Maharashtra Govt To Cut Power Tariffs by 26% Over 5 Years in Historic Relief for Consumers
In a landmark move, the Maharashtra Electricity Regulatory Commission (MERC) has approved a proposal to reduce electricity tariffs across the state by a cumulative 26% over the next five years, offering major relief to households, farmers, and businesses. The plan, submitted by power utility MahaVitaran, marks the first time in the state’s history that an electricity distributor has proposed a tariff reduction.
The rate cut begins with a 10% drop in the first year and will progressively benefit nearly 70% of domestic users who consume less than 100 units monthly. Consumers using smart meters and opting for daytime power under the Time-of-Day (ToD) tariff will receive an additional 10% discount. Solar power-generating households will also be incentivised under the new framework.
Chief Minister Devendra Fadnavis hailed the decision as “historic and consumer-friendly”, highlighting the shift from decades of routine tariff hikes to a long-term reduction strategy. “This proposal from MahaVitaran reverses the trend and sets the tone for a financially sustainable and citizen-centric energy model,” he said.
Industrial and commercial users, previously hit by yearly hikes, will also see reduced costs—intended to boost business competitiveness and economic growth. Farmers too are expected to benefit significantly, with existing free power schemes continuing and further supported by the state’s ambitious solar programme.
Over 45 lakh farmers already receive free electricity under the ‘Mukhyamantri Baliraja Free Electricity Scheme’. The ‘Saur Krushi Vahini Yojana 2.0’, targeting 16,000 MW of solar power generation by December 2026, is on track to provide reliable and affordable daytime power to agriculture.
MahaVitaran has signed power purchase agreements worth 45,000 MW to meet energy demand until 2030, with 31,000 MW coming from renewable sources. The use of low-cost green energy is projected to save the state ₹66,000 crore in procurement costs over five years.
Fadnavis called the move a step towards achieving Maharashtra’s $1 trillion economy goal, aligning with Prime Minister Narendra Modi’s vision. “This is not just a tariff cut. It’s a structural reform that will redefine how we power our homes, industries, and farms,” he said.
Public response on social media has been largely positive, with users calling it a “bold and progressive” move at a time when inflation and energy costs are rising globally. Analysts believe the focus on solar and consumer savings could set a precedent for other states to follow
