CSERC Directs Proper Settlement Of Prosumers’ Excess Solar Energy Under Revised Time of Day Tariff In Chhatisgarh

The Chhattisgarh State Electricity Regulatory Commission (CSERC) has issued an important order to resolve a dispute over the settlement of excess solar energy generated by prosumers under the Time of Day (ToD) tariff structure. The order, dated September 19, 2025, follows Petition No. 09 of 2025, filed by the Chhattisgarh Renewable Energy Prosumers Association against the Chhattisgarh State Power Distribution Co. Ltd. (CSPDCL). Prosumers are electricity consumers who not only consume power from the grid but also generate and supply renewable energy, mainly solar, back to the grid through net metering.

The dispute arose after CSERC implemented a revised ToD tariff structure for the Financial Year 2024-25, effective June 1, 2024. Under this new structure, the Normal period is now from 11 PM to 9 AM, the Off-peak period (Solar Hours) is from 9 AM to 5 PM with the lowest tariff at 80% of the normal rate, and the Peak load period is from 5 PM to 11 PM, with a 120% tariff. Previously, excess solar energy generated during Normal Hours (5 AM to 6 PM) could be adjusted against the immediately lower tariff block, which was the Off-peak period (11 PM to 5 AM).

However, the new tariff structure created a challenge. Since the maximum solar generation now coincides with the lowest tariff period of 9 AM to 5 PM, CSPDCL interpreted that there was no lower tariff block available to adjust the excess energy. As a result, this excess energy was carried forward and eventually settled at zero, causing financial losses for prosumers.

The Prosumers Association requested clarification, seeking directions to allow excess energy to be settled against other time blocks. CSPDCL argued that surplus energy should not be redeemed during high-tariff peak hours and suggested a 20% withdrawal charge if energy was banked and redeemed during off-peak periods to avoid financial setbacks.

During the public hearing on September 3, 2025, various stakeholders, including industry associations, supported the prosumers. They emphasized the need to protect small and medium-scale industries from financial losses due to the new ToD structure. One stakeholder suggested that prosumers could install energy storage systems to prevent excess energy from being adjusted during peak hours, which could reduce costly power purchases for CSPDCL.

After reviewing all submissions, the Commission concluded that the financial losses were directly caused by the new ToD tariff structure. CSERC clarified the interpretation of Regulation 16(vi) of the DRE Regulations, stating that if the lowest tariff block coincides with the generation period, the excess energy should be adjusted in the next lower tariff time block. Consequently, CSPDCL has been directed to settle month-wise excess generation during the Normal period, from 11 PM to 9 AM, which is now considered the immediately lower time block.

The Commission also mandated that this adjustment be applied retroactively from June 1, 2024, the date of the new tariff order. This order ensures that prosumers will no longer face financial losses due to excess solar energy and provides clarity on how energy settlement should be handled under the revised ToD tariff structure. By addressing the issue, the CSERC aims to protect prosumers’ interests while maintaining transparency in energy accounting and billing.

The decision highlights the growing importance of net metering and prosumer participation in the renewable energy sector, ensuring that solar energy contributions are fairly compensated even under changing tariff structures. The order is expected to benefit prosumers across Chhattisgarh and strengthen confidence in the state’s renewable energy framework.