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Battery Storage Costs Plummet 80%: How India's Green Energy Just Got Cheaper

The cost of storing electricity in batteries has taken a dramatic nosedive in India. It's dropped a staggering 80% in just two years, making it much more affordable to support solar and wind power. This is a game-changer because the price is now almost the same as generating solar electricity itself. The government is pushing this even further with massive funding schemes to build up the country's storage capacity.

Key Points: India's Battery Storage Cost Falls to Rs 2.1 per Unit, Boosts Renewables

  • Costs fell from Rs 10.18 to Rs 2.1 per unit in just two years without subsidies
  • New VGF schemes aim to develop over 43 GWh of storage capacity
  • At 1.5 daily cycles, storage cost is now nearly equal to solar power prices
  • Competitive bidding and government support are key drivers behind the price crash
2 min read

Battery storage costs fall from Rs 10.18 to Rs 2.1 per unit in 2 years: Govt

India's battery storage costs have crashed from Rs 10.18 to Rs 2.1 per unit, making renewable energy more viable and competitive with solar power.

"The cost of BESS discovered through competitive bidding... has substantially reduced to about Rs 2.1 / kWh without VGF - Ministry of Power"

New Delhi, Dec 15

Battery Energy Storage Systems (BESS), which play a key role in supporting renewable energy, are becoming much cheaper in India due to falling costs and strong government support, the Ministry of Power said on Monday.

According to the ministry, the cost of battery storage discovered through tariff-based competitive bidding in 2022–23 was around Rs 10.18 per unit of electricity when the batteries were used twice a day.

In recent tenders, this cost has dropped sharply to about Rs 2.1 per unit even without any government subsidy, assuming two charging and discharging cycles daily.

“The cost of Battery Energy Storage System (BESS) discovered through tariff based competitive bidding during 2022-23 was about Rs 10.18 / kWh, if the storage is used for 2 cycles daily,” the ministry said.

“The cost of BESS discovered through competitive bidding in the recent past has substantially reduced to about Rs 2.1 / kWh without VGF, if the storage is used for 2 cycles daily,” it added.

However, based on current market trends, batteries are expected to be used around 1.5 times a day on average.

At this level of usage, the storage cost works out to nearly Rs 2.8 per unit. This is close to the price of electricity generated from solar power projects, which currently ranges around Rs 2.5 per unit.

This narrowing gap shows that battery storage is becoming more viable and competitive alongside renewable energy.

To further reduce costs and encourage adoption, the government has introduced financial support schemes.

The Ministry of Power is implementing a Viability Gap Funding (VGF) scheme to set up 13,220 MWh of battery storage capacity with budgetary support of Rs 3,760 crore.

In addition, a new VGF scheme was launched in June 2025 to develop 30 GWh of battery storage capacity, supported by Rs 5,400 crore from the Power System Development Fund.

- IANS

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Reader Comments

P
Priya S
Amazing progress! But the real test is reliability and lifespan. Will these batteries last through our hot summers? Hope the quality matches the falling cost. Still, a huge step for energy independence.
R
Rohit P
Finally some good news on the power front! If storage cost is nearly equal to solar generation cost, it means 24/7 green energy is possible. This can reduce our coal imports and improve air quality in our cities. Big win!
S
Sarah B
As someone working in the renewable sector, this cost reduction is crucial. The VGF support is essential to scale up. The challenge now is grid integration and creating a skilled workforce for maintenance across states.
V
Vikram M
Hope the benefits reach the common man. Subsidies are good, but will it mean lower electricity bills for households? Or will discoms just pocket the savings? Transparency in pricing is key.
K
Karthik V
This is the kind of infrastructure investment we need. 30 GWh capacity is massive. Combined with our solar push, India can truly become a global leader in green energy. Make in India for batteries next!

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