India's Latest Policy to Encourage Household Power Storage

India, with its ambitious renewable energy targets and rapidly growing economy, has recognized the importance of energy storage. The government has recently introduced several policies to promote the development and adoption of battery energy storage systems (BESS) in households.

Viability Gap Funding for BESS

In line with the announcement made in the Union Budget 2023-24, the Ministry of Power has formulated a Scheme on Viability Gap Funding for the development of Battery Energy Storage Systems with a capacity of 4,000 MWh. This scheme aims to bridge the financial gap in public infrastructure projects to make them commercially viable.

Customs Duty Exemption

The Union Budget 2023-24 has extended the customs duty exemption to the import of capital goods and machinery required for the manufacture of lithium-ion cells for batteries used in electric vehicles up to 31.03.2024. This move is expected to reduce the cost of manufacturing lithium-ion batteries in India, thereby promoting the development of BESS.

Green Credit Programme

The government has also notified the Green Credit Programme under the Environment (Protection) Act for encouraging behavioural change. This programme aims to incentivize households to adopt renewable energy systems and BESS.

 Investment in Interstate Transmission System

The government has planned an investment of Rs. 20,700 crore, including central support of Rs. 8,300 crore, for strengthening the interstate transmission system for evacuation and Grid Integration of 13 GW renewable energy from Ladakh. This move is expected to facilitate the integration of household solar power systems with BESS into the grid.

In conclusion, the Indian government's latest policies aim to encourage the adoption of household power storage systems. These policies are expected to play a crucial role in promoting the use of renewable energy and achieving India's ambitious renewable energy targets.