Maharashtra's New Renewable Energy Policy Receives Mixed Reactions from Industry and Experts
The newly notified Maharashtra Renewable Energy and Energy Storage Policy (2025-26 to 2035-36) has generated a mixed response from industry stakeholders and energy experts. While the Vidarbha Industries Association (VIA) has welcomed the policy's focus on easing regulatory bottlenecks, solar energy experts have raised significant concerns about its potential impact on residential solar consumers.
Industry Welcomes Regulatory Improvements
VIA president Prashant Mohota described the policy as marking a significant shift toward resolving long-standing implementation challenges, particularly in the area of Green Open Access (GEOA). Although eligibility for GEOA at the 100kW threshold existed previously, its adoption was consistently hindered by procedural delays and bureaucratic obstacles.
"The introduction of a single-window system, time-bound clearances, and integration with the National Green Open Access Registry represents a major step forward for ease of doing business, especially for MSMEs," Mohota emphasized.
He further highlighted the importance of the policy's detailed action plan, which establishes specific deadlines ranging from three to twelve months for key agencies including Maharashtra State Electricity Distribution Company Limited, Maharashtra State Electricity Transmission Company Limited, and Mahagenco to roll out operational guidelines. Mohota stressed the critical need for strict adherence to these timelines to ensure successful implementation.
Industry Recommendations and Concerns
Despite welcoming the policy's overall direction, VIA has urged the government to introduce capital-based incentives specifically for Battery Energy Storage Systems (BESS). The association noted that existing duty-related benefits offer limited advantage to industries located in the Vidarbha region.
Additionally, VIA has sought representation in the policy's implementation committee to ensure that regional industrial concerns are adequately addressed during the execution phase. This move aims to create a more balanced approach that considers the unique challenges faced by industries across different geographical areas of Maharashtra.
Experts Raise Concerns About Residential Solar Impact
In contrast to the industry's generally positive reception, solar energy expert Sudhir Budhay has flagged significant changes that could negatively affect home consumers, particularly regarding rooftop solar regulations. According to Budhay's analysis, the policy proposes restricting key net metering benefits—including annual banking and exemption from grid support charges—only to installations up to 3 kW capacity.
"For consumers in the 3 kW to 10 kW category, these benefits would be eliminated entirely, with affected users being shifted to monthly banking arrangements while facing additional grid support charges," Budhay explained.
For systems exceeding 10 kW capacity, the situation becomes even more restrictive. Net metering will no longer be available for these installations, with consumers instead being moved to net billing arrangements featuring dynamic pricing structures and additional charges.
Technical Changes and Consumer Implications
The policy also introduces time-of-day (ToD)-based energy accounting through smart or ToD meters, with surplus energy exported to the grid being purchased by MSEDCL at average market-linked (G-DAM) rates. Notably, cross-slot energy settlement will not be permitted under the new framework, a restriction that Budhay warns could significantly affect consumer savings and the overall financial viability of rooftop solar installations.
Energy experts caution that these combined changes could substantially reduce the financial attractiveness of rooftop solar for households and small businesses, even as the policy aims to accelerate large-scale renewable energy adoption across the state.
Balancing Competing Priorities
While industry stakeholders view the policy as a progressive step forward in improving execution mechanisms and boosting green manufacturing capabilities, significant concerns remain about balancing ambitious renewable energy targets with affordability considerations and consumer-friendly provisions.
The divergent responses highlight the complex challenge facing policymakers: how to create regulatory frameworks that simultaneously encourage industrial renewable energy adoption while maintaining incentives for residential consumers to participate in the state's clean energy transition.
