumers with contracted renewable energy capacity above 5 MW, the draft proposes restricting banked energy to 10 percent of the consumer's consumption during each banking slot. Three years after implementation, such consumers would move to 15-minute scheduling without a banking service.

Under the proposed virtual net metering framework, residential consumers, including common connections in residential premises, could opt for VNM from renewable energy generating capacity of up to 3 kW or their sanctioned load, whichever is lower. The generating system under VNM would need to have a minimum installed capacity of 100 kW and could be located anywhere in Maharashtra, while participating consumers would have to be within the area of supply of the same distribution licensee.

The draft also proposes online processing of applications. Distribution licensees would have to acknowledge applications within three working days, while technical feasibility studies would have to be completed within 15 days. Applications for systems up to 10 kW that are complete in all respects would be deemed accepted without a technical feasibility study.

If an application is found technically feasible, the distribution licensee would have to communicate approval within seven working days of completing the feasibility study. The approval would remain valid for six months. After receiving the work completion request, the licensee would have to complete testing and commissioning within 10 working days and install the net-metering equipment, where applicable, and synchronise the system within a further five working days.

The proposed regulations would also require all meters installed at renewable energy generating systems to have Advanced Metering Infrastructure (AMI) capability with an RS 485 or higher communication port. Smart meters could be used as net meters if they can separately record electricity imports and exports on the applicable time-block basis.

The draft regulations are proposed to replace the 2019 grid-interactive rooftop renewable energy regulations and their first and second amendments issued in 2023 and 2024. Existing systems would continue to be governed by the earlier regulations for the validity of their existing agreements, while consumers enhancing or modifying their systems after notification of the draft would be governed by the proposed 2026 framework.