Storage as Strategy: Completing India’s Solar Revolution

From Inverters to Innovation: The Micro Storage Revolution

India’s energy transition has so far been framed around two poles: grid-scale storage and household rooftop solar. But a new layer is emerging—on-site, micro storage for homes, farms, and SMBs/SMEs. Several companies have recently stepped into this space:

- Honda–OMC Power: Repurposing EV batteries into modular storage units for SMEs, schools, and rural enterprises. Backed by Japanese investors, this creates a circular economy model while empowering small institutions with reliable backup power.  

- Exide Industries: Long known for inverter batteries, Exide has expanded into solar batteries and mobile energy storage systems (200–400 kWh), designed for SMEs and community-level facilities.  

- Jakson Green: Offering Battery Energy Storage Systems (BESS) integrated with solar and wind hybrids, targeting homes, SMEs, and institutions.  

- Ola Electric: Today launched Ola Shakti, a home and SMB battery system powered by its indigenous 4680-format “Bharat Cell.” Configurations range from 1.5 kWh to 9.1 kWh, with app-based monitoring and modular portability.  


Together, these players are building the middle layer of distributed storage—bridging the gap between household inverters and grid-scale projects.  


Mega Tenders, Half Measures: Why Storage Must Be Bundled

State governments are awarding mega tenders for green electrification of government premises. These contracts typically focus on solar panel installation and renewable generation capacity.  

But here lies the anomaly:  

- Solar without storage is incomplete. Just as buses cannot be procured without batteries, electrification of government premises should not be tendered without battery storage systems.  

- Functional reliability is at stake. Without storage, government offices, schools, and hospitals remain dependent on the grid during evenings or outages.  

- Procurement as policy: If procurement is meant to anchor industries (as with EV buses), then bundling storage into green electrification tenders would anchor India’s battery industry, creating demand signals for domestic manufacturing.  


Solar Schemes in the Sunlight, Shadows in the Night

Beyond mega tenders, the Union government has rolled out ambitious on-site solar generation schemes:  

- PM Surya Ghar Muft Bijli Yojana (PM SGMBY): Subsidizes rooftop solar for households, aiming to reduce dependence on grid electricity and lower bills.  

- PM KUSUM: Supports farmers in installing solar pumps and decentralized solar plants, reducing reliance on diesel and grid supply.  

These schemes are transformative, but they share the same incompleteness as mega tenders:  

- Panels generate power only when the sun shines.  

- Without on-site battery storage, households and farms remain tethered to the grid or diesel gensets during evenings and cloudy days.  

- Incentivizing solar without storage risks creating stranded capacity—generation that cannot be fully utilized.  


Therefore, just as mega tenders must mandate storage, on-site solar schemes must integrate incentives for on-site storage.  


The Backbone of Independence: Why On-Site Storage Is Critical

India’s green transition is at risk of becoming a half-measure if on-site storage is not integrated:  

- Homes and SMEs need storage to cut costs and achieve energy independence.  

- Farms need storage to irrigate at night and reduce diesel reliance.  

- Government premises need storage to ensure reliability and resilience.  


On-site storage is not an optional add-on—it is the functional backbone of distributed generation.  


Designing the Storage State: Technical Pathways & Policy Options

Why Storage Matters Technically

- Peak Shaving: Storage allows solar power to be used during evening peaks, reducing grid stress.  

- Backup Reliability: Residential schools & colleges, hospitals, and offices need uninterrupted (and 24*7) power—on-site storage ensures resilience.  

- Lifecycle Integration: Bundling storage with generation aligns incentives for long-term performance contracts.  

Policy Options:-

1. Standalone Incentive Package for Micro Storage  
   - Subsidies for battery purchases (like rooftop solar subsidies).  
   - Tax rebates for SMEs adopting storage.  
   - Low-interest loans for households and farms.  

2. Integrated Incentives with Existing Schemes  
   - PM Surya Ghar: Add-on subsidy for households installing solar + storage.  
   - PM KUSUM: Incentives for farmers to pair solar pumps with storage, ensuring irrigation even at night.  
   - MSME Schemes: Tie storage adoption to productivity-linked incentives for small businesses.  

3. Bundled Procurement for Mega Tenders  
   - Mandate Battery Energy Storage Systems (BESS) in all government green electrification contracts.  
   - Structure tenders as generation + storage + O&M, ensuring service delivery rather than fragmented assets.  


Guardrails for the Green Leap: Caveats & Safeguards

- Technology Lock-in: Large tenders risk freezing sub-optimal chemistries. Contracts should include upgrade clauses.  

- Affordability: Micro storage remains expensive; subsidies must be carefully designed to avoid inequity.  

- Maintenance & Recycling: Policies must include service networks and second-life battery pathways.  

- Awareness: Many households and SMEs still see inverters as sufficient; education campaigns are needed.  


From Panels to Powerhouses: Strategic Benefits of On-Site Storage

- Energy Sovereignty: Families and SMEs gain control over their energy use.  

- Circular Economy: Encourages reuse of EV batteries and indigenous cell manufacturing.  

- Resilience: Government premises become reliable nodes during disasters.  

- Green Jobs: Manufacturing, installation, and servicing of storage systems create employment at the local level.  


Two Tracks, One Transition: Completing the Solar Revolution

India’s solar revolution will remain incomplete without on-site, micro-storage. Incentives for distributed storage must be integrated into PM Surya Ghar, PM KUSUM, and MSME schemes, while state-level mega tenders must mandate storage alongside generation.  

This necessitates a two-track storage strategy:  
- Micro storage incentives for homes, farms, and SMEs.  
- Bundled storage procurement for/by governments and large enterprises.  

Only then can India’s green transition move from fragmented generation to full-cycle energy independence. 

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