Time-of-Day tariffs and the Indian C&I electricity bill

Since April 2024, Time-of-Day pricing applies to commercial and industrial electricity consumers across India: the same unit costs different amounts depending on the hour it was drawn. That single change is what makes solar and battery sizing a modelling problem rather than an arithmetic one — and it is why two identical factories on two different DISCOMs get two different right answers.

Last checked · Written for solar EPCs, installers and energy managers in India

What a Time-of-Day tariff is

A flat tariff charges one rate per unit, whenever it was consumed. A Time-of-Day tariff divides the day into zones and prices each one differently, usually as a percentage adder or rebate applied to a base energy charge.

The regulatory intent is to move demand: discourage consumption when the grid is strained and encourage it when solar is abundant. The practical consequence for a consumer is that when you use energy is now a decision with a price attached — and for anyone selling solar or storage, that the value of a displaced unit depends entirely on which zone it came out of.

WHAT A UNIT COSTS, BY HOURNight₹6.1/kWhNormal₹7.4/kWhSolar hours₹6.4/kWhEvening peak₹9.3/kWhNightWHAT A SOLAR ARRAY PRODUCES, BY HOURSolar produces herein the cheapest hours of the dayand nothing herethe dearest00:0006:0009:0012:0018:0022:0024:00ILLUSTRATIVE ZONE SHAPE AND RATES
The shape almost every order takes, with the day's generation on the same clock. Solar removes units from the rebated block and none from the peak one; the dashed arrow is the move a battery exists to make. Zone names, boundaries and rates vary by DISCOM and season.

The zones, in the shape most orders use

ZoneTypicallyWhat the order usually does to the rate
Solar / dayRoughly 09:00–17:00A rebate — the cheapest energy of the day.
NormalThe remaining daytime and late eveningThe base rate, no adder.
Evening peakRoughly 18:00–22:00The largest adder. The expensive hours.
Night / off-peakRoughly 22:00–06:00A rebate, though usually smaller than the solar-hour one.
Names, boundaries and adders vary by DISCOM and often by season; this is the common shape, not any particular order. Zone boundaries are defined to the half hour in several states.

Seasons

Many orders publish two sets of adders — a summer set and a winter set — and some define seasonal blocks tied to local demand cycles rather than the calendar (a paddy season, for instance). A model that applies one annual adder set misprices half the year.

The bill is more than energy

The energy charge is the headline, but a C&I bill is assembled from several components, and a saving computed on the energy charge alone will be wrong in both directions.

ComponentBilled onDoes solar or storage reduce it?
Energy chargeUnits consumed, by ToD zoneYes — directly, and by zone, which is where the zone map matters.
Demand chargeMaximum demand in the period, per kVAStorage can, by shaving the peak. Solar barely, since the peak often falls after dark.
Electricity dutyA percentage of the bill, set by the stateIndirectly — it scales with the bill it is levied on.
Fuel adjustment (FAC / FPPPA)Per unit, revised periodicallyYes, per unit avoided. Volatile, and published monthly in some states.
Wheeling chargePer unit, for use of the distribution networkApplies mainly to open access, not to behind-the-meter generation.
Cross-subsidy surchargePer unit, on open-access consumptionOpen access only.

kVAh or kWh — not the same bill

Some DISCOMs bill kVAh (apparent energy) rather than kWh (active energy). Under kVAh billing a site pays for its power factor: poor power factor inflates apparent energy above active energy, so the same machinery produces a larger bill.

This matters for sizing in two ways. Savings computed in kWh on a kVAh-billed site are understated. And a solar inverter that can supply reactive power may improve the power factor, producing a saving that has nothing to do with the energy it generated. Of the DISCOM vintages in this library, 26 bill in kVAh.

The landed rate, built up

What a displaced unit is actually worth is the landed rate — the published energy charge plus everything that rides on it:

StepRate
Base energy charge₹7.00 / unit
Evening-peak ToD adder, +20%₹8.40 / unit
Fuel adjustment, +₹0.20₹8.60 / unit
Electricity duty, +7.5%₹9.25 / unit
Landed rate for a unit displaced in the evening peak₹9.25 / unit
Illustrative buildup with round numbers, to show the shape. It is not any DISCOM's schedule — see the coverage note below on why per-DISCOM rates are not printed here.

Against a solar-hour rebated rate on the same base, the same arithmetic might land near ₹6.50. That difference — roughly ₹2.75 per unit between the cheapest and most expensive hour of the same day — is the spread storage is being paid to cross, and the reason it is worth crossing even after round-trip losses.

What this library holds

Ingro Sims ships a transcribed library of Indian DISCOM Time-of-Day structures and rates, read from the published tariff orders and carried with the order reference, its effective date and — in most cases — the page of the PDF each number came from.

55

DISCOMs with a transcribed vintage

42

of those carrying published rates

328

ToD zone definitions

24

states and union territories

State / UTDISCOMsWith ratesToD zonesNewest order year
Gujarat6662FY2026-27
Karnataka5525FY2026-27
Uttar Pradesh5550FY2026-27
Maharashtra4216FY2026-27
Odisha4416FY2026-27
Delhi3321FY2021-22
Madhya Pradesh3330FY2026-27
Rajasthan3321FY2026-27
Andhra Pradesh2218FY2026-27
Bihar2210FY2026-27
Haryana208FY2026-27
Jammu & Kashmir200
Telangana2210FY2026-27
West Bengal2213FY2025-26
Assam115FY2026-27
Chandigarh100
Chhattisgarh100
Himachal Pradesh100
Jharkhand105FY2026-27
Kerala100
Puducherry100
Punjab1112FY2026-27
Tamil Nadu116FY2025-26
Uttarakhand100
DISCOMs and ToD zone definitions per state, computed from the tariff library itself (src/lib/tariff/) — so this table cannot fall out of step with what the product actually holds. “With rates” counts DISCOMs carrying at least one HT energy charge read out of a tariff order; the rest are held with the order identified but its numbers not retrievable.

What it does not hold

India has well over a hundred distribution licensees. This is not all of them, and it does not claim to be — it is the set covering the states where C&I solar and storage is actually being built.

The larger honest gap is the landed rate. Assembling one needs the electricity duty and the fuel adjustment published in a usable form, and almost no DISCOM publishes both: on the imported sheet, exactly two of fifty-five could reach a landed figure from their own published components. For every other DISCOM the base energy charge and its ToD structure are known, and the riders have to come from the site’s own bill — which is one reason a study starts from bills rather than from a rate card.

Tariffs move, and studies age

Every state regulatory commission issues a tariff order, typically annually. An order can change the base energy charge, the ToD adders, where the zone boundaries fall, the demand charge, and the duty.

The third of those is the one that quietly invalidates old work. If an order moves the evening peak from 18:00–22:00 to 19:00–23:00, every dispatch decision in a study built on the previous boundaries was optimised against hours that no longer carry that price. The totals still look plausible. They are simply computed on the wrong bill.

  • Date every study. A proposal should name the tariff order it was priced against, not just the DISCOM.
  • Re-run before you re-quote. A study from the last financial year is a starting point, not a number to put in front of a customer.
  • Check the billing unit. kVAh and kWh schedules are not interchangeable, and a DISCOM can change which it bills on.
  • Take the riders from the bill. Duty and fuel adjustment are where published schedules most often fall short of what the site actually pays.

The regulatory changes worth tracking right now — universal ToD since April 2024, and Maharashtra’s storage requirement from April 2026 — are covered in the regulation guide.

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