Bihar’s Free Electricity Scheme from August: 125 Units Free for 1.67 Crore Residents, Solar Panels to Follow

In a major move to provide financial relief to households, Bihar Chief Minister Nitish Kumar has officially announced that from August 1, 2025, every household in the state will receive 125 units of electricity free of cost. The scheme is expected to benefit approximately 1.67 crore people across the state.

July Bills Also Covered Under the Scheme

While the scheme officially begins in August, the Chief Minister confirmed that benefits would be extended to electricity consumption in July as well. That means eligible consumers will see reduced bills or no bills at all, depending on their usage in July.

A Political and Economic Game-Changer

This announcement holds significance not just economically, but politically as well. Free electricity has been a powerful promise in other states like Delhi and Punjab, where political parties used such welfare schemes effectively to secure electoral victories. Nitish Kumar’s latest decision comes ahead of the upcoming Bihar Assembly elections, indicating a potential political strategy to sway public sentiment.

The government has already rolled out other welfare schemes recently, including the "Mukhyamantri Pratigya Yojana" for youth and the "Vyavsayi Durghatna Mrityu Anudan Yojana" for traders. Now, this free electricity initiative aims to extend benefits to every segment of society.

Understanding the 125 Units Free Electricity Scheme

Under the new plan, every electricity consumer in Bihar will receive 125 units free each month. If a household uses more than 125 units, they will only be charged for the excess.

For instance, if a household consumes 140 units, only the extra 15 units will be billed. The scheme is expected to save families ₹900 to ₹950 per month, significantly reducing their monthly financial burden.

In urban areas, current charges are ₹7.50 per unit for the first 50 units and ₹7.96 per unit thereafter. The new scheme will effectively remove electricity charges for those whose monthly consumption is within the 125-unit range.

Will Electricity Bills Be Eliminated Altogether?

While the announcement is clear about the 125-unit waiver, the complete structure of the billing system is still under discussion. It is expected that Bihar might implement a slab-based billing model, similar to Delhi:

• 0–125 units: No charge

• 126–200 units: Possible minimal rate

• 201–300 units: Standard rate

Consumers who exceed the free limit will likely pay progressively higher tariffs based on their usage.

Solar Panels to Provide Up to 300 Units Free

In a forward-looking move, CM Nitish Kumar also revealed plans to equip rooftops across Bihar with solar panels over the next three years. This will be done with the consent of consumers and is aimed especially at low-income households.

Poor families will get solar installations completely free of cost. These panels are expected to generate up to 300 units of electricity per month, which means that many households may not have to pay for electricity at all.

By adopting solar energy, the government also aims to reduce the burden of electricity subsidies and promote sustainable power generation.

What Are the Pros and Cons?

While the initiative is likely to reduce electricity costs for millions and promote clean energy, some experts warn that such welfare schemes must be financially sustainable. Critics argue that free power could impact the state’s revenue and utility health if not planned carefully.

However, supporters believe this step will empower low-income households, reduce dependence on subsidies, and boost solar adoption, aligning with India's larger clean energy goals.

Your Turn: What Do You Think?

Are you in favor of Bihar’s 125-unit free electricity scheme? Will it help common people or put a strain on the state’s finances?

Join the conversation! Share your thoughts in the comment section—whether in English or Hindi—and let us know your perspective.