Article

India's battery energy storage sector is experiencing a 25-30% cost increase driven by currency fluctuations, rising raw material prices, and changes in China's export policy, including a 3% hike in costs due to reduced export tax rebates starting April 2026. With energy storage needs projected to exceed 411 GWh by 2031-32, the sector faces challenges as EPC contractors navigate fixed-price tariffs amidst rising procurement costs. To mitigate risks associated with imports, strengthening domestic manufacturing is deemed essential for expanding the country's renewable energy capacity.