Kolhapur industrialists threaten protest against grid support charges imposed on solar power installations

Kolhapur: Commerce and industrial associations have warned of protests and even shifting operations to Karnataka if the Maharashtra Electricity Regulatory Commission (MERC) does not withdraw its order imposing ‘grid support charges' on industrial units with rooftop solar power plants with capacities above 10 kW.MERC has imposed grid support charges on large rooftop solar installations to recover costs associated with maintaining grid infrastructure, which enables the export of surplus solar power and balances system load. For 2026-27, the charges have been fixed at Rs 1.96 per kW, which are expected to rise to Rs 2.32 per kW in subsequent years.A meeting of representatives from industrial and commercial bodies, along with members of the Solar Power Plant Manufacturers' Association, was held at the Kolhapur Chamber of Commerce and Industries (KCCI) on Monday. Association president Amit Kulkarni strongly termed the MERC's order contrary to national policies aimed at promoting renewable energy. He warned that grid support charges on solar generation, restrictions on energy banking, higher peak-hour tariffs and reduced incentives would render solar projects financially unviable and severely dent investor confidence."If govt allows concessions only between 9am and 5pm, we may as well run our hotels and businesses only during those hours. MSEDCL has imposed grid support charges on consumers generating more than 10 kW. Solar users will now be forced to purchase costly electricity at night because they cannot use the surplus power they generated during the day. If this issue is not resolved, we will take to the streets," KCCI president Sanjay Shete said.The representatives further warned that the charges amounted to a penalty on clean energy and would ultimately affect even non-solar consumers through higher costs, while also leading to job losses and hampering the state's overall economic growth.
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