Trystan Casey
India's electricity prices have been a pressing issue for its citizens, with many seeking ways to reduce their monthly bills. In 2018, India's electricity coverage was at 82.53%, with a notable reliance on fossil fuels, accounting for 81.9% of energy consumption, while renewable energy sources contributed 15.3%. With the recent electrification of India's last village, the focus on affordable electricity has intensified. While the Delhi government has claimed to offer the cheapest electricity tariffs, with free power for up to 200 units of consumption, states like Goa, Arunachal Pradesh, Jammu and Kashmir, and Ladakh offer lower tariff rates for similar levels of consumption. Additionally, states like Chhattisgarh, Punjab, Bihar, and Haryana have provided subsidies to maintain low electricity tariffs. The varying electricity prices across India's states and union territories present a complex picture of energy affordability and accessibility in the country.
| Characteristics | Values |
|---|---|
| State with the highest power bills | Maharashtra |
| State with the most progressive tariff structure | Delhi |
| Cities with the cheapest power | Jamshedpur, Jharkhand, Gujarat, Chandigarh |
| State with the lowest electricity coverage | Mizoram |
| States with lower power tariffs than Delhi | Goa, Arunachal Pradesh, Jammu and Kashmir, Ladakh |
| States with low electricity tariff due to subsidies | Chhattisgarh, Punjab, Bihar, Haryana |
| States with free electricity below 200 units | Karnataka |
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What You'll Learn
Delhi's progressive tariff structure
Delhi has the most progressive tariff structure in India, incentivising power saving and discouraging excessive electricity usage. The Delhi government has been subsidising power bills, offering free electricity to consumers using up to 200 units of electricity per month. This initiative was announced by Delhi Chief Minister Arvind Kejriwal, providing relief to the common man.
The tariff rates in Delhi are as follows: Rs 3 per unit for up to 200 units, Rs 4.5 per unit for 201-400 units, Rs 6.5 per unit for 400-800 units, and Rs 8 per unit for consumption beyond 1,200 units. This structure ensures that those with low electricity consumption pay significantly less than those with higher consumption.
However, it is important to note that some other states in India, such as Goa, Arunachal Pradesh, and the Union Territories of Jammu and Kashmir, Ladakh, and Chandigarh, have lower tariff rates than Delhi for up to 400 units of consumption, which is the range generally used by most households.
The move towards free power in Delhi has been controversial, with concerns about its impact on the power sector and the overall economy. Despite this, Delhi's progressive tariff structure stands out as a notable effort to encourage energy conservation and provide relief to lower-income consumers.
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Goa, Arunachal Pradesh, Jammu and Kashmir's lower tariffs
While the Delhi government has claimed to have the cheapest electricity tariffs in the country, data shows that some states have lower tariff rates than the national capital. Goa, Arunachal Pradesh, and the Union Territories of Jammu and Kashmir and Ladakh offer lower electricity tariffs than Delhi for up to 400 units of consumption, which is the range generally used by most households.
In Delhi, the tariff structure incentivizes power saving, with rates set by the Delhi Electricity Regulatory Commission (DERC): Rs 3 per unit for up to 200 units, and Rs 4.5 per unit for 201-400 units. This rate has been stagnant for three years. In the financial year 2019-20, the Delhi government provided subsidies, making electricity free for consumers using up to 200 units of electricity per month.
Goa has a lower electricity tariff than Delhi, with rates of Rs 1.4 per unit for 1-100 units and Rs 2.1 per unit for 101-200 units, resulting in an average rate of Rs 1.75 per unit up to 200 units. In Arunachal Pradesh, the tariff rates are higher, with people below the poverty line paying Rs 2.65 per unit, and the general tariff set at Rs 4 per unit.
The Union Territories of Jammu and Kashmir and Ladakh also have lower tariffs than Delhi. The power tariff in these regions is Rs 1.54 per unit for 1-100 units and Rs 2 per unit for 101-200 units. For 201-400 units, the tariff increases to Rs 3 per unit, charged by the Jammu Kashmir Electricity Regulatory Commission.
While Delhi's tariff structure is progressive and incentivizes low consumption, states like Goa, Arunachal Pradesh, and the Union Territories of Jammu and Kashmir offer even lower tariffs for their residents, making electricity more affordable for households in these regions.
