📋 What is MERC MYT Order 75 of 2025? MERC MYT Order 75 of 2025 (Case No. 75 of 2025, dated March 2026) is the Maharashtra Electricity Regulatory Commission's Multi-Year Tariff order for the 5th Control Period (FY 2025–26 to FY 2029–30). It sets electricity tariffs for all MSEDCL consumer categories, introduces slot-wise solar banking restrictions for C&I net metering consumers, activates Grid Support Charges (GSC) on rooftop solar generation, and redesigns the Time-of-Day tariff structure for Maharashtra's commercial and industrial energy consumers. This analysis covers all five regulatory changes that materially affect C&I energy strategy, solar asset IRR, and BESS investment decisions in Maharashtra.
01

The Death of Daytime Solar Arbitrage

MSEDCL Has Closed the Free Battery Loophole

For years, a quiet financial advantage existed for industries with rooftop solar: generate cheap power during the day, bank it with the distribution company, and draw it back at night — offsetting expensive thermal-era electricity with surplus solar credits. Under Maharashtra's previous MSEDCL net metering framework, this Maharashtra solar banking arrangement was largely unrestricted. MSEDCL has now formally and permanently shut this door.

The financial logic behind the restriction is clear. During daytime solar hours (09:00–17:00), the abundance of renewable energy on the grid drives the average Market Clearing Price (MCP) down to ₹2.84/unit. When the sun sets and MSEDCL relies on coal-based thermal plants for evening demand, that same MCP climbs to ₹6.36/unit. When non-residential consumers banked cheap daytime solar and redeemed it at night, MSEDCL absorbed a ₹3.52/unit deficit per unit transferred — a cross-subsidy disruption it could no longer sustain at scale.

₹2.84
Daytime solar MCP (₹/unit) — abundance suppresses grid price
₹6.36
Evening thermal MCP (₹/unit) — coal demand drives price up
₹3.52
Per-unit deficit MSEDCL absorbed on each banked-then-redeemed unit

MSEDCL's Four-Pillar Justification

MSEDCL's regulatory submission to MERC laid out four interlocking arguments for the banking restriction:

Pillar MSEDCL's Core Argument
1. Anti-ArbitrageThe banking provision was converted into a risk-free mechanism to exploit day-night generation cost differentials. The grid is not a commercial storage asset.
2. Grid EconomicsMSEDCL absorbs a direct financial deficit when cheap solar credits offset expensive nighttime thermal procurement, disrupting cross-subsidy stability for all consumers.
3. Load-Shifting StrategyRestricting banking forces industries to consume during solar hours, absorbing the growing quantum of unstorable renewable energy on the Maharashtra grid.
4. Statutory FrameworkRegulation 20.3 of MERC (Distribution Open Access) Regulations mandates strictly hierarchical banking — from higher-tariff to lower-tariff slots only, never the reverse.

ℹ Source: MSEDCL submissions, MYT Case No. 75 of 2025, Para 4.3.20–4.3.23 & Para 18.21

📊 Impact Estimate A 500 kW rooftop solar plant at a 24-hour manufacturing facility previously offset a meaningful share of its nighttime grid consumption through banking. That benefit no longer exists. Industries with fixed nighttime loads — cold storage, hospitals, three-shift manufacturing, hotels — are structurally the most exposed to this change.
02

The New Time-of-Day Playbook

MERC Has Turned the Tariff Clock into a Behaviour-Change Weapon

MERC's overhaul of the Time-of-Day tariff Maharashtra structure is not a simple pricing adjustment — it is a deliberate demand-management intervention. The Commission's objective is to shift industrial and commercial electricity consumption away from the night and into the daytime solar window, absorbing a growing surplus of renewable energy that currently cannot be stored at scale. Facilities that can shift load and discharge BESS during peak windows will benefit most; those with fixed 24-hour loads face a structural cost increase.

The Three-Window Time-of-Day Tariff Maharashtra Architecture

Time Window Hours Signal Tariff Impact on Energy Charge
☀ Solar Window 09:00–17:00 CONSUME NOW −15% rebate (Apr–Sep) / −25% (Oct–Mar)
Steps to −20% / −30% from FY 2027–28 onwards
🌙 Night / Normal 00:00–06:00
& 06:00–09:00		 NO INCENTIVE Old ₹0.80/unit rebate (22:00–06:00) permanently removed
Zero rebate now applies 00:00–09:00
⚡ Evening Peak 17:00–24:00 AVOID OR STORE +20% premium surcharge

ℹ Source: MERC Order 75 of 2025, Table 8 | Para 18.14–18.15. Night rebate was a fixed ₹0.80/unit, not a % rebate.

