MERC Proposed Solar Rules 2026: What Business Owners Need to Know

Overview

If you run a shop, office, hotel or hospital, MERC’s draft rules for rooftop solar could change how much you save on your electricity bill. Here is the simple version.

Does this affect my existing solar?

Mostly no. Earlier rules generally continue for systems already installed. But if you expand or switch billing routes, the new rules can apply. Have your agreement and application dates checked first.

Unused units may expire

For systems above 3 kW, banked units left at month-end would expire. If you have 80 units left, they won’t carry into next month. You may get Renewable Energy Certificates, but cash recovery is not guaranteed.

So size your solar around your monthly use, not just the yearly total. This matters if you are closed on Sundays or holidays, because solar keeps producing while demand drops.

Bigger system, more time slots

The draft adds your on-site solar and any contracted off-site renewable power. Batteries are not counted.

Systems up to 10 kW pay no banking or standby fees. Above 10 kW, a capacity-based or unit-based charge is proposed. The rupee rates are not announced yet.

Size limits and the grid

The draft links system size to your sanctioned load or contract demand, with no separate 5 MW cap. The grid still matters, since solar is shared across the local transformer or feeder, with a normal limit of 70%.

Batteries for larger systems

New systems above 100 kW need minimum storage until 2030: solar capacity × 50% × 2 hours. For 100 kW, that is 100 kWh. After 2030, the minimum rises to 2 kWh per kW.

Meters, fees and timelines

• Meters: You pay for the net-meter replacement and the solar generation meter. Systems above 20 kW need a check meter.
• Fees: LT up to 20 kW pays Rs 500, plus Rs 100 for each further 20 kW. HT pays Rs 5,000.
• Arrears: Unpaid dues can block net metering.
• Timeline: Feasibility within 15 days, approval within 7 working days. Install within 6 months of approval. If the utility is late, proposed compensation is Rs 500 per day.

Choose your route and read the agreement

For several premises, you can choose group net metering, net billing or gross metering. Virtual net metering is not for general business use.

Agreements run 20 years, with a 1-year lock-in and up to 2 route switches. Switching triggers the new rules, and old banked credits are not carried forward.

Before you sign a quotation

Ask your installer for a forecast that follows these draft rules, covering self-use, expiry, slot-wise savings, battery ageing, lifetime cost and grid limits.

Have your say

Comments close on 12 October 2026 through MERC’s E-Public Consultation. Hard copies must arrive before 5 PM that day, and counter-comments are due by 15 October.

Chirayu Power can help you review your bill and solar size.

Visit chirayupower.com