--- title: "Bihar targets Rs 1.38 lakh crore solar push under energy policy" url: https://projectchintan.com/article/bihar-rs-1-38-lakh-crore-solar-investment-ecntw publisher: Project Chintan author: Project Chintan Newsroom section: Politics published: 2026-09-04T00:30:34.689Z modified: 2026-09-04T03:30:04.690Z language: en-IN --- # Bihar targets Rs 1.38 lakh crore solar push under energy policy Bihar's Renewable Energy Policy 2025 aims for 24 GW of renewable capacity and 6 GWh of storage by 2030, backed by a Rs 1.38 lakh crore investment plan over five years. The package address rising power costs, high summer demand, and a need to reduce reliance on external power purchases. ## Key takeaways - Bihar aims for 24 GW of renewable energy capacity and 6 GWh of storage by 2030 under its Renewable Energy Policy 2025. - The plan allocates Rs 1.38 lakh crore over five years, including substantial funds for generation, storage, and transmission upgrades. - A flagship project combines 301 MW solar with a 523 MWh storage system at Kajra, costing Rs 2,866 crore. - Rooftop solar expansion and government-building solarization are part of the strategy, with widespread residential and rural programs supported by national schemes. ## What Happened The state of Bihar unveiled a large-scale investment plan focused on renewable energy under its Renewable Energy Policy 2025. The plan targets about 24 GW of renewable energy capacity and 6 GWh of energy storage by 2030, with solar power driving the majority of the expansion. The state plans a total investment of Rs 1.38 lakh crore over the next five years, allocated across generation assets, transmission, distribution, digital upgrades, and maintenance. Specific allocations include Rs 82,679 crore for directly generating assets (including pumped storage projects and solar installations), Rs 24,683 crore for transmission to build a 680-circuit-kilometer Green Energy Corridor, and the remainder for distribution and related upgrades. A flagship project, the Kajra Solar Power Plant in Lakhisarai, combines a 301 MW solar facility with a 523 MWh battery energy storage system at a cost of Rs 2,866 crore. Groundwork has begun on a 150 MW Aurangabad Solar Park, while rooftop solar growth under national programs is expanding capacity across government buildings and residential schemes. Bihar currently serves over 2.2 crore electricity consumers, up from about 17 lakh two decades ago, with per capita consumption rising more than fivefold in that period. The policy emerges as Bihar faces high power purchase costs and a heavy reliance on electricity from outside sources. In 2025–26, the state collected over Rs 19,000 crore from electricity users but spent between Rs 25,000 crore and Rs 35,000 crore annually to buy power externally. The state also bears a Rs 3,800 crore burden from providing free power to 1.89 crore of its 2.2 crore consumers, equivalent to 125 units per consumer. Demand is projected to peak at 9,500 MW in summer, with average daily demand around 7,300–7,400 MW, while current generation capacity stands at about 550 MW. Projections show demand could cross 11,747 MW by 2030, prompting the targeted investment in renewables and storage. The energy department officials frame the programme as a response to a recent financial turnaround in the sector, insisting the push toward clean power reflects improvement in the utilities’ finances rather than solely fiscal pressure. A senior energy official described this as a shift toward clean power in a context of rising demand and higher costs of imported power. ## Why It Matters The plan aims to address a structural gap between demand and generation in Bihar, potentially reducing external power purchases and stabilizing prices for consumers. By prioritizing solar and storage, the state seeks to diversify its energy mix, increase resilience to seasonal demand spikes, and expand grid infrastructure through a Green Energy Corridor. The initiative aligns with broader fiscal and energy-security goals by attempting to balance revenue collection, subsidy pressures, and the cost burden of electricity supply. Economic implications include a substantial capital outlay over five years, potential job creation in construction and operations, and the need for coordinated financing across generation, transmission, and distribution segments. The rollout of rooftop solar under national programs and official solarization targets for rural and government buildings may broaden access to solar while reducing the reliance on centrally supplied power in the near term. ## Background Bihar has historically faced a mismatch between demand and local generation capacity, with summer peaks far exceeding available generation. The state has pursued solar development as a preferred route to expand capacity while leveraging storage technologies to smooth supply. Earlier initiatives include ground-based solar projects and rooftop schemes under national solar programs, indicating an integrated approach to both utility-scale and decentralized solar deployment. ## Key Facts - Under Renewable Energy Policy 2025, Bihar aims to reach about 24 GW of renewable capacity and 6 GWh of energy storage by 2030. - The state plans Rs 1.38 lakh crore in investment over the next five years, with Rs 82,679 crore allocated to directly generating assets and Rs 24,683 crore to transmission infrastructure. - A 301 MW Kajra Solar Power Plant with a 523 MWh battery storage system is part of the plan, costing Rs 2,866 crore. - Groundwork has begun on a 150 MW Aurangabad Solar Park. - Rooftop solar under Surya Sankalp has installed 115 MW across 12,000 government buildings; 500 MW more have recently been approved. - PM-KUSUM solarization accounts for 457 MW, and PM Surya Ghar targets 10 lakh rooftop consumers. - Bihar serves over 2.2 crore electricity consumers; the state collected over Rs 19,000 crore from users in 2025–26, while annual power purchases from outside sources ranged from Rs 25,000 crore to Rs 35,000 crore. - Free power of 125 units was provided to 1.89 crore consumers, costing Rs 3,800 crore. - Peak demand in summer is about 9,500 MW, with current generation capacity around 550 MW; demand is projected to exceed 11,747 MW by 2030. ## What Happens Next The government has outlined a five-year investment pathway and specific project allocations, indicating a staged rollout of generation and storage projects, transmission upgrades, and decentralised solar deployments. The timeline for commissioning major assets beyond the Kajra and Aurangabad projects will depend on financing arrangements, regulatory clearances, and procurement cycles associated with utility-scale solar and storage components. --- Canonical: https://projectchintan.com/article/bihar-rs-1-38-lakh-crore-solar-investment-ecntw Reported from: Multiple Sources