India Residential Energy Storage Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

India Residential Energy Storage Market Size

Indian Residential Energy Storage Market Trends & Growth Drivers

Rapid Adoption of Solar Rooftop Systems Is Major Trend

• The main trend in the residential energy storage market is the adoption of solar rooftop systems. The combined usage of solar PV and energy storage system can enable the creation of microgrids and small-scale power units.
• The Indian government has implemented various initiatives to encourage the adoption the solar rooftop system. For instance, the Grid-Connected Rooftop Solar Program attempts to lower the installation cost of solar panels.
• In January 2024, the Indian Prime Minister launched a new scheme, the PM Suryodaya Yojana, for installing rooftop solar systems at reduced subsidiary rates in 10 million houses for the lower- and middle-class populations.

Frequent Power Cuts Drives Market for Residential Energy Storage Systems in India

• Due to issues like low infrastructure quality, voltage spikes, and grid disruption, India has been suffering from frequent power cuts, which is a serious problem for the people.
• These factors have driven the growth of the market substantially, and in an effort to address this problem, the government has been implementing new methods.
• The adoption of new methods, such as solar rooftop systems and windmills, for the generation of electricity is being promoted, so coal can be replaced as the primary source of energy.

High Installation and Replacement Cost Is Major Challenge

The major challenge for the Indian market is the high cost of installation of the energy storage system, as well as the expenses on regular maintenance. India is highly populated by a lower- and middle-class populations, which makes a storage system expensive for them.

India Residential Energy Storage Market Analysis

Ownership Type Insights

• In 2024, the customer-owned category dominates the market with 40% revenue. This is largely because the Indian population driven by provocation from frequent power cuts which is a major issue in the country, seeks hassle-free procurement solutions.
• The families that own energy storage system basically have advantages over the others, such as independent of frequent power cuts, high-cost savings on electricity bills.
• The utility-owned category is expected to grow at the highest CAGR, during 2024–2030. The implementation of new schemes by the government for renewable energy production on the commercial scale leads to the category’s growth.
• Additionally, the growing demand for grid-scale electrical energy storage technologies and governmental support for the providers contribute to the category’s rapid expansion.

The ownership types covered in the report include:

• Customer-Owned (Largest Category)
• Utility-Owned (Fastest-Growing Category)
• Third-Party-Owned

Connectivity Type Insights

• The on-grid category holds the largest share in 2024, and it is expected to witness the highest CAGR, of 27.9%, during 2024–2030.
• The on-grid system does not require an expensive battery back-up system because it is 100% self-sufficient. Additionally, being connected to the local utility’s grid offers various benefits, such as reduced electricity bills and the prospect of selling additional power to the utility.
• The off-grid system would also witness significant growth in the market over this decade.
• It is independent of any external source as it contains a battery storage system, the off-grid system is being utilized as a result to the increased usage of clean energy sources for the generation of electricity.

The following categories were analyzed in the segment:

• On-grid (Larger and Faster-Growing Category)
• Off-grid

Utility Insights

• With 45% revenue in 2024, the 7 to 10 kW category dominates the market so far, and it is also the fastest-growing one.
• Due to the frequent power outages and blackouts, which have accelerated the category’s growth in the country, homeowners have been upgrading to new technologies, which would benefit them in the future.
• India being a developing country, has numerous problems, such as increased energy consumption, grid system malfunctions, and a higher demand for stable power. These factors highlight the need for an independent and reliable solution to address the problem.
• For emergency purposes, a 7-to-10-kW system is the most-reliable option for the consumer as it provides power backup for 10­−12 hours.

The following categories were inspected by utility segment:

• 3 to 6 kW
• 7 to 10 kW (Largest and Fastest-Growing Category)
• Above 10 kW

Technology Insights

• The lithium-ion category holds the larger share in the market, of 65% in 2024, and it will also be the fastest-growing category.
• This category is leading due to the numerous advantages of Li-ion batteries, such as high energy density, lightweight design, good long-term performance with a long lifespan, high-temperature tolerance, and fast recharging capability, with low self-discharge, which reduces waste.
• In February 2023, the Geological Survey of India (GSI) discovered a lithium-inferred resource of 5.9 million tons in Jammu and Kashmir, making India the world’s seventh-largest source of lithium.

The following categories were analyzed in the segment:

• Lithium-Ion (Larger and Faster-Growing Category)
• Lead–Acid

Operation Type Insights

• In 2024, the standalone category dominates the market.
• This can be attributed to the ability of standalone systems to store the electricity that comes from the grid during off-peak hours.
• The solar and storage category is expected to grow at the higher CAGR, during 2024–2030. This fast-paced growth is a result of the rising electricity cost in the nation.
• These variants are a good solution for the rural or remote areas of India where grid access is limited or not available, as they can work independently.
• The integration of renewable energy with a standalone system provides an efficient energy storage solution, i.e., it allows solar energy to be stored and used during power outages or in the unavailability of grid power in the first place. 

The following operation types are covered in the report:

• Standalone (Larger Category)
• Solar and Storage (Faster-Growing Category)

India Residential Energy Storage Market Share

Market Nature – Fragmented

The Indian residential energy storage market is fragmented, with a number of small players and a few big players. Regardless of the market’s fragmentation, the market is constantly evolving, and innovation in the field is significant.

The Indian government has been persistently promoting sustainable practices, with various policies and even providing subsidies in remote places to encourage the use of residential energy storage systems.

Indian Residential Energy Storage Market News

• In April 2024, energy solution provider Luminous Power Technologies inaugurated a solar panel manufacturing factory in Rudrapur, Uttarakhand.
• In March 2024, Tata Power completed India’s largest solar battery energy storage system (BESS) in Chhattisgarh, Madhya Pradesh. It contains a 100-MW solar PV project and a 120-MWh utility-scale battery energy storage system.
• In August 2023, OGO Energy launched a battery energy storage system that combines up to five battery modules of 5.12 kWh, providing a storage capacity of 25.6 kWh.