Amid massive power purchase costs, minimal revenue and energy demand peaking nearly 17 times the generation capacity in summers— Bihar is betting on solar energy to meet its electricity needs with a target of 24 GW of renewable energy capacity and 6 GWh of energy storage systems by 2030.

This clean energy push stems from the stark financial reality of the state’s energy sector. The state collected over Rs 19,000 crore from electricity users in 2025–26, but spent between ₹25,000 crore and ₹35,000 crore annually to buy power from outside sources. It is also burdened with Rs 3,800 crore from offering 125 units of free power to 1.89 crore of its 2.2 crore consumers.

The state faces an average daily demand of 7,300 to 7,400 MW, peaking at 9,500 MW in the summer, against its own generation capacity of just 550 MW. With electricity demand projected to cross 11,700 MW by 2030, the government has unveiled a Rs 1.38 lakh crore investment plan over the next five years, heavily focused on renewable energy.

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Energy department officials, however, insist the move is guided by the power sector’s recent financial turnaround rather than just fiscal pressure. “The focus on clean power comes amid a sharp financial turnaround across the state’s energy utilities,” a senior energy official told .

Under its Renewable Energy Policy 2025, Bihar aims to harness nearly 24 GW of renewable energy and build 6 GWh of energy storage systems by 2030, driven predominantly by solar power.

“To keep pace with peak electricity demand, which is projected to grow to 11,747 MW by 2030, the Bihar State Power Holding Company Limited will invest ₹82,679 crore directly to generating assets, including pumped storage power projects, nuclear feasibility studies in Banka and Siwan, and solar installations. Transmission infrastructure will receive Rs 24,683 crore to build a 680-circuit-kilometer Green Energy Corridor, with the remaining funds earmarked for distribution, digital upgrades, and maintenance,” the official said.

A centerpiece of the state’s green agenda — Rs 2,866 crore Kajra Solar Power Plant in Lakhisarai, pairs a 301 MW solar facility with a 523 MWh Battery Energy Storage System (BESS). Beyond utility-scale plants, the state is also expanding decentralized solar infrastructure. Groundwork has begun on the 150 MW Aurangabad Solar Park. Rooftop solar is also scaling up under the Centre’s Surya Sankalp scheme, which has installed 115 MW across 12,000 government buildings, with another 500 MW recently approved. Rural and residential programs add to this through 457 MW in PM-KUSUM feeder solarization projects and rooftop installations targeting 10 lakh consumers under PM Surya Ghar.

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The state now provides power to over 2.2 crore consumers, up from 17 lakh twenty years ago with per capita electricity consumption growing more than fivefold in the same period.