Time-of-day electricity tariff in India - rules, dates and what it means for homes

A time-of-day (ToD) tariff charges a lower rate for electricity used during solar hours and a higher rate during peak hours, instead of one rate around the clock. The Ministry of Power introduced ToD into the Electricity (Rights of Consumers) Rules, 2020 through an amendment notified in June 2023. As we understand it, the amendment applies ToD to commercial and industrial consumers with maximum demand above 10 kW from 1 April 2024, to all other consumers except agricultural consumers from 1 April 2025, and to consumers with smart meters from the time the smart meter is installed. The actual hours and rates are fixed by your SERC, and many SERCs link domestic ToD to smart metering, so whether your home bill already shows ToD depends on your state and your meter.

Part of how electricity tariffs are set in India.

What the 2023 amendment says (in outline)

Element	Outline of the rule
Solar hours	A period of eight hours in a day, specified by the SERC
Solar-hours rate	Lower than the normal tariff; the amendment sets a minimum discount for commercial and industrial consumers (reported as at least 20%)
Peak-hours rate	Higher than the normal tariff; reported as at least 20% higher for commercial and industrial consumers and at least 10% higher for other consumers
Applicability dates	C&I above 10 kW: 1 April 2024; others except agriculture: 1 April 2025; smart-metered consumers: on installation
Who fixes details	SERC, through its tariff order or ToD regulations

The percentages and dates above are from our reading of the amendment as reported when it was notified; confirm the exact text in the Gazette of India or on the Ministry of Power website. A frequent misstatement is that ToD applies to "consumers above 10 kW" generally; the 10 kW threshold is for commercial and industrial consumers.

Why ToD exists

India's demand peaks in the evening, when solar output has fallen and DISCOMs buy expensive power. In the middle of the day, solar generation is plentiful and cheap. A ToD tariff signals that difference to consumers. For the grid, shifting even a small share of household load away from 6 pm–11 pm helps. For you, it can lower the bill if your usage is flexible.

How a ToD bill is calculated

A smart meter records units in each time block. The bill applies the normal rate, adjusted by the ToD factor for the block. Illustrative example (rates and hours invented to show the method; your SERC's will differ):

Block	Units	Normal rate	ToD adjustment	Effective rate	Amount
Solar hours (9 am–5 pm)	120	₹6.00	−20%	₹4.80	₹576
Normal hours	100	₹6.00	0%	₹6.00	₹600
Peak hours (6 pm–10 pm)	80	₹6.00	+10%	₹6.60	₹528
Total	300				₹1,704

Without ToD, 300 units at ₹6.00 would cost ₹1,800, so this household saves about ₹96. A household that uses most of its power in the evening would pay more. Where slab tariffs apply, the SERC decides whether the ToD factor works on each slab rate or on a single domestic rate; read the tariff order.

Loads you can move

Appliance	Typical flexibility	Move to
Washing machine	High	Daytime, weekends
Water pump to overhead tank	High	Late morning
Electric geyser with good insulation	Medium	Heat at midday, use in the evening if the tank holds heat
EV or two-wheeler charging	High	Daytime if parked at home; otherwise avoid peak hours
Iron, mixer, oven	Medium	Daytime batches
AC	Low in the evening	Pre-cool a room before peak hours, then raise the setpoint
Refrigerator, lights, fans	Low	No change

Rooftop solar naturally overlaps with solar hours. Under a ToD tariff, units you consume from your own panels avoid the discounted solar-hour rate, while exported units are settled under your state's net metering rules. See PM Surya Ghar and net metering.

Smart meters and ToD

ToD needs a meter that records consumption by time block, which is one reason it is tied to the smart prepaid meter rollout under RDSS. After a smart meter is installed:

Ask the DISCOM whether your category is on ToD and from which date.
Use the DISCOM app to see consumption by hour, if available.
Check that the bill shows units by ToD block and the factor applied.
Compare two or three months before deciding which loads to move.

Is ToD good or bad for a household?

Your pattern	Likely effect
Daytime at home, flexible chores, solar panels	Likely saving
Out all day, cooking and AC in the evening	Likely higher bill unless loads are shifted
Very small consumption covered by a free-power scheme	Little visible effect
EV owner who charges at night	Depends on whether night hours are normal or peak under your SERC

If you think ToD was applied wrongly (for example, before your category's start date or with the wrong hours), raise it with the DISCOM in writing and, if unresolved, with the CGRF.

Frequently asked questions

Does ToD apply to my home right now?

It depends on your SERC's tariff order and on whether you have a smart meter. The central rules set the framework and dates; the SERC sets hours and rates and decides implementation details. Your bill will show ToD blocks if it applies.

Are night hours cheaper under ToD?

Not necessarily. Indian ToD design focuses on cheap solar hours in the daytime and expensive evening peak hours. Late night may be normal rate. Check your SERC's schedule.

Will ToD increase my bill?

Only if most of your consumption falls in peak hours and you cannot shift it. Households that move flexible loads to daytime can save.

Does ToD apply to agricultural connections?

The amendment excludes agricultural consumers from the general ToD dates.

Sources and where to check

Ministry of Power — Electricity (Rights of Consumers) Amendment Rules, 2023
e-Gazette of India — notified text of the rules
Press Information Bureau — government releases explaining the ToD amendment
Maharashtra Electricity Regulatory Commission — example of SERC ToD provisions in tariff orders