Fri Jul 18 16:38:26 UTC 2025: ## Summary of the Text:
The Bihar state government in India has approved a plan to provide free electricity (up to 125 units) to 1.67 crore domestic consumers, effective August 1, 2025. This move, announced by Chief Minister Nitish Kumar, aims to benefit a large majority of the state’s domestic power consumers. The government also intends to promote solar energy by providing subsidies for rooftop solar panel installations, particularly for low-income families. While this initiative will significantly increase the state’s subsidy burden, officials emphasize that all domestic consumers will benefit either through free electricity or subsidized rates, and that there are subsidies to help low income families install solar.
## News Article:
**Bihar to Offer Free Electricity to Millions Starting August 1st**
**Patna, India – July 18, 2025** – In a move expected to provide substantial relief to households across the state, the Bihar Cabinet has approved free electricity for domestic consumers up to 125 units per month. The decision, announced by Chief Minister Nitish Kumar, will come into effect on August 1, 2025, benefiting an estimated 1.67 crore consumers.
“The Cabinet has taken a decision to provide a 100% subsidy for those consumers who consume up to 125 units of electricity,” stated Energy Minister Bijendra Prasad Yadav at a press conference.
The initiative aims to ease the financial burden on households and encourage energy conservation through the adoption of renewable energy sources. As part of this push, the government will offer significant subsidies for the installation of rooftop solar panels, particularly targeting the 58.89 lakh Kutir Jyoti Below Poverty Line (BPL) power consumers. For these low income families, subsidies are available to cover the full cost of installing solar.
Officials clarified that while commercial and industrial consumers are excluded from the free electricity scheme, households consuming over 125 units will still benefit from subsidized rates under the existing Mukhya Mantri Vidyut Upbhokta Sahayta Yojana.
“All the domestic consumers are getting covered with the decision. No family will be spared from the benefit,” emphasized Manoj Kumar Singh, Chairman-cum-Managing Director of Bihar State Power Holding Company Ltd (BSPHCL).
The move is expected to increase the State’s subsidy burden by ₹3,797 crore, taking the total annual subsidy amount to ₹19,792 crore. The government maintains that the long-term benefits of providing affordable electricity and promoting renewable energy outweigh the increased financial commitment.
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