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MERC Clarifies Net Metering Rights For Consumers Using Open Access Power In Maharashtra

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Representational image. Credit: Canva

The Maharashtra Electricity Regulatory Commission (MERC) has ruled in favor of M/s. Lumax Industries Limited (LIL) is in a dispute involving rooftop solar net metering and open access power consumption. The decision was issued in Case No. 245 of 2025 and provides important clarity on the rights of electricity consumers using both rooftop solar systems and open access power under Maharashtra’s updated regulations.

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Lumax Industries, an automotive components manufacturer located in Khed Taluka of Pune district, had approached the Commission after Maharashtra State Electricity Distribution Company Limited (MSEDCL) refused to allow net metering benefits for its 999 kW rooftop solar power project. The company had been using short-term open access power since April 2025 while also operating its rooftop solar installation.

MSEDCL treated the solar generation under a gross metering arrangement instead of net metering. Under gross metering, the excess electricity generated by the rooftop solar system was credited at fixed rates of Rs 2.90 per unit between April and June 2025 and Rs 2.82 per unit from July 2025 onward. Lumax Industries argued that this approach caused significant financial losses and was not in line with the latest regulations governing open access and rooftop solar projects.

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In its defense, MSEDCL stated that the company had not submitted its Green Energy Open Access application through the Maharashtra State Load Despatch Centre (MSLDC), which acts as the designated nodal agency. According to MSEDCL, this procedural issue made the open access application invalid under the applicable regulations. The utility also pointed to regulatory uncertainty and referred to a separate petition it had previously filed seeking clarification on the matter.

However, Lumax Industries maintained that its contract demand exceeded 1000 kVA, making it eligible to apply for open access under the existing regulations. The company further argued that MSEDCL had already been approving and implementing its open access transactions every month, making the utility’s objections inconsistent.

After examining the case, MERC reviewed the relevant regulatory provisions and found merit in the company’s arguments. The Commission noted that earlier regulations issued in 2019 required consumers using open access to be shifted to gross metering. However, the Distribution Open Access (Second Amendment) Regulations, notified on November 10, 2023 removed those restrictions.

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The Commission observed that the amended regulations specifically allow eligible consumers to use rooftop solar net metering and open access power simultaneously. Therefore, MSEDCL did not have any legal basis to deny net metering benefits to the company.

MERC also stated that MSEDCL could not discriminate among consumers, especially when similar benefits had been granted to other eligible consumers in the past. The Commission allowed the petition and directed both parties to reconcile the financial impact within 30 days. MSEDCL has been instructed to calculate the difference, adjust previous credits, and provide the final amount to Lumax Industries through future electricity bills, along with interest at the prevailing Bank Rate.

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