India

How the Indian market works

India does not have one electricity market. The central government and the Ministry of New and Renewable Energy (MNRE) set the national subsidy and the framework rules, but each state has its own electricity regulator, tariffs and distribution company (DISCOM). The same rooftop system can therefore be billed, approved and credited differently in Maharashtra, Delhi or Tamil Nadu.

Most Indian households that add storage today do it for one of two reasons. The first is backup during outages, covered in the outage section below. The second is to make better use of rooftop solar, which is the subject of the PM Surya Ghar subsidy. Reporting in August 2026 put installations under the scheme at about 50 lakh (5 million) households (Business Standard). Ember's October 2026 analysis argues that as rooftop capacity grows, storage will matter more for the grid, but it describes a battery subsidy as a proposal, not an existing benefit (Ember: Plugging storage into India's rooftop solar revolution).

This page covers what we could verify for residential buyers. It does not cover commercial or agricultural connections. Our guides on how a home battery saves money and what size home battery you need explain the arithmetic behind the decisions below.

The PM Surya Ghar Muft Bijli Yojana subsidy

The central financial assistance for households is Rs 30,000 per kW for the first 2 kW and Rs 18,000 for the third kW, so the maximum is Rs 78,000 for a 3 kW system. Special category states and union territories receive Rs 33,000 per kW for the first 2 kW and Rs 19,800 for the third kW. Group housing societies and resident welfare associations receive Rs 18,000 per kW, up to 500 kW for common facilities. The residential subsidy applies only under the capex model, where you pay for the installation first (SolarQuarter on the MNRE guidelines). Systems above 3 kW are allowed, but the central aid stays at the cap (Business Today).

The process runs on the national portal (pmsuryaghar.gov.in), which we could not load, so we rely on press summaries of it. You register with your state, DISCOM and consumer number, apply for the rooftop system, install it with a registered vendor, apply for a net meter, and after DISCOM inspection the portal issues a commissioning certificate. You then upload your bank details, and Business Today reports that the subsidy is transferred within 30 days (Business Today). Collateral-free, low-interest bank loans are also available, but we could not confirm the interest rates or lenders.

Subsidised systems must use domestically made solar modules with domestically made cells (SolarQuarter). Business Today puts a typical 3 kW system at Rs 1.5 to 2 lakh, and Ember uses Rs 1,65,000 before subsidy and Rs 87,000 after it in its model (Ember). Your own quote will differ with equipment, roof and state, so we state no standard price.

Be aware of the end date. The current scheme is scheduled to end on 31 March 2027 (TaiyangNews), and the government has said it is still weighing proposals for a next phase, including batteries, with no decision taken (Business Standard). Check the portal for the current status before you commit.

Are batteries covered by the subsidy?

This is the question most readers ask, and the sources point in different directions. In September 2024 trade press reported that MNRE had clarified that residential rooftop solar installations with battery storage are eligible for central financial assistance, and that hybrid inverters can be installed if they comply with the state regulator's rules. Neither report gave a battery-specific amount or conditions (Mercom; Energetica India). In other words, a system with a battery may still qualify for the solar subsidy, but we found no amount that applies to the battery itself.

Ember's October 2026 analysis is more direct: it calls a battery subsidy a proposal, not an existing benefit, and models half the scheme's target households (about 5 million) receiving one (Ember). The August 2026 report on the next phase lists integrating battery energy storage with rooftop solar as a proposal still under review (Business Standard). A further report says the government is considering domestic content rules for inverters and batteries in the next phase, which is not a current rule (TaiyangNews).

MNRE has also allowed DISCOMs to use unspent scheme incentives for battery storage and grid upgrades, with beneficiary consent records required (Construction World). That is money for utility-side storage, not a household grant.

We could not read the MNRE operational guidelines themselves, so we cannot say whether a vendor can include the battery in the claim without conditions. Ask your installer to show in writing how the subsidy is calculated for your quote, and treat the battery as unsubsidised unless the portal says otherwise.

Net metering and DISCOM rules

The central Electricity (Rights of Consumers) Rules allow net metering up to 500 kW or the sanctioned load, whichever is lower, a limit set in 2021 (Down To Earth, June 2021; Ember). A March 2024 amendment removed the technical feasibility study for rooftop systems up to 10 kW and requires DISCOMs to commission rooftop systems within 15 days, down from 30 (Drishti IAS). State regulators apply these rules in their own regulations, so the details differ by state.

In the current model, Ember's analysis describes exports as credited one for one against consumption regardless of the time of day, with banking uncapped under the central framework, subject to state rules. That is why a solar-only system pays back in about 3.3 years in its model while a system with a 5 kWh battery takes more than 9 years (Ember). The same analysis says the CEA has proposed a separate tariff category for net metering consumers with fixed, variable and time-of-day charges, which would change this. We could not confirm that proposal's status.

