SolarSavings
Understanding MSEDCL Net Metering Regulations (2026)
Net metering is the foundation of rooftop solar economics in Maharashtra. MSEDCL (Mahadiscom) enforces clear regulations under the MERC (Maharashtra Electricity Regulatory Commission) guidelines to govern how grid-connected solar plants interact with the utility.
Under MSEDCL, residential solar works on a true net metering model. Every unit of electricity you export to the grid is deducted on a 1-to-1 basis from the units you import. If you import 450 units in a billing month and export 350 units, you are billed only for the net difference of 100 units.
Capacity and Sanctioned Load Limits
MSEDCL limits the size of your rooftop solar plant based on your existing grid connection parameters:
- Sanctioned Load Limit: The maximum solar capacity you can install under net metering is capped at **100% of your sanctioned load** (measured in kW). If your sanctioned load is 3 kW, you cannot install a 4 kW system without first upgrading your load capacity.
- Transformer Load Limit: MSEDCL restricts the cumulative solar capacity in any local area to **80% of the distribution transformer's capacity**. If your local transformer is overloaded with existing solar systems, your feasibility request might be delayed or rejected.
The Annual Settlement Cycle (March 31st)
What happens if your solar panels generate more units than you consume in a month?
In Maharashtra, surplus solar units are carried forward in your electricity ledger month-over-month. The settlement cycle runs from **April 1st to March 31st** of the following year. At the end of the financial year (March 31st), if you still have surplus energy credits, MSEDCL purchases those units at the **Average Power Purchase Cost (APPC)**, which is approximately ₹3.50 per unit. This credit is adjusted in your next billing cycle.
Bi-Directional Meter Specifications & Testing
To enable net metering, you must replace your standard electricity meter with an approved bi-directional net meter. The meter must comply with the CEA (Central Electricity Authority) standards. You can either purchase the meter from MSEDCL or buy a compatible model from the open market and get it tested at an empanelled MSEDCL testing lab.