Mumbai, March 22 -- When Maharashtra decided to change how it prices power, the idea was simple: Prepare for an expected burst in solar power in the coming years with a model for its efficient use. However, its solution has worried the industry, which fears disruption in the way it does business and raises the cost of power in the country's fifth-largest solar power state.

State-run power distributor Maharashtra State Electricity Distribution Corp. Ltd (MSEDCL) has proposed pricing power generated from 9 am to 5 pm at the lowest. The industry says this move will end power banking, in which excess power is absorbed by the distribution company and resupplied later when it's needed. This will force power producers to rework contracts and ra...