India’s Energy Revolution: How Solar + Storage is Outpacing Coal in 2025

• Published 2025-10-17 09:36:00
• By Anupam Nath

India’s energy landscape is undergoing a powerful transformation. For decades, coal-based thermal power plants have been the backbone of the country’s electricity generation. But as we move deeper into the 2020s, a new era of clean, reliable, and affordable energy is emerging — one led by renewable energy (RE) combined with storage solutions.

In the financial year 2024–25, the numbers told a clear story. The average cost of electricity from new thermal power plants stood at ₹6.82 per unit. Meanwhile, renewable energy projects combined with storage systems produced power at just ₹4.5 per unit. This dramatic difference highlights the economic advantage of renewables and marks a turning point in India’s energy evolution.

The benefits go beyond cost. A typical new coal plant in India takes nearly eight years to complete and costs around ₹10–13 crore per MW of capacity. In contrast, RE + storage projects can be built in just two years — delivering faster results and requiring much less capital. Moreover, while operation and maintenance costs for coal plants rise about 5% each year, renewable storage systems come with fixed costs throughout their lifespan, offering long-term financial stability.

Renewable energy also outperforms coal in terms of availability and reliability. New RE + storage setups can maintain an availability factor of around 85%, matching or exceeding coal plants. And because storage technology allows power to be supplied during peak hours, it ensures consistent electricity even when the sun isn’t shining or the wind isn’t blowing.

The environmental implications are equally critical. Coal remains one of the largest sources of air pollution and carbon emissions in India. Transitioning to clean power not only reduces greenhouse gases but also helps improve public health and supports India’s climate commitments under the Paris Agreement.

Economically, the potential savings are massive. Analysts estimate that if the ₹12 lakh crore allocated to build 100 GW of new coal capacity were instead invested in storage infrastructure, India could build around 400 GW of four-hour storage capacity. Such an investment would revolutionize India’s energy reliability and reduce dependence on fossil fuels.

The message is clear — India no longer needs to choose between economic growth and sustainability. Renewable Energy + Storage offers both. It is faster to deploy, cheaper to operate, and far more resilient in the face of climate and financial challenges.

As the world races toward a cleaner future, India stands at a crucial crossroads. By prioritizing renewables and phasing out expensive coal expansion, the nation can ensure affordable electricity for its people and secure its place as a global clean energy leader. The energy revolution has already begun — and it’s shining brighter than ever before. ⚡????????