Grid Support Charges & Time-of-Day (ToD) Tariff in Maharashtra: What Every Commercial & Industrial Solar Consumer Must Know

Maharashtra’s New Solar Policy – A Challenge or an Opportunity?

For over a decade, Maharashtra has been one of India’s leading states in rooftop solar adoption. Rising electricity tariffs, attractive net metering policies, and declining solar module prices encouraged thousands of industries, hospitals, hotels, educational institutions, warehouses, and commercial establishments to invest in rooftop solar systems.

However, the regulatory landscape has changed significantly.

The Maharashtra Electricity Regulatory Commission (MERC) has introduced Grid Support Charges (GSC) along with a revised Time-of-Day (ToD) tariff framework, changing the way commercial and industrial (C&I) consumers evaluate solar investments.

The immediate question many businesses are asking is:

“Is rooftop solar still worth investing in?”

The answer is Yes—but the strategy has changed.

Instead of simply installing the largest possible solar plant, businesses now need to focus on intelligent system sizing, maximizing self-consumption, and optimizing energy usage according to ToD tariffs.

What are Grid Support Charges?

A rooftop solar system remains connected to the utility grid.

During sunny hours, excess electricity generated by the solar plant may be exported to the grid, while during evenings or cloudy weather, electricity is imported from the grid.

The electricity network acts like a virtual battery, allowing consumers to export and import power whenever required.

According to MERC, maintaining this infrastructure involves substantial investment in:

• Transmission and distribution lines
• Transformers and substations
• Grid balancing systems
• Voltage and frequency control
• Operation and maintenance

To recover a portion of these costs, the Commission has introduced Grid Support Charges for specified categories of consumers under the revised regulations.

Why Did MERC Introduce Grid Support Charges?

According to the Commission, the primary objectives are:

• Maintaining grid infrastructure.
• Recovering the costs associated with balancing distributed solar generation.
• Preventing cost shifting from solar consumers to non-solar consumers.
• Ensuring the long-term financial sustainability of electricity distribution companies (DISCOMs).

From a regulatory perspective, these objectives aim to ensure that increasing rooftop solar penetration does not compromise grid reliability or the financial viability of the distribution network.

Industry Perspective: The Other Side of the Debate

While the Commission’s objectives are understandable, the renewable energy industry has raised several important concerns.

1. Solar Consumers Already Pay for Grid Infrastructure

Commercial and industrial consumers already pay:

• Fixed Charges
• Demand Charges
• Meter Charges
• Electricity Duty (where applicable)

These charges are intended to recover infrastructure costs.

Industry View:

If infrastructure costs are already recovered through fixed charges, imposing an additional Grid Support Charge may result in consumers paying twice for access to the same grid.

2. Rooftop Solar Reduces the Burden on the Grid

Contrary to the perception that solar places additional stress on the network, rooftop solar often:

• Reduces feeder loading
• Lowers transformer loading
• Reduces technical losses
• Delays network expansion
• Improves daytime voltage stability

Rather than increasing infrastructure costs, distributed solar can postpone expensive investments in distribution upgrades.

3. Balancing Costs May Be Overestimated

MERC argues that distributed solar increases balancing costs.

However, most commercial and industrial consumers operate during daylight hours—the same period when solar generation is highest.

This natural alignment means that much of the generated energy is consumed on-site, reducing the need for extensive balancing.

4. Rooftop Solar Provides Significant Benefits to DISCOMs

Every unit of solar energy consumed on-site reduces the utility’s need to purchase electricity from generators.

This leads to:

• Lower power purchase costs
• Reduced transmission losses
• Lower peak demand
• Reduced carbon emissions
• Deferred investment in new infrastructure

Many experts believe these benefits should also be considered while determining Grid Support Charges.

5. Impact on MSMEs

Large industries may have the financial capacity to invest in battery storage, automation, and smart energy management systems.

However, many MSMEs operate on tighter budgets.

For these businesses, longer payback periods may delay or discourage new rooftop solar investments.

