How are you integrating storage into solar projects to meet India’s peak power needs?
Storage is integral to the way we design and scale solar infrastructure in India. With demand curves shifting and the grid requiring more flexibility, integrating storage allows us to better manage both generation and consumption patterns. We welcome the recent advisory by the Central Electricity Authority that advised a minimum two-hour co-located storage system for new solar projects, equivalent to 10% of the installed solar project capacity, in future solar tenders.
This push for co-optimised planning ensures that excess generation is not wasted and peak-hour reliability is strengthened. New projects are being aligned with this directive and storage models designed to support both load shifting and peak shaving are being explored. As policy and technology mature together, storage will evolve from a support function to a strategic asset in India’s clean energy future.
What investment trends do you see in the Indian solar-plus-storage segment?
The solar-plus-storage segment in India is gaining significant investor interest, supported by strong policy commitments and global momentum around energy transition. PLI schemes for both solar PV modules and advanced chemistry cell batteries are laying the groundwork for domestic manufacturing at scale. India has also emerged as one of the fastest-growing clean energy investment destinations globally. According to the Government data, FDI in the non-conventional energy segment has crossed USD 21 Bn from Oct 2019 to Dec 2024. The continued growth of the clean energy sector is also expected to generate more employment opportunities across the value chain.
How are solar-plus-storage projects being financed in today’s market scenario?
Financing for solar-plus-storage projects in India is becoming increasingly diverse as the market matures. According to the International Energy Agency’s World Energy Investment 2025 report, global investments in the energy sector are expected to reach a record 3.3 trillion US dollars in 2025,[1] reflecting strong momentum across the sector. Domestically, large corporates are also stepping up their participation through joint ventures and direct investments. States such as Gujarat, Uttar Pradesh, and Maharashtra are setting benchmarks in execution and well structured incentives. We are seeing a shift toward blended finance models and structured instruments that help reduce the risks of early stage investments while supporting growth. Together, these changes signal that solar-plus storage is steadily moving from pilot projects to mainstream adoption, backed by global investor confidence and supportive domestic policy.
What are the key challenges in scaling hybrid solar-storage projects across Indian states?
Hybrid solar-storage systems are the next step in building a more reliable and future-ready renewable energy ecosystem for India. They offer the flexibility and consistency our growing power demand requires. But like any ambitious solution, there are early-stage challenges. These include delays in land allocation, grid connectivity issues, and the need for quicker closure on power purchase agreements. We also need a balanced regulatory environment that supports firm and dispatchable renewable energy without placing excessive risk on developers. Creating a predictable structure for risk sharing, especially as battery storage matures, will be key to building long-term investor confidence. We see these challenges as a collective opportunity and believe that stronger collaboration between states, regulators, and developers, and technology stakeholders will help us achieve India’s 2030 renewable energy vision.
How are policy moves like VGF and storage tenders impacting investment strategies?
The Viability Gap Funding (VGF) scheme for battery energy storage is helping address financial gaps in early-stage projects, which improves the bankability of large-scale storage systems needed for round-the-clock renewable energy. As solar and wind capacity grow, storage is becoming essential to ensure power availability during peak hours. Without it, surplus generation during solar hours can go underutilised. Measures like VGF and upcoming storage tenders reinforce storage as a national infrastructure priority. Together with supportive regulation, these policy signals are creating greater confidence for investors and helping accelerate project pipelines that contribute to grid reliability and clean energy scale-up.
Can you highlight one solar-plus storage project by Hindustan Power and investor interest around it?
Hindustan Power is strengthening India’s solar plus-storage ecosystem through key projects across states, including a 100 MW ISTS solar project with 200 MWh BESS awarded by SJVN. The company has also secured a 120 MWh standalone BESS project in Bihar and signed a ₹620 crore agreement for a solar plus-storage plant in Assam. These projects reflect rising investor interest in India’s hybrid energy landscape. By pairing solar power with advanced storage, they support national goals around sustainability, energy security, and 24×7 clean power delivery.
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