Rising costs for coal-fired electricity are making solar power combined with battery storage a much more attractive and competitive option across India. According to the authors of the newly released report, the price of building new coal plants is climbing due to stricter environmental rules and fuel inflation, while the cost of solar energy continues to drop.
The report states, “While solar and batteries are getting cheaper every year, coal power is becoming more expensive,” and notes that “Recent coal power auctions have seen tariffs rising across new projects” with costs ranging between INR 5/kWh and INR 6.3/kWh.
Essentially, it is becoming more expensive to run traditional coal plants because of the need for better pollution-control gear and the falling quality of the coal itself. In contrast, solar power coupled with batteries can now provide a reliable flow of electricity at a fixed price that is often lower than what many Indian states currently pay for their power. This makes the transition to renewable energy not just an environmental choice, but a cheaper financial alternative to building new coal-based infrastructure.
The report “Battery storage is now cheap enough to unleash India’s full solar potential” was published by the energy think tank Ember on April 7, 2026. It was prepared by a team of analysts led by Kostantsa Rangelova and Duttatreya Das.
