Free electricity schemes in 2026 - Delhi 200 units, Gruha Jyothi, Punjab 300 units, Tamil Nadu

"Free electricity" in India means the state government pays your DISCOM for some or all of your domestic consumption, under Section 65 of the Electricity Act, 2003, which requires the subsidy to be paid in advance. The tariff itself does not change; the subsidy appears as a credit on your bill. The four best-known schemes in 2026 work differently: Delhi subsidises the whole bill up to 200 units a month and half of it between 201 and 400 units for consumers who opt in; Karnataka's Gruha Jyothi gives free electricity up to an eligible number of units tied to your past average use, within 200 units a month; Punjab announced 300 free units a month for domestic consumers from 1 July 2022; and Tamil Nadu subsidises domestic consumers, including a block of free units each billing cycle. Each has conditions, and crossing a threshold can cost more than you expect.

Part of how electricity tariffs are set in India.

Quick comparison

Scheme	Who	Benefit (as reported; confirm with DISCOM)	What happens above the limit
Delhi power subsidy	Domestic consumers who opt in	Full bill subsidised up to 200 units a month; 50% subsidy for 201–400 units, capped at ₹800 a month	Above 400 units, no subsidy for that month
Gruha Jyothi (Karnataka)	Registered domestic consumers, one meter per household	Free up to eligible units, based on average monthly use plus a margin, within 200 units	Units above the eligible quantity are billed; at 200+ units the bill is payable in full
Punjab free power	Domestic consumers	300 units a month (600 per two-month bill) from 1 July 2022	Rules differ by category; for some consumers the whole bill becomes payable
Tamil Nadu domestic subsidy	Domestic LT-IA consumers	Government subsidy on the Commission tariff; from 10 May 2026 reported as 200 free units per two-month cycle for use up to 500 units	Above 500 units the free allowance is 100 units, and higher slabs get less subsidy per unit

Rules can change with each state budget, so treat the figures as a starting point and check your DISCOM's latest notice.

Delhi: 200 units and the 201–400 band

The Delhi scheme has run since 2019 and continued after the change of government in 2025. Reports on the Delhi Budget 2026-27 described an allocation of about ₹3,500 crore for power subsidy, and Aadhaar seeding was reported as mandatory for continuing to receive the subsidy. Key features:

Opt-in. Consumers must opt for the subsidy (through the DISCOM portal, app or a missed-call/registration process). If you have not opted in, you pay the full bill.
Monthly test. Each month's consumption is tested separately. In a 210-unit month you get the 50% subsidy; in a 190-unit month the whole bill is covered.
Calculation on the full bill. The subsidy is applied to the bill computed at DERC rates, including fixed charge and surcharges as the scheme defines.

Illustrative example (Delhi DERC schedule, 2 kW load):

Units	Energy + fixed charge	Subsidy	You pay (before rounding, illustrative)
190	190 × 3 + 40 = ₹610	Full	₹0
300	1,050 + 40 = ₹1,090	50% = ₹545	₹545
420	600 + 900 + 130 + 40 = ₹1,670	None	₹1,670

The step from 400 to 420 units costs over ₹800, because the 50% subsidy is lost. Surcharges and duty are left out to keep the arithmetic clear.

Karnataka: Gruha Jyothi

Launched in 2023, Gruha Jyothi covers domestic consumption up to 200 units a month. The eligible units for each household are based on its average monthly consumption in a reference year (2022-23), with a margin added (a flat 10 extra units since a January 2024 cabinet decision, replacing the original 10% margin, as reported), so a small household is not entitled to the full 200. Consumers register online through the state's Seva Sindhu portal or ESCOM offices, using the account ID and Aadhaar. One registration per household and per meter is allowed, and the benefit is for domestic (not commercial) use.

Illustrative example: a household whose eligible units are 80 uses 95 units. The 80 units are free; 15 units are billed at the KERC tariff plus surcharges. If it used 205 units, it would exceed the 200-unit ceiling and the bill would be payable in full.

Punjab: 300 units

From 1 July 2022 Punjab's government announced 300 free units a month, applied as 600 units in a two-month billing cycle by PSPCL. Earlier, certain categories (such as SC, BC and BPL households and freedom fighters) had concessions; the treatment of consumption above 600 units in two months differs between categories. We could not open the PSERC or PSPCL websites to confirm the current conditions, so check your bill and PSPCL notices.

Tamil Nadu: subsidy built into the bill

The TNERC tariff order says the domestic LT-IA tariff is "to be partly subsidised by the Government", and TNERC Suo-motu Order No. 6 of 2025 records the government's commitment to compensate TNPDCL so that domestic consumers did not face the July 2025 increase for one year. In practice the bill shows the Commission tariff and the government subsidy separately, and households get free units each bi-monthly cycle. Under G.O. (Ms) No. 50 dated 10 May 2026, as reported, households using up to 500 units in two months now get 200 units free instead of 100, while those above 500 units keep the 100 free units; TNERC approved an additional provisional subsidy of about ₹1,545 crore for 2026-27 to fund it. This makes the 500-unit line a hard threshold: at 501 units the household loses 100 free units. We could not open the TNERC website to read the order, so check your bill or TNPDCL. Because the subsidy is applied in two-month blocks, a summer cycle with heavy cooler or AC use moves consumption into slabs where the subsidy is smaller. See slab tariffs explained.

How to check you are getting the benefit

Look for a subsidy or government support line on the bill.
Confirm your consumer category is domestic. A wrongly classified connection (for example, a home shop billed as commercial) is not eligible.
If your scheme needs registration, keep the acknowledgement. Re-register if you change the name on the connection.
Check the Aadhaar and bank details your state requires.
If the credit is missing, complain to the DISCOM and, if needed, the CGRF. See the complaint route.

Tenants: many schemes are tied to the connection, not the person. A tenant can benefit only if the house has its own meter in the landlord's name and the landlord passes the benefit on. Sub-meters behind one connection usually lose the benefit. See landlord sub-meter charges.

Free power and rooftop solar

If your bill is already zero under a state scheme, rooftop solar saves you little on the bill, so payback under PM Surya Ghar may be long. Households above the free limit benefit most.

Frequently asked questions

Do I lose the whole subsidy if I go one unit above the limit?

In Delhi, crossing 200 units moves you from full to 50% subsidy, and crossing 400 removes it for that month. In Karnataka, crossing 200 units makes the whole bill payable. Other schemes have their own thresholds. Watch units near the limit.

Can a house with two meters get two subsidies?

Schemes generally allow one benefit per household or per registered domestic connection. Separate floors with separate legitimate connections may each qualify where the rules allow.

Does the subsidy cover the fixed charge and surcharge?

Each scheme defines what it covers. Your bill should show the subsidised amount; compare it with the gross bill.

Is the subsidy guaranteed for future years?

No. It depends on the state budget and government policy each year.

Sources and where to check

Delhi Government Power Department — Delhi power subsidy notices
Seva Sindhu Karnataka — Gruha Jyothi registration
PSPCL — Punjab domestic tariff and free power conditions
TNPDCL — Tamil Nadu tariff order and subsidy