Grid support charge protects interests of common electricity consumers, CM Fadnavis
Mumbai, June 24
Chief Minister Devendra Fadnavis clarified in the Legislative Council on Wednesday that the 'Grid Support Charge' has been levied to ensure that the additional financial burden caused by the rising use of solar energy on the power grid does not pass down to common electricity consumers.
He emphasised that this charge applies to a mere 0.13 per cent of consumers and is not a financial loss, but rather a limited reduction in the excess profits of a few.
The Chief Minister was responding to a query raised by Legislative Council member Satej Patil regarding the increase in electricity sales tax for industrial and commercial consumers in the state.
Other members, including Bhai Jagtap, Eknath Khadse, and Dr Neelam Gorhe, also participated in the discussion.
CM Fadnavis stated that the Grid Support Charge was implemented on February 1, 2016, and has not been applied retrospectively.
Following the government's intervention pointing out a double-counting error of Rs 40,000 crore in some calculations by the Maharashtra Electricity Regulatory Commission (MERC), the commission has stayed the decision and initiated a fresh hearing.
Refuting claims of high power tariffs, the CM noted that Maharashtra's industrial electricity rates remain lower than those in Tamil Nadu, Telangana, and Madhya Pradesh.
In 2025-26, Maharashtra's tariff stands at Rs 8.19 per unit. Under the Multi-Year Tariff (MYT) framework, rates have been locked until 2029-30, ensuring Maharashtra's power rates will remain among the most competitive in the country.
Highlighting the state's rapid industrial growth, CM Fadnavis mentioned that power demand in Maharashtra has jumped by an impressive 20 per cent over the last two years.
"If Maharashtra's power rates were truly high, industries would have moved to other states. On the contrary, major industries are heavily investing in Maharashtra," he said.
Explaining the technical challenges of solar energy, the CM stated that currently, only about 35 per cent of the generated solar power is consumed during the day, while 65 per cent is demanded back at night via energy banking.
This creates an extra load on the distribution system. To address this, the government is aggressively building large-scale Battery Energy Storage Systems (BESS).
In 2022, renewable energy accounted for 15 per cent of the state's total power generation.
The government aims to scale this up to 52 per cent by 2029-30 through various ongoing projects, with renewable energy projects of 38,000 MW capacity currently under development, said the CM.
The Chief Minister reiterated that the state government is open to holding fresh discussions with solar power producers regarding the Grid Support Charge and the Time of Day (ToD) policy.
He emphasised that minimising the financial burden on common consumers remains the government's top priority.
Additionally, under the PM Surya Ghar and Solar Agricultural Pump schemes, empaneled vendors and a dedicated grievance redressal mechanism have been established.
Maharashtra leads the nation by installing nearly 60 per cent of India's solar agricultural pumps, prompting the Central Government to urge other states to adopt the 'Maharashtra Model.'
The agricultural pumps also come with insurance coverage and a guaranteed five-year maintenance contract said the energy department.
— IANS
Reader Comments
I appreciate the transparency, but I'm still not fully convinced. Why should solar power users be penalized? They're doing the environment a favor by installing panels. The government should be rewarding them, not adding charges. Let's see how the fresh hearings go.
Interesting that Maharashtra's power rates are lower than Tamil Nadu and Telangana—I thought we were one of the highest! If industrial tariffs are competitive and demand is growing 20%, then the government must be doing something right. The BESS storage systems are a smart move for handling solar intermittency. Hope the renewable target of 52% by 2030 is met!
As someone from the US, this seems like a thoughtful approach to managing grid stability. The 65% night demand issue is a real challenge everywhere. Glad to see Maharashtra is investing in battery storage rather than just pushing costs onto households. The Maharashtra Model for solar pumps is quite impressive too—60% of India's installations! Impressive work.
Yahan pehle electricity rates kum karo, phir grid support charge lagao! Common consumer ke liye toh kuch nahi ho raha. The CM says it's only 0.13% but who's to say they won't expand it later? And the double-counting error of Rs 40,000 crore is worrying—how did that happen in the first place? Accountability bhi chahiye. But yes, solar agri pumps are a great initiative.
Glad to see Maharashtra taking renewable energy seriously. The grid support charge is a practical way to handle the duck
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