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Maharashtra's highest power bills
India's cheapest electricity rates can be found in the state of Goa, Arunachal Pradesh, and the Union Territories of Jammu and Kashmir and Ladakh. In Arunachal Pradesh, for example, those under the 'below poverty line' category pay Rs 2.65 per unit and the general tariff is Rs 4 per unit. In Jammu and Kashmir and Ladakh, the power tariff for 1-100 units is Rs 1.54 per unit and Rs 2 per unit for 101-200 units.
In contrast, Maharashtra has the highest power bills across all categories of consumption. The Maharashtra State Electricity Board (MSEBD), also known as the Maharashtra State Electricity Distribution Company Limited (MSEDCL), is responsible for regulating and distributing electricity across the state. MSEDCL provides electricity to 28.4 million users across different types of households.
To calculate the electricity bill for domestic consumption in Maharashtra, one must first determine the total number of units consumed in the billing period. Next, one must identify the applicable tariff slab and per-unit charges. The number of units in each slab is then multiplied by the corresponding per-unit rate, and any fixed charges are added. Electricity duty is calculated by multiplying the total units consumed by the electricity duty rate, and customer charges are included based on the consumption slab. Finally, all charges are summed up to arrive at the total bill amount.
Some residents of Maharashtra have reported unusually high electricity bills, with some bills spiking to 7,000 rupees per month. This has sparked discussions on forums and social media platforms, with people comparing their electricity usage and bills.
While Maharashtra has the highest power bills, it is important to note that the cost of electricity in India varies across different states and union territories, with some states offering subsidies and progressive tariff structures to incentivize power saving.
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Mizoram's cheap electricity
Electricity in India can be expensive, with many people trying to reduce their electricity bills. In 2018, it was reported that consumers in Maharashtra had the highest power bills across all categories of consumption.
Mizoram is one of the cheapest places for electricity in India, with a cost of Rs 3.70 per KWH of domestic consumption. The Power & Electricity Department of Mizoram was established in 1975 and is responsible for the state's electricity generation, transmission, and distribution.
To calculate your electricity bill in Mizoram, you need to determine your consumption slab and apply the relevant tariff rates. For example, for domestic consumers, there are fixed charges of Rs. 10/kW/month, as well as an electricity duty of 0.06 paise per unit. The total bill is calculated by adding the energy cost, duty, customer charges, and fixed charges.
You can pay your electricity bills in Mizoram through the Bajaj Pay app, where you can select 'ELECTRICITY' under 'UTILITIES AND BILLS' and enter your consumer number. Alternatively, you can check your bill on the MSPDCL or TSNPDCL website, depending on your region.
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India's clean energy targets
India's energy demand is expected to grow more than that of any other country in the coming decades due to its large population and high economic growth. In recognition of this, the country has set ambitious clean energy targets.
In 2018, India's Central Electricity Authority set a target of producing 50% of its total electricity from non-fossil fuel sources by 2030, in line with the Paris Agreement. This target was achieved in 2025, five years ahead of schedule, with renewable energy accounting for 184.6 GW of India's energy mix as of June 2025.
India has also set a target of producing 175 GW of renewable energy by 2022, which it missed, and 500 GW by 2030. As of October 2024, India had 92.12 GW of solar energy operational, with 48.21 GW at various stages of implementation and 25.64 GW under bidding. India is a global leader in solar energy, with 3 of the world's top 5 largest solar parks as of 2020, and wind power manufacturing, exporting its models to Europe and the United States.
To achieve its clean energy targets, India is focusing on solar and wind energy, as well as battery storage, circularity in solar and wind components, and green hydrogen. The country is also endowed with vast potential for pumped hydroelectric energy storage, which can be used to convert non-dispatchable renewable energy sources into base/peak load power supply.
Despite its progress, India faces challenges in its clean energy transition. These include the sharp increase in commodity prices, energy security risks, the financial health of electricity distribution companies, and air pollution. However, India's clean energy transition is already well underway and is expected to benefit the entire world by providing a blueprint for other developing economies to avoid carbon-intensive approaches.
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Frequently asked questions
In 2019, Delhi was considered to have the cheapest electricity in India. The Delhi government announced that it would not charge any fee on power bills of up to 200 units. However, other states such as Goa, Arunachal Pradesh, Jammu and Kashmir, and Ladakh have lower tariff rates than Delhi for up to 400 units of consumption.
Maharashtra has the highest power bills across all categories of consumption.
In 2018, the daily average spot electricity price was close to Rs 5 per unit.
Delhi has the most progressive tariff structure, rewarding low electricity consumption while charging higher rates for higher consumption.
