India’s Battery Storage Costs Likely to Ease as Policy Support Grows and Market Scales Up

India’s battery storage market is expected to become more affordable and mature in the coming years as strong government policy support and increasing scale help offset cost pressures, industry leaders have said. Backed by viability gap funding incentives and a clear focus on renewable grid integration, deployment of battery energy storage systems (BESS) is expanding rapidly across the country, while efforts to stabilise prices continue.

In an interview , Kamlesh Kataria, Chief Operating Officer of Kalpa Power, highlighted how robust domestic policies and market growth could help moderate near-term price increases for battery storage, even as global supply shifts create some cost challenges. He noted that India’s renewable roadmap is increasingly focused on grid reliability and seamless integration of storage solutions along with solar and wind energy.

Kataria said Kalpa Power, which provides end-to-end renewable energy solutions and manages nearly 500 MW of contracted capacity for commercial and industrial users, is targeting an ambitious expansion up to 5 GW by 2030. He explained that while standalone battery projects are growing, the industry is shifting towards integrated offerings like hybrid solar-plus-storage systems, peak demand management tools, and ancillary services that create added value for consumers.

According to Kataria, recent policy decisions such as extending exemptions on basic customs duty for capital goods used in lithium-ion cell manufacturing under Budget 2026 improve cost visibility and investor confidence, even though they may not immediately reduce tariffs in competitive auctions. The government’s continued backing, through both incentives and regulatory clarity, is seen as key to scaling up storage deployment and encouraging long-term investments.

Industry observers say that while international factors  including changes in Chinese manufacturing policies  might exert upward pressure on battery cell prices in the short term, India’s proactive domestic policy framework and strengthening market demand should help cushion such impacts. With renewables now forming a larger share of power generation, large-scale storage is increasingly viewed as essential for grid stability, though clear state-level rules on storage participation in grid services are still needed to accelerate widespread adoption.