Bihar Announces Free Electricity up to 125 Units Ahead of Elections

In a significant move ahead of the upcoming Bihar Assembly Elections 2025, Chief Minister Nitish Kumar has announced free electricity for all domestic consumers up to 125 units per month, effective from August 1, 2025. This landmark decision is set to benefit over 16.7 million households across the state and marks a blend of welfare and renewable energy goals under the broader vision of energy access for all.

Background

Bihar’s power scenario has seen remarkable transformation in the past two decades. When Nitish Kumar first assumed office, the state’s electricity generation stood at a modest 700 MW. Today, Bihar generates around 8500 MW, achieving 100% household electrification. Despite progress, power affordability remained a concern for low-income families, especially in rural areas. Existing tariffs stood at ₹7.42/unit in rural areas and ₹8.95/unit for urban consumers beyond 100 units, excluding government subsidies.

Significance

The announcement of free electricity up to 125 units serves dual purposes. First, it relieves economic pressure on poor and middle-class families facing rising utility bills. Second, it acts as a strategic welfare measure ahead of the elections, potentially bolstering voter support. It also showcases Bihar’s push toward energy self-reliance and climate responsibility through integrated solar initiatives.

Objectives

The key goals of this policy are to,

• Ensure energy affordability and access for all
• Promote renewable energy adoption, especially solar power
• Provide economic relief to vulnerable households
• Align with climate goals and reduce dependency on conventional power
• Strengthen public satisfaction and governance outreach

Key Features

1. Free electricity for all domestic consumers for up to 125 units/month, starting from the July billing cycle
2. Coverage of 16.7 million families
3. Kutir Jyoti scheme to fund solar panel installation for extremely poor households
4. Support for rooftop or public-area solar power systems for other consumers
5. Estimated addition of 10,000 MW of solar energy in the next three years
6. State to bear the entire installation cost for the poorest and partial cost for others
7. Strengthens existing ₹15,000 crore annual subsidy budget for electricity