The Maharashtra Electricity Regulatory Commission (MERC) has issued a draft order proposing a generic tariff of ₹2.82 (~$0.031)/kWh for surplus electricity exported from rooftop solar systems under net-metering and net-billing arrangements for the financial year (FY) 2026–27.

The tariff remains unchanged from FY 2025–26.

The Commission has determined provisional variable charges of ₹6.87 (~$0.075)/kWh for biomass-based power projects and ₹5.29 (~$0.058)/kWh for non-fossil fuel-based cogeneration projects for FY 2026–27, the same as the FY 2025–26.

The proposed tariffs will apply from April 1, 2026, subject to finalization after considering stakeholder comments.

Stakeholders can submit objections, comments, and suggestions by March 20, 2026.

Benchmark for Rooftop Solar Surplus Tariff

The Commission noted that none of the distribution licensees (DISCOMs) in Maharashtra has conducted competitive bidding specifically for procuring electricity from rooftop solar systems.

In the absence of such tariff discovery, the Commission referred to its March 2025 order adopting tariffs discovered under the Mukhyamantri Saur Krishi Vahini Yojana 2.0 program, in which solar tariffs ranged from ₹2.82 (~$0.031)/kWh to ₹3.10 (~$0.034)/kWh.

Based on this benchmark, the Commission has proposed ₹2.82 (~$0.031)/kWh as the generic tariff for surplus electricity exported from rooftop solar systems under net-metering and net-billing arrangements during FY 2026–27.

DISCOMs must procure this surplus energy, and the power purchased will count toward their solar renewable purchase obligation compliance.

APPC Cost

For rooftop solar projects operating under gross metering arrangements, where the entire electricity output is supplied to the DISCOM, the tariff will be linked to the average power purchase cost (APPC) of the respective distribution company.

The APPC represents the weighted average cost at which a DISCOM procures electricity, excluding power purchased from renewable sources and liquid fuel-based projects.

For rooftop solar projects commissioned in FY 2026–27 under gross metering, the applicable APPC will remain fixed for the entire duration of the energy procurement agreement signed with the DISCOM.

The APPC for Maharashtra State Electricity Distribution Company is proposed at ₹5.74 (~$0.063)/kWh, up from ₹5.15 (~$0.056)/kWh in FY 2025–26, while BEST Undertaking has an APPC of ₹6.65 (~$0.074)/kWh, slightly lower than ₹6.72 (~$0.073)/kWh in FY 2025–26.

Adani Electricity Mumbai – Distribution has an APPC of ₹5.11 (~$0.056)/kWh, down from ₹5.17 (~$0.056)/kWh, and Tata Power Company – Distribution’s APPC is ₹6.01 (~$0.066)/kWh, down from ₹6.08 (~$0.066)/kWh.

Other DISCOMs in the state have APPC values ranging between ₹2.85 (~$0.031)/kWh and ₹6.65 (~$0.074)/kWh for FY 2026–27, compared to a range of ₹4.26 (~$0.046)/kWh to ₹8.04 (~$0.088)/kWh in FY 2025–26, with some utilities seeing no change and others recording revisions.

The draft order also revises the benchmark fuel prices for renewable thermal projects. The biomass fuel price has been proposed at ₹5,313.48 (~$57.92)/MT, up from ₹5,060.45 (~$55.16) /MT in FY 2025–26, while the bagasse/non-fossil fuel-based co-generation fuel price has been set at ₹3,026.01 (~$32.98)/MT, up from ₹2,881.91 (~$31.41)/MT.

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