In Short : India now delivers 24×7 solar-powered electricity at just ₹6 per kWh, cheaper than coal, thanks to steep battery storage cost declines and strong policies. This breakthrough boosts industrial competitiveness with fixed long-term prices. Despite coal’s dominance in generation, India’s expanding renewable capacity and falling storage costs signal a cleaner, more affordable energy future.
In Detial : India has achieved a significant milestone by delivering round-the-clock solar-powered electricity at under ₹6 per kilowatt-hour, making it more affordable than electricity from new coal-fired plants. This development is credited to a sharp drop in battery storage costs and progressive energy policies that support the adoption of solar-plus-storage systems.
A study by the India Energy and Climate Center at UC Berkeley found that battery prices in India have declined by over 50% in the past 18 months. This drop has helped bring the combined cost of solar energy with battery storage well below that of coal-generated power, encouraging a major shift in India’s energy strategy.
India’s cost advantages are noteworthy, with capital costs for solar installations being nearly one-third of what they are in the United States. Additionally, battery prices in the country are now on par with those in China. These factors make India a highly competitive player in the clean energy sector.
Experts believe that this shift will boost India’s industrial competitiveness by offering businesses access to cheaper, fixed-rate electricity. Dr. Nikit Abhyankar of UC Berkeley highlighted that solar-plus-storage systems are now more affordable than industrial power tariffs in most Indian states and come with long-term pricing certainty.
The Indian government plans to add around 50 gigawatts of non-fossil fuel power annually for the next five years, with nearly 170 gigawatts of renewable projects in development. These efforts align with the national target of achieving 500 gigawatts of renewable capacity by 2030, underlining India’s commitment to clean energy growth.
Despite this progress, challenges remain in integrating renewable sources into the power grid. While non-fossil fuel capacity makes up 45% of India’s installed energy capacity, it accounted for only 24% of actual generation last year. Coal still generates 75% of electricity, but falling storage costs are paving the way for a more sustainable energy mix.
