MERC Resolves Net Metering Dispute With Credit Adjustment Directive In Maharashtra

M/s KSB Limited (KSBL) filed a petition with the Maharashtra Electricity Regulatory Commission (MERC) on 18 November 2024 seeking directions for enabling a net metering arrangement at four of its plant locations. The company had installed rooftop solar renewable energy generating systems at its Vambori, Kesurdi, Sinnar, and Pimpri units with capacities ranging from 452 kW to 772 kW. KSBL argued that despite the MERC (Distribution Open Access) (Second Amendment) Regulations, 2023, allowing both open access and net metering simultaneously, MSEDCL was not permitting net metering and continued billing under the gross metering methodology.

The main demand of KSBL was that MSEDCL should treat its rooftop solar installations under the net metering framework and also retrospectively adjust billing and energy settlement from the beginning of open access at the respective locations. MSEDCL initially claimed that KSBL had not followed the procedures for availing Green Energy Open Access and that it needed to apply through the central web portal developed by the nodal agency. However, the Commission asked both parties to resolve procedural issues mutually.

By the next hearing on 11 March 2025, KSBL stated that it had complied with all procedures, yet MSEDCL was still not considering the energy under net metering. The Commission directed MSEDCL to clarify its position and stated that KSBL should not face any adverse financial impact until the matter was resolved. On the same day, MSEDCL requested approvals from MSLDC and signed a Minutes of Meeting with KSBL.

MSLDC confirmed on 13 March 2025 that approvals for short-term open access were in line with the regulations. Based on these approvals, MSEDCL assured KSBL that it would revise bills for the period from September 2024 to January 2025 by providing credits for rooftop solar generation. These credits were to be reflected in the May 2025 bills issued in June.

However, KSBL informed the Commission in the hearing held on 10 June 2025 that the June bills received did not contain the promised credit adjustments. MSEDCL responded that the supplementary bills with credit would be issued shortly. The Commission noted that MSEDCL had agreed to give credit adjustments based on net metering, subject to the outcome of another clarificatory petition pending in Case No. 232 of 2024.

With MSEDCL’s assurance to issue supplementary bills and continue providing credit adjustments as per the net metering arrangement, the Commission concluded that no further adjudication was necessary. It disposed of the case and directed MSEDCL to file a compliance report detailing the credit adjustments made for the four consumer accounts of KSBL.