India projected to accelerate solar power generation as storage costs fall - South China Morning Post
Published February 04, 2026
India Expected to Boost Solar Power Generation Amid Declining Storage Costs
India is poised to enhance its solar power generation capabilities significantly, driven by a notable decrease in energy storage costs. This development is pivotal as the country strives to meet its ambitious renewable energy targets, particularly in solar energy, which is a crucial component of its energy strategy.
According to a report from the International Energy Agency (IEA), India is set to emerge as one of the largest solar power markets globally. The nation has established a target of achieving 500 gigawatts (GW) of renewable energy capacity by 2030, with solar energy accounting for a substantial portion of this goal. The IEA projects that solar power generation in India could reach 200 GW by the end of the decade, marking a significant increase from the current capacity.
The decline in storage costs is a critical factor facilitating this growth. Energy storage systems, particularly lithium-ion batteries, have seen a substantial reduction in prices over the past decade. According to BloombergNEF, the cost of lithium-ion batteries has dropped by over 89% since 2010, making them more accessible for large-scale applications. This price drop is expected to continue, further encouraging the adoption of solar energy coupled with storage solutions.
Experts believe that the integration of energy storage with solar power generation will enhance the reliability and efficiency of solar energy systems. Energy storage allows for the capture and use of solar energy generated during peak sunlight hours, which can then be utilized during periods of low solar generation, such as at night or during cloudy weather. This capability is essential for ensuring a stable energy supply, particularly as India increases its reliance on solar power.
The Indian government has been proactive in creating policies that support the growth of solar energy and storage technologies. Initiatives such as the Solar Park Scheme and the Production-Linked Incentive (PLI) scheme are designed to attract investment and promote domestic manufacturing of solar panels and batteries. These policies aim to reduce dependence on imports and strengthen the local supply chain for renewable energy technologies.
Furthermore, the government’s focus on enhancing grid infrastructure is crucial for accommodating the increased solar capacity. The integration of renewable energy sources into the national grid requires upgrades to existing infrastructure to ensure that the grid can handle variable energy inputs. Investments in smart grid technologies and energy management systems are being prioritized to facilitate this transition.
In addition to government initiatives, private sector participation is vital in driving solar power generation. Numerous companies are investing in solar projects, and public-private partnerships are becoming increasingly common. The growing interest from private players is indicative of the confidence in the solar market's potential, especially with the declining costs of technology.
As part of its commitment to combating climate change, India is also focusing on sustainable development through renewable energy. The country aims to reduce its carbon emissions intensity by 33-35% by 2030, compared to 2005 levels. Solar energy plays a crucial role in this strategy, as it offers a clean and sustainable alternative to fossil fuels.
The potential for job creation in the solar sector is another significant advantage. The transition to renewable energy is expected to create millions of jobs across various segments, including manufacturing, installation, and maintenance of solar systems. This job growth is particularly important in rural areas, where solar projects can provide energy access and stimulate local economies.
Despite the promising outlook for solar energy in India, challenges remain. Issues such as land acquisition, regulatory hurdles, and the need for skilled labor can impede progress. Addressing these challenges will require coordinated efforts between government, industry, and communities to ensure that the solar power sector can reach its full potential.
In conclusion, India's solar power generation is on track for significant acceleration, supported by falling storage costs and robust government policies. As the country continues to invest in solar energy and associated technologies, it is poised to become a leader in the global renewable energy landscape, contributing to a more sustainable future.
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