The Maharashtra Electricity Regulatory Commission (MERC) has allowed a petition filed by a private company seeking directions to Maharashtra State Electricity Distribution Company (MSEDCL) to treat a 999 kW rooftop solar system under the net metering arrangement while availing open access.

The Commission directed MSEDCL and the petitioner to reconcile the claim amount within 30 days of the order. MSEDCL must pass on the reconciled amount through a supplementary bill credit adjustment in the next billing cycle, along with interest at the bank rate, as per the applicable regulations.

Background

Lumex Industries, an MSEDCL consumer, had installed a 999 kW rooftop solar system at its plant in Khed, Pune. MSEDCL had granted connectivity for the rooftop solar project on August 12, 2024.

The company also entered into a power purchase agreement with Huoban Energy 5 to procure captive power with a capacity of 1.65 MVA. It later began to avail open access from April 2025 to meet its remaining power requirements.

Lumex stated that MSEDCL refused to offer net metering for the rooftop solar project after it began availing open access. Instead, MSEDCL billed the rooftop solar generation under the gross metering arrangement.

MSEDCL credited rooftop solar generation at ₹2.90 (~$0.0303)/kWh from April to June 2025 and ₹2.82 (~$0.0295)/kWh from July 2025 onward under gross metering.

Lumex argued that MSEDCL’s decision was contrary to the Distribution Open Access (DOA) Second Amendment Regulations, 2023, which allow rooftop renewable energy consumers to simultaneously avail open access and net metering.

MSEDCL countered the claim by stating that Lumex had not applied for Green Energy Open Access through Maharashtra State Load Despatch Centre, which is the prescribed nodal agency.

It stated that Lumex had failed to comply with the mandatory procedure under the Green Energy Open Access Rules, 2022, and the DOA Second Amendment Regulations, 2023.

MSEDCL also submitted that Regulation 3.4 of the amended regulations required clarification. It said it had filed a case before the Commission seeking clarification on certain provisions, including Regulation 3.4.

The distribution company said it was willing to extend net metering benefits prospectively, subject to Lumex obtaining valid Green Energy Open Access approvals through the nodal agency and subject to the outcome of Case No. 232 of 2024.

Lumex said MSEDCL had relied on a provision that was deleted after the Commission notified the DOA Second Amendment Regulations, 2023.

The company argued that the earlier provision required rooftop solar generation to be adjusted under gross metering when a consumer availed open access. However, that provision was deleted, and Regulation 3.4 was introduced to allow simultaneous use of rooftop renewable energy systems and open access.

Lumex said it qualified for open access because its contract demand exceeded the threshold under the Distribution Open Access Regulations, 2016.

Commission’s Analysis

The Commission noted that the  DOA First Amendment Regulations, 2019, allowed rooftop solar consumers to simultaneously avail open access, but required solar generation credit to be adjusted on a gross metering basis during the open access period.

It stated that this provision was deleted through the DOA Second Amendment Regulations, 2023.

The Commission held that after the notification of the amendment on November 10, 2023, consumers were allowed to use rooftop renewable energy systems with net metering while availing open access.

It also held that the earlier gross metering provision ceased to exist after November 10, 2023.

The Commission said MSEDCL should have considered Lumex’s open access billing transactions under the net metering arrangement.

MSEDCL had also argued that Lumex had not applied through MSLDC, the designated nodal agency for Green Energy Open Access.

The Commission noted that the amended regulations require consumers to submit Green Energy Open Access applications in the procedure and format prescribed by the central nodal agency.

The Commission said there was no regulatory provision after the 2023 amendment that allowed a distribution licensee to bill net-metered rooftop solar generation on a gross metering basis during simultaneous use of open access. It held that Lumex could not be denied the benefit of rooftop net metering.

It noted that MSEDCL had filed a petition seeking clarification on certain provisions of the 2023 amendment.

However, it also referred to another order, where MSEDCL had agreed to provide credit adjustment based on the net metering modality, subject to the outcome of its clarification petition.

The Commission said MSEDCL could not discriminate between consumers and must apply the previously noted order to all similarly placed consumers.

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