In a headline-making policy ahead of the Bihar Assembly elections, Chief Minister Nitish Kumar has unveiled a scheme granting 125 units of free electricity per month to all domestic households. This initiative will begin with the July billing cycle and become effective from August 1, 2025 (Governance Now, The New Indian Express).
🏠 Who Benefits?
- Around 1.67 crore households are expected to gain from this relief, particularly those consuming below the 125-unit mark, estimated to be nearly 91% of domestic users in Bihar (ThePrint).
- Eligible users will automatically have the subsidy applied—no registration required.
📄 How the Scheme Works
- 125 units free every month for domestic connections.
- Only the electricity units consumed above 125 units will be billed at normal rates.
- The scheme is financed via a ₹3,797 crore subsidy sanctioned to Bihar State Power Holding Company Limited for the current fiscal year (DD India, News on Air).
☀️ Moving Toward Clean Energy
Over the next three years, Bihar plans to add 10,000 MW of solar energy, with rooftop or community solar installations. The state will fully cover costs for extremely poor households under the Kutir Jyoti Scheme, while providing support to others (The New Indian Express).
🗳️ Political Context
Announced just before the elections, the scheme is seen as a significant political move. Nitish Kumar has emphasized it as a people-centered development measure, while the opposition had earlier proposed 200 free units per month (The New Indian Express).
💬 Voices from the Ground
Rural consumers, especially those spending ₹400 or more on monthly electricity, are relieved and appreciative. Many expressed hope that the savings can be redirected to health, education, and other household needs (IANS News).
🧾 What Should Consumers Know?
- No action needed—subsidy applies automatically.
- Review your monthly consumption via electricity bill or official distribution company portal/app.
- Use solar power benefits if eligible—you may receive additional assistance or full funding for rooftop solar.

✅ In Summary: Why This Matters
Feature | Benefit / Purpose |
---|---|
125 Units Free | Monthly exemption on electricity bills |
1.67 Crore Homes | Broad coverage impacting most domestic users |
Solar Power Push | Encourages renewable energy adoption |
Economic Relief | Aids middle‑ and lower‑income families |