This decision of the Maharashtra Electricity Regulatory Commission comes after the plan to generate 31,000 MW out of 45,000 MW from renewable sources by 2030.
People are going to get relief in electricity rates in Maharashtra. The Maharashtra Electricity Regulatory Commission (MERC) has approved the proposal to reduce electricity rates for the next five years in all consumer categories – residential, industrial and commercial. According to ANI news, electricity rates in Maharashtra will be reduced by 10% in the first year and 26% in 5 years. The ratio of people using less than 100 units of electricity in the state is 70%. Also, work has started on war footing on Mukhyamantri Saur Krishi Vahini Yojana 2.0.
Relief to more than 45 lakh farmers and urban consumers
According to the news, this is the first time in the history of the state that electricity rates will be continuously reduced for such a long time. This reduction will provide great financial relief to more than 45 lakh farmers and urban consumers. Residential consumers using smart meters will get an additional 10% time-of-day discount.
Homes generating solar power will also be encouraged under this new policy. Under the Chief Minister’s Solar Agriculture Feeder Scheme 2.0, the government aims to power agricultural pumps during the day using decentralized solar power with a capacity of 16,000 MW by December 2026. This move will supply electricity at an average of only ₹ 3 per unit.
Good news on electricity tariffs!
For the first time in the State’s history, electricity tariffs will be reduced — starting with a 10% cut in the first year, and a total 26% reduction in phases over the next 5 years.
Thanks to the Maharashtra Electricity Regulatory Commission…— Devendra Fadnavis (@Dev_Fadnavis) June 25, 2025
Rs 66,000 crore expected to be saved
The Maharashtra Electricity Regulatory Commission’s decision comes after the utility planned to source 31,000 MW of its 45,000 MW from renewable sources by 2030. The shift is expected to save the utility Rs 66,000 crore in power purchase costs over five years, making the proposed tariff cuts possible. Chief Minister Devendra Fadnavis said that for the first time, instead of petitioning for a rate hike, Mahavitaran has petitioned for a tariff cut. The move will benefit 70% of consumers who use less than 100 units of electricity per month. The government has reaffirmed its commitment to providing affordable, high-quality power as Maharashtra works towards becoming a $1 trillion economy.