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Solar Power Emerges as a Dominant Force in Meeting India’s Energy Needs

Solar energy, when paired with battery storage, is now capable of meeting up to 90% of India’s electricity demand at an estimated cost of Rs5.06 per unit. This is notably lower than the average power procurement cost in many states, signalling a significant transformation in the country’s energy landscape amid rising consumption and fluctuating fossil fuel prices.

The findings highlight a major shift driven by falling storage costs, which are enabling renewable energy to provide reliable, round-the-clock power. According to global energy think tank Ember, solar-plus-battery systems have already become more cost-effective than coal-based power in several regions, strengthening the case for clean energy adoption.

The report notes that solar and battery combinations can deliver electricity at a competitive levelised cost, reinforcing the growing economic advantage of renewables over traditional sources. This development comes at a time when India’s electricity demand continues to surge, surpassing 2,000 terawatt-hours (TWh) in 2024 and placing increasing pressure on conventional generation and fuel imports.

A major factor behind this transition is the steep decline in battery costs. Global turnkey battery prices dropped by nearly 40% in 2024 and fell by an additional 31% in 2025, significantly improving the feasibility of storing solar power for use beyond daylight hours. As a result, energy storage is no longer seen as a major constraint in delivering consistent renewable energy supply.

To meet 90% of the country’s electricity needs through solar energy, the analysis estimates a requirement of around 930 GW of installed solar capacity along with 2,560 GWh of battery storage. This equates to approximately 4.9 GW of solar capacity and 13.5 GWh of storage for every 1 GW of average demand, illustrating the scale of infrastructure needed to support this transition.