Based on a recent government resolution released on 21st April, 2026, the Government of Maharashtra will be examining whether energy duty should now also be implemented for rooftop solar systems as well as other self-generation options for energy. Currently, most of the self-generated energy (including rooftop solar energy systems) has been exempt from paying energy tax up until now.
Reports say that it appears that the Government’s intent is to introduce a form of tax on all generated energy including rooftop solar PV energy that is consumed by the owner; as well as any excess energy generated (and then fed to the grid through net metering) would also be subject to taxation. As a result, it will ultimately change the perception of solar photovoltaics from a cost saving alternative to a taxable source of energy.
Solar Maharashtra News: Proposed duty could change rooftop solar economics
According to reports, it is estimated that the electricity duty will be around 16% for residential and up to 21% for commercial consumers. This represents a significant change in the manner in which people invested in solar and their expected savings from their solar installations. For numerous households, solar has served as a means of avoiding the increase in electricity costs through utility tariffs as well as reducing their monthly expenditure on electricity.
Experts indicate that the imposition of such a duty would increase costs and lengthen the payback period of the solar installation. Those consumers who invested in solar due to incentives or stable policies up until that point may find their financial returns diminished, thereby changing the way they view the savings mechanism of solar installations; thus making further investment less appealing.
Solar Maharashtra News: Additional charges add to consumer burden
Reports say that the situation becomes increasingly complicated when taking into consideration other existing charges. For example, the Maharashtra Electricity Regulatory Commission (MERC) has previously permitted distribution companies to create Grid Support Charges (GSC) on rooftop solar systems over 10kW. Low-Tension users will pay Rs1.96 per kWh of GSC, and High-Tension users will pay Rs1.42.
If consumers are subjected to an electricity duty in addition to other charges (i.e. grid support, revised time-of-day tariffs), they could experience a “triple whammy” effect of increased costs associated with the use of solar power – especially larger consumers.
Solar Maharashtra News: Revised Time-of-Day Tariff Changes Cause New Concerns
According to reports, the revised time-of-day (ToD) tariff structure could be an additional source of concern for end users. Under the new ToD structure, electricity from solar panels will have a lower value during daylight hours than it would under net metering.
Additionally, electricity drawn from the grid at nighttime will have a higher cost than it does now. The net metering disadvantage could reduce the value of net metering and thus raise the cost of using solar energy systems because of the effects of the new ToD tariff structure on daytime and nighttime energy production and consumption.
Solar Maharashtra News: Effect on residences, businesses, and industry
These changes would mean that residential societies and small businesses they could end up with a higher monthly cost than anticipated, despite having made a large number of investments in solar energy. Conversely, industrial and commercial customers might feel a much greater impact, where the cost implications of being charged a higher additional charge than grid-supplied electricity could result in it no longer being economical to use solar energy vs. conventional grid power.
This action is tied to the reduction of revenues to distribution companies like the Maharashtra State Electricity Distribution Company Ltd (MSEDCL) from customers switching from grid-supplied electricity to solar energy. Company officials indicated that the committee will examine the effects of this proposed change as it relates to the financial, policy, and tax implications on revenue, the viability of businesses that provide services in the renewable energy sector, and on the cumulative effects on the development of the renewable energy sector as a whole.
Solar Maharashtra News: Discussion regarding the consistency of policy and the future of clean energy in the State
In addition, this suggested action has created an expanded discussion regarding the future of clean energy within the state. The critics argue that by imposing additional taxes on solar energy systems will negatively impact solar energy users, especially since the central government sponsored programs are intended to promote the install of solar energy systems on rooftops.
Additionally, the committee does not appear to have a comprehensive membership nor sufficient representation, predominantly consisting of representatives of the government and utility agencies.
Khalid Qasid is a media enthusiast with a strong interest in documentary filmmaking. He holds a Master’s degree in Convergent Journalism from AJK MCRC. He has also written extensively on esports at Sportsdunia. Currently, he covers world and general news at NewsX Digital.
