The Maharashtra Electricity Regulatory Commission (MERC) has reaffirmed that rooftop solar systems operating under the Net Metering framework can simultaneously function alongside Open Access, ruling that the two mechanisms are not mutually exclusive under the prevailing regulatory provisions. The order provides important regulatory clarity for Commercial and Industrial (C&I) consumers adopting multiple renewable energy sourcing mechanisms.
The ruling was issued in response to a petition filed by Hatsun Agro Product Limited (HAPL), which sought Net Metering treatment for its 983 kW rooftop solar plant at its Solapur industrial facility while continuing to avail Open Access power. The rooftop solar system was installed in 2022. However, Maharashtra State Electricity Distribution Company Limited (MSEDCL) had applied Gross Metering for energy settlement, resulting in lower credits compared to Net Metering, prompting the company to approach the Commission.
In its submissions, HAPL argued that following the notification of the Distribution Open Access (Second Amendment) Regulations, 2023, the earlier regulatory regime requiring Gross Metering during Open Access periods was no longer applicable. The petitioner pointed out that the amendment deleted the restrictive proviso and introduced Regulation 3.4, which explicitly enables the simultaneous operation of rooftop renewable energy systems under Net Metering along with Open Access procurement.
MERC agreed with this interpretation and observed that from 10 November 2023, the date on which the amended regulations came into force, energy settlement for consumers availing Open Access must necessarily be carried out through Net Metering adjustments rather than Gross Metering. The Commission noted that the regulatory intent was to promote integrated renewable energy usage and not to penalise consumers for adopting both rooftop solar and Open Access mechanisms.
MSEDCL opposed the petition on procedural grounds, contending that HAPL had not applied for Green Energy Open Access through the State Load Despatch Centre, which is the designated nodal agency under the amended framework. The utility also submitted that the amended regulations came into force after the installation of the rooftop solar system and raised concerns related to the application process.
The Commission, however, held that delays in implementing the amended regulatory framework by MSEDCL could not be used as grounds to deny legitimate Net Metering benefits to a consumer that had already been granted Open Access permissions. MERC also referred to earlier proceedings where MSEDCL had agreed to extend Net Metering-based energy credit adjustments to similarly placed consumers, stating that differential treatment in comparable cases was not permissible.
In its final order, MERC directed MSEDCL to extend Net Metering-based energy credit adjustment to HAPL, reconcile past electricity bills along with applicable interest, and reflect the reconciled amount in the immediate next billing cycle.
The Commission further stated, “As MSEDCL has already granted Open Access permissions to HAPL, as per provisions of the Regulations, it needs to allow simultaneous utilization of energy generated from rooftop solar plant under net-metering. Hence, the Commission directs MSEDCL to pass on corresponding credit adjustments in electricity bills of HAPL.”
MERC clarified that the ruling would remain subject to the outcome of MSEDCL’s pending clarificatory petition in Case No. 232 of 2024. However, until a final decision is taken, energy settlement must continue on a Net Metering basis in accordance with the existing regulatory framework.
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