Bihar
Bihar's Free Electricity and Solar Power Initiative
- 19 Jul 2025
- 3 min read
Why in News?
The Bihar government will offer 125 units of free electricity to 1.67 crore families and install solar power plants over the next three years with consumer consent.
Key Points
Key Highlights of the Announcement
- Free Electricity Scheme: Starting 1 August 2025, 1.67 crore families in Bihar will receive up to 125 units of free electricity, offering significant financial relief to domestic consumers.
- Financial Impact: The state government will bear the cost of providing free electricity, estimated to result in an additional burden of approximately ₹3,375 crore on the state exchequer. A total subsidy of around ₹19,370 crore will be required for this initiative.
- Solar Power Plant Installations: Over the next three years, with the consent of domestic consumers, the state government also plans to install solar power plants on rooftops and at nearby public spaces.
- This initiative aims to provide sustainable energy solutions and reduce the dependency on conventional electricity sources.
- Financial Support: The Bihar government will fully bear the cost of installing solar power plants for extremely poor families under the ongoing Kutir Jyoti scheme.
- For other consumers, the government will provide financial assistance to install solar power plants.
- Target for Solar Energy Production: It is projected that up to 10,000 megawatts of solar energy will be available in the state over the next three years, marking a significant step towards enhancing the state’s renewable energy capacity.
About Kutir Jyoti Scheme
- About: The Kutir Jyoti Scheme is a government initiative in India primarily aimed at improving the quality of life for rural families living below the poverty line (BPL) by providing them access to electricity.
- Launched in 1988-89 as a centrally financed program, the main objective of the scheme was to extend single-point light connections to BPL households in rural areas, including those belonging to Scheduled Castes (SC) and tribal communities.
