We know renewable energy isn’t just about capturing sunlight—it’s about storing and using it smartly. As industries and businesses grow, energy storage systems (ESS) help balance supply & demand, cut costs, and keep grids stable. Here we break down what battery energy storage system (BESS) is, why it matters for businesses, the different types, how they work, challenges and opportunities ahead. We also share the latest research from India, covering new capacity targets, falling costs & fast market growth—big steps toward a stronger renewable energy future.
An Energy Storage System (ESS) captures excess energy generated from renewable sources (like solar and wind) and stores it for later use. This stored energy acts as a buffer to ensure power availability during peak demand or when renewable generation dips.
Recent policy updates under the Viability Gap Funding (VGF) program have significantly raised the near-term storage capacity targets:
Previously, plans targeted around 4,000 MWh. However, updated directives now envisage between 13,200 and 14,000 MWh by 2025–2027.
Earlier projections estimated growth from 82.37 GWh in FY2026–27 to 2,380 GWh by 2047. With falling costs and robust government backing, India’s roadmap is continuously being recalibrated to support faster renewable integration.
Efficiency ranges from 80–95%, with a cycle life of 3,000–5,000 cycles. Costs have now dropped below ₹8,000/kWh, a significant reduction from the earlier ₹15,000–₹20,000/kWh estimates.
Emerging Alternative: Expected to reduce to ₹10,000–₹12,000 per kWh by 2025, with enhanced low-temperature performance and cost competitiveness.
Efficiency: Cost estimates around ₹25,000–₹30,000 per kWh, expected to fall with technological advances.
Cost: ₹6,000–₹8,000 per kWh, but with a shorter lifespan
ESS typically operates in three main phases:
Renewable energy (often from solar panels) is directed into the storage system, converting electrical energy into chemical energy (in batteries) or other stored forms.
The energy is held until needed. For example, in pumped hydro, excess power lifts water to a higher reservoir.
When demand peaks or renewable generation dips, the system releases stored energy back to the grid or facility.
Backup Power Supply
Grid Stabilization
Renewable Integration
Key to Achieving 500 GW Target:
ESS is essential for integrating variable renewable energy sources into the grid, supporting India’s ambitious non-fossil fuel capacity goals.
At Sun Photonics, we understand that integrating advanced energy storage solutions into your renewable energy projects can be complex. Our multidisciplinary expertise and end-to-end services ensure you achieve reliable, cost-effective, and sustainable outcomes. Here’s how we support your energy storage journey:
We assess your energy demand and renewable mix to design a custom storage solution, using simulation tools to optimize for peak-shifting, load balancing, and grid stability for maximum ROI.
We conduct comprehensive feasibility studies on energy storage technologies—including lithium-ion, sodium-ion, and flow batteries—by assessing LCOS, operational efficiency, and integration challenges to help you choose the most cost-effective solution for your business.
We seamlessly integrate your solar systems with the right storage technology to ensure a consistent energy supply—even during low-generation periods—while enhancing grid reliability with smart EMS and real-time monitoring for frequency and voltage control.
From concept to commissioning, our project managers handle every step—from procurement and site planning to installation, testing, and commissioning—ensuring regulatory compliance and minimizing downtime.
We continuously monitor your storage systems using advanced IoT sensors and AI diagnostics, and our proactive maintenance—through routine checks and predictive analytics—ensures maximum lifespan and sustained performance.
We guide you through evolving policies and incentives like Viability Gap Funding (VGF) and PLI, ensuring you leverage subsidies and meet compliance requirements for an economical storage investment.
We provide ongoing technical support and performance reviews, while staying updated with the latest research and market trends to ensure your storage solutions remain efficient and state-of-the-art.
Yes, despite the removal of Government Feed-in Tariff, installs have been forecast to continue at the current rate and even increase in 2023.
Yes, despite the removal of Government Feed-in Tariff, installs have been forecast to continue at the current rate and even increase in 2023.
Yes, despite the removal of Government Feed-in Tariff, installs have been forecast to continue at the current rate and even increase in 2023.
Yes, despite the removal of Government Feed-in Tariff, installs have been forecast to continue at the current rate and even increase in 2023.
