What are MSEDCL's grid support charges for rooftop solar?
Grid support charges (GSC) are a per-unit levy that Maharashtra's DISCOM, MSEDCL, applies to net-metering rooftop solar consumers whose sanctioned load exceeds 10 kW. Effective FY 2026-27, the charge is Rs 1.96 per unit for LT consumers and Rs 1.42 per unit for HT consumers, and — the part that surprises most plant owners — it is calculated on your total solar generation, not just the units you export to the grid (MERC tariff order dated 25 March 2026, as applied by MSEDCL and upheld by the Electricity Ombudsman in Order 58 of 2026).
TL;DR:
- GSC applies to all net-metering consumers, existing and future, with sanctioned load above 10 kW; systems on connections with sanctioned load up to 10 kW are exempt
- FY 2026-27 rates: Rs 1.96/unit (LT) and Rs 1.42/unit (HT), charged on total solar generation
- It replaced the earlier 12% banking deduction on exported units, which was abolished from 1 April 2026
- At typical yields, GSC adds roughly Rs 2.8 lakh/year on a 100 kW LT plant and about Rs 10.3 lakh/year on a 500 kW HT plant
- A 500 kW HT factory still pays back its CAPEX in about 2 years at current tariffs — but model GSC in before you sign any OPEX or CAPEX quote
Last verified: 4 November 2026
What changed and when
| Date | What happened | Source |
|---|---|---|
| 2019 | MERC first approved the GSC concept, to activate once rooftop solar capacity crossed a 2,000 MW trigger | Times of India, May 2026, citing MSEDCL |
| 2023 | Trigger raised to 5,000 MW of installed rooftop capacity | Times of India, May 2026 |
| Feb 2026 | MSEDCL informed MERC the 5,000 MW rooftop threshold was crossed (letter dated 20 February 2026) | Electricity Ombudsman Order 58 of 2026, para 21.9 |
| 25 Mar 2026 | MERC Order No. 75 of 2025 determines GSC rates for the five-year control period; levy applies to total generation units | Order 58 of 2026, paras 21.9 and 21.14 |
| Mar–Apr 2026 | MSEDCL begins billing GSC; the old 12% banking deduction on exports is abolished from 1 April 2026 | SolarSquare analysis of the MERC order |
| 14 Aug 2026 | Electricity Ombudsman, Nagpur upholds GSC on total solar generation, including self-consumed units | Order 58 of 2026 |
Who pays grid support charges — and who is exempt
GSC applies to all net-metering solar consumers in Maharashtra with a sanctioned load above 10 kW, whether residential, commercial, industrial or institutional, and to both existing and future installations. The 10 kW test is on your sanctioned load, not your plant size: a 5 kW rooftop system on a connection with 25 kW sanctioned load still attracts GSC.
Exempt: connections with sanctioned load of 10 kW or below, which covers the large majority of household installations. MSEDCL's own figures, reported in May 2026, show the levy reaches 44,246 consumers — just 0.14% of its 3.17 crore consumer base. Among domestic consumers, only 16,410 of 6.57 lakh rooftop solar households (2.49%) pay GSC; in the industrial category it is 8,894 of about 4.45 lakh consumers, and in commercial, 12,832 of 23.3 lakh.
Grid support charge rates, FY 2025-26 to FY 2029-30
MERC set the rates for the full five-year control period, charged in rupees per unit of total solar generation:
| Financial year | GSC rate — LT consumers (Rs/unit) | GSC rate — HT consumers (Rs/unit) | Source |
|---|---|---|---|
| FY 2025-26 | 1.88 | 1.40 | MERC Order 75 of 2025 (25.03.2026), as compiled by SolarSquare |
| FY 2026-27 | 1.96 | 1.42 | Same order; LT trajectory also reported by Solarbytes |
| FY 2027-28 | 1.93 | 1.38 | MERC Order 75 of 2025, as compiled by SolarSquare |
| FY 2028-29 | 2.10 | 1.55 | MERC Order 75 of 2025, as compiled by SolarSquare |
| FY 2029-30 | 2.32 | 1.77 | MERC Order 75 of 2025; LT figure confirmed by Solarbytes |
Always re-check the applicable year's rate against the MERC order or your MSEDCL bill before financial modelling — rates here are as reported from the order.
GSC is charged on generation, not exports
This is the single biggest planning error we see. In the case decided by the Electricity Ombudsman in August 2026, an HT factory with a 350 kW plant generated 50,962 units in March 2026, exported only 3,987 units, and self-consumed 46,975 units. MSEDCL levied GSC at Rs 1.40/unit on all 50,962 units. The Ombudsman ruled the levy valid, quoting MERC Order 75 of 2025, para 21.14: GSC "shall be levied on generation units" for all net-metering consumers above 10 kW (Order 58 of 2026).
In exchange, MSEDCL abolished the 12% banking deduction on exported units from 1 April 2026, and banked units are now adjusted within the same time-of-day slot. For most plants with high daytime self-consumption, GSC is the costlier of the two regimes — the Ombudsman's own example shows why.
