The Maharashtra Electricity Regulatory Commission (MERC) issued a suo-motu order on March 30, 2026, to determine generic renewable energy tariffs for the financial year 2026–27. This move comes after the Commission extended its 2019 Renewable Energy Tariff Regulations, which will now remain valid for a second review period up to March 2030.

As per the existing regulatory framework, the Commission has not fixed generic tariffs for major renewable technologies such as wind, solar PV, or hybrid projects. Instead, tariffs for these segments will continue to be discovered through competitive bidding, ensuring transparency and alignment with market trends. The current order mainly focuses on rooftop solar PV and variable charges for biomass and non-fossil fuel-based co-generation projects.

For the financial year 2026–27, MERC has set the generic tariff for surplus energy generated from rooftop solar PV systems at ₹2.82 per kWh. This tariff is based on the rates discovered under the Mukhyamantri Saur Krishi Vahini Yojana 2.0. During the consultation process, some stakeholders expressed concerns that the tariff is relatively low and may not be attractive for prosumers. However, the Commission clarified that rooftop solar systems are primarily meant for self-consumption, and earning revenue from surplus power is not their main objective.

The Commission also rejected suggestions to adopt higher tariffs or benchmark rates from other states. It highlighted that each state has different subsidy structures, cost conditions, and policy frameworks, making direct comparisons unsuitable for Maharashtra.

In addition to rooftop solar tariffs, MERC has revised the variable charges for biomass and non-fossil fuel-based co-generation projects. For FY 2026–27, the variable charge for biomass-based projects has been fixed at ₹6.85 per kWh, while for co-generation projects it has been set at ₹5.29 per kWh. These rates have been calculated using a 5% annual escalation in fuel costs, in line with the provisions of the 2019 regulations.

The order also includes the Average Power Purchase Cost (APPC) for different distribution licensees, which is important for gross metering arrangements. For instance, the APPC for MSEDCL has been set at ₹5.40 per kWh, while for BEST it is ₹6.65 per kWh, and for Tata Power Distribution it stands at ₹6.01 per kWh.

Before finalizing the order, the Commission conducted a public consultation process, including an e-hearing held on March 24, 2026. A total of 124 stakeholders participated and submitted their suggestions, which were reviewed by the Commission before issuing the final decision.

These new tariffs will come into effect from April 1, 2026. Through this order, MERC aims to maintain a balanced approach by supporting renewable energy growth while ensuring the financial stability of distribution companies in the state.