Round-the-clock clean power is waiting to play the game-changer

This affordability arises from global technological advancements, with solar-panel and battery storage costs dropping over 90% in the past decade and battery lifespans tripling. Equally critical have been India’s strategic policy interventions, particularly large-scale transparent auctions that have significantly reduced costs. 

Indian developers now achieve some of the lowest solar and storage costs worldwide, with solar project capital expenditures less than a third of those in the US. Recent solar-plus-storage bids in India have sharply declined to ₹3.1– ₹3.5 per kWh—a 50% decrease in 18 months. 

Also Read: David Fickling: India is outpacing America in its transition to clean energy

Our analysis, based on implied costs from recent solar-plus-storage bids and validated against global bottom-up estimates, shows that 24/7 clean power with over 95% availability can be delivered for under ₹6/kWh. This is comparable to—and in many cases lower than—the cost of power from new coal plants. 

A common criticism of India’s firm and despatchable renewable tenders is that they do not match coal in reliability and result in excessive surplus generation. However, our analysis shows that appropriately sized solar-plus-storage systems can achieve over 95% availability even without significant oversupply, directly challenging that assumption.

Why does this matter?: First, at under ₹6 per kWh, solar-plus-storage now directly competes with new coal plants and is significantly cheaper than industrial tariffs in most Indian states—even after accounting for transmission charges. 

Renewable energy also offers fixed pricing, insulating India’s economy from inflation and global energy market volatility. Over the past decade, industrial electricity tariffs have doubled, underscoring clean energy’s unique potential to stabilize prices for the next 25 years—providing a decisive advantage for Indian industry.

Also Read: Climate progress: India’s transition path to clean energy is about get steeper

Clean energy technology costs are expected to continue falling, alongside ongoing performance improvements. Emerging battery chemistries such as sodium-ion and iron-air—based on abundant, low-cost materials—show promise, while solar and lithium-ion battery prices are projected to decline further. If India follows this trajectory, electricity costs could decrease substantially over time.

India’s rapidly growing demand for air-conditioning, artificial intelligence and data centres requires reliable power. Tech leaders like Mark Zuckerberg and Sam Altman have identified electricity access as a critical constraint in the global AI race. Gigawatt-scale solar-plus-storage systems can be deployed in less than two years—much faster than new coal or gas plants. With one of the world’s largest and most agile grids, India is well-placed to meet rising demand via this pathway.

Finally, pursuing this strategy will help India reduce air pollution, meet its clean energy targets and demonstrate global climate leadership. It could also attract companies like Google and Microsoft that are committed to sourcing 24/7 carbon-free electricity.

Also Read: Clarity on power costs could speed up India’s transition to clean energy

What must be done to harness this opportunity?: First, India needs coordination across state and national levels to accelerate deployment. Streamlining permits and replicating successful solar land-leasing models will be key to timely execution. 

India should attract global investment by offering long-term contracts tailored to data centre operators seeking renewable energy that’s reliable and inflation-proof at gigawatt scale. Establishing dedicated green data centre valleys—special economic zones powered entirely by clean energy, with fast-track land access, single-window clearances and tax incentives—could further enhance India’s competitiveness.

Second, a broader policy shift is needed to reform and further deregulate India’s electricity markets. Rapid cost declines and the modular nature of clean energy create an opportunity for large consumers to access low-cost power directly. In the US, Texas, through a fully deregulated market, has led renewable deployment and now enjoys some of the lowest electricity prices, beating California’s. 

In India, industrial and commercial consumers still face surcharges beyond market prices, with state utilities procuring power on their behalf—often at high costs. All large consumers should be allowed and required to buy power directly from the market without such charges. Support for vulnerable consumers can continue through alternative subsidy mechanisms. A more market-driven system would lower Indian industry’s energy costs and boost competitiveness—unlocking major economic gains.

Also Read: Power buzz: We can’t ignore what it costs to carry renewable energy

Third, India must address concerns around  battery imports and critical mineral dependence. Unlike oil, batteries last over 20 years, reducing long-term energy security risks. China’s current battery surplus offers a timely opportunity for India to procure low-cost storage. As lithium is  indefinitely recyclable, with proper infrastructure, India can ensure long-term domestic availability. Simultaneously, India should scale battery manufacturing and secure mineral supply chains to  reinforce resilience.

As a strategic next step, India should launch a national mission to provide affordable, round-the-clock clean power to strategic industries. A flagship initiative—say, a PM nirantar nirmal shakti yojana—would signal India’s commitment to clean and reliable electricity for global investors in AI, data centres and advanced manufacturing.

Now is India’s moment to lead by driving innovation, industrial growth and global leadership one sunrise at a time.

The authors are, respectively, faculty director and co-faculty director, the India Energy and Climate Center at UC Berkeley’s Goldman School.