When a 1 MW Solar Plant Still Led to a ₹68 Lakh Annual Loss

A Quantifying Case Study on Rooftop Solar, Net Metering &Open Access in Maharashtra

• Introduction: A Familiar Industry Story
  

  

  
  

Renewable energy adoption among industries is accelerating. Rooftop solar, Open Access procurement, and green power targets have become part of mainstream industrial strategy. Yet, during a recent engagement, an industrial Open Access consumer in Maharashtra presented us with an unexpected challenge: “We have a 1 MW rooftop solar plant, but our power costs are still high.” At first glance, everything appeared compliant and well-planned. But a deeper review revealed how regulatory structure—not technology—was silently eroding value.

• Project Background

The consumer had: A 1 MW rooftop solar power plant. An active Open Access power procurement arrangement Stable plant operations and consistent energy demand The rooftop solar system, however, was operating under Gross Metering.. Under this mechanism: 100% of solar generation is exported to the grid The consumer is compensated at a fixed feed-in tariff Electricity for operations continues to be purchased separately from the DISCOM

• Understanding the Core Issue
  

While the solar plant was generating efficiently, the commercial treatment of energy created a mismatch Tariff Reality

Gross Metering export tariff: ₹2.90 per unit Industrial grid tariff from Maharashtra State Electricity Distribution

Company Limited: ₹8.36 per unit In effect, the consumer was: Selling solar power at ₹2.90 Buying the same power back at ₹8.36 A clear case of value leakage through structure

• Quantifying the Impact

System Performance Solar capacity: 1 MW Annual generation: ~12.5 lakh units (kWh) Financial Comparison Per-unit value loss: ₹8.36 − ₹2.90 = ₹5.46 per unit Total annual loss: ₹5.46 × 12,50,000 units = ₹68,25,000 per year ₹68.25 lakh lost annually, despite owning a fully functional solar plant. No equipment failure. No generation shortfall. Only an inefficient metering framework.

• The Regulatory Shift That Changed the Outcome
  

Recent regulatory clarifications in Maharashtra have enabled Open Access consumers to connect rooftop solar plants under Net Metering, instead of being restricted to Gross Metering. Under Net Metering: Solar power is first consumed at the premises Each unit directly offsets grid power Export occurs only if excess power remains This transition is permitted under the regulatory framework of Maharashtra Electricity Regulatory Commission, provided proper procedures, approvals, and separate are followed.

• Role of KTST Engineers Pvt. Ltd

KTST Engineers Pvt. Ltd. supported the client through: Technical and commercial feasibility assessment Gross to Net Metering conversion strategy Regulatory interpretation and documentation Coordination with DISCOM and statutory authorities Seamless alignment with existing Open Access arrangements The transition was executed and with full regulatory compliance.

• Key Takeaways for Industrial Consumers

  
  

Gross Metering may be technically compliant but financially inefficient for Open Access consumers Net Metering unlocks the true economic value of rooftop solar The biggest savings often come from structuring, not additional capacity Regulatory awareness is as critical as engineering design

• Conclusion
  

This case demonstrates a critical lesson for industries: Owning solar capacity is not enough — how that power is accounted for determines its real value. For Open Access consumers in Maharashtra, Net Metering has emerged as a far superior model for rooftop solar integration, transforming solar from a low-value export into a high-impact cost-offset tool