In a recent development that has brought much-needed clarity to domestic solar consumers in Kerala, the Kerala State Electricity Regulatory Commission (KSERC) issued a detailed order on September 22, 2025, addressing two major issues—levying of fixed charges and the retention of security deposits by the Kerala State Electricity Board Limited (KSEB Ltd). The decision came after a petition filed by Shri Jameskutty Thomas and five others, registered as OP No. 43/2025, which questioned the legality of fixed charges applied to solar prosumers under the Net Metering System and the high security deposits collected from consumers having captive solar installations. The hearings for the case took place on August 27 and September 2, 2025, before the Commission, chaired by Shri T.K. Jose, with members Adv. A.J. Wilson and Shri B. Pradeep.
The petitioners argued that KSEB was unlawfully collecting fixed charges based on total electricity consumption, including self-generated solar power, and retaining security deposits beyond what was necessary. They claimed that these practices discouraged consumers from adopting solar energy systems, which contradicts national and state renewable energy goals. However, the Commission, after examining the submissions and reviewing the relevant provisions of the Electricity Act, 2003, and Supply Code, 2014, observed that there was no illegality in the way fixed charges were being levied. KSERC clarified that under the current regulatory framework, a distribution licensee has the right to collect fixed charges from all consumers, including solar prosumers, based on their total connected load or consumption. The Commission referred to paragraph 51 of the order to support this finding.
At the same time, the Commission introduced an important reform to give more flexibility and choice to domestic solar prosumers across Kerala. It allowed two options for the payment of fixed charges. Under the first option, prosumers can continue to pay fixed charges based on their total electricity consumption as per the existing Tariff Order dated December 5, 2024. This means that consumers who wish to maintain the current billing method can do so without any change. The second option, however, offers a new alternative for prosumers seeking a simpler and more predictable billing method. They can now pay a fixed charge of ₹47 per kilowatt per month, calculated on the total connected load of the solar system installed with the licensee. This gives prosumers the flexibility to choose a fixed, capacity-based payment structure that may help in better financial planning.
The Commission also clarified the process for switching to the new option. Any domestic solar prosumer who wishes to adopt the ₹47 per kilowatt per month structure must inform KSEB or their respective distribution licensee at least one month in advance before the change takes effect. This procedural requirement ensures that the transition is smooth and that billing adjustments are made correctly.
Apart from the fixed charge issue, the Commission also addressed the matter of high security deposits. KSERC directed KSEB to conduct a strict review of the adequacy of security deposits maintained by its prosumers. This review must be carried out in compliance with Regulation 73 read with Regulation 67 of the Supply Code, 2014. The Commission emphasized that security deposits must be maintained at a reasonable level, aligned with consumption patterns, to prevent unnecessary financial burden on consumers.
The KSERC’s order provides clarity to both KSEB and solar prosumers in Kerala. While it upholds the legality of fixed charges, it also ensures fairness by giving consumers a choice in how they pay. By enforcing a review of security deposits, the Commission has further strengthened consumer protection. The order reflects the Commission’s balanced approach to supporting renewable energy adoption while maintaining the financial stability of the power distribution system.
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