CSERC Clarifies Solar Banking Peak Hour Charges During Time of Day Tariff Suspension In Chhattisgarh

The Chhattisgarh State Electricity Regulatory Commission (CSERC) has issued an important order clarifying how solar banking charges should be applied during peak hours, following a dispute between the Chhattisgarh State Power Distribution Co. Ltd. (CSPDCL) and private solar power entities. The decision was issued on February 6, 2026, in a suo motu petition and addresses billing concerns during a transition period between June and August 2024.

The dispute began when the Commission had temporarily suspended the implementation of a new Time of Day (ToD) tariff system. The ToD system usually charges different electricity rates for peak and off-peak hours. However, many consumers’ meters were not technically ready to record electricity usage according to the new time slots. Due to this limitation, the Commission directed that billing during the three-month period be done at a normal “Round the Clock” (RTC) rate instead of time-based tariffs.

CSPDCL argued that although the retail tariff rates were temporarily flattened, the state’s Distributed Renewable Energy (DRE) Regulations related to solar banking were still valid. According to these regulations, if consumers use their banked solar energy during evening peak hours, they must pay a 30 percent peak withdrawal charge in kind. Peak hours in the state are typically between 5 pm and 11 pm. CSPDCL maintained that this charge is not linked to retail tariffs but is necessary for managing grid stability during high demand.

On the other hand, M/s Hira Ferro Alloys Limited and the Chhattisgarh Solar Power Generators Association argued that once the ToD tariff was suspended, the concept of peak hours should not apply for billing purposes. They claimed that applying the 30 percent charge during a period of flat billing was unfair and against the Commission’s direction.

In its final order, the Commission clarified that although the ToD retail tariff was suspended, peak load hours as a grid reality still existed. The Commission confirmed that peak hours continued to be from 5 pm to 11 pm, regardless of the temporary change in billing structure. Therefore, CSPDCL was allowed to continue charging the 30 percent peak withdrawal fee on banked solar energy used during those hours.

However, the Commission found that CSPDCL had followed an incorrect calculation method. It directed that the 30 percent charge must be applied to the actual energy consumed during peak hours, not deducted incorrectly from the total energy drawn. The ruling ensures that while peak hour charges remain applicable, they must be calculated in a clear and proper manner.