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Your most expensive unit: how TNEB bills really work, and where solar saves most

Your average cost per unit hides the number that matters. Solar removes your most expensive units first, so that is the unit to price it against.

Bills & solar3 min readLast reviewed
+₹478what the 501st unit adds to a home bill
₹7.48saved per solar unit at 600 units, against a ₹4.80 average
~3×value of a business solar unit used on site vs exported

The idea in one line

Tamil Nadu bills are telescopic: each slab has its own rate, and the units at the top of your bill are the dearest. A rooftop system does not shave an average unit off your bill. It takes away the last units, the ones at the highest rate.

Homes: the 500-unit cliff

For a two-month domestic bill in 2026, the first 200 units are free if you use 500 or less. Then 201–400 units cost ₹4.70 and 401–500 cost ₹6.30. Cross 500 and two things happen at once: only 100 units stay free, and the slabs rise to ₹8.40, ₹9.45, ₹10.50 and ₹11.55.

The price ladder
₹ per unit · 2-month home bill
600 units: bill ₹2,880. The next unit costs ₹9.45.
Many family homes sit right at the cliff: 500 units costs ₹1,570, 501 units costs ₹2,048.40, because 100 of the 200 free units disappear.

Take a home using 600 units. The bill is ₹2,880, an average of ₹4.80 a unit. Now let a 2.5 kW system supply 360 of those units during the day. The grid share falls to 240 units, back under the cliff with 200 free units, and that part of the bill drops to ₹188.

One home, two bills
600 units · 2-month bill
Today
₹2,880
  • 300 units × ₹4.70₹1,410
  • 100 units × ₹6.30₹630
  • 100 units × ₹8.40₹840
With 2.5 kW solar
₹188
  • 360 units from the roof₹0
  • 240 from grid₹188
₹7.48saved by each solar unit, because solar removes the ₹8.40 and ₹6.30 units first and brings back the 200 free units. The bill's average is only ₹4.80.
Before any export credit. Figures from the 2026 domestic tariff, computed with the Goggles Energy TNEB calculator.

Check your own number: put your units or rupee amount into the TNEB bill calculator. It shows each slab, the old-versus-new rule and what solar saves.

Businesses: a unit used is worth three exported

Commercial and industrial (C&I) consumers pay a flat energy rate, so every daytime unit solar replaces is worth that full rate: about ₹10.45 for LT commercial, ₹8.25 for LT industrial and ₹7.50 for HT, which also pays ₹608 per kVA of demand and 25% extra in the 6–10 AM and 6–10 PM peaks.

An exported unit is different. Under net feed-in it earns ₹3.10–3.61, and a network charge of ₹1.04–1.59 on generation (currently under litigation) can cut that further.

What one solar unit is worth
₹ per kWh · businesses
Used in a shop or office (LT-V)₹10.45
Used in a small factory (LT-IIIB)₹8.25
Used in an HT factory₹7.50+25% at 6–10 AM / PM peaks
Exported to the grid (11–150 kW)₹3.37before any network charge
A unit used on site is worth 2–3× a unit exported.
About ₹1,16,904 a month in savings and credits.
Rates effective 1 July 2025 (TNERC Order 6 of 2025); feed-in tariff from the 2021 generic order. The ₹1.04–1.59 network charge on generation is under litigation.

So size a C&I plant to daytime load, not to the roof. A 100 kWp plant on a shop makes about 12,000 units a month. If 90% is used on site it is worth about ₹1.17 lakh a month; if only half is, about ₹83,000. Same panels, about 29% less value.

Send us your bill. We'll find your most expensive unit.

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Or email your bill to enquiry@gogglesenergy.com

What to do

  1. Find your marginal rate. Homes: note whether you sit near 500 units. Businesses: your tariff category and how much you use in daylight.
  2. Size to self-consumption. Every unit used on site is worth two to three times a unit exported.
  3. Get it checked. Send one recent bill; we will model it against your roof and load.

FAQ

What is the TNEB bill for 600 units?

Per Goggles Energy's TNEB bill calculator, about ₹2,880 in energy charges for a two-month bill: 100 units free, 300 at ₹4.70, 100 at ₹6.30 and 100 at ₹8.40.

Why does crossing 500 units cost so much?

Above 500 units only 100 units are free instead of 200, and higher slabs apply, so the 501st unit adds about ₹478.

Should a factory size solar to its roof?

No. Size it to daytime load. A self-consumed unit saves ₹7.50–10.45; an exported unit earns about ₹3.10–3.61, less any network charge.

Sources: TNERC Tariff Order No. 6 of 2025 (effective 1 July 2025); G.O. (Ms) No. 50, May 2026 (200 free units); TNERC generic tariff order, 2021 (feed-in); Madras High Court proceedings on rooftop network charges, 2024–25. Bill figures computed with Goggles Energy's TNEB calculator; C&I figures indicative.

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