Maharashtra Chief Minister Devendra Fadnavis on Wednesday told the Legislative Council that the Grid Support Charge was introduced specifically to prevent the financial burden of rising solar energy usage on the power grid from being passed on to ordinary electricity consumers. Speaking during a session in Mumbai, Fadnavis emphasised that the charge affects only 0.13 per cent of consumers and amounts to a modest reduction in excess profits — not an additional tax on the public.

What the Grid Support Charge Is

The Grid Support Charge was implemented on 1 February 2016 and has not been applied retrospectively, the Chief Minister clarified. Fadnavis was responding to a query raised by Legislative Council member Satej Patil regarding the increase in electricity sales tax for industrial and commercial consumers in Maharashtra. Members Bhai Jagtap, Eknath Khadse, and Dr Neelam Gorhe also participated in the discussion.

MERC Double-Counting Error and Fresh Hearing

Following the state government's intervention flagging a double-counting error of ₹40,000 crore in certain calculations by the Maharashtra Electricity Regulatory Commission (MERC), the commission has stayed its earlier decision and initiated a fresh hearing. This development signals that the final tariff framework remains under review and could be revised.

Maharashtra's Power Tariffs Among Most Competitive

Refuting claims of high electricity rates, Fadnavis noted that Maharashtra's industrial tariff at ₹8.19 per unit in 2025-26 remains lower than rates in Tamil Nadu, Telangana, and Madhya Pradesh. Under the Multi-Year Tariff (MYT) framework, rates have been locked in until 2029-30, providing long-term certainty for industry. Power demand in the state has surged by 20 per cent over the last two years, which Fadnavis cited as evidence of Maharashtra's industrial attractiveness. 'If Maharashtra's power rates were truly high, industries would have moved to other states. On the contrary, major industries are heavily investing in Maharashtra,' he said.

Solar Energy Challenge and Battery Storage Push

The Chief Minister explained the technical challenge underpinning the Grid Support Charge: currently, only about 35 per cent of generated solar power is consumed during the day, while 65 per cent is demanded back at night through energy banking — placing extra load on the distribution system. To address this, the government is aggressively building large-scale Battery Energy Storage Systems (BESS).

Renewable energy accounted for 15 per cent of Maharashtra's total power generation in 2022. The government aims to scale this to 52 per cent by 2029-30, with renewable energy projects of 38,000 MW capacity currently under development.

Maharashtra Leads on Solar Agricultural Pumps

Under the PM Surya Ghar and Solar Agricultural Pump schemes, empanelled vendors and a dedicated grievance redressal mechanism have been set up. Maharashtra has installed nearly 60 per cent of India's solar agricultural pumps — a performance the Central Government has reportedly cited as a model for other states. Agricultural pumps under the scheme come with insurance coverage and a guaranteed five-year maintenance contract, according to the energy department.

Fadnavis reiterated that the state government remains open to fresh discussions with solar power producers on both the Grid Support Charge and the Time of Day (ToD) policy, with minimising the financial burden on common consumers as the government's stated top priority.