Lower CTUIL Cost Benchmarks Ease Financial Closure for Renewable Projects

Solar Meets 25% of EU Power Demand in June, Capacity Up 34 GW in 1H 2026

GETCO Seeks Consultant for Pilot 2.5 MWh Battery Storage Project

KIS Group, Paras Dairy to Invest ₹10 Billion to Set Up 10 BioCNG Plants

India Tightens Domestic Manufacturing Norms for Electric Trucks

REIL Floats Tender for 15 MW Rooftop Solar Projects Across India

Rising PPA Tariffs Erase Gains from Lower Open Access Charges

MNRE Invites Research Proposals to Boost Solar Thermal Solutions Adoption

Project Finance Brief: Grenergy Completes $475 Million Solar, Storage Project Sale

Daily News Wrap-Up: PM Surya Ghar 2.0 May Mandate Energy Storage


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2026/09/amazon_polly_104694.mp3?version=1788849106">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p>The Delhi Electricity Regulatory Commission (<a href="https://www.derc.gov.in/" target="_blank" rel="noopener">DERC</a>) has rejected the petitioner, Bureau of Energy Efficiency’s (BEE) claim seeking a penalty of ₹125.44 million (~$1.33 million) from the New Delhi Municipal Council (<a href="https://www.ndmc.gov.in/" target="_blank" rel="noopener">NDMC</a>) for non-compliance with energy accounting and audit requirements.</p>
<p>The Commission gave 90 days to NDMC to constitute and operationalize a centralized energy accounting and audit cell and submit all outstanding periodic energy accounting reports.</p>
<p>The Commission warned that the relief from the penalty was being provided only once and would not be treated as a precedent. It allowed BEE to initiate fresh proceedings if NDMC fails to meet the prescribed deadlines.</p>
<p><strong>Background</strong></p>
<p>The petitioner approached the Commission seeking adjudication of penalties against the NDMC for alleged non-compliance with the Bureau of Energy Efficiency (Manner and Interval for Conduct of Energy Audit in Electricity Distribution Companies) Regulations, 2021.</p>
<p>The regulations require distribution companies to conduct periodic energy accounting through an energy manager and annual energy audits through an accredited energy auditor.</p>
<p>According to BEE, NDMC failed to submit several periodic energy accounting reports despite multiple notices.</p>
<p>In February 2024, NDMC submitted its annual energy audit reports for FY 2020-21 and FY 2021-22 and submitted the FY 2022-23 report on March 11, 2024. The petitioner said that NDMC is yet to submit the annual energy audit report for FY 2023-24.</p>
<p>Out of the fourteen periodic energy accounting reports to be submitted, only reports for Q2 and Q3 of FY 2023-24 were furnished.</p>
<p>Noting non-compliance with BEE’s regulations, BEE calculated the maximum penalty for the alleged delays and non-compliance at ₹125.44 million (~$1.33 million).</p>
<p>The NDMC challenged BEE’s claims, stating that it was not a designated consumer under the Energy Conservation Act and, therefore, the petition was not maintainable.</p>
<p>It said it was a statutory municipal body and a deemed distribution licensee under the Electricity Act rather than an entity issued a distribution license by an electricity regulatory commission.</p>
<p>NDMC also cited administrative difficulties in constituting the required energy audit cell. It said creating positions for a BEE-certified energy manager, IT manager, and finance manager would require recruitment rules and regulatory approvals.</p>
<p>It also highlighted difficulty in submitting quarterly reporting in BEE’s prescribed format as its financial and accounting systems were integrated with the municipal treasury and operated on an annual accounting cycle.</p>
<p><strong>Commission’s Analysis</strong></p>
<p>The Commission said that NDMC’s contention that it was outside the scope of the Energy Conservation Act was not maintainable.  It noted that NDMC handled approximately 1.36 billion units of electricity in FY 2024-25 and 1.32 billion units in FY 2023-24, without generating electricity itself.</p>
<p>The Commission said an entity handling such a large quantity of energy could not be considered outside legislation aimed at improving energy efficiency.</p>
<p>It held that NDMC&#8217;s status as a deemed distribution licensee did not exempt it from the Act. It noted that DERC determines NDMC&#8217;s aggregate revenue requirement and retail tariffs under the Electricity Act in its capacity as a distribution licensee.</p>
<p>Although DERC established that NDMC had failed to comply with the regulations, it declined to impose a monetary penalty.</p>
<p>DERC said the Energy Conservation Act was remedial rather than a revenue statute, and its objective would be better served through compliance and reduced energy losses than through transferring funds from one public authority to another.</p>
<p>The Commission noted that the Energy Conservation Act prescribes a maximum, not a mandatory, penalty and allows the adjudicating officer discretion in determining the amount.</p>
<p>DERC also highlighted uncertainty over when the compliance obligation became enforceable.</p>
<p>It therefore rejected BEE&#8217;s ₹125.44 million (~$1.32 million) penalty claim while giving NDMC a final opportunity to comply.</p>
<p>It directed NDMC to submit all outstanding periodic energy accounting reports within 90 days and the outstanding annual energy audit report for FY 2023-24 and FY 2024-25 within 120 days.</p>
<p>The Commission also directed that any future penalty imposed on NDMC must be paid from its own resources and cannot be claimed as an expense in its aggregate revenue requirement, true-up, or tariff filings, or recovered from electricity consumers.</p>
<p>In April 2026, the BEE <a href="https://www.google.com/goto?url=CAESnQEB6zswFXZlTrzb9gIcoBjozJWo5_sECjQi35tntfl-5ZnJAeR3EJo-mNhzob1Q9-hndWcpBd0zt6SDZYgSY91kOkIzQ0qd_cgZkJywLpeEtSfhgNDDE1bs2OiBDSp7ptidezbMrE_O-lMrYGryW4jT0NQ8HBOr_Tx50xMnIVNp28HCMOSea2d8Lq0mScBP31CqXbKU_vcU_nTwaRPT" target="_blank" rel="noopener">issued</a> draft regulations on energy audit and energy accounting for distribution companies, proposing a standardized framework to improve efficiency and reduce losses across the power distribution sector.</p>
<p>Subscribe to Mercom’s real-time <a href="https://www.mercomindia.com/product/mercoms-renewable-energy-regulatory-updates" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.</p>


