, India
Photo by Markus Spiske via Unsplash

Solar powers 90% of India’s demand with batteries

Storage systems extend solar generation into evening and night hours.

Battery storage costs and solar economics allow solar to supply up to 90% of India’s electricity demand at a levelised cost of about $56 per megawatt-hour (INR5.06 per kilowatt-hour), according to an Ember analysis, requiring around 930 gigawatts (GW) of solar capacity and 2,560 GW-hour of battery storage.

Solar output combined with batteries shifts daytime generation into evening and night hours, enabling high levels of demand coverage across the year.

The analysis shows solar and batteries can meet up to 100% of demand during high-solar months, whilst coverage falls to about 66% in July due to monsoon-driven reductions in solar output.

Solar accounted for 9.4% of India’s electricity generation in 2025, up from 5.3% in 2022. Installed solar capacity reached 143 GW in FY2025-26, compared with less than 5 GW in FY2014-15.

The report finds solar and batteries can supply 83% to 92% of electricity demand across India’s 10 largest states, with seven states reaching at least 90% under the same system configuration used in the national analysis.

In several cases, the levelised cost of electricity from solar and batteries sits below current average power purchase costs, Ember said.

In Gujarat, the modelled cost stands at $56/MWh (INR5.05/kWh) compared with $60/MWh (INR5.45/kWh). In Karnataka, it is $55/MWh (INR5.04/kWh) compared with $70/MWh (INR6.37/kWh).

Ember states that solar and batteries can provide electricity at scale using a fraction of India’s estimated solar resource potential, with 930 GW modelled against 3,343 GW feasible ground-mounted potential.

The study finds solar output aligns with demand patterns in several large states, particularly January to April when solar generation peaks alongside rising demand.

Recent coal power auctions show tariffs ranging from $55/MWh (INR5/kWh) to $69/MWh (INR6.3/kWh), with solar and batteries competing with new coal in several states.

The analysis concludes that solar and batteries can meet a large share of India’s electricity demand, with batteries addressing daily and seasonal variability in solar output.

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