Precise Solar Rebate Step-Up Timeline

Season FY 2025–26 FY 2026–27 FY 2027–28 onwards
April – September (Summer) −15% −15% −20%
October – March (Winter) −25% −25% −30%

ℹ Annual blended average of 20% satisfies MoP minimum requirement. Step-up commences FY 2027–28 — two full years after this order.

PWRNXT Perspective For industries that CAN shift loads — food processing, textile finishing, EV fleet charging — the ToD rebate creates a genuine 15–30% energy cost reduction during solar hours. Pair this with smart EMS scheduling for a compounding competitive advantage. For industries that CANNOT shift, the +20% evening surcharge and permanently eliminated ₹0.80/unit night rebate represent a structural cost increase on every unit consumed after 17:00.
03

Grid Support Charges: The Solar Tax Has Arrived

Maharashtra Crossed 5,000 MW — Your Rooftop Solar IRR Has Changed

MERC pre-committed to activating Grid Support Charges once Maharashtra's installed rooftop solar capacity crossed 5,000 MW — the point at which distributed solar generation begins to materially disrupt grid economics and cross-subsidy structures. That threshold was crossed in February 2026. MSEDCL confirmed a state-wide rooftop solar capacity of 5,178.81 MW, with 5,006.16 MW within MSEDCL's distribution area. As of FY 2025–26, GSC is live and being billed.

Who Pays — and Who Is Exempt

Consumer Category GSC Status
All HT net-metering consumers (sanctioned load > 10 kW) ✅ Levied on gross generation units
All LT net-metering consumers (sanctioned load > 10 kW) ✅ Levied on gross generation units
Small rooftop solar installations (≤ 10 kW) ❌ Fully exempt
Consumers subject to GSC Banking charges no longer applicable — prevents double taxation

ℹ Source: MERC Order 75 of 2025, Para 21.11–21.13 | Regulation 11.5 of MERC Net Metering Regulations

Full GSC Rate Trajectory — All 5 Years

Consumer Type FY 2025–26 FY 2026–27 FY 2027–28 FY 2028–29 FY 2029–30 5-Yr Change
HT Consumers (₹/unit) 1.40 1.42 1.38 1.55 1.77 ▲ +26.4%
LT Consumers (₹/unit) 1.88 1.96 1.93 2.10 2.32 ▲ +23.4%

ℹ Source: MERC Order 75 of 2025, Table 9, Para 21.11. GSC dips in FY 2027–28 due to lower approved balancing cost component before resuming upward trajectory.

📊 Impact Estimate A 500 kW rooftop solar plant generating ~7 lakh units/year now carries an annual GSC liability of ₹9.80 lakh at FY 2025–26 rates, rising to ₹12.39 lakh by FY 2029–30. For most C&I solar projects commissioned between 2020 and 2024, this charge was never modelled into the original financial projection. Every installation above 10 kW in Maharashtra requires a revised IRR calculation — the payback period for a pure rooftop solar installation at a multi-shift facility has extended by an estimated 12–18 months.
04

The New Rules of Solar Banking

The Grid Is No Longer a Free Battery

The revised Maharashtra solar banking framework under MERC Order 75 introduces a level of operational complexity that most net-metering consumers are unprepared for. What was previously a simple monthly netting of generation against consumption has become a precision slot-matching problem with rules that are deeply asymmetric against multi-shift C&I operations.

The Monthly Settlement Rule: Banking is permitted strictly on a monthly basis. Credits for banked energy cannot be carried forward to subsequent months. Any unused credits at month-end are settled at the regulated surplus rate — not at retail tariff. This alone reduces the effective value of rooftop solar for seasonally variable production industries.

