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| Shalin Seth |
Supported by favourable government policies, improving technologies, and growing investor interest, these sectors are undergoing notable advancements. Their combined progress is enabling large-scale energy projects that are not only cleaner but also more reliable and adaptable to the country’s diverse energy needs.
India’s installed solar capacity has risen to nearly 82 GW as of early 2025, supported by the increasing efficiency and competitiveness of EPC firms. Their use of modern practices such as automated cleaning systems, advanced inverters, and optimised plant layouts has enhanced both energy output and system longevity.
The shift from small rooftop installations to large utility-scale solar parks is being facilitated by EPC firms that are equipped to handle complex projects with rigorous timelines and compliance requirements.
Integrated project delivery models are also gaining attention. These combine solar EPC with operation and maintenance services, enabling better performance monitoring and sustained generation. Additionally, hybrid EPC contracts that include components such as wind turbines or biomass systems are becoming more frequent, especially in regions where diversified energy sourcing is required.
Increased focus on decentralised energy solutions, particularly in remote and underserved areas, has led to the rise of mini-grid EPC projects. These projects are tailored to serve agricultural and village-level needs through a mix of solar generation and backup systems.
India is witnessing a rising demand for energy storage infrastructure, both in grid-connected and off-grid applications. Lithium-ion batteries remain the dominant technology, but alternatives such as flow batteries and sodium-ion variants are under development. Storage systems are now being deployed alongside solar projects to offer a more consistent power supply, particularly in industrial and commercial environments.
According to estimates by the Central Electricity Authority, India may require over 50 GW of storage capacity by 2030 to effectively manage renewable integration. This requirement is fuelling investment in battery manufacturing, storage parks, and hybrid renewable systems, thereby opening new opportunities for collaboration between EPC contractors and storage technology providers.
Recent policy measures are also encouraging the bundling of renewable energy with storage, particularly in public sector power procurement. The National Framework for Energy Storage, introduced in 2023, aims to standardise and streamline deployment procedures. Further, updates to renewable purchase obligations and energy banking policies are creating a more conducive environment for long-term investment in hybrid systems.
At the state level, regulatory commissions are increasingly mandating the inclusion of storage in large solar bids, thereby reinforcing the shift towards dispatchable renewable energy.
Capital costs for lithium-ion battery storage systems have also declined steadily, improving their financial viability. Financing models for solar-plus-storage projects are evolving to include longer-term power purchase agreements, lease-based financing, and blended capital structures involving equity and debt.
Banks and infrastructure investors are demonstrating increasing confidence in integrated projects, especially where regulatory clarity and long-term revenue visibility exist. This trend is expected to strengthen further as more financial institutions develop expertise in evaluating the risks and returns of such hybrid systems.
Solar EPC contractors are now expected to work in close coordination with grid operators to ensure compatibility with grid standards and communication protocols. Monitoring systems and automated controls play a key role in achieving this synchronisation.
Furthermore, the emphasis on grid-forming inverters and scalable battery configurations is helping improve grid stability, especially in areas prone to voltage fluctuations and peak demand imbalances. These efforts collectively contribute to a more stable and efficient energy network.
On the energy storage front, India still relies heavily on imports for key battery components, which raises concerns about supply chain security and pricing volatility. Additionally, the absence of a comprehensive framework for the disposal and recycling of used batteries poses long-term environmental risks.
Workforce training and safety protocols must also be strengthened to meet the technical demands of storage system deployment and grid integration. Addressing these issues will be essential to unlocking the full potential of the sector.
The government’s target of achieving 500 GW of non-fossil fuel capacity by 2030 will largely depend on how efficiently solar and storage can be scaled together. This will require a greater alignment between public policy, private sector execution, and community engagement.
As more states adopt energy transition roadmaps, there will be increased demand for customised solutions, including solar microgrids, floating solar with storage, and mobile battery units for remote applications. This creates new opportunities for EPC contractors willing to innovate and expand their service offerings.
With a clear national vision, proactive policy support, and growing stakeholder collaboration, India is well-positioned to become a global leader in clean energy deployment. The integration of efficient EPC practices with robust energy storage systems will ensure not only energy access but also energy reliability for millions across the country.
The Expanding Role of Solar EPC in India
Solar EPC providers are responsible for delivering end-to-end solutions in solar power development. Their scope includes technical feasibility assessments, detailed engineering, procurement of components, construction, commissioning, and, increasingly, post-installation support. This turnkey approach ensures that developers, public utilities, and commercial clients can rely on a single partner for the execution of solar power projects.India’s installed solar capacity has risen to nearly 82 GW as of early 2025, supported by the increasing efficiency and competitiveness of EPC firms. Their use of modern practices such as automated cleaning systems, advanced inverters, and optimised plant layouts has enhanced both energy output and system longevity.
The shift from small rooftop installations to large utility-scale solar parks is being facilitated by EPC firms that are equipped to handle complex projects with rigorous timelines and compliance requirements.
Advancements in Solar EPC Practices
The solar EPC industry is no longer limited to basic construction and installation. It now reflects a broader trend toward optimised energy infrastructure. One significant advancement is the growing deployment of bifacial modules, which allow panels to absorb sunlight from both sides, thereby improving overall yield.Integrated project delivery models are also gaining attention. These combine solar EPC with operation and maintenance services, enabling better performance monitoring and sustained generation. Additionally, hybrid EPC contracts that include components such as wind turbines or biomass systems are becoming more frequent, especially in regions where diversified energy sourcing is required.
Increased focus on decentralised energy solutions, particularly in remote and underserved areas, has led to the rise of mini-grid EPC projects. These projects are tailored to serve agricultural and village-level needs through a mix of solar generation and backup systems.
