The Indian Power Ministry announced new rules in the country on Friday that will reduce electricity prices by up to 20% during the day but raise them up to 20% during peak night hours.
The policy's aim to encourage consumers to schedule electricity usage for washing clothes, cooking, and other purposes during the daytime or solar hours to reduce consumption during the night.
It looks to prioritize solar generation during the day over fossil fuel provision at night.
"During non-solar hours, thermal and hydropower as well as gas-based capacity is used - their costs are higher than that of solar power - this will be reflected in time-of-day tariff," Power Minister R. K. Singh said in a statement.
The 'Time of the Day' (ToD) tariff will come into effect from April 2024 for commercial and industrial consumers and a year later for most other consumers, except those in the agricultural sector.