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Kerala’s Solar Prosumers Sound Alarm Over Restrictive New Energy Regulations

October 22, 2025
in National, Politics
Reading Time: 3 min

A recent public hearing by the Kerala State Electricity Regulatory Commission (KSERC) on its draft renewable energy regulations has ignited a fresh wave of protests. ‘Prosumers’ – individuals who both consume and produce electricity, primarily through rooftop solar panels – are vehemently opposing the proposed rules, arguing they will harm their investments and stifle the state’s progress in renewable energy.

Mirroring concerns raised during online hearings in July, participants at the physical session urged the Commission to reconsider the contentious proposals. Key points of contention include:

  • **Restriction on Net Metering:** Limiting the Net Metering System (NMS) to just 3 kW, which would significantly cap the amount of excess solar power prosumers can feed back into the grid.
  • **’Grid Support Charge’:** Imposing a ₹1 charge for every unit of renewable energy exported to the grid, a move critics deem unprecedented and punitive.
  • **Battery Storage Conditions:** Introducing new, unspecified conditions related to battery storage, adding further uncertainty for solar investors.

The criticisms were voiced during a public hearing for the draft KSERC (Renewable Energy and Related Matters), 2025, led by Commission head T.K. Jose in Thiruvananthapuram. This marked the first of four in-person hearings mandated by a court ruling in response to a public interest litigation filed by the Domestic On-Grid Solar Prosumers Forum.

Investing with Trust, Facing Uncertainty

Individual prosumers, who presented their cases to the three-member Commission, highlighted the predicament they face. Many shared that they had secured loans to install rooftop solar units, trusting the Kerala State Electricity Board (KSEB)’s assurances of profitable returns. They now fear these draft regulations will render their investments unprofitable.

Prosumers also stressed the unfairness of being held responsible for grid instabilities or inadequate transformer capacities, responsibilities that, they argue, lie squarely with the KSEB as the state’s primary power utility.

“This draft has left us utterly confused. It certainly doesn’t appear to support the interests of ordinary prosumers,” remarked Shiju Varghese, a prosumer at the hearing. He, along with many others, slammed the proposed grid support charge as “unheard of” and a regressive step. Several prosumers with plans to expand their solar capacities expressed deep concern that these proposals, if enacted, would make future expansions financially unviable.

Baijuraj R.S., who operates a 5 kW solar unit, warned that the draft would diminish the appeal and acceptance of solar power across Kerala. Another participant, a retired soldier, informed the KSERC that he had been advised against upgrading his solar unit due to the uncertainties created by these proposals. Sreekumar S., another prosumer, appealed to the KSERC for a favorable decision, emphasizing that they had invested in rooftop solar units based on the KSEB’s promise of a beneficial arrangement.

Commission Responds to Interpretations

The KSERC, for its part, expressed reservations about some speakers who based their arguments on rumors or incorrect interpretations of the draft. The Commission pointed out that the draft has been publicly accessible on its website since May 30, and online hearings in July, attended by hundreds of stakeholders, were webcast live.

Following a Kerala High Court directive for physical hearings, the KSERC has scheduled additional sessions in Ernakulam (October 28), Palakkad (October 29), and Kozhikode (October 30).

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