India’s energy transition is accelerating as falling battery costs and rising solar capacity position solar-plus-storage systems as a viable large-scale electricity solution, according to recent analysis.
The study indicates that solar energy combined with battery storage could already meet up to 90% of the country’s electricity demand at a competitive Levelised Cost of Electricity (LCOE) of around INR 5.06/kWh ($56/MWh). Achieving this would require approximately 930 GW of solar capacity and 2,560 GWh of battery storage, utilising only a fraction of India’s solar potential.
Battery storage is emerging as a critical enabler by converting daytime solar generation into dispatchable power, ensuring supply continuity beyond daylight hours. However, the analysis identifies prolonged periods of low solar generation—particularly during the monsoon season—as a key challenge, rather than battery availability itself.
The findings come amid a sharp decline in battery costs, which dropped by nearly 40% in 2024 and a further 31% in 2025. This trend is significantly improving the commercial feasibility of round-the-clock renewable energy systems.
Globally, solar energy has become one of the most cost-effective power sources, with the International Energy Agency describing it as the “cheapest form of electricity in history.” The continued reduction in storage costs is further accelerating the shift toward hybrid renewable systems.
In India, solar’s contribution to the power mix is steadily rising. It accounted for 9.4% of total electricity generation in 2025, up from 5.3% in 2022. Installed solar capacity has expanded significantly to 143 GW in FY 2025–26, compared to less than 5 GW in FY 2014–15.
Solar power currently meets up to 25% of electricity demand during peak daylight hours, though its contribution drops to zero at night, underscoring the growing importance of storage integration.
The analysis also highlights that major electricity-consuming states are well-positioned to benefit from solar-plus-storage systems due to favourable demand patterns aligned with peak solar generation periods.
With continued advancements in battery technology and declining costs, solar-plus-storage is expected to play a pivotal role in helping India achieve its target of 500 GW of non-fossil fuel capacity by 2030, while ensuring reliable and cost-effective power supply.
