Electricity Rate per Unit in India: State-Wise Rate List 2026

Electricity bills are one of those monthly shocks no one prepares for. You switch on AC, run washing machine, and suddenly the bill comes like “surprise!”  So, what is the 1 unit electricity cost in India in 2026? How much is the 1 unit price electricity, and why is the electricity price per unit different in every state?

Let’s break it down simply with real numbers.

What Is 1 Unit of Electricity Costs?

First thing first. 1 unit electricity cost means 1 kilowatt-hour (kWh). If you use a 1,000-watt appliance for one hour, you consume 1 kWh electricity cost in India terms.

People search for 1 unit price, 1 unit price electricity, and electricity cost per kwh all the time. Basically, all mean the same thing, how much you pay for one unit of electricity.

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Electricity Price Per Unit in India (State-Wise List 2026)

Electricity in India is regulated by states, so electricity price per unit changes based on where you live. Below is a realistic slab-based domestic rate list.

 State-Wise Electricity Rates (Domestic, 2026)

State	Lowest Slab (₹/unit)	Highest Slab (₹/unit)	Typical 1 Unit Electricity Cost
Delhi	₹3.00 (0–200 units often free*)	₹ 8.00	₹3 – ₹8
Maharashtra	₹ 4.43	₹14.33+	₹5 – ₹14+
Karnataka	₹ 4.75	₹9.50+	₹5 – ₹9.5
Tamil Nadu	₹ 4.95	₹ 11.05	₹5 – ₹11
Gujarat	₹ 3.60	₹ 7.30	₹3.6 – ₹7.3
Uttar Pradesh	₹ 3.35	₹ 8.00	₹3.3 – ₹8
Kerala	₹ 3.80	₹8.50+	₹4 – ₹8.5

Actual electricity price per unit depends on slab, fixed charges, fuel surcharge, and taxes.

Other States Electricity Cost Summary (2026)

• Rajasthan: ₹4.75 – ₹7.95 per unit
• Punjab: ₹4.10 – ₹7.50 per unit
• Haryana: ₹2.20 – ₹7.10 per unit
• Bihar: ₹3.75 – ₹8.00 per unit
• Madhya Pradesh: ₹3.50 – ₹7.80 per unit
• West Bengal: ₹3.30 – ₹8.50 per unit
• Telangana: ₹3.60 – ₹7.50 per unit
• Andhra Pradesh: ₹3.80 – ₹8.20 per unit
• Odisha: ₹3.00 – ₹6.80 per unit
• Assam: ₹4.20 – ₹7.90 per unit

On average, the cost of electricity per unit in India ranges from ₹3 to ₹14+, depending on state subsidies, slab consumption, and electricity duty.

Quick Tip

Using less than 200 units per month can drastically reduce your electricity price per unit, especially in states like Delhi, Punjab, and Karnataka due to subsidies.

Electricity Per Unit Rate in Delhi (Special Case)

Everyone Googles electricity per unit rate in Delhi because Delhi offers heavy subsidies.

• First 200 units: Often free
• 201–400 units: Subsidized rate
• Above 400 units: Around ₹6–₹8 per unit

So electricity per unit rate in Delhi is among the cheapest for low consumers.

Why Does 1 Unit Electricity Cost Vary So Much?

You may wonder why 1 unit electricity cost in Maharashtra is ₹14 while 1 unit price in Haryana can be ₹2–₹7.

Main reasons are:

1) Power Generation Source

States with hydro or coal plants produce cheaper power than states buying from the grid.

2) Subsidies

Governments reduce electricity price per unit for voters (yes, politics also involved).

3) Theft & Losses

States with high power theft increase electricity cost per kwh to recover losses.

4) Infrastructure

Old wiring, transformers, and inefficiency = higher cost of electricity per unit.

How Is Your Electricity Bill Calculated in India?

People think bill = Units × Rate. But nope, it’s more complex.

Total Bill Formula

Total Bill = (Units × Slab Rate) + Fixed Charges + Surcharge + Electricity Duty

Breakdown:

• Slab Rate: Different 1 unit price electricity for different slabs
• Fixed Charges: Based on sanctioned load (2kW, 5kW, etc.)
• Taxes: Electricity duty, regulatory charges

So your 1 kwh electricity cost in India is just one part of the bill.

Domestic vs Commercial Electricity Price Per Unit

Commercial users always pay more. Why?

Because homes and farmers get subsidies. Shops, offices, and malls pay extra.

Typical Commercial Electricity Price Per Unit (2026)

• ₹8 to ₹16 per unit (even higher in metros)

So electricity price per unit for businesses is much higher than home users.

Average 1 Unit Electricity Cost in India (2026)

Let’s simplify.

• Low consumption homes: ₹2 – ₹5 per unit
• Middle consumption homes: ₹4 – ₹9 per unit
• High consumption homes: ₹7 – ₹15+ per unit

So 1 kwh electricity cost in India depends on how much you use. More usage means higher 1 unit price electricity.

Real-Life Example: Monthly Bill Calculation

Let’s say you used 300 units.

• First 100 units @ ₹3
• Next 100 units @ ₹5
• Next 100 units @ ₹7

Plus fixed charges and tax. So cost of electricity per unit increases with usage.

Common Myths About Electricity Price Per Unit

Myth 1: 1 unit price is same across India
Nope, electricity price per unit is state-controlled.

Myth 2: Bill is only units × rate
Fixed charges matter a LOT.

Myth 3: Commercial and residential rates are same
Commercial electricity cost per kwh is way higher.

Future Trend: Will Electricity Get Cheaper?

Honestly? Mixed.

• Solar power is reducing 1 unit electricity cost
• EVs and AC demand are increasing electricity price per unit
• Subsidies may change with governments

So 1 kwh electricity cost in India might stay stable but slabs may shift.

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Why Property Buyers Should Care About Electricity Rates

If you are buying property, electricity cost matters.

Electricity impacts:

• Monthly living cost
• Rental yield
• Tenant demand
• Smart home investment decisions

High electricity price per unit areas push buyers towards solar-enabled homes

Electricity Cost Per Unit in India (2026)

Category	Typical Rate
Average domestic rate	₹3–₹10 per unit
High slab metro cities	₹10–₹16 per unit
Commercial rate	₹8–₹16 per unit
Cheapest states	Haryana, UP, Gujarat
Highest states	Maharashtra, Tamil Nadu

Final Thoughts 

Electricity is no longer cheap in India, and electricity price per unit is becoming a serious household expense. The 1 unit electricity cost depends on your state, slab, and how power-hungry your lifestyle is. With ACs, EV chargers, and smart homes rising, 1 kwh electricity cost in India will stay in focus for buyers and renters.

If you’re planning a property purchase, always check electricity cost per kwh in that city. It directly impacts monthly expenses and rental demand. And yeah, solar panels are no longer luxury, they’re slowly becoming necessity.

Cost of Electricity per Unit in India FAQs: