⚡ TL;DR — 30-second version
- There is no single "per unit" price in India. Electricity is billed in rising slabs — the more you use in a month, the higher the rate on those extra units.
- The national average domestic rate is about ₹5.5 per unit, but entry slabs start near ₹2.20–₹3.00 (Haryana, Delhi) while top slabs hit ₹8–₹14 (Tamil Nadu, Karnataka, Maharashtra).
- Your bill is four charges, not one: energy charge (slab rate × units) + a monthly fixed charge + a fuel surcharge (FPPCA) + electricity duty. The last three are why the bill is always more than rate × units.
Ask anyone "what's your electricity rate per unit?" and you'll get a confident wrong answer.
People quote one number — ₹6, ₹8 — as if it's fixed. It isn't. India bills electricity in
slabs, and on top of the slab there are three more line items most people never read.
So instead of pretending there's a single price, let's decode the actual bill: how slabs climb,
what the hidden charges are, and how the states really compare in 2026.
First, the big myth: there's no single "per unit" rate
Domestic electricity is billed in telescopic slabs. As your monthly units go up,
later units cost more — but only the units inside each slab are charged at that slab's rate,
not your whole bill. Delhi is a clean example of the ladder:
Use 180 units and you're paying the low first-slab rate on all of them. Cross 400 units — running
two ACs through a north-Indian summer — and those extra units jump into a much pricier band.
That's why your April bill and your June bill can feel like different tariffs entirely. They are.
Electricity rate per unit, state by state (2026)
Because of slabs, the fairest way to compare states isn't one number — it's the range,
from the cheapest entry slab to the priciest top slab. The chart below shows that low-to-high band
for major states. Hover or tap any bar for the exact range.
₹2.20
Lowest entry slab in India
🌾 Haryana
₹14.33
Highest top slab in India
🏙 Maharashtra (heavy use)
~₹5.5
National average domestic rate
🇮🇳 Across states, per unit
₹0
First 200 units in Delhi
Subsidy makes low use nearly free
The four charges hiding on every bill
This is the part that catches everyone. Your bill isn't just units × rate. There are four separate
components, and three of them are easy to miss:
1. Energy charge — the slab rate × your units
The one everybody knows. This is your consumption run through the slab ladder above. For most
households it's the biggest single line — but rarely the whole story.
2. Fixed charge — you pay it even at zero units
A monthly charge based on your sanctioned load (how many kilowatts your connection supports),
not how much you use. It runs from about ₹40 a month in states like Kerala to
₹100–₹130 in Maharashtra. Add a second AC and ask for a load upgrade, and this quietly rises.
3. Fuel surcharge (FPPCA) — the variable one
FPPCA — Fuel and Power Purchase Cost Adjustment — lets your DISCOM pass on swings in the cost of
coal, gas and bought-in power. It's revised periodically and typically adds
₹0.25 to ₹0.80 per unit. It's the reason two identical-usage bills can differ
across quarters, and it's almost never in the headline "rate."
4. Electricity duty / tax — the state's cut
On top of everything, states levy an electricity duty (a percentage or per-unit tax). It varies
widely and goes straight to the state government. Stack fixed charge + FPPCA + duty together and
they can add 15–30% over your basic energy charge.
📌
Why "cheap" states can still bill high: a low entry slab (or free units) helps only
light users. Once you cross into upper slabs and stack fixed charges, FPPCA and duty, two households
in the same state paying "the same rate" can have very different bills.
Why do states differ so much?
Three big reasons. First, subsidies — states like Delhi (200 free units for many
households) and Tamil Nadu keep low-slab and agricultural power cheap, funded from the state budget.
Second, the power mix and DISCOM health — a distribution company with high losses or
costly power purchases charges more. Third, cross-subsidy — commercial and industrial
users are charged extra so domestic and farm users can pay less, and the balance differs by state.
State-wise slab range table (2026)
Entry slab to top slab, per unit, for major states. These are energy-charge slab rates only — your
final bill also carries fixed charge, FPPCA and duty as explained above.
How to actually lower your electricity bill
Watch the slab you're crossing into
The single most useful habit: know roughly where your slab jumps. If you're at 390 units and the
next band is much pricier past 400, small cuts (a fan instead of AC for an hour, an LED swap) keep
your marginal units in the cheaper slab. It's the extra units that hurt, not the base.
