Solar+Storage Cheaper Than Industrial Tariffs

New Delhi: Union Minister for New and Renewable Energy Pralhad Joshi on Tuesday highlighted that solar+storage (combining solar photovoltaic (PV) and energy storage technologies) in India is now cheaper than industrial electricity tariffs in most states, as these prices have been fixed for decades, citing a new study. “This breakthrough is a game-changer for India’s industrial competitiveness. It also stands as a testament to the vision of Prime Minister Narendra Modi for achieving sustainable growth,” the minister said in a statement on X.

India can now deliver round-the-clock electricity at under Rs 6/kWh, cheaper than coal-fired plants and insulated from inflation for 25 years, according to a study by the India Energy and Climate Center (IECC) at the University of California, Berkeley.

The study titled ‘Plummeting Solar+Storage Auction Prices in India Unlock Affordable, Inflation-Proof 24/7 Clean Power’, states that battery storage costs in India have fallen by more than 50 per cent in the last 18 months. As a result, the combined cost of solar with storage is now lower than power from new coal-fired plants. “Solar+storage in India is now cheaper than industrial electricity tariffs in most states -- and these prices would be locked in for decades,” said Dr Nikit Abhyankar, author of the study and faculty member at the University of California.

India’s competitive edge stems from low capital costs for solar installations -- nearly one-third of those in the US -- along with declining battery prices that now match those in China. “With battery pack prices now under $60/kWh and total system costs rivalling those in China, India is replicating its solar success in storage,” said Dr Amol Phadke, co-author of the study.