Slot-Wise Banking Matrix (MYT Order, Para 18.21)

Energy Banked In Hours Can Be Redeemed In Cannot Be Redeemed In
☀ Solar Slot 09:00–17:00 Solar hours ONLY Normal hours ❌  Peak hours ❌
🌙 Normal Slot A 00:00–06:00 Normal A + Solar hours Peak hours ❌
🌙 Normal Slot B 06:00–09:00 Normal B + Solar hours Peak hours ❌
⚡ Peak Slot 17:00–24:00 Peak + Normal + Solar ✅ (Most flexible) —

ℹ Source: MERC Order 75 of 2025, Para 18.21. Normal sub-slots listed separately per order but carry identical banking treatment.

The Residential Exemption — A Critical Asymmetry

Standard residential consumers with rooftop solar net-metering connections are entirely exempt from slot-wise restrictions — they continue to net consumption against generation across all hours. Every non-residential consumer — factories, hotels, hospitals, and commercial complexes — faces the full slot-wise regime. This asymmetry means the most financially sophisticated energy consumers are also the most constrained under the new framework.

PWRNXT Perspective For three-shift manufacturers, cold storage, and hotels, daytime solar generation can no longer offset nighttime consumption. BESS + Solar is now the only configuration that restores the economic logic of rooftop solar for multi-shift operations — simultaneously capturing the ToD daytime rebate AND enabling discharge during the costly evening peak window.
05

HT Tariff Trajectory: The 5-Year Roadmap

For the First Time, C&I Buyers Have Regulatory Visibility Through FY 2030

MERC has published a complete five-year schedule for all HT tariff Maharashtra consumer categories — a rare degree of regulatory transparency that constitutes a genuine strategic planning window for energy managers willing to use it. The headline trend is positive: energy charges are declining across most HT categories. But the strategic picture is more nuanced when GSC escalation, rising fixed charges, and ToD penalties are layered in. Every C&I facility with an MSEDCL net metering connection above 10 kW needs to model this full-cost picture, not the headline energy rate alone.

Curated Snapshot — Key Categories for C&I Energy Planning

Category Charge FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 5-Yr Δ
HT-I (A): Industry Fixed (₹/kVA/mo) 600650700730750 ▲ +25%
Energy (₹/kVAh) 8.688.448.237.527.45 ▼ −14.2%
HT-II: Commercial Fixed (₹/kVA/mo) 600650700730750 ▲ +25%
Energy (₹/kVAh) 14.0313.7213.2912.4712.23 ▼ −12.8%
HT-III: Railways / Metro Fixed (₹/kVA/mo) 600650700730750 ▲ +25%
Energy (₹/kVAh) 7.597.297.036.836.68 ▼ −12.0%
HT-IX: EV Charging Station Fixed (₹/kVA/mo) No fixed charge (promotes EV rollout) —
Energy (₹/kVAh) 8.518.928.918.928.92 ▲ +4.8%

ℹ Source: MERC Order 75 of 2025, 5th Control Period FY 2025–26 to FY 2029–30. HT-IX is the only category with a rising energy charge trajectory.

Key Planning Signals Energy charges are declining — but GSC escalation (₹1.40→₹1.77/unit) means the net effective tariff for a solar-equipped facility may remain flat or rise unless BESS cuts peak-hour grid draw. Fixed demand charges are rising across the board (+25%) — load factor optimisation and contracted demand right-sizing are now financially material decisions worth auditing annually. HT-IX (EV Charging) is the only category with rising energy charges (+4.8%) — EV fleet operators and CPOs must model BESS-backed charging infrastructure now, before the tariff trajectory further compresses unit economics.
06

PWRNXT Strategic Synthesis

Three Lenses for C&I Energy Decision-Makers in Maharashtra

The five regulatory changes documented in this analysis do not operate in isolation. They reinforce each other in a way that creates both significant risk and significant opportunity — depending entirely on whether your energy strategy is configured to respond. For any C&I facility combining rooftop solar with multi-shift operations in Maharashtra, BESS Maharashtra deployments have shifted from financial optimisation to operational necessity. The case for battery energy storage is now built into the regulatory framework itself.

