Chhattisgarh Solar Prosumers Challenge New Time Of Day Tariff Over Financial Losses

The Chhattisgarh Renewable Energy Prosumers Association (CGREPA) has approached the Chhattisgarh State Electricity Regulatory Commission (CSERC) with a petition over a tariff dispute that they say is causing heavy financial losses for solar power producers. The complaint is directed against the Chhattisgarh State Power Distribution Company Limited (CSPDCL) and focuses on the way energy accounting and settlement are being done for solar prosumers under the Time of Day (ToD) tariff system.

The association has highlighted that a change in tariff rules, which came into effect from June 1, 2024, has created serious challenges for many solar plant owners. Under the earlier system, prosumers could generate solar energy during what was called the “Normal Period” from 5 a.m. to 6 p.m. Any surplus power generated beyond their daytime use was credited to them and could be used to offset consumption during the “Off-peak Load Period” from 11 p.m. to 5 a.m., when electricity tariffs were lower. This arrangement allowed solar producers to balance their night-time electricity needs with excess energy generated during the day, which had been a major factor in their decision to invest in solar systems.

However, for the fiscal year 2024-25, CSERC has redesigned the ToD time blocks. The lowest tariff period, now termed the “Off-peak load period (Solar Hours),” runs from 9 a.m. to 5 p.m. This directly overlaps with the hours of maximum solar power generation. As a result, the excess electricity generated during these hours is no longer being used to offset more expensive night-time consumption. Instead, CSPDCL carries forward the surplus to the next billing cycle. At the end of the financial year on March 31, any leftover balance is reduced to zero, meaning prosumers receive no monetary value for it.

According to CGREPA, this new system is a major setback for solar investors. They argue that the practice goes against the intent of the Distributed Renewable Energy Regulations introduced in 2019, which encouraged consumers to adopt renewable energy by allowing them to use their own solar generation to meet their electricity requirements at other times of the day. The association points out that many of its members have invested in solar power plants based on the earlier arrangement, and the sudden change has made these investments financially unviable.

CGREPA has told CSERC that the redesign of the tariff blocks has effectively turned solar investments into a loss-making proposition. They have requested the commission to step in and address the issue by issuing clarifying directions, removing the difficulty in the regulations, or granting a reasonable relaxation of the rules. The association believes that such measures are necessary to protect the financial interests of solar producers and to maintain the trust of those who have committed resources towards renewable energy generation in the state.

The dispute is now before the regulator, and the outcome will be closely watched by solar power stakeholders across Chhattisgarh, as it could determine the financial viability of solar prosumer projects under the new tariff regime.