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Home Bihar

Bihar Free Electricity: Government Plans Rooftop Solar for 1.67 Crore Homes to Cut Power Costs

The state plans phased rooftop solar installations to reduce its Rs 23,000-crore annual electricity subsidy burden.

Reporter by Reporter
August 10, 2026
in Bihar
Reading Time: 5 mins read
Patna Authorities Launch Loan Camps for Rooftop Solar Under PM Surya Ghar Muft Bijli Yojana to Boost Free Electricity Access
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Patna: The Bihar government is planning a major expansion of rooftop solar power to reduce the cost of providing free electricity to households. Under the proposed plan, solar panels will eventually be installed on around 1.67 crore households currently covered by the state’s free electricity scheme.

The move is aimed at allowing households to generate part of their own electricity while reducing the government’s expenditure on purchasing power.

The state government currently provides up to 125 units of free electricity per month to eligible households. According to the plan, electricity generated through rooftop solar systems will first be used to meet household consumption, while surplus power will be fed into the grid.

The programme is being implemented in phases. The first phase targets 5 lakh households, followed by an expansion to 50 lakh families over the next two years. In the third phase, the remaining eligible households will be covered.

Government spends Rs 23,000 crore annually on free electricity

The Bihar government spends around Rs 23,000 crore annually on providing 125 units of free electricity to families, according to the information provided by the state.

Officials expect increased solar generation to reduce the state’s expenditure on purchasing electricity from external sources.

Bihar has set a target of generating 4,000 MW of solar power. At present, the state’s solar generation is estimated at around 500-600 MW.

The government is pursuing three major approaches to increase solar power generation — rooftop solar systems, large-scale solar parks and solar projects on water bodies and other available land.

Rooftop solar: 50 lakh families targeted in two years

Solar power systems are being installed on the rooftops of government buildings as well as residential properties.

Around 12,000-13,000 government buildings have already been equipped with rooftop solar systems, while more than 20,000 residential properties have installed solar systems.

Under the PM Surya Ghar scheme, Bihar has set an initial target of installing rooftop solar systems on 5 lakh homes.

The government plans to expand the programme to 50 lakh families over the next two years, before eventually covering the remaining eligible households.

The Centre provides subsidies ranging from Rs 30,000 to Rs 78,000, depending on the capacity of the rooftop solar system. The remaining cost has to be borne by the consumer.

For households that cannot afford the upfront cost, the Bihar government is facilitating access to low-interest bank loans.

The state also plans to provide free 1.1 kW solar plants to more than 2.5 lakh Kutir Jyoti (BPL) consumers. After the central subsidy, the remaining cost will be borne by the Bihar government.

How rooftop solar can reduce a household’s electricity bill

The potential savings can be understood from the experience of Santosh Kumar Singh, a resident of Patna who installed a rooftop solar system under the PM Surya Ghar scheme.

Singh said his household’s electricity bill earlier ranged between Rs 7,000 and Rs 8,000 per month. After installing the solar system, his bill during the summer months has fallen to around Rs 1,500 per month, despite the household using two air conditioners, a refrigerator, washing machine and fans.

According to Singh, his system generated around 20 units of electricity per day during periods of intense summer heat. It is currently generating around 15 units per day, with production varying depending on sunlight and weather conditions.

When the system generates more electricity than the household consumes, the surplus is supplied to the power grid and accounted for in the consumer’s electricity records. The household can then draw electricity from the grid when solar generation is unavailable, such as at night or during cloudy weather.

Five key points of Bihar’s rooftop solar plan

1. Who will benefit first?
The first phase targets 5 lakh households, with the programme expected to expand to 50 lakh families over the next two years.

2. How much does a rooftop system cost?
Consumers can install systems ranging from 1 kW to 3 kW. Depending on capacity, the central subsidy can range from Rs 30,000 to Rs 78,000. The consumer’s contribution can range from approximately Rs 35,000 to Rs 1.11 lakh, depending on the system selected and applicable subsidy.

3. What does the consumer get?
Solar power generated during the day can be used by the household. Surplus electricity can be exported to the grid, while electricity can be drawn from the grid when solar generation is insufficient. This can reduce the household’s electricity bill.

4. Who is the priority?
The government has prioritised Kutir Jyoti consumers and households with lower electricity consumption, while focusing on faster verification, timely installation and quality work.

5. When will the first phase be completed?
The first phase of the PM Surya Ghar programme in Bihar is targeted for completion by November 2026.

Bihar’s big solar push beyond rooftops

The state is also developing large-scale solar power projects.

Rs 2,866 crore solar investment in Lakhisarai

Kajra in Lakhisarai is being developed as one of Bihar’s major solar power centres, with an investment of around Rs 2,866 crore.

The project is expected to generate around 370 MW of solar power annually, alongside battery storage infrastructure.

Under Phase I, a 185 MW solar power project and 254 MWh battery storage capacity have been developed at a cost of Rs 1,810.34 crore.

Phase II involves an additional investment of Rs 1,055.72 crore for a 116 MW solar project and 241 MWh of battery storage capacity.

Floating solar projects: Electricity above, fish farming below

Bihar is also exploring solar power generation on reservoirs, ponds and other water bodies, allowing land and water resources to be used simultaneously.

Floating solar plants with capacities of 1.6 MW in Darbhanga and 0.525 MW in Supaul have already been commissioned.

Other projects include:

  • 10 MW floating solar plant at Phulwaria Dam in Nawada
  • 2 MW solar plant near the Bikram canal’s available land in Patna
  • 10 MW solar project at the Western Link Canal and Indrapuri Barrage in Rohtas
  • 10 MW floating solar project proposed at Durgawati Reservoir on the Rohtas-Kaimur border
  • Ground-mounted solar projects in Banka, where around 180 MW of capacity has been installed, including a recently added 50 MW project

The approach is designed to increase renewable energy generation without requiring large tracts of additional agricultural or residential land.

Bihar’s electricity demand has surged

The push for additional solar capacity comes as Bihar’s electricity consumption has risen sharply.

During the peak summer period, the state’s electricity demand reached a record 9,426 MW. This surpassed the previous peak of 9,068 MW recorded in June 2026.

The increase is particularly significant when compared with 2005, when Bihar’s maximum electricity demand was only around 700 MW.

Over roughly two decades, peak electricity demand has therefore increased by more than 13 times, driven by greater household electrification, rising use of air conditioners and appliances, urbanisation and economic activity.

With electricity demand continuing to rise, Bihar’s rooftop solar programme is being positioned as a way to increase local power generation while potentially reducing the financial burden of the state’s free electricity scheme.

Tags: Solar homeSolar Power

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