The Kerala High Court issued a stay on the KSERC Renewable Energy Regulations, 2024. Justice Mohammad Niaz CP ordered the halt on all further proceedings that include the operation and full implementation of the new rules.
Prosumers challenge regulations:
The Kerala High Court order came after a petition from the Domestic On-Grid Solar Power Prosumers Forum. The forum challenged the new rules drafted by the Regulatory Commission. Petitioners alleged the new regulations would harm the growth of the rooftop solar sector.
Controversial provisions:
The main objections center on changes to the net metering system (NMS).
Net Metering Cap: The new rules allegedly restrict NMS to only 3 kW capacity. This is much lower than what many domestic prosumers have installed.
Grid Support Charges: The draft imposes additional charges on solar energy exported to the electricity grid. Prosumers called this “unheard of” and a regressive step.
Discouraging Investment: Petitioners argued these measures would render their solar investments unprofitable. They stated the changes would discourage future domestic solar adoption.
Controversy over KSERC action:
The Kerala High Court noted a major issue regarding the new notification date. KSERC had earlier assured the court that it would delay the notification. They promised to consider all public objections, a process that needed about a month. However, KSERC issued the new regulations notification on November 5.
The prosumers’ petition also raised claims of bias. They alleged the independent KSERC was controlled by the Kerala State Electricity Board (KSEB). The new rules supposedly benefit the KSEB over small-scale prosumers.
Next steps:
The court directed the State Government and KSERC to file their counter-affidavits. The court will then review the legality and validity of the regulations. The matter is now posted for the next hearing on December 1, 2025.
