India’s Behind-the-Meter Storage Demand To Exceed 39 GWh By 2033: IESA

New Delhi, Apr 13 (KNN) India’s energy storage sector is poised for significant expansion, with the Behind-the-Meter (BTM) stationary storage market projected to grow from 32 GWh of annual demand in 2025 to over 39 GWh by 2033, according to a report by the India Energy Storage Alliance (IESA).

BTM systems refer to on-site energy generation and storage installed on the consumer’s side of the utility meter, allowing direct use of electricity without routing it through the grid.

IESA President Debmalya Sen said, "The projected growth to 39 GWh by 2033 reflects not just surging demand, but a paradigm shift in how businesses and consumers interact with energy," reported PTI.

Adoption Driven by Cost and Reliability

These systems include rooftop solar installations, battery storage solutions, and backup systems integrated with UPS, inverters and telecom infrastructure. 

Their adoption is being driven by falling costs of lithium-ion batteries and solar-plus-storage solutions, along with rising grid tariffs and the need for reliable power supply.

In 2024, the levelised cost of energy from rooftop solar with storage stood at around Rs 6–7 per kWh, nearing parity with commercial grid tariffs in states such as Maharashtra, Tamil Nadu and Karnataka.

Analysts expect solar-plus-storage systems to become cost-competitive for a wider base of commercial users by 2026, with industrial users likely to follow.

Shift in Energy Consumption Patterns

Industry experts highlighted that the projected growth signals a broader shift in how consumers and businesses manage energy, moving towards decentralised and self-reliant systems.

The report noted that while lead-acid batteries currently dominate the BTM market with over 85 per cent share in 2025, lithium-ion technology is rapidly gaining traction across segments.

Rising Lithium-Ion Penetration

In the telecom sector, lithium-ion batteries already account for about 77 per cent of new installations. Similar momentum is being observed in UPS systems and rooftop solar segments, indicating a gradual transition towards more efficient storage technologies.

Vinayak Walimbe, Managing Director of Customised Energy Solutions (CES), founder of industry body IESA, said the improving economics of solar-plus-storage are making these systems increasingly attractive for commercial and industrial users.

Evolving Market Drivers

The report added that the drivers of the BTM storage market are evolving alongside improvements in India’s power reliability, with consumers increasingly focusing on cost optimisation, energy independence and resilience.

(KNN Bureau)