The practical point: while exports are credited at full retail value, the grid acts as a free battery and a home battery mainly buys backup, not savings. If your state moves to time-based credits or banking limits, the picture changes. Ask your DISCOM how exports are credited in your state and whether any change is planned.

We did not review the net metering regulations of individual states, and we could not confirm which states have changed theirs recently. Your DISCOM or state regulator website is the authority.

Tariffs and time-of-day pricing

Tariffs are set state by state. The central rules provide for time-of-day (ToD) pricing: solar hours (eight hours a day set by the state regulator) are 10% to 20% below normal charges, and peak hours are 10% to 20% above normal charges. The rule applies to non-agricultural consumers other than large commercial and industrial users from 1 April 2025, and smart-metered consumers are moved onto ToD after installation (ThePrint on the 2023 rule). CEEW counts ToD tariffs in 23 states and five union territories (CEEW).

For households the gap matters because a battery earns from the difference between cheap and expensive hours. CEEW gives one example: Maharashtra domestic consumers get a rebate of Rs 0.80 per unit between 9 a.m. and 5 p.m. in FY 2025-26, and the regulator plans to raise it to Rs 1.00 by FY 2029-30 (CEEW). Ember models a Maharashtra household using 450 units a month paying Rs 16.64 per unit for its last 150 units, which shows how slab pricing can make the last units expensive (Ember).

We could not confirm whether residential ToD pricing is actually in force in your state, because it depends on smart meters and on the state regulator. Ask your DISCOM which tariff applies to your connection, and whether your meter records time-of-day use.

Our guide on dynamic energy contracts and how to actually save shows why the price gap, and your own evening use, are the ceiling on what a battery can save. We state no payback figure for India, because it depends on your state, tariff slab and quote.

GST and import duty

From 22 September 2025, following the GST Council's 56th meeting, renewable energy devices and parts, including solar power generating systems and PV cells, are taxed at 5% instead of 12% (Energetica India). Press reports differ on the battery rate: Energetica says non-lithium batteries (lead-acid, sodium and flow) were cut from 28% to 18% and lithium-ion remained at 18%, and The News Minute says all battery types now fall under one 18% rate (Energetica India; The News Minute). A third summary confirms the 28% to 18% move for non-lithium batteries (K&S Partners newsletter).

We did not read the GST notifications on the CBIC website, but several independent reports of the 56th GST Council agree on the rates (Energetica India). For a turnkey rooftop installation the notification deems the contract 70% goods and 30% service, so the goods part is taxed at 5% and the service part at 18%, about 8.9% in total, down from about 13.8% before 22 September 2025 (QuickEstimate). A battery sold on its own is at 18%, and we could not confirm whether a battery inside a supply-and-install contract falls in the 70% goods part, so ask your installer and tax adviser, and check the rate on your invoice.

On customs duty, the 2026-27 Union Budget extended the basic customs duty exemption on capital goods used to make lithium-ion cells to battery energy storage cell production (Business Today on the Budget). That concerns factory equipment, and we could not confirm the import duty on finished home batteries or power stations, so we state no figure.

BIS standards and safety

The Bureau of Indian Standards (BIS) compulsory registration scheme lists sealed secondary cells and batteries for portable applications under IS 16046, UPS and inverters up to 5 kVA under IS 16242 (Part 1), and power banks under IS 13252 (Part 1) (BIS: Scheme II registration). We read only part of that list. Solar equipment sits under a separate order: the Solar Systems, Devices and Components Goods (Quality Control) Order 2025 covers storage batteries used in solar systems, and MNRE's clarification of 21 October 2025 says they must meet IS 16270:2023 and carry the BIS mark (Corpseed on the MNRE clarification). Reports differ on when the order takes effect (180 days or 12 months after notification), so we state no start date.

BIS has also issued guidelines for verifying the rated capacity of portable lithium batteries covered by IS 16046, after concerns that manufacturers overstated capacity. Licence holders must submit fresh test reports before their licence expires, and from 1 May 2027 no new licence is granted without a rated capacity test (SolarQuarter on the BIS guidelines). For a buyer this means the watt-hours on a label should become more trustworthy over time, but today you should still treat them with caution.

An opinion piece in Outlook Business says BIS now mandates IS 17893 (equivalent to IEC 62619) for stationary storage (Outlook Business, November 2026). We found no BIS page or MNRE text that names IS 17893 for solar storage batteries (MNRE's clarification names IS 16270:2023), so treat that claim as unconfirmed and ask the seller to show the certificate for the exact model. The same article says India's serious lithium battery fires have been concentrated in recycling and collection, not in households, but that is one author's view.

Whatever you buy, ask for the BIS licence number or the IEC test report, install a wired battery only through a qualified electrician, keep it ventilated and away from sleeping areas and exits, and tell your home insurer. Our guides on how to choose a home battery and installing a battery outside list what to ask an installer. Indian fire-safety rules for home battery installations are not something we could verify.

