Rooftop solar PV with storage: Now a viable solution
The declining cost of lithium-ion batteries, along with that of solar, is likely to change the future dynamics of the Indian power sector. Several countries such as Australia, US, Germany, among others, have already endorsed solar power with battery storage.
The viability of storing solar power using batteries and using it during peak times is increasing due to declining battery prices. At present, in India, commercial and industrial (C&I) consumers face steep electricity costs, as well as frequent disruptions in the power supply. Installing a solar plus storage system can address both these issues and significantly reduce the company’s electricity bills.
Rooftop solar with storage system is a win-win solution for both end consumers as well as the DISCOMS. For consumers, the benefits are:
- Reliable and affordable power
- Ready backup power
- Consumers can manage their demand using storage system and reduce their demand charges
- Saving cost of alternate energy from diesel gensets (due to power cuts). A recent ban on diesel gensets in certain parts of India (Delhi/ NCR) has created the need for new energy sources
- It is also an environmentally friendly option
For DISCOMS, it helps in reduction of transmission and distribution losses and saves on the investments in transmission and distribution infrastructure.
As per JMK Research, at present, a 1 MW rooftop/ onsite solar plant with 250 kW of battery storage (4 hr backup), is already a viable solution for commercial consumers across key states in India. For industrial consumers, solar with storage is feasible in seven key states except, Tamil Nadu, Andhra Pradesh, and Telangana.
Figure 1: Viability of rooftop/ onsite solar system with storage in India
Assumptions: Grid tariffs considered for the 33 kV HT category. Grid tariffs include variable energy charges, fuel surcharge, and electricity duty and do not include ﬁxed (demand) charges.
Source: JMK Research
In the next two years, as per our analysis, the viability of solar with storage is likely to increase substantially across most states due to falling battery prices and rising grid tariffs.
Solar+ storage is also a viable solution in certain states for group captive plants, open access third party plants as well as the residential segment (if subsidies are included). JMK Research would capture a detailed analysis of solar with storage in our upcoming report on “Viability of Solar + Storage solutions in India”. This report would also give a glimpse of the need for energy storage in India, the government initiatives promoting energy storage, challenges faced in the adoption of solar with storage, among other things. For further details about this study, please write to email@example.com