India has firmly established itself as a global leader in affordable solar energy, with a new study from the India Energy and Climate Center (IECC) at the University of California, Berkeley, revealing that solar-plus-storage systems in the country can now deliver round-the-clock electricity at under Rs 6 per kilowatt-hour (kWh). This breakthrough not only makes clean energy cheaper than coal but also offers fixed, inflation-proof prices for up to 25 years, a combination that is set to reshape India’s industrial landscape and supercharge its ambitions in the global artificial intelligence (AI) economy.
The study, titled “Plummeting Solar+Storage Auction Prices in India Unlock Affordable, Inflation-Proof 24/7 Clean Power,” highlights how India’s innovative policies and large-scale competitive auctions have driven down costs. Battery storage prices have dropped by over 50 per cent in the past 18 months, with battery pack prices now at $55–80/kWh, approaching levels seen in China. As a result, the total cost of solar-plus-storage power—capable of supplying uninterrupted electricity every hour of the day—has fallen below the cost of new coal plants.
Dr. Nikit Abhyankar, one of the study’s authors, described this as a “game-changer for India’s industrial competitiveness.” He explained that with AI data centres and advanced manufacturing demanding reliable, 24×7 power, India can now offer clean, inflation-proof electricity at prices that are locked in for decades. “This is not just an energy transition—it’s an economic opportunity to leap ahead in the AI era,” he said.
Solar Sector in India
India’s solar sector has witnessed extraordinary growth, with installed capacity surging from just 2.82 GW in 2014 to over 100 GW in 2025—a 3450 per cent increase. This rapid expansion has been powered by aggressive policy innovation, large-scale solar parks, and a strong push for domestic manufacturing through schemes like the Production Linked Incentive (PLI). Capital costs for new solar plants in India have dropped to nearly one-third of those in the United States, making India the world’s cheapest solar market.
The government’s focus on transparency and competition through open tenders—primarily managed by the Solar Energy Corporation of India (SECI)—has ensured that only the lowest tariffs are awarded, further driving down prices. Recent auctions for round-the-clock renewable energy projects have seen tariffs as low as ₹5.06/kWh, with solar-plus-storage systems consistently coming in under Rs 6/kWh.
Benefits of Solar+Storage
Industrial electricity tariffs in India have risen steadily over the past 15 years, averaging nearly Rs 8/kWh in 2025. In contrast, solar-plus-storage offers predictable, low-cost power that is immune to inflation, resulting in significant savings for industry over time. Even after accounting for transmission charges, these systems remain more affordable than conventional power sources for industrial users.
The implications are especially profound for sectors like data infrastructure, green hydrogen, and advanced manufacturing, all of which require reliable, 24/7 electricity. With AI data centres projected to consume up to 3 per cent of India’s total electricity by 2030—a ninefold increase from current levels—India’s ability to offer fixed-price, clean power could attract a new wave of AI and tech investments.
Dr. Amol Phadke, co-author of the IECC study, noted that “with battery pack prices now under $60/kWh and total system costs rivaling those in China, India is replicating its solar success in storage. We are witnessing a clean energy inflection point—one that could make India a top destination for the world’s next-generation digital infrastructure.”
Solar-plus-storage is not only cleaner and cheaper but also modular and scalable. Unlike traditional coal plants that require gigawatt-scale development, these projects can be rapidly deployed and tailored to specific industrial or commercial needs. This flexibility is crucial as India’s digital economy and AI ambitions accelerate.
India’s emergence as a clean power leader comes at a pivotal moment globally, with AI data centres expected to consume nearly 5 per cent of global electricity demand in the coming decade. By leveraging its cost advantage and policy innovation, India is poised to become a global hub for affordable, clean, and round-the-clock energy—powering both its own growth and the world’s digital future.
