BERC Approves 275 MW Rooftop Solar Project For 2.5 Lakh Kutir Jyoti Consumers In Bihar

The Bihar Electricity Regulatory Commission (BERC) has approved the procurement of around 275 MW of rooftop solar power under a major initiative aimed at expanding clean energy access to economically weaker households in the state. The project will cover nearly 2.5 lakh Kutir Jyoti domestic consumers across 18 electricity distribution circles in Bihar through the installation of 1.1 kW grid-connected rooftop solar photovoltaic systems.

The proposal was jointly submitted by South Bihar Power Distribution Company Limited (SBPDCL) and North Bihar Power Distribution Company Limited (NBPDCL). The project will be implemented under the Utility-Led Aggregation model on a long-term Renewable Energy Service Company (RESCO) basis for a period of ten years. Under this arrangement, selected developers will be responsible for the installation, operation, and maintenance of the rooftop solar systems throughout the contract period.

The initiative supports the objectives of the central government’s PM Surya Ghar: Muft Bijli Yojana as well as Bihar’s Mukhyamantri Vidyut Upbhokta Sahayata Yojana. The program is designed to reduce electricity costs for low-income households while increasing the share of renewable energy in the state’s power mix. Consumers covered under the scheme will not be required to bear any installation or operational costs.

Financial support for the project will come through a combination of Central Financial Assistance and State Financial Assistance. Each rooftop solar system will receive central support of ₹33,000 and additional state support of ₹10,000. The remaining investment will be recovered by developers through tariffs discovered through a competitive bidding process.

BERC adopted the discovered tariffs under Section 63 of the Electricity Act, 2003, after reviewing the results of a transparent tariff-based competitive bidding process followed by an e-reverse auction. The bidding process resulted in a weighted average tariff of ₹2.82 per kWh across all 18 project packages.

According to the commission, the approved tariff is significantly lower than the current electricity subsidy burden of ₹7.42 per kWh that the state government provides for Kutir Jyoti consumers. As a result, the project is expected to generate substantial savings for the state while ensuring continued electricity support for beneficiaries.

The commission also noted several operational benefits from the large-scale deployment of rooftop solar systems. Local generation is expected to strengthen distribution networks, reduce transmission and distribution losses, and improve the reliability of power supply. The rooftop installations are projected to generate around 325 million units of electricity in the first year. This generation will help the state distribution companies address power shortages and meet their Renewable Purchase Obligation (RPO) and distributed solar targets.

While approving the tariff and power procurement proposal, BERC deferred its decision on the draft Power Purchase Agreement (PPA). During the proceedings, the petitioners informed the commission that the submitted draft contained certain errors and omissions. The commission has allowed the utilities to submit a revised draft agreement, which will be considered in a separate hearing.