Bihar Approves 125 Free Electricity Units for 1.67 Crore Consumers

Speedy Summary

• Free Power Scheme: Bihar Chief Minister Nitish Kumar announced that up to 125 units of electricity will be provided free to 1.67 crore domestic consumers starting August 1, 2025. The Cabinet approved the move.
• Eligibility: Applicable only to domestic consumers; commercial and industrial users excluded. Consumers exceeding 125 units will receive subsidized rates for the remaining usage.
• Subsidy Details: A full subsidy on the first 125 units will be implemented under Mukhya Mantri Vidyut Upbhokta Sahayta Yojana, with no fixed or additional charges for eligible households.
• Solar Panels Initiative: state government plans to provide rooftop solar panels (1.1 KW capacity) at no cost to nearly 58.89 lakh Below Poverty Line (BPL) Kutir jyoti households using combined funding from central and state schemes.
• Financial Implication: This move adds ₹3,797 crore annually to bihar’s power subsidy burden, increasing the total annual subsidy amount from ₹15,995 crore to ₹19,792 crore.

Indian Opinion analysis

The decision by Bihar’s government reflects an effort toward addressing power affordability among its citizens while promoting renewable energy solutions like rooftop solar panels for BPL families. With approximately 90% of domestic consumers benefiting from free electricity up to a threshold of usage and increased subsidies as part of consumer assistance programs, this initiative could alleviate financial pressure on lower-income households while encouraging enduring energy practices.

Though, such measures come with significant fiscal implications due to the increase in annual subsidies nearing ₹20,000 crore for power consumption alone. While this represents a considerable public investment ahead of polls-frequently enough perceived as populist-it also raises questions about long-term sustainability amidst broader economic challenges faced by states like Bihar. promotion of renewable energy through subsidized solar panel installations is a strategic highlight but necessitates careful monitoring regarding implementation efficacy and scalability across rural areas.

Read more: The Hindu