India has reached a major energy milestone as solar power combined with battery storage is now capable of delivering uninterrupted electricity at a cost of less than Rs 6 per kilowatt hour. This is lower than the cost of electricity generated from coal and is fixed for 25 years, according to a new study by the India Energy and Climate Center at the University of California Berkeley.

The report titled Plummeting Solar Storage Auction Prices in India Unlock Affordable Inflation Proof 24x7 Clean Power highlights how falling storage costs and supportive government policies have made it possible to provide reliable low cost power to industries across the country.

Solar with storage is now cheaper than industrial electricity rates in most states and the price remains constant for decades said Dr Nikit Abhyankar the lead author of the study and faculty member at UC Berkeley. This offers a significant boost to India’s industrial competitiveness.

Over the past 18 months battery storage costs in India have dropped by more than 50 percent. Combined with India’s low capital costs for solar installations which are nearly one third of those in the United States the total cost of solar plus storage is now lower than that of new coal based power plants.

With battery pack prices now below 60 dollars per kilowatt hour and overall system costs close to those in China India is repeating its solar success in the storage sector said Dr Amol Phadke co author of the report.

Industrial electricity tariffs in India currently average around Rs 8 per unit with projections indicating further increases. On the other hand solar plus storage offers fixed rate clean electricity for 25 years making it an ideal solution for industries. Even after including transmission charges the cost remains competitive.

In today’s unpredictable global energy markets the ability to provide electricity at a fixed cost for 25 years is unmatched said Emilia Chojkiewicz the lead author of the report. This is particularly beneficial for energy intensive operations such as AI data centers.

The study indicates that sectors requiring continuous power such as green hydrogen production advanced manufacturing and data centers will benefit the most. It also notes that AI data centers alone may consume up to 5 percent of global electricity demand in the next decade.

The flexible and scalable nature of solar plus storage systems also means they can be deployed faster and more efficiently than large coal power plants. This positions India to meet its industrial and digital infrastructure targets while staying on a clean energy path.

This shift marks a major step in India’s journey toward affordable sustainable and future ready energy for its industries.