The government has introduced major changes to the billing system for solar power users, removing key benefits and tightening oversight, a move that is expected to affect thousands of consumers across the country.
Under the revised mechanism, any surplus electricity generated by solar systems and supplied to the grid will now be counted as ‘zero’ units by distribution companies. This effectively ends the financial relief previously available under the net metering policy, where consumers could offset their bills through excess generation.
Authorities have also enforced an ‘export MDI check’ on connections where users are found to have installed more solar panels than permitted under their approved load. Once this check is applied, any additional electricity generated beyond the sanctioned capacity will no longer qualify for compensation.
Relief on excess generation withdrawn
Officials said that while surplus electricity will still be added to the national grid, it will not bring any monetary benefit to consumers. The decision is based on export MDI readings, which are now being used to identify excess generation and enforce compliance with approved limits.
The move signals a stricter stance on solar installations, particularly targeting users who expanded their systems without formal approval. For many households and businesses that had relied on net metering to reduce electricity costs, the change is expected to reduce savings significantly.
New tariff system adds to consumer burden
The revision in solar policy comes at a time when electricity consumers are already facing higher bills due to a broader change in tariff structure approved by the National Electric Power Regulatory Authority. The updated system, which took effect in January 2026, has altered how fixed charges are calculated.
Instead of linking fixed charges to actual electricity consumption, they are now based on a consumer’s sanctioned load. This means households will have to pay these charges regardless of how much electricity they use.
Previously, fixed charges mainly applied to domestic users consuming over 300 units per month, with relatively lower amounts. Under the new framework, almost all domestic consumers, except those in the lifeline category, are subject to these charges.
The revised rates vary across consumer slabs, with charges ranging from Rs200 per kilowatt to as high as Rs675 per kilowatt each month. As a result, even households with low electricity usage are seeing a noticeable increase in their bills.
For instance, a household with a sanctioned load of 5 kilowatts could now pay close to Rs3,375 in fixed charges alone, compared to a much lower cap in the past. The combined impact of reduced solar benefits and higher fixed costs is adding to financial pressure on consumers already dealing with rising living expenses.
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