In Short : Battery storage investment in India is projected to exceed $1 billion in 2025, fueled by the growing need for renewable energy integration, according to the IEA. However, high financing costs—up to 80% above developed nations—pose a major hurdle. The IEA emphasizes that reducing capital barriers is essential to accelerate battery deployment and support India’s clean energy transition.
In Detail : India’s battery storage market is poised for a significant boost, with investments expected to cross $1 billion in 2025. This surge is driven by the country’s increasing reliance on renewable energy and the urgent need for flexible storage solutions to manage intermittency.
The International Energy Agency (IEA) highlighted that battery energy storage systems are becoming essential to support grid stability and enable higher renewable energy penetration. With solar and wind generation rising rapidly, efficient storage systems can help balance supply and demand.
Despite this promising outlook, high financing costs remain a major challenge for the sector. The IEA noted that battery storage projects in India face capital costs up to 80% higher than similar projects in developed economies. This cost disparity is hindering the pace of deployment.
These elevated financing costs are often linked to risks in policy implementation, uncertain revenue models, and the relatively nascent stage of the battery storage ecosystem in the country. Without adequate financial support or risk mitigation, developers find it difficult to scale up projects.
The IEA has urged policymakers to address these financial barriers by streamlining regulatory frameworks, ensuring reliable revenue streams, and offering concessional financing or guarantees. These measures could unlock significant investment and accelerate battery adoption.
Accelerating battery storage deployment is seen as critical to India’s clean energy transition. As the country aims to achieve ambitious renewable energy targets, overcoming financial challenges will be key to building a resilient, low-carbon power system supported by efficient energy storage.
