Market & Policy

MERC Draft Rooftop Rules: Net Metering and Storage Changes

Shashank·Founder·October 8, 2026·11 min read

Quick answer

Question	Short answer
Are these rules final?	No. MERC released them as a draft. Comments close on 12 October 2026 and counter-submissions on 15 October. Final rules come only after MERC reviews the responses.
What changes for net metering and banking?	Systems up to 3 kW keep annual banking with no charges. Above 3 kW, banking is settled monthly, and larger systems would pay fixed and variable banking charges. Systems up to 10 kW reportedly pay no banking and standby charges.
Is storage mandatory?	For new rooftop and behind-the-meter systems above 100 kW, the draft requires storage of 50% of capacity for 2 hours, or 25% for 4 hours. The state policy has applied a similar mandate since 1 April 2026.
Is there a capacity limit?	Systems may go up to contracted demand or sanctioned load under net metering. Cumulative capacity per transformer or feeder is capped at 70% of rating unless the licensee approves more after a load study.
Do existing systems change?	Existing systems stay under the earlier rules for the life of their agreements. Consumers who enhance or modify a system after the draft's notification would fall under the 2026 framework.
How quick would approvals be?	Online processing, with acknowledgement in 3 working days and a feasibility study in 15 days. Approval would follow within 7 working days, and commissioning within 10 working days of the work completion request.

Why this matters for Maharashtra EPCs

Most Indian rooftop rules change through small amendments. This draft is different. One instrument would rewrite how excess solar is settled, when storage is required, how much rooftop capacity a feeder can carry, and how fast the DISCOM must act.

The commercial effect lands on proposals. A quote for a 5 kW home system and a quote for a 150 kW factory roof would both be priced differently under the draft, for different reasons. The 12 October date also matters: EPCs who want to shape the final text have only a short window.

This piece separates what the draft proposes from what remains open. It is based on published summaries of the draft.

What MERC proposed, and where it stands

MERC released seven draft regulations together in late September 2026. They cover transmission connectivity, distribution open access, rooftop renewable energy, battery storage, forecasting and scheduling, renewable purchase obligations, and the state grid code. The rooftop draft is titled the Maharashtra Electricity Regulatory Commission (Grid Interactive Rooftop Renewable Energy Generating Systems) Regulations, 2026.

The package follows Maharashtra's Renewable Energy and Energy Storage Policy 2025-26 to 2035-36. MERC set up a working group in April 2026 to turn the policy into enforceable rules.

The rooftop draft covers net metering, net billing, group net metering, virtual net metering and gross metering. If notified, it would replace the 2019 rooftop regulations and their first and second amendments of 2023 and 2024.

Stakeholders have until 12 October 2026 to send comments, suggestions and objections. Counter-submissions are due by 15 October.

Storage above 100 kW

New grid-interactive rooftop and behind-the-meter systems above 100 kW would need an energy storage system (ESS). The draft sets two ways to meet the minimum, or such capacity as the Commission may specify:

storage equal to 50% of installed capacity for 2 hours, or
storage equal to 25% of installed capacity for 4 hours.

Summaries also report a floor of 1 kWh per kW of installed capacity up to 2030, rising to 2 kWh per kW afterwards. The two options above are equal in energy terms, and differ only in power rating:

System	Option	Battery power	Battery energy
200 kW rooftop solar	50% for 2 hours	100 kW	200 kWh
200 kW rooftop solar	25% for 4 hours	50 kW	200 kWh
200 kW rooftop solar, after 2030	2 kWh per kW	Set by design	400 kWh

The arithmetic is ours, applying the reported rules to a 200 kW example. It matters for pricing, because the 4-hour option halves the inverter and power-conversion rating while keeping the same battery energy.

This is not new ground. Maharashtra's policy already applies a storage mandate to new rooftop projects above 100 kW from 1 April 2026. The draft would write that mandate into MERC's regulations. For the policy mandate, cost ranges and leasing options, see our guide to Maharashtra's battery requirement for commercial solar.

Banking and settlement

This is the change most likely to alter customer economics. Under the draft, banking depends on the contracted renewable capacity, as reported:

Contracted RE capacity	Reported treatment
Up to 3 kW	Annual banking, no banking time slots, no fixed or variable banking charges
Above 3 kW, up to 10 kW	Monthly settlement. Reports say systems up to 10 kW do not pay banking and standby charges
10 kW to 100 kW	Monthly settlement with four banking slots, and fixed and variable charges
100 kW to 1 MW	Eight banking slots
1 MW to 5 MW	Twelve banking slots
Above 5 MW	24 banking slots. Banked energy limited to 10% of consumption in each slot, with 15-minute scheduling after three years

The charge design is also reported to change. In-kind banking would be replaced by a fixed banking and standby charge in rupees per kW per month, plus a variable banking charge in rupees per kWh on set-off energy. The summaries reviewed do not give rooftop charge amounts. Without them, no payback model can be finalised for systems above 10 kW.

The practical shift is from annual to monthly settlement above 3 kW. A system that over-produces in some months and under-produces in others no longer evens out across the year. Summer surplus would not offset monsoon shortfall in the same way.

Capacity limits and virtual net metering

Sizing limit. Under net metering, net billing and gross metering, a consumer could install up to contracted demand or sanctioned load.
Behind-the-meter systems. They would not face the sanctioned-load limit, but could not inject electricity into the grid.
Feeder and transformer cap. Cumulative rooftop capacity on a distribution transformer or feeder would be capped at 70% of its rated capacity. A licensee could allow more after a detailed load study.
Virtual net metering. Residential consumers and common residential connections could opt in for up to 3 kW or their sanctioned load, whichever is lower. The generating system would need at least 100 kW of capacity. It could be located anywhere in Maharashtra, and participants would need to sit within the same licensee's area.

