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Falling Battery Costs Could Enable Solar to Meet Up to 90% of India’s Power Demand: Study

A recent analysis suggests that declining battery storage costs in India have reached a point where solar energy could potentially meet up to 90% of the country’s electricity demand at a lower lifetime cost than current average power procurement rates in many states. The findings indicate a major shift in the feasibility of round-the-clock renewable energy supply.

The study highlights that solar power, when paired with battery storage, can provide reliable electricity both during the day and at night for most months of the year. This is particularly effective in regions with high solar irradiance, where energy generation potential is significantly higher.

According to modelling conducted by energy think tank Ember, India could have met nearly 90% of its electricity needs in 2024 using a combination of solar capacity and battery storage, assuming minimal grid constraints. The estimated levelised cost of electricity (LCoE) for such a system stands at approximately Rs 5.06 per kWh, making it competitive with existing power procurement costs.

To achieve this level of supply, the study estimates a requirement of around 930 GW of solar capacity along with 2,560 GWh of battery storage. The analysis uses 2024 as a reference year, which experienced extreme heatwaves and record electricity demand, with peak demand reaching nearly 250 GW in May.

While the overall outlook is promising, the study identifies prolonged periods of low solar generation—particularly during the monsoon season—as a key challenge. However, it notes that this is more of a seasonal variability issue rather than a limitation of battery storage capacity.

Experts from Ember emphasised that solar and battery systems are already delivering electricity at costs lower than prevailing procurement rates in several states, while also offering reliability comparable to conventional sources like coal. With continued improvements in battery economics, the cost advantage of such systems is expected to strengthen further.

The analysis also indicates that several major states—including Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra, Telangana, Gujarat, and Uttar Pradesh—could source a significant share of their electricity, in some cases over 80%, from solar and battery combinations at competitive costs.

Overall, the findings suggest that the conversation is shifting from whether solar can power India’s grid to how rapidly such systems can be scaled, positioning renewable energy as a key pillar of the country’s future energy security.