Mumbai, June 24: Chief Minister Devendra Fadnavis clarified in the Legislative Council on Wednesday that the ‘Grid Support Charge’ was implemented to ensure that the financial burden of increased solar energy usage does not fall on regular electricity consumers.
He emphasized that this charge applies to only 0.13 percent of customers and does not represent a financial loss. Instead, it slightly reduces the excess profits of a few individuals.
Fadnavis was responding to a question raised by Legislative Council member Satej Patil regarding the increase in electricity sales tax for industrial and commercial consumers. Other members, including Bhai Jagatap, Eknath Khadse, and Dr. Neelam Gore, also participated in the discussion.
The Chief Minister noted that the Grid Support Charge was implemented on February 1, 2016, and has not been retroactively applied.
After the Maharashtra Electricity Regulatory Commission highlighted a ‘double-counting’ error amounting to ₹40,000 crores, the commission has paused its decision and reopened the case for further hearings.
Rejecting claims of high electricity rates, the Chief Minister stated that industrial electricity rates in Maharashtra are lower than those in Tamil Nadu, Telangana, and Madhya Pradesh.
In the fiscal year 2025-26, Maharashtra’s tariff stands at ₹8.19 per unit. The multi-year tariff framework has set rates until 2029-30, ensuring that Maharashtra maintains some of the most affordable electricity rates in the country.
Highlighting the rapid industrial growth in the state, Fadnavis reported a remarkable 20 percent increase in electricity demand over the past two years.
He remarked, “If electricity rates were truly high in Maharashtra, industries would have relocated to other states. Instead, major industries are making significant investments here.”
Discussing the technical challenges associated with solar energy, the Chief Minister pointed out that only 35 percent of the generated solar energy is used during the day, while 65 percent is requested back at night through ‘energy banking.’
This situation places an additional burden on the distribution system. To address this issue, the government is rapidly developing large-scale battery energy storage systems.
In 2022, renewable energy accounted for 15 percent of the state’s total electricity production. The government’s goal is to increase this share to 52 percent by 2029-30 through various ongoing projects. Currently, renewable energy projects with a capacity of 38,000 MW are being developed.
Fadnavis reiterated that the state government is ready to engage in new discussions with solar power producers regarding the Grid Support Charge and the ‘Time of Day’ policy.
He stressed that reducing the financial burden on common consumers remains the government’s top priority.
Additionally, a dedicated system has been established for authorized vendors and complaint resolution under the PM Surya Home and Solar Agricultural Pump schemes.
Maharashtra leads the nation with nearly 60 percent of solar agricultural pumps installed, prompting the central government to encourage other states to adopt the ‘Maharashtra model.’
The energy department stated that insurance coverage and a five-year guaranteed maintenance contract are also provided with the pumps used in agriculture.
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