Earlier, Bihar Chief Minister Nitish Kumar made the announcement to give free power up to 125 units and the decision will come into effect from August 1, 2025. File
| Photo Credit: PTI
The Bihar Cabinet on Friday (July 18, 2025) gave its nod to provide up to 125 units of free electricity to 1.67 crore domestic consumers of the State a day after Chief Minister Nitish Kumar’s announcement. It was the only agenda to be taken up in the Cabinet meeting chaired by Mr. Kumar.
The Janata Dal (United) leader had on Thursday (July 17, 2025) made the announcement to give free power up to 125 units. The decision will come into effect from August 1 this year.
Also read: Nitish Kumar promises jobs, employment for one crore people in five years
“The Cabinet has taken a decision to provide a 100% subsidy for those consumers who consume up to 125 units of electricity,” Energy Minister Bijendra Prasad Yadav said at a press conference after the Cabinet meeting.
Mr. Yadav, who was accompanied by Development Commissioner Pratyaya Amrit and Energy Department Secretary Manoj Kumar Singh, said it has been decided to reduce the usage of conventional energy and increase the use of non-conventional energy.
To promote solar energy, the State government has decided to install 1.1 KW capacity rooftop solar panels. The government would give 100% subsidy to 58.89 lakh Kutir Jyoti BPL power consumers for installing rooftop solar panels.
Out of 1.86 crore domestic power consumers of the State, 1.67 crore consumers consume up to 125 units per month, Development Commissioner Pratyaya Amrit said while making it clear that it would provide 100% subsidy up to 125 units. No fixed charge and other charges will be levied on households consuming up to 125 units, he added.
Mr. Amrit added that the relief would reflect in the next power bill cycle for July.
The decision to give free 125 units will not be applicable to commercial and industrial consumers.
Making it clear that the move will be applicable to all types of 1.86 crore domestic consumers across the State, Manoj Kumar Singh, who is also the Bihar State Power Holding Company Ltd (BSPHCL), Patna, Chairman-cum-Managing Director, said that “consumers using above 125 units will continue to get subsidised rate of electricity under Mukhya Mantri Vidyut Upbhokta Sahayta Yojana.”
If a person consumes 200 units of electricity in a month, 125 units will be deducted from 200 consumed units and the person will be charged on the remaining 75 units at subsidised rate. “All the domestic consumers are getting covered with the decision. No family will be spared from the benefit,” Mr. Singh emphasised.
Rooftop solar panels
Talking about installing rooftop solar panels for Kutir Jyoti BPL consumers, Mr. Singh further said that ₹60,000 is the cost for installing rooftop solar panels and the consumers will get ₹33,000 as subsidy under Pradhan Mantri Surya Ghar Yojana and the remaining cost of ₹27,000 will be borne by the state government.
The move to give free power up to 125 units is expected to increase the State’s subsidy burden. The government is currently giving an annual subsidy of ₹15,995 crore to power consumers in the current financial year which is 4% more than the previous year’s subsidy amount of ₹15,343 crore.
The announcement of subsidised free power will put an additional financial burden of ₹3,797 crore, taking the total annual subsidy amount to ₹19,792 crore.
Published – July 18, 2025 10:08 pm IST