2.11 Lakh Homes, One Solar Push: Maharashtra Approves a Major Power Shift

Kalpana Kanungo - Mumbai Bureau Aug 23, 2026 1,650 Views

MERC has approved a ₹959.93 crore plan by MSEDCL to install 1 kWp rooftop solar systems for 2,11,206 low-income households across Maharashtra. Backed by central and state subsidies, the ULA model project will provide beneficiaries with up to 100 free units of monthly electricity by March 2027.

MUMBAI — The Maharashtra Electricity Regulatory Commission (MERC) has officially approved a proposal by the Maharashtra State Electricity Distribution Company Limited (MSEDCL) to implement a large-scale rooftop solar initiative for 2,11,206 low-income households across the state.

The regulatory order, issued on August 19, 2026, sanctions the rollout under the Utility-Led Aggregation (ULA) model. The program bridges the central PM Surya Ghar: Muft Bijli Yojana with Maharashtra's state-level Swayampurna Maharashtra Aawasiya Rooftop Solar (SMART) scheme to alleviate electricity cost burdens for economically vulnerable populations.

Utility-Led Aggregation and Funding Structure

With a total estimated project cost of ₹959.93 crore, the initiative targets Below Poverty Line (BPL) families and Economically Weaker Section (EWS) households from Scheduled Caste (SC) and Scheduled Tribe (ST) communities whose monthly power consumption remains under 100 units.

Under the framework, each eligible beneficiary will receive a 1 kWp rooftop solar installation, designed to deliver up to 100 free electricity units per month. To ensure affordability, the funding model combines central subsidies, state financial support, and a nominal consumer contribution.

According to official regulatory filings and MSEDCL disclosures:

Central Financial Assistance (CFA): Contributes ₹30,000 per household (60% of the cost), totaling ₹633.62 crore.
State Financial Assistance: Covers ₹17,500 for BPL families and ₹15,000 for SC/ST EWS beneficiaries.
Consumer Contribution: Capped minimally at ₹2,500 for BPL households and ₹5,000 for SC/ST EWS applicants.
Beneficiary Breakdown: The rollout encompasses 1,27,362 BPL households and 83,844 SC/ST EWS households.
Execution Timeline: MSEDCL has been directed to complete project installations through 43 competitive vendors by March 31, 2027.

Official Sources Section

Maharashtra Electricity Regulatory Commission (MERC): Official regulatory orders, tariff petitions, and renewable energy framework documents.
Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL): Utility implementation updates, ULA model guidelines, and tender notices.
Ministry of New and Renewable Energy (MNRE): Central financial assistance frameworks under the PM Surya Ghar: Muft Bijli Yojana.

Quote Section

According to statements released in official regulatory proceedings and utility disclosures regarding the initiative:

"The utility-led aggregation model enables large-scale deployment of distributed solar assets, providing significant social and economic relief to low-income families by cutting monthly electricity expenses while expanding clean energy capacity across the state."

Why It Matters

For low-income citizens and marginalized communities across Maharashtra, minimizing monthly utility expenses through subsidized solar power provides vital economic relief. For the state energy sector, scaling up rooftop photovoltaic integration helps reduce peak grid demand, advances state-level decarbonization goals, and optimizes conventional power distribution.

Key Facts at a Glance

Executing Agency: MSEDCL.
Total Outlay: ₹959.93 crore.
Beneficiaries: 2,11,206 low-income households.
System Capacity: 1 kWp individual rooftop solar unit per household.
Completion Target: March 31, 2027.

FAQ Section

What is the primary objective of the MERC-approved rooftop solar plan?

The program aims to solarize 2,11,206 low-income households in Maharashtra to provide up to 100 free electricity units per month and reduce utility cost burdens.

Who is eligible for this subsidized rooftop solar scheme?

The initiative targets BPL families and SC/ST EWS households consuming fewer than 100 units of electricity monthly.

How much do beneficiaries have to pay for the installation?

Consumer contributions are strictly capped at ₹2,500 for BPL households and ₹5,000 for SC/ST EWS families, with the remainder covered by central and state subsidies.

Where can eligible consumers track implementation updates?

Beneficiaries can review program guidelines and progress reports through the official MSEDCL Portal.