MSEDCL sets Rs 45,450 per kW benchmark for rooftop solar

Maharashtra State Electricity Distribution Company Limited (MSEDCL), also known as Mahavitaran, has fixed a benchmark installation rate of Rs 45,450 per kW for residential rooftop solar systems under the Swayampurna Maharashtra Residential Rooftop Solar (SMART) scheme. The rate was discovered through a competitive tender and is about Rs 15,000 lower than the prevailing market price of Rs 60,000 per kW and Rs 4,550 below the earlier state estimate of Rs 50,000 per kW.

The decision was approved at a board meeting in Mumbai, chaired by CMD Lokesh Chandra and attended by Additional Chief Secretary (Energy) Abha Shukla. The revised pricing is aimed at supporting nearly five lakh households in the Below Poverty Line (BPL) and Economically Weaker Section (EWS) categories by reducing upfront installation costs.

The announcement comes amid concerns raised by solar installer associations over MSEDCL’s connection policy. Installers have alleged that the utility determines eligible rooftop capacity based on average household consumption rather than sanctioned load, which they say affects the financial returns for consumers adopting rooftop systems primarily to lower electricity bills.

The revised benchmark rate aligns with the Pradhan Mantri Surya Ghar Muft Bijli Yojana (PMSMBY), launched in February 2024 to promote residential solar installations. Under PMSMBY, central financial assistance of Rs 30,000, Rs 60,000 and Rs 78,000 is available for 1 kW, 2 kW and 3 kW systems respectively. Maharashtra is providing additional support under SMART for BPL and EWS households, with subsidies of up to 95% for consumers using less than 100 units per month.

A 1 kW rooftop system typically generates around 120 units of electricity per month, which can offset the entire monthly consumption of many small households. Excess generation can be exported to the grid under net metering arrangements with MSEDCL.

As of January 2025, Maharashtra’s cumulative rooftop solar capacity has exceeded 5 GW, out of a total installed solar capacity of 19.1 GW in the state. To facilitate further adoption, MSEDCL has published empanelled vendor lists on its official website and the SMART portal to improve transparency in procurement.

The featured photograph is for representation only.