Right-size your sanctioned load
Fixed charges scale with sanctioned load. If your load was set high years ago but your usage is
modest, a load review with your DISCOM can trim the fixed charge you pay every single month,
regardless of usage.
Rooftop solar changes the maths entirely
For high-consumption homes stuck in top slabs, rooftop solar with net metering directly shaves the
most expensive units first. With central and many state subsidies in 2026, payback periods have
fallen to roughly 4–6 years in high-tariff states — after which those top-slab units are essentially free.
Frequently Asked Questions
What is the electricity rate per unit in India in 2026?
+
There's no single rate — India uses slab pricing, so the per-unit charge rises as you use more.
The national average domestic rate is roughly ₹5.5 per unit, but entry slabs start as low as
₹2.20–₹3.00 in states like Haryana and Delhi, while top slabs reach ₹8–₹14 in Tamil Nadu,
Karnataka and Maharashtra. Your actual rate depends on your state, your monthly slab, plus fixed
charges, fuel surcharge and electricity duty.
Which state has the cheapest and most expensive electricity in India?
+
Among major states in 2026, Haryana has one of the lowest entry slabs at about ₹2.20 per unit, and
several states keep low usage cheap through subsidies. Maharashtra has the highest top slab, around
₹14.33 per unit for heavy users, followed by Tamil Nadu and Karnataka. Because of slabs and
subsidies, a state can be cheap for light use but expensive for heavy use.
Why is my electricity bill higher than rate multiplied by units?
+
Because the energy charge (rate × units) is only one part. You also pay a monthly fixed charge
(roughly ₹40 to ₹130 depending on state and load), a variable fuel surcharge (FPPCA) that can add
₹0.25 to ₹0.80 per unit, and electricity duty levied by the state. Together these can add 15–30%
on top of the basic energy charge.
How do electricity slabs work in India?
+
Domestic electricity is billed in telescopic slabs. As monthly consumption rises, later units are
charged at higher rates. In Delhi, for example, the first 200 units are around ₹3 per unit, 201–400
around ₹4.50, and above 800 around ₹8. Crossing into a higher slab raises the rate only on the
extra units, not your entire bill.
What is FPPCA or fuel surcharge on an electricity bill?
+
FPPCA (Fuel and Power Purchase Cost Adjustment) is a variable surcharge that lets your DISCOM pass
on changes in the cost of coal, gas and purchased power. It's revised periodically and typically
adds around ₹0.25 to ₹0.80 per unit. It's why two bills for the same units can differ from one
quarter to the next.
Data note: Slab rates shown are indicative 2026 domestic energy-charge rates,
cross-verified across public tariff aggregators (PropertyGeek, NoBroker, DesiUtility) and based on
State Electricity Regulatory Commission (SERC) tariff orders, with the national average drawn from
the Government of India Open Data platform. Electricity is billed in slabs and your final bill also
includes fixed charges, fuel surcharge (FPPCA) and electricity duty, all of which vary by state and
DISCOM. This article is for general information only — check your own DISCOM's current tariff order
or your latest bill for exact figures.
This post does not contain affiliate links. Future posts may include clearly marked affiliate links
to relevant products (energy monitors, rooftop-solar resources).
📚 Sources & References
- Open Government Data (OGD) Platform India, data.gov.in — State-wise average rate of electricity for domestic and industrial consumers. data.gov.in
- PropertyGeek — Electricity Rate Per Unit in India: State-wise Rate List 2026. propertygeek.in — electricity rate per unit
- NoBroker — Electricity Rate Per Unit in India: State Wise Rate List (2026). nobroker.in — electricity rate per unit
- DesiUtility — Electricity Rate Per Unit in India 2026: State-Wise Tariff Comparison. desiutility.com — tariffs
- State Electricity Regulatory Commissions (SERC) — domestic retail tariff orders, FY 2025–26 (e.g. DERC, MERC, TNERC, KERC, HERC).
- Central Electricity Authority / Ministry of Power — context on tariffs, fixed charges and fuel surcharge (FPPCA). cea.nic.in
Slab ranges were cross-checked across PropertyGeek and NoBroker (which agree closely) and framed against the national average from data.gov.in and DesiUtility. Tariffs are set by each state's SERC and revised through the year; fixed charges, FPPCA and electricity duty are additional and vary by state and DISCOM. Always confirm against your own bill or your DISCOM's current tariff order.