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Earth Energy Log
markets

Time-of-Day Tariff (ToD)

Also known as: ToD, Time-of-Use tariff, TOU

An electricity tariff that charges different rates by time block, pricing peak hours higher and solar-surplus hours lower to shift consumption.

A time-of-day tariff replaces a flat per-unit rate with time-differentiated blocks, typically a discounted solar window during the day, a standard off-peak rate overnight, and a premium evening peak. India's rules require ToD tariffs for commercial and industrial consumers and are extending them to larger residential consumers, with the solar-hours block commonly discounted around 20% and the peak block surcharged by a similar margin. The policy intent is twofold: shift flexible load into the solar surplus window, and create a price signal that makes behind-the-meter storage economic by widening the arbitrage spread between day and evening. For rooftop solar owners the effect is significant, since ToD changes the value of self-consumption relative to export and is often the difference between a battery paying back and not.

Related terms

  • Demand Response (DR) Deliberate reduction or shifting of electricity consumption in response to a gri
  • Net metering Billing arrangement where solar customers receive bill credits for grid-exported
  • Behind-the-Meter (BTM) Generation or storage installed on the customer's side of the utility revenue me
  • DISCOM Electricity distribution utility that buys power wholesale and sells to end cons