Govt Proposes Mandatory Energy Storage for Large Renewable Prosumers
By Manish Kumar
The Ministry of Power has issued the Draft Electricity (Rights of Consumers) Amendment Rules, 2026, proposing several changes aimed at modernising the consumer protection framework for solar consumers. The new proposal aims at amending its earlier rules introduced in 2020.
The draft rules introduce provisions enabling state regulators to mandate energy storage systems for renewable energy prosumers with capacities above 500 kW. The ministry said such systems would help shift surplus solar generation to evening hours, reduce operational stress on distribution companies and allow large commercial and industrial consumers to better manage their power consumption.
The draft rules note that falling costs of battery energy storage systems (BESS) over the past two years have made storage deployment economically viable, particularly to stabilise grids that still rely significantly on thermal power.
Multiple Consumer Issues Tackled
The new set of draft rules of the ministry addresses emerging grid management challenges linked to renewable energy growth, smart metering and distribution company finances. The Ministry of Power has invited stakeholder comments on the draft rules until April 11, 2026. If finalised, the amendments are expected to come into effect from October 1, 2026, allowing a transition period for implementation.
The ministry in its draft note said the new amendments aim to update the Electricity (Rights of Consumers) Rules, 2020, which were framed on the principle that electricity systems exist to serve consumers and must ensure reliable and quality power supply. The proposed changes also follow recommendations from a Group of Ministers that highlighted financial stress and operational challenges faced by power distribution companies (DISCOMs), along with the increasing need for grid flexibility as renewable energy penetration rises.
Auto Corrections Of Power Bills
The draft amendments also require DISCOMs to automatically review electricity bills if recorded consumption exceeds five times or falls below one-fifth of the average consumption of the previous six billing cycles. The move is intended to prevent consumer hardship arising from billing errors. During such disputes, consumers would be allowed to continue paying based on their six-month average consumption and their power supply cannot be disconnected while the issue is under review. Utilities would be required to resolve such cases within 30 days.
The ministry has also revised the implementation timelines for time-of-day (ToD) tariffs. Commercial and industrial consumers with connected loads above 10 kW would be required to adopt ToD tariffs by April 1, 2027, while other consumer categories, except agriculture, would follow by April 1, 2028. The ministry said the timeline aligns with the expected nationwide rollout of smart meters by 2028. Under the framework, electricity used during solar hours would be priced at least 20% lower than normal tariffs, while peak-hour tariffs would be priced between 1.1 and 1.2 times the base rate.
Charges On Rooftop Solar
Another proposed change relates to rooftop solar net-metering. State electricity regulatory commissions may allow distribution companies to levy facility charges on systems above 5 kW, while exempting smaller installations. The ministry said the measure aims to address the issue of net-metering consumers not contributing proportionately to fixed network costs, which can lead to higher cross-subsidisation by other retail consumers. The facility charges would help utilities recover costs linked to network losses and storage deployment.
In addition, the ministry has proposed to streamline the consumer grievance redressal mechanism. The existing multi-tier Consumer Grievance Redressal Forum (CGRF) structure would be standardised into two levels – company level and district or municipality level. Each forum would have a chairperson and up to three members, including consumer representatives. The ministry said the change would reduce administrative costs and ensure faster dispute resolution.
This article has been republished from The Saur Energy.com