The Ministry of New and Renewable Energy (MNRE) has asked the Maharashtra government to withdraw a recent policy that restricts rooftop solar installations in the state. The move comes after the Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) introduced a rule to limit the size of rooftop solar systems based on a consumer’s average electricity consumption over the past twelve months.
Earlier, consumers were allowed to install rooftop solar systems up to their sanctioned load. This gave households and businesses the flexibility to plan for future electricity needs. However, the new rule changes this approach by linking system capacity to past usage, which has raised serious concerns among industry experts and solar developers.
The MNRE has expressed that such restrictions go against the country’s renewable energy goals. The ministry highlighted that the policy is not in line with the objectives of the PM Surya Ghar: Muft Bijli Yojana, a major central scheme that aims to promote rooftop solar adoption across India. The scheme targets the installation of 40 GW of grid-connected rooftop solar capacity by encouraging households to generate their own electricity.
Industry stakeholders believe that the “past consumption” rule is not practical. They argue that it does not consider future energy requirements of consumers. For example, a family planning to buy an electric vehicle or install new appliances like air conditioners may need more electricity in the coming years. Under the current rule, they would not be able to install a solar system that meets their future demand.
Experts have also pointed out that the policy affects consumers with seasonal electricity usage. In many cases, annual average consumption may not reflect peak demand during certain months. This could result in smaller solar installations that are not sufficient during high-usage periods.
The MNRE has further noted that such state-level restrictions create unnecessary barriers for the growth of clean energy. These limitations may discourage private investment and slow down the adoption of rooftop solar systems. The ministry has urged the Maharashtra government to align its policies with national guidelines to support the expansion of renewable energy.
The issue has also reached the legal system. The Bombay High Court recently stepped in and directed MSEDCL to provide automatic approvals for rooftop solar systems up to 10 kW capacity. This decision is seen as a relief for consumers and developers who have been facing delays and uncertainties due to the new rule.
As India continues its efforts to expand renewable energy and reduce carbon emissions, coordination between central and state policies remains important. The MNRE’s request highlights the need for a consistent and supportive regulatory environment across the country.
For now, the solar industry is waiting for the Maharashtra government’s response. A positive decision could help restore confidence among consumers and developers and support the growth of rooftop solar in the state.
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