Solar charge shock ends: JERC orders refund for 6k govt houses
CHANDIGARH, Dec. 24 -- In a major relief to around 6,600 government employees living in officialresidences, the Ombudsman of the Joint Electricity Regulatory Commission (JERC) has stayed the levy of solar-user charges imposed on rooftop solar power plants installed on government houses in Chandigarh and ordered a refund of the amount already recovered through electricity bills over the past three years.
As per the existing billing mechanism, households with a 6-kilowatt rooftop solar plant were being charged Rs.3,000 for a two-month billing cycle. The charge was calculated at Rs.250 per kilowatt of sanctioned load per month. Residents of government houses located in Sectors 7, 19, 20, 21, 22, 23, 24, 27 and 39 were affected. The decision is expected to directly benefit 6,624 families, from whom an additional Rs.1,800 to Rs.3,000 was being recovered every month, allegedly without their consent.
The case was initiated by two government employees-Sanjay Kumar of Sector 27 and Abhishek of Sector 11-who individually approached the JERC Ombudsman against Chandigarh Renewal Energy and Science & Technology Promotion Society (CREST), Chandigarh Power Distribution Limited (CPDL) and the UT administration's electricity department. The complainants contended that rooftop solar panels were installed on their residences without obtaining their consent or entering into any formal agreement with them. They further alleged that despite the installation of solar plants, they were not provided any adjustment or credit for the solar-generated electricity.
Instead, the sanctioned load of their electricity connections was increased, leading to higher fixed charges and additional security deposits. The petitioners also argued that the solar-user charge was imposed without obtaining mandatory approval from JERC, rendering the levy arbitrary and illegal.
After detailed hearings spread over several sittings, the Ombudsman ruled that the electricity department cannot recover any solar-user charge from consumers unless prior approval is obtained from JERC. The Ombudsman also partially set aside the orders passed by the Consumer Grievance Redressal Forum (CGRF) on October 16, 2025, observing that the forum had passed the orders under an incorrect assumption of jurisdiction, necessitating correction.
In a significant observation, the Ombudsman held that recovering solar-user charges through electricity bills from residents who have no solar agreement with the electricity department is illegal. The electricity department has been directed to refund all the amount collected so far without approval. This includes solar-user charges, additional security deposits taken due to enhanced sanctioned load, and higher fixed charges levied on account of the increased load. The refunds are to be provided either through bill adjustments or direct refunds, strictly in accordance with rules.
The rooftop solar project in government houses is being implemented by CREST, while electricity bills are generated by CPDL, which had included the solar-user charges. The solar systems were installed under the PM Surya Ghar Muft Bijli Yojana, with the UT administration bearing the initial cost of installation. Each system has an estimated lifespan of 25 years and generates around 300 units of electricity per month. The project also offers a capital subsidy of up to Rs.78,000 for installations up to 3 kWp, aimed at significantly reducing electricity bills.
Despite the absence of mandatory provisions for private consumers, Chandigarh has made notable progress in solarising its government infrastructure. As of October 31, 2025, as many as 6,606 government buildings have been equipped with rooftop solar systems, creating a total installed capacity of 52.825 MW-one of the highest among Union Territories....
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