Worked example: what GSC does to a 500 kW HT plant's savings
Assumptions: 500 kW rooftop plant in Maharashtra, specific yield 1,450 kWh per kW per year (typical for the state), average HT industrial tariff Rs 9.00/unit for FY 2026-27 (MERC MYT order, as cited in our MSEDCL net metering guide), GSC at the HT rate of Rs 1.42/unit, all generation either self-consumed or net-metered at full tariff value.
| Line | Calculation | Value |
|---|---|---|
| Annual generation | 500 kW x 1,450 kWh/kW | 7,25,000 units |
| Gross annual value of solar | 7,25,000 x Rs 9.00 | Rs 65.25 lakh |
| Grid support charge (HT) | 7,25,000 x Rs 1.42 | Rs 10.30 lakh |
| Net annual saving after GSC | Rs 65.25 lakh minus Rs 10.30 lakh | Rs 54.95 lakh |
| Share of gross savings lost to GSC | 10.30 / 65.25 | ~16% |
On CAPEX at Sun Wave's reference rate for C&I rooftop projects — Rs 22,000/kW at 500 kW, ex-GST, final after site survey — the plant costs about Rs 1.10 crore. Simple payback works out to 1.10 crore / 54.95 lakh = about 2.0 years, versus roughly 1.7 years ignoring GSC. Solar remains strongly viable; the charge simply must appear in your model. For an LT consumer, the same arithmetic at 100 kW (1,45,000 units x Rs 1.96) adds about Rs 2.84 lakh a year.
For perspective, consumer activists cited in press coverage estimate GSC can extend payback by two to three years for a typical 40 kW housing-society project costing Rs 30-35 lakh (ETEnergyworld, April 2026) — societies have thinner unit economics than factories, so the relative hit is larger.
What solar consumers in Maharashtra can still do
- Check your sanctioned load first. If it is 10 kW or below, GSC does not apply to you regardless of plant size.
- Model GSC into every quote. Ask any OPEX/RESCO developer how the Rs 1.42-1.96/unit charge is treated in their tariff — a PPA tariff quoted before GSC understates your landed cost.
- Shift consumption into solar hours. MSEDCL's time-of-day tariffs make daytime self-consumption the most valuable use of every generated unit — which matters even more now that every generated unit carries GSC.
- Consider storage. With same-slot banking, surplus daytime exports can no longer offset evening imports at full value; a BESS converts surplus into evening self-consumption. We cover the trade-offs in our NCR TOD-arbitrage analysis and our on-grid vs off-grid vs hybrid guide.
- Keep an eye on open access. GSC is a net-metering levy — it is separate from the cross-subsidy surcharge and other open-access charges that apply to third-party solar procurement in the state.
For the full net-metering framework — capacity limits, application steps, settlement — see our MSEDCL net metering guide for industry and our Maharashtra open access charges guide for FY 2026-27.
Frequently Asked Questions
What is the MSEDCL grid support charge for FY 2026-27?
Rs 1.96 per unit for LT consumers and Rs 1.42 per unit for HT consumers, levied on total solar generation by net-metering consumers with sanctioned load above 10 kW, effective from FY 2026-27 under MERC's tariff order dated 25 March 2026.
Do I pay grid support charges if my solar system is below 10 kW?
The exemption depends on your sanctioned load, not the plant size. A connection with sanctioned load up to 10 kW pays no GSC even with a larger plant, while a small plant on a connection with sanctioned load above 10 kW does pay. Check the sanctioned load printed on your MSEDCL bill.
Is GSC charged on the solar units I use myself?
Yes. The charge applies to total solar generation, including units consumed behind the meter. The Electricity Ombudsman, Nagpur confirmed this in Order 58 of 2026 (August 2026), upholding MSEDCL's levy on all generated units rather than only exported units.
Does the grid support charge apply to existing rooftop solar installations?
Yes. MERC ruled that GSC applies to all net-metering consumers, existing and future, except connections with sanctioned load up to 10 kW. The levy had been mandated since 2019 and was activated once Maharashtra's rooftop solar capacity crossed 5,000 MW in February 2026.
How much does GSC cost a 100 kW solar plant in Maharashtra?
At a typical yield of 1,450 units per kW per year, a 100 kW plant generates about 1,45,000 units a year. At the LT rate of Rs 1.96/unit, GSC adds about Rs 2.84 lakh a year; at the HT rate of Rs 1.42/unit, about Rs 2.06 lakh. Your actual figure depends on your generation and consumer category.
Is the grid support charge the same as the cross-subsidy surcharge?
No. GSC applies to net-metering rooftop consumers and is charged on generation units. The cross-subsidy surcharge applies to open-access consumers procuring power through the grid — a different levy under a different part of the tariff framework. State open-access charges for Maharashtra are covered separately in our FY 2026-27 Maharashtra open access guide.
Can I avoid grid support charges by disconnecting from the grid?
Off-grid systems escape GSC, but they forfeit net metering entirely and need enough storage to run reliably, which at current battery costs usually costs more than the GSC saves. For most C&I consumers the better answer is to maximise daytime self-consumption and model the charge honestly into the project return.
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