🔋 Lens 1: The BESS Business Case is Now Regulatory, Not Just Financial The convergence of GSC on gross solar generation, the +20% evening peak surcharge, and slot-wise banking restrictions creates a compound financial pressure on any C&I facility combining rooftop solar with a multi-shift load profile. BESS is now the only instrument that simultaneously: absorbs daytime solar generation (reducing GSC exposure on exported units); dispatches stored energy during the evening peak window (avoiding the +20% surcharge); and eliminates dependence on slot-wise banking for nighttime loads. What was previously a financial optimisation is now a regulatory necessity for 24-hour operations.
☀ Lens 2: Every Rooftop Solar IRR Above 10 kW Needs Recalculation — Today The financial model used at commissioning of any net-metering installation in Maharashtra almost certainly did not account for: GSC at ₹1.40/unit growing to ₹1.77/unit by FY 2030; the permanent elimination of nighttime banking value; or the +20% peak-hour surcharge on residual grid consumption. Existing project IRRs are overstated. New project appraisals must embed all three changes from day one. The payback period for a pure rooftop solar installation at a multi-shift facility has extended by an estimated 12–18 months under the revised regime.
📊 Lens 3: Five-Year Tariff Visibility is a Strategic Planning Window For the first time, C&I energy buyers can model their electricity cost base through FY 2030 with regulatory certainty. PWRNXT recommends using this window to lock in long-term BESS leasing structures aligned to the approved tariff trajectory, model peak-shaving savings against the published schedule, and engage proactively with MERC's forthcoming consumer BESS regulations — the Commission has formally initiated the drafting process per Para 4.12.45 of this order. Early adopters will shape the framework.
The regulatory environment in Maharashtra has fundamentally shifted. The question for every C&I energy buyer is not whether these changes affect your facility — they do. The question is whether your energy strategy is configured to absorb the risk and capture the opportunity.

Appendix — Full HT Tariff Maharashtra Table: All 11 Categories × 5 Years

Source: MERC Order 75 of 2025 | 5th Control Period: FY 2025–26 to FY 2029–30. Fixed and Energy Charges apply to all HT consumers. Wheeling Charges apply to standard HT connections at 33kV, 22kV, and 11kV. Consumers connected at EHV level (66 kV and above) are exempt from Wheeling Charges.

A.1 Energy Charges (₹/kVAh)

Consumer Category FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 5-Yr Trend
HT-I (A): Industry8.688.448.237.527.45▼ −14.2%
HT-I (B): Industry (Seasonal)8.688.478.227.527.47▼ −13.9%
HT-II: Commercial14.0313.7213.2912.4712.23▼ −12.8%
HT-III: Railways / Metro7.597.297.036.836.68▼ −12.0%
HT-IV: Public Water Works8.167.987.837.817.77▼ −4.8%
HT-V (A): Agriculture Pumpsets5.975.805.624.754.71▼ −21.1%
HT-V (B): Agriculture Others8.328.248.238.238.18▼ −1.7%
HT-VI: Group Housing7.347.287.267.267.26▼ −1.1%
HT-VIII (A): Public Service Govt.10.6210.3510.019.189.13▼ −14.0%
HT-VIII (B): Public Service Other11.5611.2110.8910.049.73▼ −15.8%
HT-IX: EV Charging Station8.518.928.918.928.92▲ +4.8%

ℹ HT-IX is the only category with a rising energy charge trajectory over the 5th Control Period.

A.2 Fixed / Demand Charges (₹/kVA/month)

Consumer Category FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 5-Yr Trend
HT-I (A): Industry600650700730750▲ +25.0%
HT-I (B): Industry (Seasonal)600650700730750▲ +25.0%
HT-II: Commercial600650700730750▲ +25.0%
HT-III: Railways / Metro600650700730750▲ +25.0%
HT-IV: Public Water Works600650700730750▲ +25.0%
HT-V (A): Agriculture Pumpsets115145180215230▲ +100.0%
HT-V (B): Agriculture Others115145180215230▲ +100.0%
HT-VI: Group Housing440445450455460▲ +4.5%
HT-VIII (A): Public Service Govt.600650700730750▲ +25.0%
HT-VIII (B): Public Service Other600650700730750▲ +25.0%
HT-IX: EV Charging StationNo fixed charge — promoting EV infrastructure rollout—

ℹ Fixed charges rise uniformly for most categories. HT-V Agriculture sees the steepest increase (+100%) from a low base.