Delhi Regulator Rejects BEE’s ₹125 Million Penalty Claim Against NDMC


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2026/09/amazon_polly_104457.mp3?version=1788501452">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p>The <a href="https://delhi.gov.in/" target="_blank" rel="noopener">Delhi government</a> has announced plans to provide 3 kW rooftop solar systems with no upfront capital expenditure under PM Surya Ghar: Muft Bijli Yojana for 230,000 households by March 2027.</p>
<p>The benefit announced as part of the revised Delhi Solar Energy Policy will benefit households with monthly electricity consumption of at least 400 units.</p>
<p>In addition, the government also plans to provide net metering benefits and operation and maintenance services to beneficiaries for five years. There will be no application and registration fees for rooftop solar systems of up to 10 kW.</p>
<p>Delhi Chief Minister Rekha Gupta said the government will provide financial assistance by offering a top-up subsidy of ₹78,000 (~$821.38) for a 3 kW system, in addition to the ₹78,000 (~$821.38) subsidy available from the central government.</p>
<p>Consumers can also benefit from savings generated by rooftop solar while continuing to avail themselves of the 100% electricity subsidy available to households consuming up to 200 units a month. Households can generate additional savings by selling surplus power to the grid.</p>
<p>She stated the policy was revised due to the slow adoption of rooftop solar systems in Delhi under PM Surya Ghar program.</p>
<p>Until now, the Delhi government was <a href="https://www.mercomindia.com/delhi-raises-residential-rooftop-solar-subsidy-to-%E2%82%B910000-kw" target="_blank" rel="noopener">providing</a> residential consumers a one-time subsidy of ₹10,000 (~$105)/kW, capped at ₹30,000 (~$316) for systems of 3 kW and above.</p>
<p>The projects will be installed under a utility-led aggregation model and executed by Indraprastha Power Generation Company, which will oversee vendor selection through a tariff-based bidding process.</p>
<p>Gupta said Delhi plans to add 500 MW of rooftop solar capacity under the new policy.</p>
<p>She added that Delhi currently has around 10,000 buildings capable of generating solar energy.</p>
<p>India <a href="https://www.mercomindia.com/india-added-6-6-gw-of-rooftop-solar-capacity-in-1h-2026" target="_blank" rel="noopener">added</a> 6.6 GW of rooftop solar capacity in the first half (1H) of 2026, up 131% year-over-year from 2.8 GW, according to Mercom India Research’s Q2 and 1H 2026 India Rooftop Solar Market Report. The growth was driven primarily by the government’s continued push under the PM Surya Ghar program, which targets the residential segment.</p>
<p>Subscribe to Mercom’s real-time <a href="https://www.mercomindia.com/product/mercoms-renewable-energy-regulatory-updates" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.</p>


