Kerala rooftop solar users demand withdrawal of 2025 draft regulations

The Kerala Domestic Solar Prosumers Community (KDSPC) has called for a complete withdrawal of the Kerala State Electricity Regulatory Commission’s (KSERC) Draft Renewable Energy Regulations 2025. As reported by The Hindu Business Line, the group has also urged the State government to form an expert committee to develop new, inclusive regulations.

KDSPC, which represents over 3,000 domestic rooftop solar prosumers in Kerala, argued that the proposed rules would disrupt citizen-led solar generation. Coordinator Jameskutty Thomas stated that several provisions in the draft violate central laws such as the Electricity Act and directives from the Ministry of New and Renewable Energy (MNRE). He said the draft policy could undermine the decentralised energy model built on public participation.

A key concern is the removal of energy banking between billing cycles and the introduction of a “normalisation factor” to account for night-time solar adjustments. Mr. Thomas noted that the methodology behind this factor has not been made public and could lead to financial losses for prosumers.

The draft proposes a Rs 1 per unit grid-supporting charge for energy exported to the grid. Although existing prosumers are said to be exempt, KDSPC believes this would discourage new adopters, affecting rooftop solar demand and harming the local installation and service ecosystem.

Mr. Thomas added that Kerala State Electricity Board’s (KSEB) claim of a Rs 500 crore annual loss due to prosumers lacks transparency and is not supported by published data or regulatory approvals. KDSPC estimates that rooftop solar activities generate approximately Rs 600 crore in tax revenue for the State, which could decline if the draft is enforced.