Digitally influenced transformational and industrial acceleration periods place India’s infrastructural backbone of data centres and industrial parks at a pivotal position in the energy transition. With energy demand rising, the integration between solar energy and battery storage comes into strategic capitalisation, not just a green alternative but a reliable, economical solution fit for tomorrow.
Stimulated by cloud computing, 5G, and AI workload explosions along with the data localisation norms, the data centre formation in India is witnessing fast growth. As per JLL reports, India’s data centre capacity should touch 1645 MW by 2026, from 854 MW in 2023, growing over a 24% CAGR. Concurrently, industrial parks comprise manufacturing, automotive, textile, and electronics clusters and together constitute approximately 40% of the country’s electricity consumption. Such entities require uninterrupted power with quality assurance to maintain production cycles and ensure that the downtimes become not just prohibitive but precious.
Historically, both data centres and industrial parks have been dependent on grid power, with diesel generators acting as a supplementary source. Nonetheless, this method is fast becoming unsustainable, given volatile fuel prices, mandatory grid tariff increases, and the mandate to decarbonise all major industries. Depending upon the state, grid electricity for a large industrial consumer could be anywhere between ₹6–₹15 per unit, whereas diesel generation tends to cost well above ₹16 per unit. By comparison, solar power is the cheapest, having seen its cost plummet by over 80% in the last decade and offering power at a rate as low as ₹3–₹5 per unit through open access or on-site rooftop systems.
Solar energy, by itself, cannot provide the reliability and 24×7 operations required by these heavy industries. The generation is, by nature, intermittent and depends heavily on weather conditions or daylight hours. This is where BESS comes in. Battery systems would store excess solar energy generated at peak sunshine hours and feed it back to the grid when desired: during the evening hours or during outages of grid power, thus ensuring a power supply round-the-clock.
Integration of energy storage with solar power gives rise to maximised economic returns. In addition, these types of systems enable the facilities to earn cash by entering into demand response and ancillary markets for their stored energy, thereby further supplementing their energy resilience.
Though advances have been made, challenges persist. Initial capital costs for solar with battery storage are really high— they could cost up to ₹8-₹9 crore per MW of solar system involved, depending on battery size and technology. Technical know-how, issues with standardisation, and regulatory complexity in some states are all further hurdles. However, with improvements in technology and the evolution of financial models, such as leasing, RESCO, and pay-as-you-go models, the barriers are slowly being dismantled against uptake.
Summing up, solar energy integrated with battery storage is not an out-of-the-ordinary technology—it is fast emerging as a foundational power asset for India’s next-gen data infrastructure and industrial growth. It offers continuity to processes, cost advantages, and carbon reduction—three factors no modern-day enterprise can compromise on. As India embarks on its journey of digital and manufacturing ambitions, solar-plus-storage will be powering not only the plants but also the future.
About Author:
Ravi Kumar
VP of Business Development
