As a leading solar EPC company, we understand the challenges faced by industries and commercial entities looking to optimize their energy costs through Open Access (OA) solar power. With shifting regulatory frameworks, businesses must stay updated to maximize benefits and mitigate risks. This blog is designed to help off-takers navigate the latest developments, including the Multi-Year Tariff (MYT) Order by MERC and the MSEDCL petition, which could significantly impact OA solar projects. Let’s dive in!
The MYT Order lays the foundation for electricity tariff regulation, influencing key aspects of open access solar projects, such as:
The Maharashtra State Electricity Distribution Company Limited (MSEDCL) has proposed several changes to the MYT framework, which may impact open access solar adoption. MSEDCL’s MYT petition supports clean energy but comes with trade-offs, making smart energy use, fair tariffs, and clear net metering policies essential for maximizing benefits. While ToD rebates encourage daytime power consumption, MSEDCL’s tariff structure prioritizes its financial stability over solar profitability, with additional charges on consumers, banking limitations, and reliance on thermal power restricting the profitability of private and rooftop solar solutions.
Key proposals include:
Here’s a quick breakdown of the latest updates affecting Open access solar consumers:
If the MSEDCL petition gets approved, businesses relying on OA solar may experience the following:
To protect energy cost savings, businesses must explore alternative solar solutions and advocacy efforts.
With the evolving regulatory landscape, Open Access solar projects must adapt to ensure cost savings and compliance. Here’s how off-takers can navigate these challenges:
The changing open access solar policy creates challenges and opportunities for businesses looking to use open access solar power. With increasing surcharges, banking limits, and new tariff rules, staying informed and adapting procurement strategies is more critical.
With the help of a reliable solar EPC company ensures seamless project execution, compliance with regulations, and saves more energy cost. By choosing the right solar EPC service, businesses can efficiently navigate these policy shifts while maintaining long-term sustainability and profitability. Let’s work together to drive a greener, more cost-effective energy future!
Disclaimer: This blog post is based on preliminary research on draft MYT order by MERC and MSEDCL’s petition. Final rates may differ subject to regulatory approvals. Always refer to the official tariff order for the most accurate, up-to-date information. All the views expressed above are personal opinion of the author of this blog.
The MYT order is a regulation by MERC that sets electricity tariffs for a five-year period (2025-26 to 2029-30) to ensure stable and transparent pricing.
Electricity prices are determined based on forecasted costs, investments, and operational expenses. Regular reviews ensure fair cost recovery while preventing unjustified price hikes.
MSEDCL has proposed changes in electricity pricing, tariff structures, and solar energy policies, arguing that the current draft may impact revenue and affordability.
Fixed and energy charges are set to rise.
Peak-hour rates (5 PM – 10 PM) will increase, while daytime rates (9 AM – 5 PM) will be lower.
Solar panel owners and consumers using electricity during peak hours may see changes in savings and costs.
Daytime (9 AM – 5 PM): Lower grid electricity rates due to abundant solar energy.
Peak hours (5 PM – 10 PM): Higher charges to balance demand and supply.
To lower your electricity bill under MYT regulations, shift energy use to daytime (9 AM – 5 PM) when rates are lower. Invest in solar power and battery storage to use stored energy during peak hours. Monitor consumption and optimize usage based on Time-of-Day (ToD) tariffs for maximum savings.
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