For many residential solar consumers, monthly net energy charges often fall to zero, leaving only fixed charges and meter rent.
In a major relief for rooftop solar prosumers across Kerala, the Kerala State Electricity Regulatory Commission (KSERC) has directed the KSEB to discontinue the collection of inflated Additional Security Deposits (ACD) calculated on the basis of gross electricity consumption.The Commission’s intervention follows widespread complaints from solar consumers that KSEB had been assessing security deposits by considering their total electricity consumption—including the power generated and directly consumed from their own rooftop solar systems—instead of their actual net electricity imported from the grid.Several domestic solar prosumers received SMS alerts and digital notices requiring them to remit substantial additional security deposits. However, under the prevailing tariff regulations, domestic consumers who pay monthly are required to maintain a security deposit equivalent to only two months’ average electricity bill, while bi-monthly consumers are required to maintain three months’ average billing.For many residential solar consumers, monthly net energy charges often fall to zero, leaving only fixed charges and meter rent. In such cases, the statutory fixed charge is limited to ₹310 per month, meaning the legally required security deposit would ordinarily remain below ₹1,000. Despite this, several consumers reported receiving ACD ranging from ₹5,000 to ₹17,000.KSEB submitted before the Commission that the security deposit should account for a possible future failure of a consumer’s solar installation, which could increase reliance on grid power.Following representations from affected consumers and subsequent regulatory scrutiny, KSERC clarified that ACDs must be computed solely on the basis of the net monthly energy consumption reflected in the electricity bills. The Commission has also directed KSEB to refund or appropriately adjust any excess security deposits collected under the earlier methodology.Meanwhile, there are reports that KSEB has decided to reduce the security deposits collected from solar prosumers by making necessary changes in the bill already sent to prosumers asking for higher charges. Jameskutty Thomas, Coordinator of Kerala Domestic Solar Prosumers Community, said that the decision is expected to provide substantial financial relief to rooftop solar consumers while reinforcing regulatory safeguards that promote consumer confidence in renewable energy investments. The directive would strengthen trust in Kerala’s rooftop solar programme.Published on July 2, 2026
