Quick Definition
Quick definition: Time of Day (TOD) tariff is an electricity pricing mechanism where rates vary based on the time of consumption, with higher rates during peak hours and lower rates during off-peak hours.
Table of Contents
- Understanding TOD Tariff
- India-Specific Context
- Practical Applications
- How Neufin can help?
- Related Terms
- FAQs
- Additional Resources
- Last Updated & Disclaimer
Understanding TOD Tariff
TOD tariff is a dynamic pricing system designed to encourage efficient electricity consumption. The day is typically divided into three periods:
- Peak hours (usually 6 PM – 10 PM): Highest rates
- Normal hours (6 AM – 6 PM): Standard rates
- Off-peak hours (10 PM – 6 AM): Lowest rates
India-Specific Context
In India, TOD tariffs are implemented differently across states. For instance:
- Maharashtra applies TOD charges for industrial consumers above 20 kW
- Delhi offers TOD benefits to commercial users with loads exceeding 100 kW
- Karnataka implements seasonal variations in TOD rates
Practical Applications
Here are three effective ways to save power costs under TOD tariff:
1. Load Shifting
Shift heavy power consumption activities to off-peak hours:
- Schedule production during night shifts
- Use storage systems to store energy during off-peak hours
- Program automated systems to operate during cheaper time slots
2. Peak Load Management
Implement strategies to reduce peak hour consumption:
- Install power factor correction equipment
- Use energy-efficient lighting systems
- Implement smart scheduling of heavy machinery
3. Energy Storage Solutions
Utilize storage technologies effectively:
- Install battery storage systems
- Use thermal storage for cooling needs
- Implement hybrid power systems
How Neufin can help?
Neufin’s energy experts helps businesses optimise their TOD tariff usage through customised renewable energy solutions. Basis on your TOD consumption, we build the right mix of solar, wind and battery based solution for maximum cost savings.
Related Terms
- Peak load pricing
- Demand response
- Smart metering
Frequently Asked Questions (FAQs)
What is the difference between TOD and TOU tariffs?
TOD tariffs are based on fixed time periods, while TOU tariffs can vary based on actual usage patterns and grid conditions.
How much can I save with TOD tariff optimization?
Businesses typically save 15-30% on electricity costs through effective TOD tariff management.
Is TOD tariff applicable for residential consumers?
Currently in India, TOD tariffs are primarily applicable to industrial and commercial consumers with specific load requirements.
Additional Resources
- Bureau of Energy Efficiency (BEE) guidelines
- State electricity regulatory commission websites
- Energy conservation building codes
Last updated: January 2025
Disclaimer: TOD tariff rates and timings may vary by state and electricity distribution company. Please consult your local electricity provider for specific details.
About the author
Neufin Energy
Neufin Energy delivers clean and low-cost energy to India's mid-market Commercial & Industrial businesses. We offer flexible, structured electricity contracts pan-India. Lumen OS - our energy helps businesses track and optimise the true cost of power (₹/kWh) and brings total visibility and control over how electricity is analysed, paid for, and audited. The result is lower power costs, cleaner energy, and easier compliance with clean energy targets.
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