KSERC comes with Clarity For Kerala’s Solar Prosumers With New Options For Fixed Charges And Security Deposit

KSERC’s New Order Brings Clarity and Flexibility for Kerala’s Solar Prosumers

In a move that brings greater clarity and relief to domestic solar consumers, the Kerala State Electricity Regulatory Commission (KSERC) has issued a landmark order addressing key concerns related to fixed charges and security deposits for solar prosumers in the state. The order, released on September 22, 2025, follows a petition (OP No. 43/2025) filed by Shri Jameskutty Thomas and others, challenging the legality of certain billing practices of the Kerala State Electricity Board Limited (KSEB Ltd) under the Net Metering System. Hearings were conducted on August 27 and September 2, 2025, before a panel chaired by Shri T.K. Jose, with members Adv. A.J. Wilson and Shri B. Pradeep.

The petitioners argued that KSEB was unfairly levying fixed charges based on the total electricity consumed, including the power generated from rooftop solar systems, and was also retaining high security deposits. They contended that such practices discouraged the adoption of renewable energy and solar power in Kerala. However, after detailed scrutiny, KSERC found no illegality in the method of collecting fixed charges. The Commission reaffirmed that under the current regulations, distribution licensees are entitled to collect fixed charges from all consumers, including solar prosumers, based on their connected load or total consumption, as outlined in the Electricity Act, 2003, and the Supply Code, 2014.

In a major step forward, KSERC - Kerala State Electricity Regulatory Commission introduced a new framework giving prosumers more flexibility and control. Consumers now have two options for paying fixed charges. The first allows them to continue under the existing tariff structure as per the Tariff Order dated December 5, 2024. The second option introduces a simplified and predictable model—prosumers can now choose to pay a fixed rate of ₹47 per kilowatt per month, based on the total connected load of their solar installation. This change offers greater transparency and helps consumers better manage their electricity expenses while encouraging more households to shift towards sustainable energy solutions.

To implement this change smoothly, KSERC directed that prosumers opting for the new structure must notify KSEB or their respective distribution licensee one month in advance. This ensures accurate billing transitions and administrative clarity.

The Commission also took note of consumer concerns regarding high security deposits and directed KSEB to carry out a detailed review of the same. Citing Regulations 73 and 67 of the Supply Code, 2014, KSERC emphasized that security deposits should reflect actual consumption patterns and must not place an unnecessary financial burden on consumers.

This latest order by KSERC marks a balanced and forward-looking approach that strengthens consumer rights while maintaining grid stability. It not only validates the principles of fair billing but also empowers Kerala’s growing community of solar prosumers with choice and transparency.

As solar power in Kerala continues to expand, such regulatory clarity ensures that both consumers and utilities can work in harmony toward a cleaner, more energy-secure future.

At Enlead Energy Solutions, we welcome this development as a positive step for the state’s renewable energy landscape. As one of Kerala’s trusted solar energy companies, we remain committed to helping homeowners and businesses transition to solar power through efficient, affordable, and future-ready solutions. Together, we can make Kerala a model state for sustainable energy adoption.