Delhi Announces Free 3 kW Rooftop Solar Systems for 230,000 Homes


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2025/12/amazon_polly_87685.mp3?version=1765548862">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p>India&#8217;s cumulative solar open access capacity reached 27.9 GW in September 2025, with Maharashtra contributing about 17%, the second-largest share after Karnataka, according to Mercom&#8217;s <a href="https://www.mercomindia.com/product/q3-2025-mercom-india-solar-open-access-market-report" target="_blank" rel="noopener">Q3 2025 Solar Open Access Market Report</a>.</p>
<p>Despite this strong base, Maharashtra has struggled due to regulatory uncertainty, leading developers and commercial and industrial (C&amp;I) consumers to scale back investments due to energy banking limits, adverse time-of-day (ToD) tariffs, and open access charges.</p>
<p>The quarterly installations in Q3 fell to 165 MW, an 80% quarter-over-quarter and 43% year-over-year decline.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/12/Picture1-6.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-87710 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/12/Picture1-6.png" alt="Maharashtra Solar Open Access Market (MW)" width="1351" height="553" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/12/Picture1-6.png 1351w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/12/Picture1-6-300x123.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/12/Picture1-6-768x314.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/12/Picture1-6-650x266.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/12/Picture1-6-624x255.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/12/Picture1-6-600x246.png 600w" sizes="auto, (max-width: 1351px) 100vw, 1351px" /></a><strong>How Banking Worked Earlier</strong></p>
<p>Under the earlier framework, renewable generators could bank surplus energy and withdraw it later, subject to a 2% charge (revised to 8% in November 2023). Any unused energy after the monthly settlement would either lapse or be converted to Renewable Energy Certificates (RECs).</p>
<p>The banked energy could be used during most ToD slots except peak hours, allowing daytime solar to offset evening consumption. This flexibility was critical for matching variable solar generation with C&amp;I load profiles.</p>
<p><strong>New Banking Rules, ToD Tariffs Shrink Savings</strong></p>
<p>The Maharashtra Electricity Regulatory Commission&#8217;s (MERC) new multi-year tariff order and subsequent clarifications changed both the ToD structure and the way banking works for MSEDCL consumers. The revised provisions restrict the energy stored during the &#8216;normal&#8217; ToD slots (00:00 &#8211; 06:00 and 06:00 &#8211; 09:00) to be utilized in the same slot or during solar hours (09:00 &#8211; 17:00), and energy banked during solar hours (09:00 &#8211; 17:00) may be drawn in the same ToD slot only.</p>
<p>The state&#8217;s new seasonal ToD design offers 20-30% discounts during solar hours and about 25% surcharges during peak hours. With cheaper grid power during solar hours and time-slot-restricted banking, the economic value of surplus solar has fallen sharply, creating an effective &#8216;no-banking&#8217; scenario for energy generated between 09:00 and 17:00.</p>
<p><strong>Delivered Cost Up</strong></p>
<p>Open access consumers also face a cross-subsidy surcharge of roughly ₹2 (~$0.022)/kVAh or approximately ₹1.8 (~$0.02)/kWh, wheeling charges, transmission losses, apart from the 8% banking charges, which together raise the delivered cost of open access power close to or above DISCOM tariffs during key time blocks, squeezing the business case for new projects.</p>
<p><strong>Shift towards Smaller PPAs</strong></p>
<p>Mercom&#8217;s analysis indicates that banking restrictions may reduce savings by at least 10% for many C&amp;I consumers. Companies are downsizing projects and aligning PPAs to daytime demand to avoid generating surplus that may lapse.</p>
<p>Furthermore, higher charges and procedural delays push smaller MSMEs towards short-term grid power, leading to delays or cancellations of renewable procurement plans. Battery energy storage systems (BESS) could mitigate ToD price gaps, but will involve additional investments.</p>
<p><strong>Regulatory Unpredictability</strong></p>
<p>The Bombay High Court <a href="https://www.mercomindia.com/bombay-high-court-sets-aside-merc-order" target="_blank" rel="noopener">quashed</a> MERC&#8217;s review of the MYT order and stayed MSEDCL&#8217;s attempt to confine banked energy usage to solar hours, restoring the earlier rule allowing withdrawal in any non-peak slot. Petitioners argued the new restrictions were retrospective and inconsistent with rules for other Mumbai DISCOMs. Although the ruling temporarily restored flexibility, it reinforced concerns about regulatory unpredictability.</p>
<p><strong>C&amp;I Procurement Strategies</strong></p>
<p>Not only in Maharashtra but also across other states in India, sharper ToD pricing and higher fixed charges are narrowing the gap between DISCOM and open access tariffs.</p>
<p>Declining retail tariffs and rising fixed charges are limiting potential savings, while steep solar‑hour discounts make grid power attractive when solar production is highest. C&amp;I consumers in the state are increasingly considering hybrid projects, storage-backed PPAs, and DISCOM-supplied green tariffs paired with smaller captive or on-site systems to fulfil their green targets.</p>
<p><strong>Policy Stability is Key</strong></p>
<p>Maharashtra remains a key market due to its large C&amp;I base, but recent policy shifts underscore the need for stable, consultative regulation. Market participants are watching upcoming decisions on banking rules, the trajectory of CSS and grid support charges, and the role of storage and new contracting tools such as virtual PPAs and contracts for differences. Until clearer signals emerge, stakeholders expect Maharashtra&#8217;s open access growth to trail its underlying demand, as developers and consumers factor in higher regulatory risk and favor flexible procurement models.</p>


Energy Banking Curbs, New ToD Tariffs Slow Maharashtra’s Solar Open Access Market

markets-and-policy

Get the most relevant India solar and clean energy news.

RECENT POSTS