Maharashtra Now Requires Batteries With Commercial Solar

The Rule, in Plain Terms

Maharashtra became the first Indian state to make energy storage a core requirement for new renewable energy projects when it notified its RE and Storage Policy on March 18, 2026. The policy covers a range of project types, but the part that is most immediately relevant for commercial solar EPCs is the rooftop storage mandate.

From April 1, 2026, any new rooftop solar project above 100 kW that applies for grid connectivity must include a battery storage system. The required storage must be:

• At least 50% of the solar capacity — so a 200 kW solar array requires a minimum 100 kW battery system
• Capable of providing at least 2 hours of storage — meaning the 100 kW system must have at least 200 kWh of energy capacity
• Reviewed and potentially increased every two years — the 2-hour requirement will rise to 4 hours for projects commissioned after FY2030

The same rule applies to new open access and captive solar projects above 100 kW. Projects below 100 kW are not currently covered, though the policy encourages smaller systems to add storage voluntarily.

Why Maharashtra Did This

Maharashtra is India's largest industrial state and one of its biggest electricity consumers. Its grid carries heavy load from manufacturing clusters in Pune, Nashik, Aurangabad, and the Mumbai metropolitan area. As solar penetration increased, the grid started facing the same challenge seen in Gujarat and Rajasthan: too much solar power during the day and too little in the evening when factories and households need power most.

By requiring storage alongside new solar installations, Maharashtra is solving two problems at once. It gives consumers a way to use their own solar power in the evening rather than exporting it to a grid that may not need it. And it reduces the pressure on MSEDCL to manage a large solar surplus during the day followed by a sharp demand spike in the evening. Maharashtra has set a target of 100 GW renewable capacity and 100 GWh of daily storage by FY2036 — this mandate is how it gets there.

What Changes for EPCs in Maharashtra

Every commercial proposal above 100 kW now needs a storage component. This is not optional for new grid connectivity applications. An EPC quoting a 150 kW commercial rooftop in Pune must include at least a 75 kW / 150 kWh battery system in the design and the price.

Project costs will increase significantly. Battery storage at the required scale adds approximately Rs 3 to 5 lakh per 100 kWh of capacity at current 2026 prices. For a 200 kW solar project requiring 200 kWh of storage, this adds Rs 6 to 10 lakh to the project cost before installation. EPCs must build this into proposals clearly and explain the regulatory reason for it, so clients do not treat it as an optional upsell.

The pitch changes too. Storage is not just a regulatory cost — it is a genuine business benefit for commercial clients. Facilities with storage can shift their solar generation to evening peak hours, reducing grid purchases at the highest Time of Day tariff rates. In Maharashtra's industrial clusters, where ToD tariffs can vary by Rs 2 to 3 per unit between peak and off peak, the battery system can pay for itself faster than the solar array alone. EPCs who learn to present the storage ROI correctly will find clients more receptive than those who present it as a mandatory add on.

Who this affects most: Commercial EPCs working with factories, warehouses, IT parks, hospitals, and educational institutions in Maharashtra. Any system you have quoted above 100 kW that has not yet received grid connectivity approval should be reviewed immediately. If the connectivity application has not been submitted, the new rule applies and the design must include storage.

Frequently Asked Questions

Questions from EPCs working on commercial projects in Maharashtra.

Does this rule apply to existing commercial solar installations?

No. The storage mandate applies only to new applications for grid connectivity from April 1, 2026 onwards. Existing systems that already have grid connectivity approved are not required to add storage — though the policy actively encourages them to do so and offers incentives such as priority grid connectivity for storage-integrated systems. If your project received connectivity approval before April 1, you are not affected.

How much does the required battery storage add to project cost?

At current 2026 prices, lithium iron phosphate (LFP) battery systems in the commercial scale range cost approximately Rs 3 to 5 lakh per 100 kWh including installation. For a 200 kW solar project requiring 200 kWh of battery capacity, this adds roughly Rs 6 to 10 lakh to the total project cost. This is significant but should be presented to clients alongside the ToD tariff savings that storage enables — which in many Maharashtra industrial locations can shorten the storage payback period to 3 to 5 years independently of the solar system's economics.

Will other states follow Maharashtra's lead?

Very likely. Maharashtra's policy is being watched closely by other industrial states. The CERC has already brought energy storage systems under the tariff framework at the central level. Rajasthan, Gujarat, and Tamil Nadu have all been experimenting with storage linked solar tenders for utility scale projects. A broader national push toward storage mandates for commercial solar is widely expected - Maharashtra is simply the first to formalise it for rooftop projects. EPCs in other states should start developing solar plus storage proposal capabilities now, before their state mandates it.

Sources

• EQ Magazine — eqmagpro.com — Maharashtra RE and Storage Policy 2025-26 to 2035-36 — storage mandates, April 2026 rooftop rule
• Saur Energy — saurenergy.com — "Maharashtra Mandates 100 GWh Storage as Core of New Renewable Energy Policy" (March 2026)
• Power Peak Digest — powerpeakdigest.com — Maharashtra notifies RE and storage policy with 65% target by FY36 (March 2026)
• GoodEnough Energy — goodenough.energy — Maharashtra RE Policy 2026: BESS mandate explained for commercial EPCs