The Growing Significance of Energy Storage
While solar generation has made remarkable progress, its intermittent nature poses challenges for grid reliability and round-the-clock availability. Energy storage solutions, especially battery-based systems, are becoming indispensable in addressing these gaps.India is witnessing a rising demand for energy storage infrastructure, both in grid-connected and off-grid applications. Lithium-ion batteries remain the dominant technology, but alternatives such as flow batteries and sodium-ion variants are under development. Storage systems are now being deployed alongside solar projects to offer a more consistent power supply, particularly in industrial and commercial environments.
According to estimates by the Central Electricity Authority, India may require over 50 GW of storage capacity by 2030 to effectively manage renewable integration. This requirement is fuelling investment in battery manufacturing, storage parks, and hybrid renewable systems, thereby opening new opportunities for collaboration between EPC contractors and storage technology providers.
Policy Support and Institutional Framework
The evolution of solar EPC and energy storage in India is closely linked to policy directives and regulatory frameworks. Initiatives such as the PLI scheme for solar manufacturing and the Green Energy Corridor project have provided critical momentum to the sector.Recent policy measures are also encouraging the bundling of renewable energy with storage, particularly in public sector power procurement. The National Framework for Energy Storage, introduced in 2023, aims to standardise and streamline deployment procedures. Further, updates to renewable purchase obligations and energy banking policies are creating a more conducive environment for long-term investment in hybrid systems.
At the state level, regulatory commissions are increasingly mandating the inclusion of storage in large solar bids, thereby reinforcing the shift towards dispatchable renewable energy.
Cost Trends and Financial Viability
Cost considerations remain a significant factor in the adoption of solar EPC and storage solutions. Declines in the cost of solar modules and batteries over the past decade have significantly improved project economics. This has made solar power more attractive to industrial, commercial, and residential consumers alike.Capital costs for lithium-ion battery storage systems have also declined steadily, improving their financial viability. Financing models for solar-plus-storage projects are evolving to include longer-term power purchase agreements, lease-based financing, and blended capital structures involving equity and debt.
Banks and infrastructure investors are demonstrating increasing confidence in integrated projects, especially where regulatory clarity and long-term revenue visibility exist. This trend is expected to strengthen further as more financial institutions develop expertise in evaluating the risks and returns of such hybrid systems.
Technological Integration with Modern Grids
As India moves towards a more decentralised and resilient energy future, the integration of solar power and energy storage into modern grid systems becomes essential. New infrastructure development is being guided by the need for better load balancing, demand forecasting, and real-time energy dispatch.Solar EPC contractors are now expected to work in close coordination with grid operators to ensure compatibility with grid standards and communication protocols. Monitoring systems and automated controls play a key role in achieving this synchronisation.
Furthermore, the emphasis on grid-forming inverters and scalable battery configurations is helping improve grid stability, especially in areas prone to voltage fluctuations and peak demand imbalances. These efforts collectively contribute to a more stable and efficient energy network.
Challenges and Constraints
Despite the favourable growth trajectory, the sector continues to face several challenges. Land acquisition remains a complex issue, especially for utility-scale projects in densely populated or ecologically sensitive areas. Delays in transmission infrastructure and bureaucratic hurdles also pose operational challenges for EPC contractors.On the energy storage front, India still relies heavily on imports for key battery components, which raises concerns about supply chain security and pricing volatility. Additionally, the absence of a comprehensive framework for the disposal and recycling of used batteries poses long-term environmental risks.
Workforce training and safety protocols must also be strengthened to meet the technical demands of storage system deployment and grid integration. Addressing these issues will be essential to unlocking the full potential of the sector.
Future Outlook
Looking ahead, the solar EPC and energy storage sectors are expected to continue their upward trajectory, supported by policy certainty, investor interest, and sustained technological development. There is growing emphasis on integrated projects that combine generation, storage, and management into a single solution.The government’s target of achieving 500 GW of non-fossil fuel capacity by 2030 will largely depend on how efficiently solar and storage can be scaled together. This will require a greater alignment between public policy, private sector execution, and community engagement.
As more states adopt energy transition roadmaps, there will be increased demand for customised solutions, including solar microgrids, floating solar with storage, and mobile battery units for remote applications. This creates new opportunities for EPC contractors willing to innovate and expand their service offerings.
Gujarat’s Leadership in Solar and Storage Development
Gujarat has emerged as a front-runner in India’s renewable energy transition, particularly in the solar EPC and energy storage domains. The state has consistently demonstrated policy foresight, infrastructure readiness, and strong execution capabilities. As of early 2025, Gujarat has installed over 12 GW of solar power, supported by expansive solar parks such as the Dholera and Charanka projects. These parks are among the largest in Asia and serve as benchmarks for large-scale EPC execution. Additionally, Gujarat is one of the first states to successfully pilot utility-scale battery storage systems integrated with solar generation. The state's progressive land acquisition policies, dedicated renewable energy zones, and supportive regulatory mechanisms have made it a preferred destination for both domestic and international EPC contractors. Through such initiatives, Gujarat not only contributes significantly to national energy targets but also demonstrates how proactive governance and coordinated infrastructure planning can accelerate clean energy adoption.Conclusion
India’s energy transition is gaining strength, and the evolving landscape of solar EPC and energy storage will play a central role in achieving the country’s long-term sustainability goals. As technologies mature and regulatory frameworks continue to evolve, these sectors are poised to shape the next generation of energy infrastructure.With a clear national vision, proactive policy support, and growing stakeholder collaboration, India is well-positioned to become a global leader in clean energy deployment. The integration of efficient EPC practices with robust energy storage systems will ensure not only energy access but also energy reliability for millions across the country.
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