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India Pushes Solar-Hour ToD Tariffs to Align Demand with Rising Renewable Supply

As India’s share of variable renewable energy—especially solar—continues to grow, several states are now introducing solar-hour Time of Day (ToD) tariffs to better manage demand and ease grid stress. States like Bihar, Gujarat, Madhya Pradesh, and Maharashtra will begin applying these tariffs to domestic consumers from April 1, 2025. This move is especially timely, as many of these states are projected to double their solar capacity by 2035.

Solar-hour ToD tariffs encourage consumers to use more electricity during peak solar generation hours when supply is abundant and cheaper. This not only helps stabilize the grid but also enables savings for consumers who do not have rooftop solar systems. However, for those with rooftop solar (RTS), the benefit may be limited since peak surcharges could still apply.

The success of this policy hinges on the rapid rollout of smart meters, which are essential to track and implement ToD pricing. As of now, only 10.8% of sanctioned smart meters have been deployed—highlighting the urgent need for infrastructure development.

Experts like Ember’s Ruchita Shah suggest that keeping ToD tariffs separate from RTS incentives will give consumers more flexibility, particularly those unable to install rooftop solar, empowering broader participation in India’s clean energy transition.