India’s Policies and Market Conditions Seen Helping Reduce Battery Storage CostsIndia’s Policies and Market Conditions Seen Helping Reduce Battery Storage Costs

India’s battery energy storage sector is expected to benefit from strong government support and a growing market, which experts say could help moderate the cost of battery storage systems as deployment expands. The electricity sector’s evolving policy environment and funding mechanisms are encouraging wider adoption of battery energy storage systems (BESS), which are becoming increasingly important for integrating renewable energy into the grid and enhancing reliability.

Industry stakeholders point out that government initiatives such as a robust viability gap funding (VGF) programme are supporting the deployment of BESS alongside renewables, helping reduce investment risks and stimulate market growth. As battery deployment scales up, the increased demand and competition are expected to ease pricing pressures, even as global factors, such as shifts in manufacturing and supply chains, influence cell prices.

In addition, regulatory changes at the state level, such as draft amendments by the Andhra Pradesh Electricity Regulatory Commission (APERC) to improve clarity on hybrid renewable energy projects, show continued efforts to fine-tune the policy framework to support storage and hybrid systems. These moves aim to make battery systems more bankable and attractive for industrial and commercial users, further driving adoption.

Market participants also highlight that while near-term global dynamics may put pressure on some battery components, India’s focused domestic policy support and expanding market scale can help stabilise costs over time. The country’s renewable roadmap now prioritises not only capacity additions but also grid stability and reliable energy integration, with storage seen as crucial to achieving these goals by 2030.