The midpoint levelised cost of electricity (LCOE) of solar and onshore wind paired with four-hour battery storage in India fell below that of new coal in the second half of 2025, according to BloombergNEF (BNEF).

BNEF attributed the shift to falling battery prices, noting that global benchmark energy-storage system costs fell to about $230 per kilowatt-hour (kWh) in 2025 and are expected to reach $183/kWh by 2030 in real 2025 terms, in its Emerging Markets Transition Factbook.

Turnkey costs for a four-hour system could fall to $48/kWh in China by 2030 from $62/kWh in 2025, whilst those in Europe could drop to $125/kWh from $172/kWh. The declines should put downward pressure on costs in India.

Non-fossil sources accounted for more than 50% of India’s installed power capacity as of 2025, a target the country had set for 2030.

BNEF expects non-fossil technologies to approach three-quarters of installed capacity by 2035, with solar providing much of the growth.

Standalone solar and wind have been the cheapest source of new bulk power generation in India since 2018, based on BNEF’s LCOE estimates.

India added about nine gigawatts of net fossil-fuel capacity in 2025, mainly coal, the report added.

“Storage remains the main cost premium, meaning further battery-cost declines could strengthen the economics of renewables-plus-storage,” it said.

Combined with India’s growing renewable fleet and large-scale storage procurement, the country is set to become the largest battery storage market amongst emerging economies.