Approvals and metering

The draft proposes online application processing with fixed time limits:

Step	Proposed time limit
Acknowledge application	3 working days
Technical feasibility study	15 days
Approval after a feasible study	7 working days
Testing and commissioning after work completion request	10 working days
Install net meter and synchronise	A further 5 working days

Two more provisions matter on site. Applications for systems up to 10 kW that are complete in all respects would be deemed accepted without a feasibility study. And an approval would stay valid for six months.

All meters at renewable energy systems would need advanced metering infrastructure capability with an RS 485 or higher communication port. A smart meter could serve as the net meter if it records imports and exports separately on a time-block basis.

Existing systems

Existing systems would stay under the earlier regulations for the validity of their existing agreements. The change applies to consumers who enhance or modify their systems after the draft's notification, who would be governed by the 2026 framework.

For EPCs, the second group matters more. A client who plans to add capacity or a battery to an older system may be moving from the old settlement rules to the new ones.

What is still open

Open item	Why it matters
Banking and standby charge amounts for rooftop systems	Systems above 10 kW cannot be modelled without them
Final storage rule	The draft allows "such capacity as may be specified by the Commission"
Whether the 70% transformer and feeder cap and the load-study route survive comments	They decide how many projects get connected quickly
How "enhance or modify" will be defined	It determines which existing systems move into the new framework
Final notification date	The 2026 rules apply only once notified

What EPC teams should do now

Step	Action
1. Read the draft	Read the rooftop draft on merc.gov.in and mark clauses that touch your 3 kW, 10 kW and 100 kW project sizes
2. File comments	Send comments by 12 October and counter-submissions by 15 October
3. Re-run payback above 3 kW	Model monthly settlement instead of annual banking
4. Price storage options	Quote the 50% for 2 hours and 25% for 4 hours variants above 100 kW
5. Check transformer headroom early	Ask the DISCOM about feeder loading before design
6. Hold expansions	Ask before extending an older client's system

Where 3D design and automated BOMs fit in

A design tool cannot change MERC's rules or predict the final charges. What it can do is make threshold checks fast: whether a design crosses 3 kW, 10 kW or 100 kW, and what storage line it needs in the BOM once it does.

Reslink supports mobile site and roof mapping, automatic panel placement, live 3D revisions, and automated electrical and structural BOMs.

See the full workflow → Book a demo

Frequently Asked Questions

Q1. What is virtual net metering under the draft?

It lets residential consumers and common residential connections draw credits from a shared system. Eligible consumers could opt in for up to 3 kW or their sanctioned load, whichever is lower. The generating system would need at least 100 kW of capacity and could sit anywhere in Maharashtra, within the same licensee's area.

Q2. Can behind-the-meter systems export to the grid?

No. Behind-the-meter systems would not face the contracted-demand or sanctioned-load limit, but they would not be allowed to inject electricity into the grid.

Q3. What meters would be required?

All meters at renewable energy systems would need advanced metering infrastructure capability with an RS 485 or higher communication port. Smart meters could be used as net meters if they record imports and exports separately on a time-block basis.

Q4. How long would an approval stay valid?

Six months. After a work completion request, the licensee would have 10 working days to test and commission the system.

Q5. Which existing regulations would the draft replace?

The 2019 grid-interactive rooftop renewable energy regulations, and their first and second amendments issued in 2023 and 2024.

Q6. Does the draft treat systems above 5 MW differently?

Yes. For consumers with contracted capacity above 5 MW, banked energy would be limited to 10% of consumption in each banking slot. After three years they would move to 15-minute scheduling without a banking service.

Q7. Can I still comment after 12 October?

Counter-submissions are accepted until 15 October. MERC has extended consultation deadlines in earlier rounds, for example in 2023, so check MERC's public notice for any extension before relying on the date.

Final takeaway

The draft does not change what a rooftop system physically is. It changes what the system is worth to the client and how long it takes to connect. Annual banking survives only up to 3 kW. Storage above 100 kW is written into the regulations. The feeder cap and the charge amounts are the two open numbers that could most change the outcome.

For EPCs, the immediate job is simple. Read the draft, file comments by 12 October, and stop quoting settlement terms above 3 kW as settled.

Sources

MERC Proposes New Rooftop Renewable Energy Rules, Energetica India, 23 September 2026: storage, banking, 70% cap, virtual net metering, timelines, metering, existing systems
MERC Proposes Seven Regulatory Changes To Support 100 GW RE And 20 GW/100 GWh Storage In Maharashtra, SolarQuarter, 22 September 2026: package context, banking slots, banking charges
MERC Solar Rooftop Policy 2026: What New Draft Rules Mean for Consumers, Pune Pulse: monthly accounting above 3 kW, 12 October objections date
Maharashtra's regulator proposes mandatory BESS for renewable projects seeking grid connectivity, Energy-Storage.news, 1 October 2026: consultation and counter-submission dates
MERC public notice on extension of time for comments, 2023: precedent for deadline extensions

Details are drawn from published summaries of the draft. Dates, thresholds and charges can change in the final regulations. Check the draft and MERC's public notice on merc.gov.in before filing comments.

#MERC#MaharashtraRooftopSolar#NetMetering#SolarBanking#RooftopSolarRegulations#BESSMandate#IndiaSolarEPC#MSEDCL

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