Understanding the Calculation of Banking Charges Under Gujarat RE Policy 2023 for Rooftop Solar
- Sai Patel
- Sep 3, 2025
- 4 min read
Introduction
In 2025, managing electricity costs has become critical for industries and commercial establishments in South Gujarat.
With DISCOMs tariffs rising and GERC banking regulations impacting how solar energy is billed, many factory owners and commercial building managers are struggling to optimize their energy costs.
This guide breaks down:
What banking charges are
Latest GERC updates for 2025
1. What Are Banking Charges?
“Banking” means the surplus green energy injected in the grid and credited with the distribution licensee energy by the Green Energy Open Access consumers and that shall be drawn along with charges to compensate additional costs; if any.”
[ PART IV-C] in Gujarat Electricity Regulatory Commission (Terms and Conditions for Green Energy Open Access) Regulations, 2024. NOTIFICATION NO. 08 OF 2024
Too complex to understand?
Banking is like saving extra green UNITS. When GEOA (Green Energy Open Access) users make more solar or wind power than they need, they send the extra UNITs to the grid to use later.
In other words
Banking charges are fees levied by DISCOMs, as per GERC regulations, when you export surplus solar energy to the grid for later use.
2. Banking Charges as per Provisional Agreement Inter Connection agreement (Provisional) for Captive use [for other than Residential consumer]
Consumer Type | Tension Level | Banking Charge (₹/unit) |
MSME Units | HT (>100 kW) | ₹1.10 |
Non-MSME Units | HT (>100 kW) | ₹1.50 |
MSME Units | LT (≤100 kW) | ₹1.10 |
Non-MSME Units | LT (≤100 kW) | ₹1.50 |
Provided that banking charge shall not be applicable in case of Solar Project for Residential building, Government Building and Solar project set up for compliance of RPO.
2. How banking charges are calculated?
“For the purpose of applicability of banking charges, the solar energy consumption shall be worked out as per the solar generation units recorded in the solar energy meter of the solar power system during the billing period LESS surplus solar units on which Surplus Injection Compensation (SIC) is paid by DISCOM.”
Understood?
Nope!
Banking charges are applicable only on:
Solar energy generated - Units exported for which DISCOM pays SIC.
In other words:
Banking Charges = (Total Solar Generation − Surplus Units) × Banking Rate
3. Practical Examples:
Example 1 — HT Consumer
Monthly Solar Generation: 80,000 units
Solar Units Consumed Directly (Import): 55,000 units
Solar Units Exported: 25,000 units
Out of which 15,000 units are banked and later adjusted
10,000 units are surplus beyond the banking limit → SIC paid by DISCOM
Total Solar Generation − Surplus Units Paid Under SIC
= 80,000 − 10,000 = 70,000 units
For MSME ~ 70,000 x 1.10 ₹ = 77,000.00 ₹ Payable
For non-MSME ~ 70,000 x 1.50 ₹ = 1,15,000.00 ₹ Payable
Note:
Settlement of Banking Charges:
In case of HV/EHV consumers:
The solar energy set-off shall be allowed between 07.00 hours to 18.00 hours of the SAME DAY BASIS. That means, the injected solar energy in the grid shall be set off against consumption of HT or EHV consumer during 07.00 hours to 18.00 hours on the SAME DAY BASIS.
Understood?
Nope! Let me Simplify it!
You can only use the solar power you send to the grid between 7 AM and 6 PM on the same day.
For example,
if you send extra solar power at 10 AM, you can use that saved power any time before 6 PM that day. After that, they expire.
Example 2 — LT MSME Consumer
Monthly Solar Generation: 25,000 units
Units Exported: 8,000 units
Out of which 6,000 units are banked
2,000 units get SIC payment
Step 1 — Units Eligible for Banking Charges
Total Solar Generation − Surplus Units Paid Under SIC
= 25,000 − 2,000
= 23,000 units
For MSME ~ 23,000 x 1.10 ₹ = 25,300.00 ₹ Payable
For non-MSME ~ 23,000 x 1.50 ₹ = 34,500.00 ₹ Payable
Note:
Settlement of Banking Charges:
For LT Consumer there are two Categories:
1. LT demand-based consumers:
“The set-off of solar energy shall be allowed between 07.00 hours to 18.00 hours of the SAME BILLING CYCLE BASIS. That means, the injected solar energy in the grid during a billing cycle shall be set off against consumption of consumer during 07.00 hours to 18.00 hours of the SAME BILLING CYCLE.”
Understood?
Nope!
You can only use the solar power you send to the grid between 7 AM and 6 PM on the same day.
For example,
if you send extra solar power at 10 AM, you can use that saved power any time before 6 PM that day. After that, they expire.
2. LT OTHER THAN demand-based consumers
“The energy set-off shall be allowed ON BILLING CYCLE BASIS. That means, the generated solar energy during a billing cycle shall be consumed by the consumer during the SAME BILLING CYCLE.”
Let me Simplify!
If your billing cycle is from 1st to 30th of the month, any solar units you generate in that time must be used before the 30th. They won’t carry over to the next month.
Note:
This information is derived solely from personal calculations. It is recommended to thoroughly review all policies related to GERC and DISCOMs.
