Brewing Your Electricity Bill: Why kVAh Billing Matters
From July 2025, Maharashtra's electricity billing is changing forever. Here's everything you need to know about the shift from kWh to kVAh billing and how to protect your business from inflated electricity bills.
The Regulatory Game-Changer
Starting July 2025, the Maharashtra Electricity Regulatory Commission (MERC) has officially mandated a fundamental shift in how electricity bills are calculated.
Under the new Multi-Year Tariff (MYT) Order for FY 2025–30, all non-residential Low Tension (LT) consumers with connected load exceeding 20 kW will be billed based on kVAh consumption instead of the traditional kWh billing.
A Simple Way to Understand it
Key takeaway: Higher power factor → kVArh reduces → kVAh nearly equals kWh → lower bill.
Why was kVAh Billing Introduced?
Encourages fair billing: you pay for both useful and non-useful energy
Distributes network burden fairly and improves grid stability. States like Delhi, AP, Gujarat have adopted similar methods.
Ensures energy efficiency and better utilization of infrastructure.
Impact on Your Business: The Numbers Don't Lie
The financial impact of kVAh billing directly correlates with your facility's power factor. Here's what this means:
Power Factor Scenarios and Bill Impact
1.00 (Perfect)
1.00x
0%
No Impact
0.99 (Excellent)
1.01x
1%
Minimal
095 (Good)
1.05x
5%
Noticeable
0.90 (Fair)
1.11x
11%
Significant
0.85 (Poor)
1.18x
18%
Severe
0.80 (Very Poor)
1.25x
25%
Critical
Real-World Example
A MSME unit with monthly electricity consumption of 50,000 kWh at ₹8/kWh:
Traditional Bill annually: ₹4,00,000
New Bill with 0.85 PF: ₹4,72,000 (₹72,000 extra per year!)
Annual Extra Cost: ₹72,000
The Bottom Line: Maintaining a power factor of 0.99 or above is no longer just good practice—it's financial survival.
The Solution: APFC Panels and Capacitor Banks
Automatic Power Factor Correction (APFC) panels and capacitor banks are your shield against inflated kVAh bills. These devices supply the reactive power locally, reducing the reactive component drawn from the grid.
How APFC Works
Real-time Monitoring: APFC panels continuously monitor your facility's power factor
Automatic Switching: Capacitor banks are automatically switched in/out to maintain optimal power factor
Reactive Power Supply: Capacitors supply reactive power locally, reducing demand from the grid
Cost Savings: Lower kVAh consumption translates directly to reduced electricity bills
Investment Ranges for Maharashtra Market
Basic APFC (5-15 kVAr)
₹30,000 - ₹45,000
Clinics, retail stores
Standard APFC (25-50 kVAr)
₹50,000 - ₹65,000
Small manufacturing units or hospitals
Industrial APFC (60-75 kVAr)
₹65,000 - ₹80,000
Medium factories, commercial complexes
Heavy-duty APFC (100+ kVAr)
₹1,00,000+
Large factories, commercial complexes
Prices vary based on specifications, brand, and installation complexity
Grid Insight: Your Partner in kVAh Optimization
Navigating the complexities of kVAh billing and power factor optimization doesn't have to be overwhelming. Grid Insight provides a comprehensive solution that transforms your electricity bills into actionable intelligence.
How Grid Insight Works
Smart Bill Analysis
Simply upload your electricity bill to our platform. Our advanced analytics engine:
Extracts key consumption data and power factor information
Identifies billing patterns and inefficiencies
Calculates your current kVAh vs kWh consumption ratio
Benchmarks your performance against industry standards
Personalized APFC Recommendations
Based on your consumption profile, Grid Insight:
Recommends the optimal APFC panel capacity for your facility
Provides detailed ROI calculations with payback periods
Suggests the most cost-effective capacitor bank configurations
Offers supplier recommendations with competitive pricing
Take Action Today: Don't Wait for the Bill Shock
The transition to kVAh billing is not just a regulatory change—it's an opportunity to optimize your power consumption and significantly reduce operating costs. However, this opportunity comes with a deadline: July 2025.
Your Next Steps:
Upload Your Bill: Visit our platform and upload your latest electricity bill for free analysis
Review Recommendations: Get personalized APFC sizing and ROI projections
Connect with Suppliers: Access our network of verified APFC suppliers and installers
Monitor & Optimize: Use our dashboards to track performance and identify further optimization opportunities
The Cost of Inaction
Delaying APFC installation could cost your business thousands of rupees every month once kVAh billing begins. A typical industrial unit with a poor power factor could see electricity bills increase by 20-25% overnight.
Remember: The best time to install APFC was yesterday. The second-best time is now.
Ready to Optimize Your Power Factor?
Don't let the kVAh billing change catch you unprepared. Upload your electricity bill today and discover how much you could save with the right APFC solution.
Need Expert Consultation? Our power systems engineers are ready to help you navigate the transition to kVAh billing and identify the most cost-effective solutions for your facility.
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