1. Telescopic Tariff Slab Calculation
Electricity distribution companies (DISCOMs) across Indian states follow a telescopic slab tariff model. Under this structure, your monthly electricity usage (kWh) is divided into progressive consumption brackets (such as 0–100 units, 101–200 units, 201–300 units, and 300+ units). Energy consumed in lower slabs is billed at cheaper base rates, while higher consumption tiers incur progressively higher per-unit rates to promote energy conservation.
2. Sanctioned Load & Fixed Demand Charges
Apart from energy charges per unit, every electricity connection incurs a mandatory monthly Fixed Charge (Demand Fee). This charge is calculated based on your approved Sanctioned Load (measured in kW) and your selected tariff category (Domestic, Commercial, Industrial, or Agriculture). The calculator multiplies your connection load by the official state DISCOM fixed rate to determine your monthly fixed charge.
3. State Electricity Duty & Statutory Taxes
State governments impose statutory taxes known as Electricity Duty on power bills. Depending on the state regulatory commission order (e.g., UPPCL in Uttar Pradesh, MSEDCL in Maharashtra, BESCOM in Karnataka), electricity duty is computed as a fixed percentage or flat rate applied over the combined total of energy charges and fixed demand charges.
4. Rooftop Solar Net Metering Deduction
For consumers with grid-connected rooftop solar PV systems, Net Metering allows solar electricity generated at home to be credited against grid electricity consumption. The calculator deducts monthly solar generation (kWh) directly from your total gross consumption to arrive at your Net Billed Units. Energy charges are then evaluated exclusively on these net units, maximizing your monthly monetary savings.
5. Government Subsidies & Final Bill Estimation
Applicable state government power subsidies (such as free unit allowances or slab concessions) are automatically factored into the total bill. By combining net energy charges, fixed demand fees, electricity duty, and deducting eligible government subsidies, our online calculator generates an instant, accurate, itemized electricity bill estimate.