Financing Models for Battery Energy Storage Projects

Synopsis

The Indian Battery Energy Storage System (BESS) market stands at the cusp of extraordinary growth, with projections indicating an expansion from ₹650 billion (USD 7.8 billion) in 2024 to a remarkable ₹2.67 trillion (USD 32 billion) by 2030. This represents a robust Compound Annual Growth Rate (CAGR) of 27% during the 2025-2030 period, creating unprecedented opportunities for investors, developers, and financial institutions across the energy storage value chain. As this market quadruples in size over the next six years, innovative financing structures will be essential to unlock capital at scale and accelerate deployment across utility, commercial, and industrial applications. The evolution of these financial mechanisms will fundamentally shape India’s energy transition landscape and determine which stakeholders capture value in this rapidly expanding sector.

• What are the dominant financial models emerging in India for BESS?
• How can debt providers be educated on ESS revenue models?
• What are realistic expectations for revenue stacking in the Indian market?
• How can concessional finance accelerate early projects?
• Are SPVs or leasing models better suited for the Indian context?