Bihar’s Game-Changing Move: 125 Units of Free Electricity for 1.67 Crore Families
The Bihar Cabinet, led by Chief Minister Nitish Kumar, has approved a revolutionary plan to give up to 125 units of free electricity to 1.67 crore domestic consumers beginning August 1, 2025. This decision is igniting discussions across the country. This Mukhyamantri Vidyut Upbhokta Sahayata Yojana initiative, which was announced on July 18, 2025, is expected to alleviate the financial strain on millions of households, especially those with low and middle incomes, while laying the groundwork for a sustainable energy future. This action is both a daring change in policy and a calculated move given the approaching state assembly elections. Here’s what it means for Bihar’s future and why it’s making such a stir.
The program, which covers 1.67 crore of Bihar’s 1.86 crore domestic customers, provides a 100% subsidy for domestic users of up to 125 units of electricity per month starting with the July billing cycle. For 90% of households, this translates to no electricity bills, and for those that fall within the limit, there are no fixed or extra fees. To ensure widespread relief, only the excess for those who exceed 125 units will be billed at subsidized rates. In a state where urban consumers’ electricity rates range from ₹7.42 to ₹8.95 per unit, the state will contribute an extra ₹3,797 crore, increasing the annual subsidy to ₹19,792 crore. This is a major commitment to affordability.
Bihar is aiming for a green revolution in addition to immediate relief. The Cabinet approved a plan to install 1.1-KW rooftop solar panels, which will be fully funded for extremely poor families who are beneficiaries of the Kutir Jyoti Yojana and subsidized for others under the Pradhan Mantri Surya Ghar Yojana. This project intends to lessen dependency on conventional power and lessen the state’s subsidy burden by producing 10,000 MW of solar energy in three years. This dual benefit on X was highlighted by Chief Minister Kumar, who said, “This ensures no cost for 125 units and boosts solar energy.”
Political discussion has been triggered by the timing, which comes before the 2025 Bihar elections. Deputy Chief Minister Samrat Choudhary referred to it as a “golden day,” and the NDA hailed it as a “historic” step for the poor. Opposition leaders like Tejashwi Yadav, who has promised 200 units for free, call it a copycat move, while DK Shivakumar of Karnataka says it is similar to the welfare model of the Congress. The public’s opinion of X is divided; while some applaud the relief, others doubt its long-term viability.
This plan aims to empower millions of people, ease financial burdens, and embrace renewable energy sources—it is not just about free power. Families in Bihar will have more money for necessities. It’s a step in the direction of sustainability for the state. Will this change Bihar’s future as the election season intensifies? Tell us what you think, and check back soon for more information on this exciting development.
