India’s behind-the-meter (BTM) energy storage market is set for significant expansion, with annual demand projected to grow from 32 GWh in 2025 to over 39 GWh by 2033, according to a new report released by the India Energy Storage Alliance and Customised Energy Solutions.
The report highlights that BTM systems—comprising rooftop solar, battery storage, and backup solutions installed alongside inverters and telecom infrastructure—are increasingly being adopted across India to improve energy reliability and manage rising grid tariffs. These systems enable consumers to directly utilize generated or stored energy without routing it through the grid.
Rising adoption is being driven by declining costs of lithium-ion batteries and solar-plus-storage systems. In 2024, the levelized cost of energy (LCOE) for rooftop solar integrated with storage ranged between ₹6–7 per kWh, approaching parity with commercial grid tariffs in states such as Maharashtra, Tamil Nadu, and Karnataka. Analysts expect solar-plus-storage solutions to become widely cost-competitive for commercial users by 2026, with industrial adoption expected to follow.
Debmalya Sen stated that India’s stationary storage market is approaching a tipping point, driven by falling technology costs, supportive policies, and growing demand for reliable power. He noted that the projected growth reflects a broader shift in how consumers and businesses engage with energy systems, with the coming decade likely to be shaped by smart storage and domestic innovation.
While lead-acid batteries currently dominate the BTM segment, accounting for over 85% of the market in 2025, lithium-ion technology is rapidly gaining traction. In the telecom sector, lithium-ion batteries already represent approximately 77% of new installations, with increasing adoption also observed in UPS and rooftop solar segments.
Domestic manufacturing capacity is also expanding, with major companies such as Reliance Industries, Ola Electric, Tata Group, and Exide Industries investing in large-scale lithium-ion battery production. These developments are supported by the government’s Production Linked Incentive (PLI) scheme, with plans to build up to 95 GWh of manufacturing capacity.
Vinayak Walimbe emphasized that improving cost economics are strengthening the business case for energy storage, particularly for commercial and industrial users. He added that falling battery prices and declining blended tariffs for solar-plus-storage systems are expected to further accelerate adoption over the coming years.
The report also notes that evolving power reliability and supportive policies—including net metering and time-of-day tariffs—will continue to shape demand. While reliance on traditional backup solutions may decline in regions with improved grid stability, ongoing outages in certain areas and the need for cost optimisation will sustain demand for advanced storage technologies.
Covering a wide range of applications—from rooftop solar and telecom towers to railways, microgrids, and decentralised energy systems—the report positions India as a key global market for battery storage investment and innovation through 2033.
