Falling Battery Costs Make Solar Viable To Meet 90% Of India's Power Demand: Ember Report

(MENAFN- KNN India) New Delhi, Apr 7 (KNN) Battery storage costs have declined sharply, making it possible for solar power to meet up to 90 per cent of India's electricity demand at costs lower than prevailing tariffs in most states, according to a report by energy think tank Ember.

The analysis estimates that solar combined with battery storage could deliver electricity at a levelised cost of around Rs 5.06 per kWh (USD 56/MWh), making it increasingly competitive with existing power purchase prices.

Duttatreya Das, ‍Asia Energy Analyst, Ember, said,“Solar and batteries are already delivering power below the prevailing power purchase costs in many states, while rivalling coal in terms of reliability. From here, the economics only becomes more compelling.”

Rapid Decline in Battery Costs

Battery economics have improved significantly over the past two years. Turnkey battery costs fell by about 40 per cent in 2024, followed by a further 31 per cent decline in 2025, sharply improving the viability of round-the-clock solar power.

Solar energy has already been described as the“cheapest form of electricity in history” by the International Energy Agency (IEA), and falling storage costs are now enabling its use beyond daylight hours.

Massive Potential with Storage Integration

The report suggests that meeting 90 per cent of India's 2024 electricity demand would require around 930 GW of solar capacity and 2,560 GWh of battery storage-well within the country's vast solar potential.

Battery storage allows excess daytime solar generation to be stored and used after sunset, addressing one of solar energy's key limitations. However, extended periods of low solar output, particularly during the monsoon, remain a challenge.

India Well-Positioned for Solar Expansion

Kostantsa Rangelova, Global Electricity Analyst, Ember, noted the sharp improvement in battery economics over the past two years has provided the missing link to turn solar power into reliable day-and-night electricity

“For solar-rich countries like India, this makes the case for becoming a global solar superpower. The question is no longer whether solar can power India's electricity system, but how quickly it can scale,” she added.

India's demand patterns align well with solar generation, with peak demand often coinciding with high solar radiation periods. Even during the monsoon, when solar output dips, electricity demand also tends to moderate.

Solar already accounts for a rising share of India's power mix, contributing 9.4 per cent of total electricity generation in 2025, nearly doubling from 5.3 per cent in 2022.

Capacity Growth and Future Outlook

Installed solar capacity has surged to about 143 GW in FY2025-26, up from less than 5 GW a decade ago. This growth supports India's broader target of achieving 500 GW of non-fossil fuel capacity by 2030.

The report concludes that with continued cost declines and supportive policies, solar combined with battery storage could play a dominant role in India's future electricity system, improving energy security while reducing reliance on fossil fuels.

(KNN Bureau)

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