Tesla, led by Elon Musk, is actively planning to manufacture and sell battery storage systems in India. The company has submitted a proposal to Indian officials seeking incentives for establishing a factory as part of its efforts to enter the Indian market. While discussions about setting up an electric vehicle (EV) factory in India to produce a $24,000-priced car have been ongoing, Tesla’s focus on renewable energy and battery storage in the country has not been previously reported.
In recent meetings held in New Delhi, Tesla presented a proposal to bolster India’s battery storage capabilities using its “Powerwall” system. The Powerwall is designed to store electricity generated from sources like solar panels or the grid for use during nighttime or power outages.
However, Tesla’s request for various incentives to set up a battery storage factory was met with reluctance from Indian officials, who conveyed that such incentives might not be available. Nevertheless, the government is open to supporting Tesla by offering subsidies to customers purchasing these products, thereby creating a more favorable business environment for the company.
Although both Tesla and the Indian government remain enthusiastic about the proposal, its realization is not guaranteed, and it is currently under review by New Delhi.
The Powerwall proposal is part of Tesla’s broader plans to expand its presence in India beyond electric vehicles. The company aims to attract both residential and industrial customers for its battery storage systems.
India has made efforts to increase electricity supplies to towns and villages but still faces shortages during peak demand periods, primarily relying on coal-based power generation due to the high cost and limited availability of energy storage technologies.
“Large policy level calibration will be required. Tesla’s intent is to have the Powerwall business in India,” a source told Reuters.
In 2020, India experienced a significant power crisis due to issues related to coal transportation, and delays in increasing coal and hydropower capacity have raised concerns about nighttime power shortages when solar energy is not accessible. India is striving to achieve a substantial increase in non-fossil fuel power capacity, targeting 500 GW by 2030, up from the current 186 GW.
Tesla’s Powerwall is a compact unit designed for installation in garages or outside houses. It has gained attention for its potential to benefit both domestic and light commercial users. Tesla may explore larger solutions for industrial applications if its plans for the Indian market progress further.
Indian officials have also emphasized the need for Tesla to reduce the cost of its battery storage products to make them more accessible to consumers. The government believes that high demand for these products can be unlocked with the right support and cost adjustments.
In the United States, the Powerwall costs over $5,500 in California, with additional expenses for solar panels. The product is eligible for various federal tax credits and state and utility solar and energy storage incentives. Notably, Powerwall users in Houston and Dallas recently agreed to sell surplus power back to the Texas electric grid, marking an innovative step in energy utilization.
