Battery Storage Now Cheap Enough for Solar to Meet 90% of India’s Power Demand: Report
The report finds that to meet this demand, it would still use only a fraction of the country's solar potential
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A new report by Ember, a global energy think tank, found that battery storage is now cheap enough to meet 90% of India’s electricity demand at a competitive levelised cost of electricity of ₹5.06/kWh than current average power purchase price in most states.
The report estimated that achieving this would require around 930 GW of solar capacity and 2,560 GWh of battery storage – equivalent to 4.9 GW of solar and 13.5 GWh of battery capacity for every 1 GW of average demand. It said that only 5% of the annual solar generation would need to be curtailed where it exceeds demand and battery storage capacity.
According to the report, the cost is already competitive with the average power purchase costs in many states, suggesting that solar paired with batteries is emerging as a viable alternative to both conventional power procurement and new coal-based capacity.
The report said the shift is largely due to the fall in battery prices over the past two years, noting that turnkey battery costs dropped 40% in 2020 and a further 31% in 2025 improving the economics of saving daytime solar power use after sunset. This has also helped solve one of solar’s biggest limitations of inability to generate electricity at night by allowing excess daytime power to be stored and discharged later.
The report noted that now the bigger challenge won’t be storing power from day to night but ensuring supply during extended cloudy periods, particularly during the monsoon months, when solar output weakens for several consecutive days.
“The dramatic improvement in battery economics over the past two years has delivered the missing piece that turns sunshine into reliable electricity day and night,” said Kostantsa Rangelova, Global Electricity Analyst at Ember. “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.”
Solar Cheaper than Current Power Procurement in Many States
The report suggested that using the same configuration as the national analysis and the same blended solar resource from India’s most promising states, solar and batteries could supply 83–92% of electricity demand across the ten largest states.
Seven states achieve 90% or more, with Andhra Pradesh leading at 92% and Uttar Pradesh the lowest at 83%. States with higher demand during the sunniest months achieve the highest shares, while those with stronger monsoon-season demand like Uttar Pradesh and West Bengal perform less well, according to the report.
Only a Fraction of India’s Solar Potential is Needed
The report said even to meet the 90% of India’s electricity demand would still use only a fraction of the country's solar potential. India has an estimated 3,343GW of feasible ground-mounted solar potential and out of it only 930 GW would be required to reach 90%.
The report highlighted that the country's solar potential could be even higher once rooftop solar, floating solar, and agrivoltaics are included. A recent IEEFA report predicted a significant surge in annual investments in renewables storage and transmission. These investments are estimated to rise from $68 billion by 2032 to potentially $145 billion by 2035. Given the capital-intensive and long-lived nature of renewable assets, transition planning essentially boils down to debt market planning.