The Maharashtra government’s move to examine imposing an electricity duty on rooftop solar and self-generated power has raised concerns among consumers and industry stakeholders, with experts warning that the proposal could significantly increase electricity costs and erode the financial benefits of going solar.
A government resolution issued on 21 April 2026 has established a committee to examine whether the electricity duty under the Maharashtra Electricity Duty Act, 2016, should be applied to emerging energy consumption models, such as rooftop solar (RTS) and behind-the-meter (BTM) systems. These categories have so far largely remained exempt from such levies.
At the heart of the proposal is a shift towards taxing even self-generated solar power — electricity produced and consumed by users themselves — as well as surplus power exported to the grid under net metering arrangements.
Estimates suggest that the proposed duty could range from about 16% for residential users to 21% for commercial consumers. If implemented, this would mark a fundamental change in how solar power is treated, effectively converting a cost-saving mechanism into a taxable consumption source.
For households, the impact could be immediate. Rooftop solar has been widely adopted as a way to reduce electricity bills and hedge against rising tariffs. However, taxing self-consumed solar power would erode these savings, potentially extending the payback period for installations and making new investments less attractive.
Energy experts have warned that consumers who installed solar systems based on earlier incentives and policy assurances may now find the economics shifting unfavourably.
The financial burden is compounded by existing and proposed charges. The Maharashtra Electricity Regulatory Commission (MERC) has already allowed distribution companies to levy grid support charges (GSC) on rooftop solar systems above 10kW (kilowatts). These charges currently stand at about Rs1.96 per unit for low-tension consumers and Rs1.42 per unit for high-tension users.
If electricity duty is imposed on top of these charges, consumers could face a cumulative increase in costs. Industry observers describe this as a 'triple impact' — electricity duty, grid support charges, and revised time-of-day (ToD) tariffs.
The ToD changes are another key concern. Under revised regulations, solar power generated during the day may be valued at lower rates, while electricity drawn from the grid at night could be priced higher. This affects consumers who rely on net metering, where excess daytime generation is offset against night-time usage. The new structure could reduce these benefits, effectively increasing net electricity expenses.
For residential societies and small businesses, the changes could translate into higher monthly bills despite investing large amounts in solar infrastructure. For industrial and commercial users, the impact could be more severe, as higher duties and charges may make solar power economically unviable compared to conventional grid electricity.
The state government’s move is seen as an attempt to address revenue concerns of distribution companies such as the Maharashtra State Electricity Distribution Company Ltd (MSEDCL), which face declining income as high-consumption users shift to solar and reduce dependence on grid power.
Officials have indicated that the committee will assess the financial and policy implications of the proposed changes, including their impact on state revenues, the viability of distribution companies, and the broader renewable energy ecosystem. The panel has been asked to submit its report within a short timeframe, indicating that a decision may follow soon.
However, the proposal has sparked a wider debate about policy consistency and the future of clean energy adoption in the state. Critics argue that imposing additional taxes on solar users could discourage investments and slow down the transition to renewable energy, particularly at a time when central schemes are promoting rooftop solar adoption.
There are also concerns about the lack of broader representation in the decision-making process. Experts have pointed out that the committee is largely composed of government and utility officials, raising questions about whether consumer interests and independent perspectives will be adequately considered.
For consumers, the uncertainty itself is becoming a concern. Many who invested in solar systems expecting long-term savings are now reassessing their financial calculations. Potential new users may delay or reconsider installations until there is clarity on the policy framework.
The outcome of the committee’s review will be crucial in determining whether Maharashtra continues to encourage decentralised renewable energy or moves towards a model where even clean, self-generated power comes with additional fiscal burdens.
If implemented in its current form, the proposed electricity duty could fundamentally alter the cost dynamics of rooftop solar, shifting it from a savings-driven investment to a more complex and potentially costlier proposition for consumers across the state.
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In my opinion, all those using net metering should charged little more than what it costs to use the grid as Power Storage System, else anyone having enough money would use Grid for Power Storage for FREE. This would be a kind of regressive tax and would further enable transfer of wealth to rich from poor. Because in near future when battery technology would become cheap these same people would totally shift away from Discoms or Grid just because they can afford one time large investment for storage system and those who can not would be severely punished.
The power generated using solar or any renewable tech by anyone who doesn't use grid or net metering should not be taxed.
Governments initially show attractive wrappers in the form of incentives and once people get trapped, they start showing their true colours.
Afterall our taxpayer's money is used for the salaries, multiple pensions and freebies of MLAs, MPs and ministers! Somehow governments revenue for all the privileges of politicians.
It's the Sun's energy that we are harnessing. The Solar EPC's are doing all the hard work -- marketing, carrying out surveys, procurement of materials, doing the installations (mostly in remote areas) and commissioning the projects. The margins are already thin ; and these new duties and tariffs are going to make it impossible for them to survive. I implore the state government to reconsider its decision.
It's the Sun's energy that we are harnessing. The Solar EPC's are doing all the hard work -- marketing, carrying out surveys, procurement of materials, doing the installations (mostly in remote areas) and commissioning the projects. The margins are already thin ; and these new duties and tariffs are going to make it impossible for them to survive. I implore the state government to reconsider its decision.