As renewable energy adoption accelerates, Battery Energy Storage Systems (BESS) are becoming a critical part of the clean energy transition. But one key question for households, businesses, and industries is: “Are there government policies or subsidies to make BESS affordable?”
The answer: Yes, but policies are still evolving. While solar subsidies are well established, BESS is now gaining attention through pilot projects, incentive schemes, and upcoming national-level policies.
At VMJ Solar, we track every development to ensure our customers benefit from the latest government initiatives.
Current Policy Landscape for BESS in India
1. National Energy Storage Mission (NESM)
- The Government of India has proposed the National Energy Storage Mission to promote large-scale adoption of storage.
- Focuses on R&D, manufacturing, and deployment of advanced battery technologies.
2. PLI (Production Linked Incentive) Scheme for Batteries
- ₹18,100 crore incentive under Advanced Chemistry Cell (ACC) PLI Scheme.
- Encourages domestic battery manufacturing to reduce costs and improve availability for solar + storage systems.
3. Solar + Storage Projects
- Many states allow capital subsidies for solar rooftop projects, and BESS can be integrated in these systems.
- For example, MNRE’s residential solar subsidy indirectly makes solar + storage more cost-effective.
4. GST Benefits
- Solar components often attract 5% GST, while standalone batteries may be taxed higher (18%).
- When batteries are integrated into a solar system, the overall tax rate can be optimized.
State-Level Policies Supporting BESS
Some states have started including storage in their policies:
- Andhra Pradesh & Telangana: Focus on solar + storage tenders for DISCOMs.
- Maharashtra: Announced plans for utility-scale BESS for grid support.
- Gujarat: Exploring storage as part of its renewable energy push.
👉 For residential and commercial users, subsidies are not direct for standalone BESS yet, but policy momentum is building.
Global Perspective
Other countries provide strong support for storage:
- USA: Tax credits (Investment Tax Credit – ITC) apply to solar + storage systems.
- Germany: Provides grants for home batteries linked to solar rooftops.
- Australia: Rebates and low-interest loans for residential BESS.
India is expected to adopt similar frameworks as storage becomes mainstream.
Financial Incentives & Future Outlook
- Upcoming Subsidies
- The government is considering capital subsidies for BESS, similar to rooftop solar.
- This will directly reduce upfront costs for households and businesses.
- Net Metering + Storage
- Policy frameworks may soon allow export/import balancing with storage.
- Could open up revenue streams for BESS owners.
- Green Financing & Loans
- Banks and NBFCs are beginning to provide low-interest green loans for solar + BESS projects.
- EMI options improve affordability and ROI.
How VMJ Solar Helps Customers Benefit
- Stay updated with MNRE guidelines and state-level policies.
- Design systems eligible for maximum subsidy and tax benefits.
- Guide customers through loan/financing options for solar + storage.
- Future-proof installations to be ready for new subsidy structures.
FAQs
1: Is there a direct subsidy for standalone BESS in India?
Currently, no direct subsidy. But integrated solar + storage projects can qualify for existing rooftop solar subsidies.
2: Will BESS become cheaper in the future?
Yes. With PLI-driven manufacturing and upcoming policies, prices will continue to fall.
3: Can I get financing for solar + storage?
Yes. Several banks and NBFCs offer green loans for renewable energy systems.
Conclusion
Government support for BESS is still in its early stages in India, but the direction is clear: storage will play a vital role in India’s renewable energy future.
While subsidies today are mostly tied to solar + storage, dedicated BESS incentives are coming soon — making investments smarter and more affordable.
At VMJ Solar, we ensure you don’t just adopt solar + storage — you maximize every possible policy, subsidy, and financial benefit along the way.
⚡ Stay ahead of the curve with VMJ Solar — your trusted partner in solar + storage.