According to foreign media reports on June 16, the Solar Energy Corporation of India (SECI) has launched a tender for 2GW of grid-connected solar projects, coupled with 1GW/4GWh of energy storage systems. Projects will adopt the "Build-Own-Operate" (BOO) model and can be constructed anywhere in India.
Key terms:
Storage ratio: For every 1MW of solar capacity contracted, developers must configure at least 500kW/2MWh of storage capacity. Storage facilities may be self-owned by developers or secured through third-party agreements to guarantee power supply.
Power Purchase Agreement: SECI will sign a 25-year Power Purchase Agreement (PPA) with winning bidders.
Bid scale: Individual solar project developers must bid for a minimum of 50MW and a maximum of 1GW, with increments in multiples of 10MW.
Supply requirements: Developers must deliver 2MWh of AC electricity per MW of rated capacity daily during grid peak hours specified by the power purchaser (e.g., a 100MW project must supply 200MWh during peak periods).
New Indian Power Ministry Policy: Mandatory Storage for Solar Projects
Earlier this year, India’s Power Ministry issued regulations requiring all relevant renewable energy implementing agencies and state power companies to equip solar projects with energy storage systems at a ratio of 10%/2h during tenders.
The regulation aims to address solar power intermittency and provide support during peak electricity demand periods. Distribution companies may also consider introducing 2h storage systems in rooftop solar installations.
The Power Ministry noted that falling battery costs could further reduce solar curtailment and save on expensive nighttime power purchases.
Under this policy, the Indian government expects to add approximately 14GW/28GWh of energy storage capacity by 2030. India’s renewable energy tenders surged in 2024, with nearly 70GW tendered and 40GW allocated. Nearly half of these tenders were for solar projects. With this new regulation, future tenders will integrate storage systems alongside solar projects.
As of December 31, 2024, India’s total installed energy storage capacity stands at 4.86GW, including 4.75GW from pumped hydro and 0.11GW from new energy storage projects.
Business Model Innovation Accelerates Storage Deployment
India aims to achieve energy independence by 2047 and net-zero emissions by 2070, with battery storage playing a critical role. Consequently, India has introduced a series of storage policies, including defining the legal status of energy storage systems, proposing a Viability Gap Funding (VGF) scheme, exempting storage systems from transmission and distribution charges, replacing diesel generators with storage backup systems, and integrating storage into the High-Price Day-Ahead Market (HP-DAM).
Innovative business models such as “Battery-as-a-Service” (BaaS) and “Storage-as-a-Service” (SaaS) are emerging. BaaS allows companies to lease storage equipment without upfront investment, paying usage fees while service providers handle maintenance and management. SaaS offers similar flexibility, enabling businesses to pay only for consumed storage capacity. These models lower entry barriers and provide scalable, sustainable solutions for commercial and industrial users. Current revenue streams for front-of-meter storage in India include ancillary services, energy arbitrage, long-term PPAs bundled with renewables, demand-side response, and storage services.
Under SECI’s February 2025 energy storage tender, developers can receive 30% funding or ₹2,700/kWh subsidy via the VGF mechanism, whichever is lower. To encourage early commissioning, projects completed ahead of schedule qualify for a 12% investment incentive and may sell capacity to third parties in advance, subject to SECI approval.
India’s Solar Potential Reassessed at 10.8TW
A new study by The Energy and Resources Institute (TERI) reveals India’s total solar potential reaches 10,830GW—a magnitude higher than the Ministry of New and Renewable Energy’s (MNRE) 2014 estimate of 748GW. The study not only recalculates traditional deployment areas like wasteland but also explores multidimensional development pathways.
Sector-Specific Potential Breakdown:
• Wasteland-based ground-mounted solar: 4,909GW (45% of total)
• Floating solar: 100GW (based on 2.5% coverage of artificial water bodies)
• Urban and rural rooftop solar: 960GW (calculated at 9m²/household in rural areas; 10m²/household in urban areas)
• Agrivoltaics: 4,177GW (suitable for horticulture, tea gardens, etc.)
• Transport infrastructure and building-integrated PV: 684GW (including railways/highways, BIPV)
By comparison, MNRE’s 2014 estimate of 748GW solar potential relied solely on 3% wasteland utilization. TERI’s updated data coincides with a critical phase in India’s energy transition—as the nation updates its Nationally Determined Contributions (NDCs) under the Paris Agreement and pursues its 2070 net-zero emissions goal, it is comprehensively upgrading its clean energy development plans.
Under India’s revised 2022 NDCs, the country commits to reducing emissions intensity by 45% from 2005 levels by 2030 while ensuring non-fossil energy accounts for 50% of installed capacity. TERI projects India’s electricity demand will surge to 9,362TWh by 2070, underscoring solar power’s irreplaceable role in deep decarbonization of the power sector.
Chinese Energy Storage Enterprises Enter Indian Market
Amid the global energy transition, India is rapidly building its storage market ecosystem through mandatory storage policies, innovative business models, and subsidies. Chinese storage companies have taken early action in this emerging market. With India’s growing solar and storage demand, Chinese enterprises offering mature solutions stand to expand their competitive advantage under dual policy and market drivers.
• Envision Energy: In 2025, Envision Energy India signed a landmark agreement with India’s JGE to supply 1GW wind turbines and 320MWh storage systems, marking a major step forward for India’s renewable sector.
• Narada Power: Awarded a 242.5MW/245.26MWh solar-storage procurement project from an Indian EPC company in 2024.
• Trina Storage: Signed a 5GWh storage system cooperation agreement with an Indian partner in 2024, focusing on the CORNEX M5 5MWh battery-cabin solution, marking Trina’s formal entry into India.
• Zhiguang Electric: Hosted a delegation from India’s Adani Group in 2025, reaching consensus on energy storage cooperation for Indian market expansion.
• LISHEN Energy: Delivered India’s first government-led 48MWh liquid-cooled storage project in 2024, achieving a breakthrough in the Indian market.
• Jinko Storage: Signed India’s first large-scale textile industry storage project (10MWh) in January 2025; secured India’s largest grid-side storage project (722MWh) with Adani Group in June.
• Wincle Digital Energy: Signed an energy management cooperation agreement with India’s GE Energy in June 2024 to innovate public fuel station energy management; entered a framework agreement with MMI in September to develop storage projects across India, Maldives, and other potential markets.