6. Investor Confidence

Commercial rooftop solar projects are designed with a lifespan of 25 years.

Frequent regulatory changes affecting:

• Net Metering
• Banking
• Grid Support Charges
• ToD Settlement

can increase investment uncertainty and financing costs.

Stable policies are essential to sustain long-term growth in rooftop solar.

Understanding the New Time-of-Day (ToD) Tariff

Under the revised ToD policy, electricity prices vary depending on the time of consumption.

Solar Hours (typically 9 AM–5 PM)

• Lower electricity tariffs
• Best time to operate machinery
• Ideal for HVAC systems
• Suitable for EV charging
• Maximum utilization of rooftop solar

Evening Peak Hours

• Higher electricity tariffs
• Greater dependence on the utility grid
• Increased operating costs

This policy encourages businesses to shift energy-intensive operations to daytime hours when solar generation is highest.

Old Policy vs New Policy

Impact on Commercial & Industrial Consumers (>10 kW)

The revised policy primarily affects:

• Manufacturing industries
• Engineering companies
• Hospitals
• Hotels
• Warehouses
• Educational institutions
• Shopping malls
• Commercial complexes

The greatest impact is on facilities that export a significant portion of their daytime solar generation while consuming large amounts of electricity during evening peak hours.

Businesses with higher daytime self-consumption will continue to achieve attractive savings.

Illustrative Financial Comparison

*Illustrative example only. Actual results vary depending on tariff category, load profile, export percentage, applicable Grid Support Charges, and ToD consumption patterns.

Is Rooftop Solar Still a Good Investment?

Absolutely.

The economics have changed—but the opportunity remains strong.

Today’s successful projects require:

• Detailed energy audits
• Hourly load analysis
• ToD optimization
• Right-sized solar systems
• Higher self-consumption
• Battery storage evaluation where appropriate

The focus has shifted from maximum generation to maximum value from every unit generated.

How Nankharia Energy Helps Businesses Adapt

At Nankharia Energy, we believe that the new policy is not a barrier—it is an opportunity to design smarter energy solutions.

Our engineering approach includes:

✔ Detailed Load Analysis

✔ Time-of-Day Energy Modelling

✔ Self-Consumption Optimization

✔ Financial Feasibility Studies

✔ Battery Storage Assessment

✔ Latest MERC Regulation Compliance

✔ Accurate ROI, IRR & Payback Analysis

Instead of simply installing more solar panels, we help businesses maximize long-term savings under Maharashtra’s evolving regulatory framework.

Free Solar ROI Assessment

Planning a new commercial or industrial solar project?

Let our experts evaluate your facility under the latest MERC regulations.

Our Complimentary Assessment Includes:

• Electricity Bill Analysis
• Solar Capacity Recommendation
• ToD Savings Simulation
• Grid Support Charge Impact Analysis
• Estimated Annual Savings
• Payback Period
• ROI & IRR Report

Book Your Free Assessment Today

📞 +91 94222 01537

🌐 www.nankharia.com

📧 info@nankharia.com

References

This article is based on publicly available information, including:

• MERC Tariff Orders and related regulatory notifications.
• MSEDCL circulars and implementation guidelines.
• Industry analyses and stakeholder discussions on Maharashtra’s revised rooftop solar framework.

Readers should consult the latest official MERC and MSEDCL publications for the most current regulatory provisions applicable to their consumer category.

Final Thoughts

The introduction of Grid Support Charges and the revised Time-of-Day tariff marks one of the most significant policy shifts in Maharashtra’s rooftop solar sector.

While the Commission seeks to ensure grid reliability and financial sustainability, industry stakeholders have highlighted valid concerns regarding investment confidence, rooftop solar economics, and the pace of renewable energy adoption.

The future belongs to smart solar, not just large solar.

Businesses that embrace intelligent system design, optimize daytime energy use, and leverage data-driven engineering will continue to achieve excellent returns on their solar investments.

At Nankharia Energy, our mission is to help industries navigate these changes with confidence—delivering solar solutions that remain profitable, compliant, and future-ready.