Powering India’s solar future through household demand flexibility

The policy brief examines the introduction of solar-hour time of day (ToD) tariffs for Indian households starting April 1, 2025. It assesses how these tariffs, which offer rebates during solar generation hours and surcharges during peak hours, affect non-rooftop solar (non-RTS) and rooftop solar (RTS) consumers across several states. The analysis finds that while non-RTS consumers may see bill reductions of 1-4%, RTS consumers may face longer payback periods due to peak surcharges. The author emphasizes that successful implementation requires accelerated smart meter deployment and state-specific, seasonal tariff designs.

• India's electricity demand and peak demand are projected to grow significantly by 2031-32, with domestic consumers expected to account for approximately 31% of the total electricity requirement.
• The Electricity (Rights of Consumers) Amendment Rules, 2023 introduces 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 should be at least 1.10 times the normal tariff, while solar hour tariffs should be at least 20% lower.
• As of April 1, 2025, Bihar, Gujarat, Madhya Pradesh, and Maharashtra have included domestic consumers in the solar-hour ToD structure, while Karnataka has deferred implementation due to a lack of surplus solar energy.
• Non-rooftop solar (non-RTS) consumers may experience electricity bill reductions between 1% and 4% depending on the state: Bihar (3-4%), Maharashtra (2-2.5%), Madhya Pradesh (1-2%), and Gujarat (1-2%).
• Rooftop solar (RTS) consumers derive limited benefit from solar-hour rebates because their systems already offset daytime demand, and they may face increased costs and longer system payback periods in states like Bihar and Madhya Pradesh where peak surcharges apply.
• The implementation of ToD tariffs is severely hindered by a lack of infrastructure; as of March 2025, only 10.8% of sanctioned smart consumer meters have been installed in India.

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} }