Bihar Eyes Free Electricity Through Rooftop Solar, Invites Bids Under RESCO

The Bihar government is aiming to provide free electricity of up to 125 units per month to domestic consumers by rolling out a large-scale rooftop solar programme. To achieve this, state agencies plan to install small rooftop solar power plants at households across the state at no upfront cost to consumers, with projects to be implemented under the RESCO model.

The initiative builds on the Mukhyamantri Vidyut Upbhokta Sahayata Yojana, launched in July 2025 for domestic electricity consumers. Under the programme, rooftop solar systems with a minimum capacity of 1.1 kW will be installed. The state has proposed free rooftop solar installations for around 5.8 million consumer premises designated as Kutir Jyoti domestic consumers, while other households will also be eligible for free electricity up to the 125-unit threshold.

Discoms Leading the Initiative 

State distribution companies, including South Bihar Power Distribution Company Limited (SBPDCL) and North Bihar Power Distribution Company Limited (NBPDCL), are leading the initiative. The rooftop solar installations are expected to improve the financial viability of the DISCOMs by enabling local power generation and reducing overall power purchase costs. The energy department has identified around 2.5 million households for rooftop solar deployment under the RESCO framework in the initial phase.

The DISCOMs have issued multiple tenders inviting participation from solar developers. The tenders seek RESCO developers to set up grid-connected rooftop solar systems for identified Kutir Jyotiresidential consumers under a hybrid CAPEX-plus-RESCO model, backed by a 10-year power purchase agreement (PPA).

Tender Details 

According to the tender documents, the projects will be implemented using a Utility-Led Aggregation (ULA) model under the RESCO approach. Under this structure, the RESCO developer will be responsible for installation, operation, maintenance, and financing of the rooftop solar systems.

The developer will fund the balance project cost after accounting for available subsidies, including the PM Surya Ghar subsidy of ₹33,000 per plant and a Bihar government subsidy of ₹10,000 per plant. Investment recovery will be through a combination of CAPEX payments and RESCO tariffs under the 10-year PPA, ensuring long-term performance accountability.

Eligibility Criteria

As per the tender:

• Bidders must have a minimum average annual turnover of ₹1 crore per MW, based on the total estimated capacity of the respective circle.

• Net worth for the last financial year must be at least ₹50 lakh per MW of the estimated capacity.

• Net worth over the last five financial years must be non-negative.

• Bidders must have EPC experience in rooftop solar projects during the last three years. The required experience should be at least 15 percent of the total estimated capacity of the relevant circle or 2 MW, whichever is higher.