“Bihar is accelerating its clean energy transition with substantial subsidies under the PM Surya Ghar Muft Bijli Yojana, offering up to ₹78,000 for rooftop solar systems. The state’s abundant sunlight and supportive policies are driving widespread adoption, reducing electricity costs, and promoting sustainability. Despite challenges, Bihar’s renewable energy initiatives are transforming its energy landscape.”
Bihar Accelerates Clean Energy Drive with Solar Subsidies
Bihar, endowed with abundant sunlight, is making significant strides in its clean energy journey, with the state government and central authorities rolling out robust subsidies to promote solar power adoption. The PM Surya Ghar Muft Bijli Yojana, launched in February 2024, has emerged as a cornerstone of this initiative, offering financial assistance of up to ₹78,000 for residential rooftop solar systems up to 3 kW. This scheme, valid until the financial year 2026–27, has a budget of ₹75,021 crore to support over one crore households nationwide, with Bihar poised to be a key beneficiary due to its favorable solar conditions.
The Bihar Renewable Energy Development Agency (BREDA) is spearheading the state’s efforts, streamlining the subsidy application process and promoting solar projects. Homeowners can avail a central subsidy of 30% for general category states like Bihar, alongside additional state-specific incentives. For a 1 kW on-grid solar system, BREDA offers up to 55% subsidy, significantly reducing upfront costs for residents. The state also facilitates net metering, allowing solar panel owners to sell excess electricity back to the grid, further enhancing financial returns.
Bihar’s solar push extends beyond households. The state government is investing in large-scale projects, such as a 20 MW canal-bank solar PV project under the RESCO model, aimed at bolstering grid-connected solar power. Rural areas, often plagued by unreliable electricity, benefit from targeted programs like the Bihar Saur Kranti Sinchai Yojana, which provides 75% subsidies for solar pumps to farmers, reducing dependence on fossil fuel-based irrigation.
Despite the progress, challenges remain. Limited awareness about subsidy schemes, complex documentation, and the initial investment cost deter some residents. To address this, BREDA and government-approved vendors like APN Solar Energy Pvt Ltd are simplifying the process, offering end-to-end support from site surveys to subsidy approvals. Required documents include Aadhaar cards, property ownership proof, and recent electricity bills, with vendors handling paperwork to ensure seamless access to incentives.
The economic and environmental benefits of Bihar’s solar initiatives are substantial. A 3 kW solar system can reduce electricity bills by up to 80%, with an average payback period of 4–6 years, depending on usage. Solar adoption also cuts carbon emissions, aligning with India’s National Solar Mission to establish the country as a global leader in renewable energy. Bihar’s policies, including direct financial assistance and net metering, make solar power accessible to both urban and rural households.
For those interested in commercial opportunities, the state encourages partnerships through franchise models, enabling local entrepreneurs to promote solar adoption. The process to apply for subsidies is straightforward: residents assess their energy needs, conduct a site survey, select a certified vendor, and submit applications via BREDA’s website or the Ministry of New and Renewable Energy (MNRE) portal.
As of April 2025, over 95 lakh households nationwide have registered under the PM Surya Ghar Muft Bijli Yojana, with Bihar seeing a surge in applications. The state’s focus on community solar projects and training programs further strengthens its renewable energy ecosystem, fostering energy independence and sustainability.
Disclaimer: This article is based on information sourced from government websites, industry reports, and renewable energy agencies. Data is accurate as of 19 June 2025. Readers are advised to verify subsidy details with BREDA or MNRE before proceeding.