Daily News Wrap-Up: MERC Allows Rooftop Solar Net Metering with Open Access

Government proposes changes to captive power rules to ease compliance

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The Maharashtra Electricity Regulatory Commission (MERC) directed the Maharashtra State Electricity Distribution Company (MSEDCL) to permit net metering for Hatsun Agro Products’ rooftop solar system, even while the petitioner is availing open access. The Commission has ordered MSEDCL to revise and adjust Hatsun Agro Product’s electricity bills from November 2023, applying the net metering methodology instead of gross metering.

The Ministry of Power proposed amendments to the Electricity Rules 2005 to simplify the regulatory framework for captive power generation. Under the existing rules, a power project qualifies as a captive generating project only if two core conditions are met. Captive users must hold at least 26% ownership in the project and consume at least 51% of the electricity generated. While these thresholds are clear in principle, practical application has proven difficult. Group captive projects involving multiple users, subsidiaries, or special purpose vehicles have often faced challenges in demonstrating strict proportionality between ownership and consumption.

The Maharashtra Electricity Regulatory Commission approved the Maharashtra State Electricity Distribution Company’s proposal to procure 1,600 MW of solar power from NTPC’s projects. The Commission adopted the discovered tariff, ranging from ₹2.66 (~$0.030) to ₹2.72 (~$0.031)/kWh, along with a trading margin of ₹0.07 (~$0.00079)/kWh, for a 25-year power supply agreement term. The power procured under this arrangement will be eligible to meet MSEDCL’s Renewable Purchase Obligation.

The Central Electricity Regulatory Commission adopted a usage charge of ₹2.45 (~$0.0272)/kWh for the 510 MW solar power project developed by NLC India. The Commission held that this usage charge qualifies for adoption under Section 63 of the Electricity Act, 2003, as it corresponds to the ceiling usage charge that was in effect at the time of the competitive bidding. NLC India filed the petition seeking adoption of usage charges for its 510 MW solar project selected under Tranche III of the Central Public Sector Undertaking Program Phase II (Tranche III).

MERC approved tariffs ranging between ₹4.43 (~$0.049)/kWh and ₹4.77 (~$0.05)/kWh for Tata Power Company’s 250 MW firm and dispatchable renewable energy (FDRE) projects with energy storage systems. The Commission directed that power procured from the FDRE projects will be treated as meeting Tata Power’s renewable purchase obligation. Tata Power must execute the power purchase agreements within 30 days. As part of its long-term power procurement strategy, the petitioner, Tata Power, planned to secure power from FDRE projects in the financial year (FY) 2028 to facilitate load matching and optimize its power purchase costs.

The Chhattisgarh State Electricity Regulatory Commission proposed generic levelized tariffs for renewable energy projects to be commissioned during the financial year 2025–26. Under the proposal, solar projects with capacities of 500 kW to 2 MW have been assigned a levelized tariff of ₹3.39 (~$0.038)/kWh, down from ₹4.34 (~$0.048)/kWh in FY25. Small hydro projects below 5 MW will have a proposed tariff of ₹7.57 (~$0.084)/kWh, up from ₹7.05 (~$0.078)/kWh in FY25. Projects between 5 MW and 10 MW will receive a tariff of ₹7.80 (~$0.087)/kWh, up from ₹6.33 (~$0.070)/kWh last year.

NLC India issued an engineering, procurement, and construction tender for setting up a 250 MW/500 MWh battery energy storage system (BESS) project at the Tamil Nadu Transmission Corporation’s Annupankulam, Ottapidaram, and Kayathar substations. Bids must be submitted by January 30, 2026. Bids will be opened on the same day. Selected bidders must submit a BESS life cycle performance guarantee of 8% of the contract value. The scope of work entails the design, engineering, manufacturing, erection, testing, and commissioning of the BESS project.

The Solar Energy Corporation of India invited bids for the manufacture and commissioning of five 160 MVA, 220/33-33 kV power transformers at the Radhanesda Ultra Mega Solar Park in Gujarat. The last date to submit bids is January 23, 2026. Bids will be opened on the same day. The scope of work covers the engineering, design, manufacturing, testing, installation, and commissioning of the transformers. Successful bidders must also provide insurance for the transformers.

Inox Neo Energies, the independent power producer arm of Inox Clean Energy, acquired around 300 MW of operational solar projects from SunSource Energy. Inox Neo is also in the process of acquiring an estimated 50 MW of solar projects pending approvals from SunSource Energy. The projects are located across 13 states, including Uttar Pradesh, Karnataka, Tamil Nadu, and Maharashtra. They are being operated under various special-purpose vehicles that sell power under long-term arrangements to multiple commercial and industrial companies.

Solar capacity additions in the European Union (EU) in 2025 have dropped for the first time in a decade, with new installations of 65.1 GW, down 0.7% year-over-year from 65.6 GW, according to the EU Solar Market Outlook 2025-2030 report by SolarPower Europe. SolarPower Europe had earlier projected new EU solar installations at 64.2 GW in 2025, driven by the dip in residential rooftop solar installations. The report states that solar installations in the EU are expected to continue declining in 2026 and 2027, before recovering marginally by 2030.

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