Time-of-Day (ToD) Electricity Tariffs Explained: How Solar Power Saves Up to 40% on Peak Surcharges (2026)
Key Highlights & 30-Second Takeaway
Essential facts every solar applicant in India needs to know right now:
- Smart Meter Shift: State DISCOMs are implementing ToD pricing with solar discounts (9 AM – 5 PM) and peak evening surcharges (6 PM – 10 PM).
- Shift Heavy Loads: Run washing machines, pumps, and EV chargers during peak daylight to pay ₹0.
- Net Metering Optimization: Smart bi-directional meters track unit generation across separate time blocks.
Electricity billing in India is undergoing its biggest structural overhaul in decades. Under the updated Electricity (Rights of Consumers) Rules, state regulatory commissions (MERC, GERC, DERC, KERC, TNERC, UPERC) have accelerated the rollout of Time-of-Day (ToD) electricity tariffs alongside smart prepayment meters.
Under ToD pricing, the price you pay per unit is no longer flat throughout the 24-hour day. Instead, electricity during daytime "solar hours" is discounted by 20% to 30%, while evening peak hours (6 PM to 10 PM) carry a 20% to 35% surcharge. For consumers with rooftop solar, this presents a massive opportunity to optimize energy costs.
1. How ToD Tariffs Impact Your Monthly Bill
| Time Zone | Base Tariff Rate | ToD Tariff Adjusted Rate | Solar Impact / Strategy |
|---|---|---|---|
| Solar Zone (9 AM – 5 PM) | ₹7.00 / unit | ₹5.25 / unit (-25%) | Rooftop solar powers 100% of load; surplus exported to grid |
| Normal Zone (5 AM – 9 AM) | ₹7.00 / unit | ₹7.00 / unit (Base) | Standard grid or early solar generation |
| Peak Zone (6 PM – 10 PM) | ₹7.00 / unit | ₹9.10 – ₹9.80 / unit (+30%) | High risk zone: Solved via Battery Storage or net metering offset |
| Night Zone (11 PM – 5 AM) | ₹7.00 / unit | ₹6.00 / unit (-15%) | Ideal for EV overnight slow charging |
⚡ Helpful Tariff & Solar Sizing Tools:
Energy Savings Calculator Solar vs Grid Comparison Solar EV Charging Calculator State Tariff GuidelinesFrequently Asked Questions
Are residential consumers covered under Time-of-Day (ToD) tariffs?+
Yes. Under the revised rules, all commercial and industrial connections have transitioned to ToD, and residential consumers equipped with smart prepayment meters are being phased in across major states.
How does solar net metering settle units under ToD tariffs?+
Smart bidirectional net meters track units generated and consumed separately across each ToD time block (Solar, Normal, Peak). Solar units generated in daytime off-peak hours offset peak units according to state-specific conversion ratios.
Shraddha
Senior Renewable Energy Consultant & Rooftop Solar Analyst