India’s promise of “Muft Bijli” through rooftop solar is entering a more expensive phase. Even as the Centre continues to subsidise rooftop solar under the PM Surya Ghar Muft Bijli Yojana, Maharashtra and Karnataka have changed their new grid/tarriff charges. Maharashtra has introduced a Grid Support Charge of ₹1.96 per unit in FY27, rising to ₹2.32 per unit by FY30, while Karnataka has reduced the buyback tariff for commercial and industrial consumers to ₹3.08 per unit and capped rooftop solar capacity connected to individual distribution transformers at 80 per cent of rated capacity. Industry estimates suggestMaharashtra’s new framework could increase electricity costs for commercial and industrial consumers by 20–30 per cent, extending project payback periods from about four years to seven to nine years.The policy shift is already facing legal scrutiny. The Consumer Grievance Redressal Forum in Nagpur recently directed Maharashtra State Electricity Distribution Company Ltd (MSEDCL) to withdraw a ₹4,394.67 levy imposed on a net-metered consumer and revise bills from February 2026, ruling that the recovery lacked explicit regulatory backing.Although the order relates to a specific dispute, it highlights the legal uncertainty surrounding the rollout of new rooftop solar charges.Karnataka has taken a different route to the same destination. The Karnataka Electricity Regulatory Commission (KERC) has reduced the buyback tariff for commercial and industrial consumers to ₹3.08 per unit while capping rooftop solar capacity connected to individual distribution transformers at 80 per cent of rated capacity. Industry executives say Maharashtra and Karnataka are emerging as early templates for a broader shift in how states regulate rooftop solar.The Policy ContradictionThe measures expose a growing policy contradiction in India’s energy transition. For more than a decade, the Centre’s objective has been clear: put solar panels on more rooftops, reduce electricity bills and decentralise power generation.State electricity distributors face a different reality. Every unit of electricity generated on a rooftop is one less unit sold during the day, yet the grid must still be available after sunset, during cloudy weather and whenever demand exceeds solar generation.The result is a business model under pressure. Distribution companies continue to maintain poles, wires, transformers and substations, but recover less revenue from daytime electricity sales as self-generation expands. The challenge is no longer simply producing more renewable electricity—it is finding a sustainable way to pay for the network that keeps the lights on when rooftop solar is unavailable.The New RulebookMaharashtra’s answer is to charge for continued reliance on the grid. The State’s Grid Support Charge applies to gross electricity generated, not just surplus electricity exported to the network. Even consumers using every unit of electricity on-site without exporting power must pay the levy. MERC has also tightened energy banking by restricting when banked electricity can be used and withdrawing the earlier night-time rebate, reducing one of the biggest financial advantages of rooftop solar.Karnataka has chosen to make rooftop solar less lucrative rather than levy a grid charge. The Karnataka Electricity Regulatory Commission (KERC) has reduced the buyback tariff for commercial and industrial consumers to ₹3.08 per unit, lowering the value of surplus electricity exported to the grid. It has also capped rooftop solar capacity connected to individual distribution transformers at 80 per cent of rated capacity, effectively limiting fresh installations in areas where local networks are nearing their technical limits.The measures signal a broader regulatory shift. Rather than encouraging unlimited rooftop solar growth under existing rules, states are beginning to redesign the economics and pace of adoption to reflect the cost of maintaining and operating the electricity network. Different rules, Same objective: ensuring consumers who increasingly generate their own electricity continue contributing to the cost of the network they still depend on.Published on June 30, 2026