Karnataka Data Center Power Tariff 2026: Complete Breakdown
BESCOM tariff details for Karnataka data centers, including ₹1/unit night rebate, industrial classification benefits, and Bengaluru market dynamics.
Karnataka, home to India's tech capital Bengaluru, offers data center operators a compelling mix of competitive tariffs, strong night-hour incentives, and favorable industrial classification. KERC's tariff structure rewards operators who optimize for off-peak consumption.
Quick Reference: Karnataka HT Industrial Tariff
| Component | Rate (FY 2025-26) |
|---|---|
| Base Energy Rate | ₹6.90/kWh |
| Demand Charge | ₹350/kVA/month |
| Fuel Adjustment Charge | ₹0.10/unit |
| Electricity Duty | 6% |
| Power Factor Threshold | 0.85 (most lenient in India) |
Time-of-Day (ToD) Tariff Structure
Karnataka's standout feature is its absolute rebate for night consumption—₹1/unit off the base rate, rather than a percentage discount.
| Time Slot | Hours | Adjustment |
|---|---|---|
| Night Incentive | 22:00 - 06:00 | -₹1.00/unit (Effective: ₹5.90/kWh) |
| Morning Peak | 06:00 - 09:00 | +20% Surcharge (₹8.28/kWh) |
| Normal | 09:00 - 18:00 | Base Rate (₹6.90/kWh) |
| Evening Peak | 18:00 - 22:00 | +20% Surcharge (₹8.28/kWh) |
Industrial Classification Benefit
Karnataka explicitly classifies data centers under the HT Industrial category (not Commercial), providing:
- Lower base energy rates (Commercial would be ₹8.50+/kWh)
- Industrial power factor threshold (0.85 vs 0.90)
- Eligibility for industrial incentive schemes
This classification is formalized in KERC's tariff order—unlike some states where data centers must negotiate classification on a case-by-case basis.
Bengaluru Market Dynamics
While Karnataka offers attractive tariffs, Bengaluru-specific challenges include:
- Land scarcity: Premium locations in Whitefield, Electronic City command high prices
- Water availability: Bengaluru's water crisis affects cooling infrastructure planning
- Grid reliability: Some industrial areas experience more outages than Mumbai/Chennai
- Fiber connectivity: Strong domestic connectivity, growing international routes
Peak Hour Optimization
With 6 hours of peak tariff daily (06:00-09:00 and 18:00-22:00) at +20% surcharge, strategies to minimize peak costs:
- Cooling pre-charge: Run chillers harder during 04:00-06:00 night window
- Workload scheduling: Defer non-critical batch jobs to post-22:00
- Battery arbitrage: Charge during night, discharge during peak (if economics support)
- Tenant incentives: Offer lower rates for off-peak consumption commitments
Power Factor Advantage
Karnataka's 0.85 power factor threshold (vs 0.90 in other states) provides more flexibility:
- Lower capacitor bank requirements
- More tolerance for variable IT loads
- Reduced penalty exposure during UPS operations
However, maintaining 0.90+ PF is still recommended for operational efficiency.
Renewable Energy Options
Karnataka is a leader in solar deployment, offering:
- Open access solar: Competitive wheeling charges
- Captive solar: Land available in peripheral areas
- Rooftop solar: Net metering available for smaller installations
- Wind power: Group captive arrangements available
Sample Cost Comparison
100 MWh monthly consumption, 30% peak, 40% normal, 30% off-peak:
| State | Energy Cost | Demand (200 kVA) | Monthly Total |
|---|---|---|---|
| Karnataka | ₹6,77,400 | ₹70,000 | ₹7,47,400 |
| Maharashtra | ₹8,20,000 | ₹80,000 | ₹9,00,000 |
| Tamil Nadu | ₹7,50,000 | ₹1,21,600 | ₹8,71,600 |
Note: Simplified comparison excluding taxes and fuel charges.
Try Our Calculator
Use our ToD Power Tariff Calculator to estimate your Karnataka data center electricity costs with your specific consumption pattern.
Sources
- KERC Tariff Order FY 2025-26
- BESCOM HT Industrial Schedule
- Karnataka Electricity Duty Act
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