For a long time, it was discussed that every solar plant owner would need to install a co-located energy storage system (ESS), which raised serious questions about the affordability of solar energy, especially under popular schemes like the PM Surya Ghar Muft Bijli Yojana. Now, the Central Electricity Authority (CEA) has issued a clarification to end the confusion.
The government had earlier released an advisory on February 18, 2025, recommending a mandatory 2-hour co-located ESS for future solar power tenders. This system should store energy equal to 10% of the installed solar capacity. The target was to improve grid stability and ensure power supply during non-solar hours.
The advisory had sparked concern among solar developers and homeowners, who feared this, too would apply to ongoing projects. The rule seemed to suggest increased costs, making solar not affordable anymore.
However, on April 1, 2025, the CEA officially clarified that this ESS requirement will not apply to past or ongoing solar projects. All existing government schemes, including the PM Surya Ghar Muft Bijli Yojana, will continue under their original terms. The ESS rule will only apply to new tenders going forward.
The Ministry of Power further explained that the ESS can operate in two ways: it can either charge from solar power and discharge during peak hours (single-cycle) or charge from the grid during low-demand hours and supply energy during non-solar hours (double-cycle).
This clarification brings much-needed relief to developers and households already working under existing schemes, making sure that costs won’t rise unexpectedly. For new projects, though, energy storage will now be a key part of solar planning in India’s clean energy journey.
Source:
0 Comments