In a bold move to strengthen its renewable energy infrastructure, the Indian government has officially mandated the integration of energy storage systems (ESS) with all future solar projects. Announced on February 18, 2025, the policy requires solar installations to include a minimum of 2 hours of energy storage capacity, or approximately 10% of the installed solar capacity.
This directive is part of India’s larger commitment to address the intermittency challenges associated with renewable energy sources and to enhance grid reliability. The energy storage requirement will be applicable to all solar tenders issued by the government, with an expectation that both utility-scale and rooftop solar installations will comply.
Key Features of the Policy:
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Energy Storage Requirement: Every new solar project, regardless of size, must include a minimum of 2 hours of energy storage capacity. This will allow stored solar energy to be utilized during non-sunlight hours or during peak demand times.
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Targeted Impact: The policy aims to support India’s ambitious goal of reaching 500 GW of renewable energy capacity by 2030, with a strong emphasis on solar energy.
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Grid Stability: The integration of energy storage is designed to mitigate fluctuations in power generation, thereby stabilizing the grid, especially in regions with high solar penetration.
Why the Shift?
India’s shift toward mandatory energy storage is driven by the increasing reliance on solar power, which is subject to daily and seasonal variations in sunlight. Energy storage systems will ensure that excess energy generated during the day can be stored and used during peak demand periods or at night when solar generation is not available. This is seen as crucial for maintaining grid stability and reliability as India accelerates its transition to renewable energy.
The new policy also aims to reduce dependency on fossil fuels, further supporting India’s long-term sustainability objectives. By pairing solar energy with storage, the country can better manage its energy needs and reduce carbon emissions.
Industry Reactions
Industry stakeholders have welcomed the policy, citing it as a critical step toward achieving energy security and carbon neutrality. “This policy will not only enhance the efficiency of solar projects but also help stabilize the grid, which is essential for the continued growth of the renewable energy sector in India,” said Vikram Soni, Director of the Indian Solar Association.
However, experts have also highlighted the challenges associated with integrating large-scale storage solutions. The need for significant investments in both storage technology and grid infrastructure has raised concerns about the financial and logistical feasibility of the policy’s widespread implementation.
Timeline for Implementation
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2025-2026: The policy will be gradually implemented across the country, starting with larger, utility-scale solar projects. Rooftop solar installations will also be included in the mandate.
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2030 Goal: By 2030, India aims to install approximately 14 GW of energy storage capacity through this new policy. The integration will support the country’s push for 500 GW of renewable energy, with solar playing a dominant role.
Conclusion
India’s move to mandate energy storage in solar projects represents a significant step toward a sustainable and reliable renewable energy future. With an estimated 28 GWh of energy storage capacity expected to be installed by 2030, the policy will play a pivotal role in meeting the nation’s renewable energy targets while ensuring a stable and resilient power grid.
As the solar industry continues to grow in India, the successful integration of energy storage systems will be crucial for balancing energy supply and demand, and for supporting the nation’s commitment to a greener, low-carbon economy.