Mumbai: At a time when solar power has become a popular solution to offset high-cost conventional electricity bills, the state is likely to bring it under the electricity duty framework. A committee has been formed to design the structure for duty applicability, with a tight timeline of 10 days to submit its recommendations to the state government.
MERC allowed grid support charges
The move follows an order by the Maharashtra Electricity Regulatory Authority (MERC), allowing state power distribution company MSEDCL to levy grid support charges on rooftop solar consumers with a capacity exceeding 10 kW. Taking a cue from this, the state is now considering a broader policy decision to impose electricity duty on solar power, including its various components.
A seven-member panel has been constituted under Yogesh Gadkari, director (commercial) at MSEDCL, to examine the applicability of the electricity duty on solar power projects installed for self-consumption as well as those operating under net metering arrangements. Other members include Narayan Karad, joint secretary in the Energy Department; Paresh Bhagwat, executive director (revenue and billing); and Dinesh Agrawal, executive director (commercial), both from MSEDCL. Sandip Patil, chief electricity inspector, and Harshal Gosawi, assistant electricity inspector, are also part of the panel.
Duty as percentage to be explored
The committee will also recommend mechanisms for levying duty on electricity generated by rooftop solar systems, along with grid support charges. Additionally, the panel will explore the feasibility of imposing duty as a percentage rather than a fixed charge. A policy framework will also be developed for behind-the-meter (BTM) consumers, covering both self-generation and consumption.
The committee will assess the potential impact of these measures on state revenue and on the financial position of MSEDCL. It has also been tasked with recommending possible duty exemptions for specific consumer categories. This move comes against the backdrop of the state’s reliance on taxes and duties, which generated over ₹17,500 crore in the last fiscal year.
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