TL;DR
Ember’s analysis shows that falling battery costs have made solar-plus-storage economically viable for India, with systems capable of meeting 90% of national electricity demand at an estimated LCOE of INR 5.06/kWh ($56/MWh). The study highlights India’s vast solar potential, requiring 930 GW of solar and 2,560 GWh of storage, while reducing reliance on coal and improving energy security.
PROJECT SNAPSHOT
Organization: Ember
Focus: Solar + Battery Storage Analysis
Potential Coverage: Up to 90% of India’s electricity demand
Solar Requirement: ~930 GW
Battery Storage Requirement: ~2,560 GWh
Estimated Cost: ₹5.06 per kWh (LCOE)
Geography: India
Technology: Solar Photovoltaic (PV) + Battery Energy Storage System (BESS)
Ember, formerly known as Sandbag, which is an independent global energy think tank released a report as part of a series examining key drivers for India's energy transition. This report outlines essential actions for the coming decade. To eliminate the need for new coal plants after 2030, BESS, solar-plus-storage systems are becoming price-competitive with traditional power plants.
A fall in battery storage costs, enables solar to meet up to 90% of India’s electricity demand where costs are competitive with existing power purchase prices across most Indian states.
The analysis says battery costs declined 40% in 2024 and further 31% in 2025. This BESS cost decline may reduce coal dependency in the Indian power sector.
The report also states that, solar and battery storage could have met 90% of India’s electricity demand in 2024 with an estimated LCOE of ₹5.06 per kWh assuming no grid constraints. This would require approximately 930 GW of solar capacity and 2,560 GWh of battery storage.
Based on a review of 2024 demand conditions, when electricity consumption increased due to heatwaves, and identifies prolonged low solar output during the monsoon period as the main constraint rather than limited battery storage capabilities. It also notes that, to meet this 90% of electricity demand, the required 930 GW of solar capacity represents less than one-third of India’s estimated 3,343 GW ground-mounted solar potential, with additional capacity expected from rooftop and floating solar installations.
The study indicates that each 1 GW of average demand (based on 190 GW in 2024) would need about 4.9 GW solar capacity and 13.5 GWh battery storage.
Kostantsa Rangelova, Global Electricity Analyst at Ember said that recent improvements in battery economics in past two years has enabled solar power to deliver reliable electricity throughout the day. The present challenge for India now is how quickly solar can power India’s electricity system.
India’s peak power demand is expected to reach 270 GW, with coal and gas plants supporting peak supply during global energy market disruptions.
In FY25, gas-based generation contributed around 6.2% to India’s electricity mix and is used during peak demand. During summer months, the government has invoked provisions under Electricity Act.
With coal tariffs at ₹5 to ₹6.3 per kWh, with the report noting that in terms of cost and reliability, solar-plus-battery systems are becoming increasingly competitive.
Duttatreya Das, Asian Energy Analyst at Ember, said solar-plus-storage is already cheaper than prevailing power purchase costs in many states and comparable to coal in reliability. Their economic advantage is expected to continue to improve further.
Even there is an increase in benchmark prices, coal remains a key source of power, including imports.
The report highlights that solar-plus-storage systems can provide a buffer against such volatility, which offers more stable and domestic energy source.
The analysis found that seven states, Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra, Telangana, Gujarat and Uttar Pradesh among 10 high-demand states, could meet at least 83% of electricity demand using solar and batteries at costs lower than current average power purchase costs.
The report added India also has additional solar potential of around 600 GW from rooftops and 300 GW from floating solar, which could further strengthen energy security.