Battery solutions
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7 MIN READ
Battery energy storage systems (BESS) in India: Powering the future of energy
India’s energy future is getting a green makeover — with Solar and Wind energy leading from the front. But here’s the catch — the sun doesn’t shine at night, and the wind doesn’t follow schedule. That’s where Battery Energy Storage System (BESS) steps in as the unsung hero of the power sector. Think of them as giant power banks for the grid: they store excess energy when it’s plentiful and release it when demand peaks or supply dips, ensuring the lights stay on — rain or shine. For small and medium enterprises (SMEs) looking to cut costs, reduce diesel dependence, or adopt solar, BESS is becoming the backbone of a more stable energy infrastructure.
Whether you’re powering a factory, a retail space, a school, a warehouse, an EV fleet or charging infrastructure, battery storage offers energy independence, stability, and long-term savings. And with financing platforms like TapFin stepping in, going green isn’t just good for the planet — it finally makes business sense too. Here’s how:
What is a battery energy storage system (BESS) and how does it work?
BESS, as mentioned above, captures electricity from renewable sources like solar or wind (or even the grid itself when consumption is low), stores it safely, and then releases it when energy is needed the most — like during blackouts, peak hours, or cloudy days when solar panels don’t get enough sunlight.
A typical BESS setup includes:
- Battery packs – Usually lithium-ion, but also lead-acid or flow batteries, depending on the use-case.
- Inverters & converters – These manage the flow of electricity, converting DC to AC and vice versa.
- Control systems – The brain of the operation, optimizing when to charge, store, or discharge power.
So, how does it actually work?
- Energy in – When there’s surplus energy (say, sunny afternoons or low-demand hours), the system absorbs and stores energy.
- Energy stored – That power sits in the battery, waiting patiently, like a camel storing water before a desert trek.
- Energy out – When the grid is under pressure or prices spike, the system steps in and supplies the stored power instantly.
Benefits of battery energy storage systems
Here are some key benefits of a Battery Energy Storage System (BESS), especially for businesses, commercial setups, and solar adopters:
- Lower electricity bills (time-of-use savings): Store electricity when rates are low (off-peak) and use it when rates are high (peak hours), slashing energy costs.
- Reduced diesel generator dependency: Avoid running expensive and polluting diesel generators during outages. BESS provides instant, clean backup.
- Maximized solar ROI: Store excess solar power instead of wasting it or feeding it back at low tariffs. Use it when needed = more savings.
- Incentives and subsidies: Government schemes and state-level policies may offer capital subsidies or tax benefits on energy storage investments.
- Carbon credits & green branding: Businesses using BESS with renewables can earn carbon credits and position themselves as eco-friendly — which can open doors to ESG-focused funding and customers.
Myths vs. facts: Battery storage vs energy storage misconceptions
Belief | Reality |
| BESS is just a backup | It supports renewables, stabilizes grids, and improves energy access |
| Battery storage doesn’t last long | With proper management, they work effectively for over a decade |
| Only big players benefit | Even homes can now use residential energy storage solutions |
| Too expensive for India | Costs are falling and savings from time-of-use pricing make it viable |
| Batteries aren’t eco-friendly | Focus is shifting to recycling and battery refurbishing for reuse |
Understanding the differences between battery storage vs energy storage can help guide better adoption choices.
Challenges and financing gaps in energy storage in India
Despite increasing demand and adoption, several challenges remain for energy storage in India:
- Lack of tailored financial products: Most financing institutions (NBFCs and Banks) don’t offer BESS-specific loans, leases, or credit lines. Standard loan products don’t align with the tech’s unique risk profile and cash flow models.
- High perceived risk by lenders: Financing institutions often view BESS as a high-risk investment due to concerns over battery degradation, limited resale value, and lack of long-term warranties.
- No energy storage financing schemes or subsidies (yet): Unlike solar, where government support kickstarted adoption, energy storage lacks clear subsidies, mandates, or financing incentives, slowing down lender participation.
- Low awareness among lenders and users: There is a limited understanding of how BESS can generate value or reduce costs, both among users who need financing and lenders who might offer it.
Conclusion:
New platforms like TapFin are beginning to address the financing gap by connecting customers with NBFCs like GoGreen Capital and other lenders interested in clean energy assets, including battery energy storage systems. TapFin makes BESS affordable and accessible with flexible loans, leasing options, and partnerships that work for SMEs, EPCs, OEMs, and clean energy champions.
As more players explore different types of battery energy storage systems, improved standards and broader access to capital will be key to unlocking growth in this sector.
FAQs about energy storage systems in India
Q. Is BESS suitable for homes in India?
Yes, especially when paired with rooftop solar — home battery power storage is gaining traction.
Q. What are the main types of battery energy storage systems?
Common ones include lithium-ion, lead-acid, flow batteries, and new hybrids like battery and supercapacitor solutions.
Q. Where can I get financial support for battery energy storage systems?
Financing is available through clean energy platforms like TapFin, which connect users to lenders and NBFCs (TapFin’s own NBFC GoGreen Capital is highly focused on such initiatives) offering loans for battery storage systems, especially when combined with solar. While support from major banks is still limited, options are growing for both residential and commercial users.
Q. Are Indian companies manufacturing these systems?
Yes — key battery energy storage system manufacturers in India include Exide, Amara Raja, Tata Power, and several startups like ION Energy.
Q. Is there any government support for setting up BESS?
Some, via PLI and pilot tenders, but more targeted incentives and battery financing programs are needed.
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