The decision, announced through a Government Resolution dated April 21, 2026, aims to revisit the framework under the Maharashtra Electricity Duty Act, 2016 in light of changing power consumption patterns and increasing adoption of decentralized energy systems.

The move comes after the Maharashtra Electricity Regulatory Commission (MERC), through its March 27, 2026 order, allowed distribution companies to levy Grid Support Charges on rooftop solar consumers with capacities above 10 kW. This has triggered the need for a clear policy on whether electricity duty should also be applied to such charges and how it should be structured.

With rooftop solar installations rising rapidly due to central and state subsidies, and the growing use of behind-the-meter generation systems such as captive power and energy storage, traditional electricity consumption models are undergoing a transformation. The government now seeks to align taxation and duty structures with these new realities.

The newly formed committee will be chaired by Yogesh Gadkari, Director (Commercial), Maharashtra State Electricity Distribution Company Limited. It includes key officials from the energy department, Mahavitaran, and the office of the Chief Electrical Inspector, along with the provision to induct expert members as needed.

The panel has been tasked with conducting a comprehensive study and submitting recommendations within 10 days. Its scope includes determining the applicability of electricity duty on self-consumed solar power and net-metered electricity, assessing whether grid support charges should attract duty, and exploring the feasibility of shifting from fixed-rate duty to a percentage-based structure.

Additionally, the committee will evaluate the financial and policy implications of such changes, including the impact on state revenue and the financial health of distribution companies such as Maharashtra State Electricity Distribution Company Limited.

Another key focus area will be balancing incentives for renewable energy adoption with the need to maintain revenue streams. The panel will also consider exemptions or incentives for specific consumer categories to ensure that solar adoption is not discouraged.

The government’s move signals a critical shift in how electricity taxation may evolve in Maharashtra as the state navigates the transition toward cleaner energy while safeguarding the financial viability of its power sector.

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