Solar With Storage Cheaper Than New Thermal Power: TERI’s Analysis for Meeting the Demand of a DISCOM
17 October 2025, New Delhi: An analysis by The Energy and Resources Institute (TERI) comparing the cost of solar power with storage to new thermal power plants has found that solar-plus-storage is now the more affordable option for round-the-clock electricity supply.
The discussion brought together experts to analyse cost implications, emerging storage technologies, and market dynamics shaping India’s renewable energy landscape.
Conducted for the seasonal peak demand day of BSES Rajdhani Power Limited (BRPL), the study analyzed the per-unit cost for meeting the demand of the DISCOM using solar power combined with storage technologies—Battery Energy Storage Systems (BESS) and Pumped Storage Plants (PSP)—vis-à-vis new thermal power.
Key Findings:
- Solar + BESS: ₹3.9–₹4.3 per kWh
- Solar + PSP: ₹4.4–₹4.9 per kWh
These compare favourably with new Thermal Power Plants which generate electricity ₹5.4–₹5.8 per kWh These findings were discussed at a presentation-cum-discussion session at TERI on “Solar Plus Storage: A Few Options for Round-the-Clock Supply – Sizing and Cost Implications”, which brought together experts from TERI and NREL to explore the theoretical exercise of Solar Plus Storage meeting the complete demand for BRPL’s selective peak demand days.
The results show that solar power coupled with storage is cheaper than new thermal generation while offering a cleaner, reliable supply.
Speaking about the study, Mr Ajay Shankar, Distinguished Fellow, TERI, described it as “a thought experiment to assess the cost implications of solar-plus-storage systems combining battery and pumped storage plants.” Experts concluded that with solar tariffs down by over 90% in the past decade, the next step is expanding affordable storage to enable India’s 24×7 green power future.
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