A significant decline in solar photovoltaic module prices has positioned India for a transformative clean energy future. According to research from the India Energy & Climate Center (IECC) at the University of California, Berkeley, solar module prices have plummeted from over ₹200 per watt in 2010 to under ₹9 in 2024. This decrease, combined with advancements in battery technology, has made solar-plus-storage systems a viable and affordable option for generating and storing electricity around the clock.
The IECC study found that solar-plus-storage systems can deliver electricity with over 95% availability at prices under ₹6 per kilowatt-hour (kWh), making them cheaper than most new coal-fired power projects. Recent auctions have seen solar-plus-storage bids as low as ₹3.1-3.5 per kWh, with standalone battery storage bids dropping to ₹2.8 lakh per megawatt (MW) per month.
By integrating solar generation and storage, researchers found that consistent 24/7 electricity can be supplied at competitive rates, between ₹4-4.3 per kWh. This is significantly lower than the average industrial tariff of ₹7.9 per kWh. The decline in lithium-ion battery pack prices, from ₹13,860 per kWh in 2020 to ₹8,388 in 2024, has been a key factor in making solar-plus-storage systems more economical.
India is well-positioned to become a global leader in energy storage, with plans to develop 200 gigawatt-hours of battery manufacturing capacity. This shift could have significant implications for the future of coal in India, as new coal power plants may become financially unviable compared to solar-plus-storage systems. The report suggests that solar-plus-storage systems can achieve 95-100% uptime with minimal backup, making them a more attractive option for investors and utilities.
The benefits of solar-plus-storage systems extend beyond affordability, offering price stability and scalability. Unlike coal infrastructure, solar-plus-storage systems can be deployed quickly and scaled to meet growing industrial and commercial power demands. While there are challenges ahead, including addressing grid constraints and solar variability, the economic case for solar-plus-storage systems is clear. As India stands at the edge of a clean energy revolution, the growing economic appeal of solar-plus-storage systems is set to drive a significant shift towards a cleaner, more sustainable energy future.