Finding an installer and getting started

For a subsidised system you apply through the national portal and choose a registered vendor yourself. SolarQuarter's summary of the MNRE guidelines says consumers can select registered vendors of their choice and agree the price directly with them, without DISCOM-led rate discovery (SolarQuarter). Business Today instead describes choosing a DISCOM-registered vendor after feasibility approval (Business Today). We could not resolve this difference, so check how vendors are listed for your DISCOM on the portal.

We did not find an official MNRE-maintained list of battery installers, so we cannot point to one. For a battery you want an electrician or installer who can show past hybrid inverter installations, who will put the battery on a dedicated protected circuit, and who will give a written warranty with an address in India.

Before you sign, ask each installer for: the exact subsidy calculation, the DISCOM approval and net meter steps, how GST is shown on the invoice, the battery chemistry and certification, the warranty terms for the battery and the inverter, and who handles claims if the manufacturer is abroad.

Start by checking your own numbers. Our home battery calculator models a full year hour by hour, though its tariff data is not built for Indian slabs, so use it to understand the logic and not to quote a payback.

Outages and the inverter-and-battery habit

The official picture of reliability has improved. The Ministry of Power told Parliament that average daily supply in rural areas rose from 12.5 hours in 2014 to 22.6 hours in 2025, and in urban areas from 22.1 to 23.4 hours hours (Ministry of Power reply to the Lok Sabha, February 2026). These are averages, so they hide local differences and short interruptions that still matter at home.

Peaks still cause cuts. In May 2026, demand reached an all-time high of more than 270 GW, the peak deficit was about 2.57 GW, and residents of Chennai reported night-time cuts of 40 minutes to an hour, with complaints from Delhi, Noida and Odisha too (Business Standard, 22 May 2026). A short cut at night is exactly what a small inverter and battery covers.

Many Indian homes already own an inverter with a lead-acid battery for fans, lights and a router. We could not find an official figure for how many do, so we state none. The change to think about is that a rooftop solar system connected to the grid shuts down in an outage unless it is built as a hybrid or backup system, so adding solar alone does not give you backup power.

A battery does not keep a house running indefinitely. Capacity, the circuits you back up and the loads decide the runtime, and air conditioning drains a small battery quickly. Our guides on how long a battery lasts in a power cut and how whole-home backup works show the calculation.

Lithium versus lead-acid

Indian households choose between a traditional tubular lead-acid battery and a lithium battery. On tax they are now treated alike: lithium-ion is at 18%, and lead-acid fell from 28% to 18% on 22 September 2025 (Energetica India).

We did not find an independent Indian comparison of price, cycle life or efficiency that we could verify. Retailer and manufacturer blogs give figures, but they are marketing and often disagree, so we state none. Compare on the same terms: usable capacity in kWh (not the rated amount), the warranty in years and in cycles, the depth of discharge the warranty assumes, and the temperature range.

Heat matters in India. Lead-acid batteries need regular topping up and ventilation, and lithium batteries are sensitive to high temperature. We found no independent Indian test data on either in hot conditions, so read the datasheet limits against your hottest rooms and ask where the unit will sit.

Whichever chemistry you pick, check that the inverter and battery are compatible and that the seller will service both. Our guide on choosing a home battery covers the questions to ask.

Portable power stations versus a home battery

Many Indian buyers look at a portable power station before they consider a rooftop battery, and for good reason: it needs no installer, no DISCOM approval and no roof. A portable power station is a battery with sockets that you plug appliances into. It can run a router, fans, lights, a laptop or a small fridge during a cut. It is not wired to your electrical panel, it does not switch on automatically for the whole home, and it cannot shift your consumption to cheap hours or earn from net metering.

A wired home battery is a different product. It connects to the panel through a hybrid inverter, is installed by a qualified electrician, and can back up chosen circuits automatically. It is also the product that the rooftop solar framework applies to. A portable power station sits outside that framework: we found no subsidy for one.

Safety and labels need attention. BIS rules list portable secondary cells and batteries under IS 16046 and power banks under IS 13252 (Part 1) (BIS: Scheme II registration), but we could not confirm whether BIS registration applies to a complete power station as sold, so ask the seller what certificate covers the exact model. Capacity claims matter too, as BIS is tightening rated capacity verification for portable lithium batteries (SolarQuarter). Charge it away from beds and exits, do not leave it charging unattended, and do not cover it. Our guide on portable power stations and plug-in batteries compares the types in detail, and we do not recommend brands on this page.

Choose a power station if you want short, flexible backup for a few devices and can live with plugging them in, or if you rent. Choose a wired battery with solar if you own the roof, want circuit-level backup, and the numbers work under your state's net metering and tariffs.

Outside India

Rules, tariffs and incentives for home batteries differ from country to country, so do not apply the figures on this page to a home elsewhere. We are adding guides for other countries to this section.

Common questions about India

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