By ESS news
India’s Ministry of Energy said in a statement on Monday that the cost of battery energy storage systems (BESS) in India has fallen sharply in recent years.
Tariff-based competitive bidding during 2022-2023 revealed costs of approximately INR 10.18/kWh ($0.11/kWh), assuming two full cycles per day. However, recent tenders indicate that BESS can now be installed for approximately INR 2.1/kWh ($0.023/kWh) – without financing the viability gap (VGF) for the same usage pattern. Market trends show that storage is more likely to be used for 1.5 cycles per day, which equates to an effective cost of INR 2.8/kWh. In comparison, recent rates for solar projects average around INR 2.5/kWh.
To support the expansion of battery storage, the Department of Energy is implementing several programs. The first GVV scheme aims to be implemented 13,220 MWh BESS capacity with a budget support of ₹3,760 crore ($415 million). In June 2025, the ministry launched a second GFT scheme for 30 GWh BESS capacity, backed by ₹5,400 crore from the Power System Development Fund (PSDF).
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