A.3 Wheeling Charges (₹/kVAh) — Uniform Across All HT Categories

Charge FY 2025–26 FY 2026–27 FY 2027–28 FY 2028–29 FY 2029–30
Wheeling Charge — All HT (33kV, 22kV, 11kV) 0.740.810.820.810.80

ℹ Wheeling charges peak in FY 2027–28 at ₹0.82/kVAh then marginally ease. EHV consumers (66 kV+) are fully exempt.

A.4 Grid Support Charges — Full 5-Year Schedule (₹/unit on Gross Generation)

Consumer Type FY 2025–26 FY 2026–27 FY 2027–28 FY 2028–29 FY 2029–30 5-Yr Change
HT Consumers1.401.421.381.551.77▲ +26.4%
LT Consumers1.881.961.932.102.32▲ +23.4%

ℹ Source: MERC Order 75 of 2025, Table 9. GSC levied on gross generation units. Applies only to net-metering consumers with sanctioned load > 10 kW.

FAQ

Frequently Asked Questions

Common questions about MERC MYT Order 75 of 2025 and its impact on Maharashtra commercial and industrial energy consumers.

What is MERC MYT Order 75 of 2025? +
MERC MYT Order 75 of 2025 (Case No. 75 of 2025, dated March 2026) is the Maharashtra Electricity Regulatory Commission's Multi-Year Tariff order covering the 5th Control Period from FY 2025–26 to FY 2029–30. It introduces slot-wise solar banking restrictions for C&I net metering consumers, activates Grid Support Charges on rooftop solar generation, redesigns the Time-of-Day tariff structure, and publishes a complete 5-year HT tariff schedule for all MSEDCL consumer categories.
What is the Grid Support Charge (GSC) and who pays it? +
The GSC is a levy on gross solar generation units for all MSEDCL net-metering installations above 10 kW. It was activated in FY 2025–26 after Maharashtra's rooftop solar crossed 5,000 MW (February 2026). HT consumer rate: ₹1.40/unit → ₹1.77/unit by FY 2029–30. Installations ≤ 10 kW are fully exempt.
Can C&I consumers still bank solar credits at night? +
No. Slot-wise banking rules under MERC Order 75 mean energy banked during the solar window (09:00–17:00) can only be redeemed during solar hours. Nighttime and peak-hour grid consumption cannot be offset with daytime solar credits. Residential consumers remain exempt — only non-residential consumers face this restriction.
What are the new Time-of-Day tariff rates in Maharashtra? +
Three windows: Solar (09:00–17:00) — −15%/−25% rebate (summer/winter), stepping to −20%/−30% from FY 2027–28. Normal/Night (00:00–09:00) — zero rebate (old ₹0.80/unit night rebate permanently removed). Evening Peak (17:00–24:00) — +20% surcharge on all energy consumed.
How does MERC Order 75 affect my rooftop solar IRR and payback period? +
Existing IRRs for rooftop solar installations above 10 kW in Maharashtra are overstated. Three costs were absent from pre-2025 models: GSC (₹1.40→₹1.77/unit), loss of nighttime banking value, and the +20% evening peak surcharge. PWRNXT estimates payback for a multi-shift facility has extended by 12–18 months. Every installation requires a revised financial model.
What is the HT-I Industry tariff trajectory under MERC Order 75? +
HT-I (A) Industry energy charges: ₹8.68 (FY26) → ₹8.44 → ₹8.23 → ₹7.52 → ₹7.45/kVAh by FY30 (−14.2%). Fixed demand charges rise from ₹600 to ₹750/kVA/month (+25%). GSC adds ₹1.40–₹1.77/unit on gross solar generation. Net effective savings are smaller than headline energy rate reductions suggest.
Why is BESS now a regulatory necessity for Maharashtra C&I solar consumers? +
Battery energy storage systems (BESS) in Maharashtra are now the only configuration that simultaneously: absorbs daytime solar generation (reducing GSC on exported units); dispatches stored energy during the +20% evening peak window; and eliminates slot-wise banking dependency for nighttime loads. BESS + Solar is the only setup that restores the original financial logic of rooftop solar for 24-hour C&I operations.

Recalculate Your Solar IRR Under the New Regime

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Disclaimer: This insight is for informational purposes only and does not constitute legal or regulatory advice. Readers are advised to verify all details against the official MERC Order 75 of 2025 (Case No. 75 of 2025, dated March 2026). 📧 [email protected] | 🌐 www.pwrnxt.in