Powering India’s solar future through household demand flexibility

This policy brief by Ember analyses the implementation of the Ministry of Power's Electricity (Rights of Consumers) Amendment Rules, 2023, which introduces solar-hour time of day (ToD) tariffs for domestic consumers in India starting April 1, 2025. The paper examines how these tariffs, designed to align electricity demand with solar generation, affect different consumer profiles and highlights the critical need for smart meter infrastructure to enable successful deployment.

• India's electricity demand and peak demand are projected to grow significantly by 2031-32, reaching 2,473.7 BU and 366.4 GW respectively, compared to 1,547.78 BU and 249.9 GW in 2024-25. Domestic consumers are expected to account for approximately 31% of the electricity requirement in 2031-32.
• The Electricity (Rights of Consumers) Amendment Rules, 2023, establishes a solar-hour ToD tariff structure where electricity is cheaper during solar hours (typically 9 a.m. - 5 p.m.) and more expensive during peak hours. For domestic consumers, the ToD tariff during peak hours must be at least 1.10 times the normal tariff, while the solar-hour tariff must be at least 20% lower than the normal tariff.
• Several Indian states have already integrated domestic consumers into the solar-hour ToD structure for FY 2025-26, including Bihar, Gujarat, Madhya Pradesh, and Maharashtra. In contrast, Karnataka has deferred implementation because there is currently no surplus solar energy available in the state.
• The implementation of ToD tariffs is severely hindered by a lack of infrastructure; as of March 2025, only 10.8% of the total sanctioned smart consumer meters in India have been installed.
• Non-rooftop solar (non-RTS) consumers may see bill reductions depending on the state's specific tariff design. For example, consumers in Bihar could see a 3–4% reduction without shifting usage, while those in Madhya Pradesh, Gujarat, and Maharashtra may see reductions of 1–2% or 2–2.5%.
• Rooftop solar (RTS) consumers derive limited benefit from solar-hour rebates because their systems already offset daytime demand. In states like Bihar and Madhya Pradesh, where peak-hour surcharges apply, RTS consumers may experience reduced monthly savings and longer payback periods for their systems.
• Ember recommends that State Electricity Regulatory Commissions (SERCs) tailor ToD structures to local demand and solar profiles, incorporate seasonal variations, and clearly define the 'normal tariff' to remove ambiguity in pricing.

APA

Shah, R. (2025). Powering India’s solar future through household demand flexibility. Ember. https://ember-energy.org/app/uploads/2025/04/Policy-Paper-Powering-Indias-solar-future-through-household-demand-flexibility.pdf

Chicago

Shah, Ruchita. Powering India’s solar future through household demand flexibility. Ember, 2025. https://ember-energy.org/app/uploads/2025/04/Policy-Paper-Powering-Indias-solar-future-through-household-demand-flexibility.pdf.

Wikipedia

{{cite report |last1=Shah |first1=Ruchita |title=Powering India’s solar future through household demand flexibility |publisher=Ember |date=17 April 2025 |url=https://ember-energy.org/app/uploads/2025/04/Policy-Paper-Powering-Indias-solar-future-through-household-demand-flexibility.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{shah2025powering, author = {Shah, Ruchita}, title = {{Powering India’s solar future through household demand flexibility}}, institution = {Ember}, year = {2025}, month = apr, url = {https://ember-energy.org/app/uploads/2025/04/Policy-Paper-Powering-Indias-solar-future-through-household-demand-flexibility.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }