The Kerala State Electricity Regulatory Commission (KSERC) has issued an important order regarding a petition filed by domestic solar prosumers. The petition challenged the Kerala State Electricity Board’s (KSEB) practice of levying fixed charges on electricity generated and consumed by the prosumers themselves, as well as the retention of what the petitioners considered to be unlawfully high security deposits. The petition was filed by six individuals, and after hearings conducted on August 27 and September 2, 2025, the commission disposed of the matter, ruling in favor of the KSEB on the issue of fixed charges.

The commission clarified that there is no illegality in KSEB charging fixed fees for domestic solar prosumers operating under a net metering system. The decision is based on the reasoning that prosumers, even though they generate their own electricity, continue to rely on the KSEB grid for importing power when their solar systems are not generating enough electricity, such as during night hours or cloudy days, and for exporting any surplus energy. The fixed charges are necessary to recover the costs associated with maintaining the electricity distribution network.

To provide flexibility, the commission has given domestic solar prosumers two options for paying fixed charges. The first option allows prosumers to continue paying fixed charges based on their total electricity consumption during the billing period, as per the existing tariff order. The second option enables prosumers to pay a flat rate of ₹47 per kilowatt per month, calculated on their total connected load with the distribution licensee. Prosumers who wish to opt for the flat rate must inform the KSEB or their respective licensee at least one month in advance. This approach allows prosumers to choose a payment method that best suits their usage and financial planning.

On the matter of security deposits, the commission has directed the KSEB to strictly follow its regulations. The KSEB is required to review the adequacy of security deposits held by its prosumers in accordance with the Supply Code, 2014. If a deposit is found to be excessive, the excess amount must be refunded to the prosumer. Conversely, if a deposit is deemed insufficient, the KSEB may request an additional deposit, provided that a 30-day notice is given to the prosumer. The aim of this directive is to ensure transparency and compliance in the process of managing security deposits for domestic solar prosumers.

This order from the KSERC seeks to balance the interests of both prosumers and the electricity board. By upholding the fixed charges, the commission ensures that the costs of maintaining the distribution network are fairly recovered, while the options for payment provide flexibility to prosumers. At the same time, the directive regarding security deposits safeguards consumer rights and ensures that deposits are neither unreasonably high nor insufficient.

The commission’s decision is likely to impact domestic solar prosumers across Kerala by providing clarity on fixed charges and security deposit requirements. Prosumers can now make informed decisions regarding their payment options and ensure compliance with the KSEB’s regulations. The order also reinforces the role of the regulatory commission in maintaining a fair and transparent electricity system while supporting the growth of solar energy adoption in the state.