From Batteries to Bankability: What Will Make BESS Startups Scale in India?

India’s renewable energy expansion is creating a parallel need that is becoming increasingly difficult to ignore: energy storage that can reliably balance generation, manage demand and strengthen the grid.

As solar and wind capacity grows, the ability to store electricity and dispatch it when needed will become increasingly important. This makes Battery Energy Storage Systems (BESS) more than an add-on to renewable energy projects. They are emerging as a critical part of India’s future energy infrastructure.

This was the focus of the discussion “From Batteries to Bankability: What Will Make BESS Startups Scale in India?”, featuring N. Amaranath, CEO, KSPDCL, Ruchira Shukla, Founder & CEO, Green Marble, and Ankit Kherodiya, Co-Founder & CEO, ReVx Energy, who moderated the conversation. 

The discussion brought together perspectives from the utility, investment and startup ecosystem to examine what it will take for India’s energy storage startups to move from promising technology to bankable, scalable businesses. 

Storage is becoming essential to India’s renewable energy transition 

The growth of solar and wind is changing when and how electricity is generated. Solar generation, for instance, is concentrated during the day, while demand often rises during morning and evening peaks. 

Storage can help bridge this gap by absorbing excess generation and making electricity available when demand rises. 

The discussion highlighted the scale of the opportunity, including plans for up to 2 GWh of BESS capacity in Karnataka, with projects already awarded and tendered. 

The implication for startups is clear: storage needs to be considered as core energy infrastructure, creating opportunities well beyond simply manufacturing batteries. 

The opportunity extends far beyond the battery 

India’s storage opportunity is not limited to one battery chemistry or one part of the value chain. 

There is room for innovation across: 

• Battery materials and cell components  

• Alternative chemistries such as sodium-ion, redox-flow and iron-air  

• Battery Management Systems (BMS) and Energy Management Systems (EMS)  

• Power conversion and thermal management  

• Battery health prediction and lifecycle intelligence  

• Renewable energy forecasting and load scheduling  

• Grid digital twins and demand management  

• Cybersecurity and indigenous control systems  

• Safety testing, certification and thermal-runaway prevention  

• Battery recycling, material recovery and second-life applications  

• Long-duration energy storage  

For startups, this creates an opportunity to build specialised technologies that solve specific problems across the BESS ecosystem. 

Startups do not have to compete with large developers 

Large-scale BESS projects will continue to require the capital, balance sheets and execution capabilities of established developers. 

That does not mean startups need to compete for the entire project. 

Specialised technology providers can become important partners across BMS, EMS, power conversion, battery intelligence, safety, components and other technology layers. 

Greater collaboration between developers and technology startups could help bring new solutions into real-world projects while allowing startups to focus on their areas of technical strength. 

C&I could be an important early market 

For many emerging storage technologies, the commercial and industrial (C&I) segment could offer a practical route to early adoption. 

C&I customers are increasingly looking at energy costs, reliability, predictable power availability and emissions reduction. These needs can create opportunities for startups to deploy solutions, generate operating data and establish commercial proof points. 

Residential adoption may take longer, making C&I customers particularly relevant for startups looking to move from technology validation to early revenue. 

Indigenous technology is also an energy security priority 

As batteries, EVs, data centres and storage assets become increasingly connected, the software and communication systems controlling them become critical layers of energy infrastructure. 

Building domestic capabilities in BMS, EMS, forecasting, grid software and cybersecurity can therefore serve two purposes: enabling innovation while strengthening India’s energy security. 

For startups, this opens an important opportunity to build the intelligence layer of India’s future energy systems. 

Policy can help solve the first-customer challenge 

Emerging energy technologies often face a familiar problem. 

Customers want to see operating evidence before adopting a new technology. Startups need customers in order to generate that evidence. 

Government pilots, early-adopter incentives, domestic procurement, and risk-sharing mechanisms can help bridge this gap. 

Creating pathways for first deployments can allow startups to demonstrate performance, build confidence and ultimately bring down costs through scale. 

The next generation of storage will need to go beyond short duration 

As India’s energy system evolves, storage requirements will become more diverse. 

Hybrid configurations combining solar, wind, BESS and pumped storage can help optimise generation, manage peak demand and improve the utilisation of renewable assets. 

Long-duration energy storage could also become increasingly important as the system requires greater flexibility around when stored energy is dispatched. 

This creates space for startups working on technologies and business models that go beyond conventional short-duration BESS applications. 

Circularity is part of the storage opportunity 

The storage ecosystem also creates an opportunity to reduce dependence on imported materials. 

Battery recycling and material recovery can help recover critical resources from used batteries, while second-life applications can extend the useful life of cells that are no longer suitable for mobility. 

Used EV batteries, for example, could potentially find applications in stationary storage, telecom infrastructure and backup power, depending on their remaining performance and safety characteristics. 

Technology alone does not make a BESS startup bankable 

A strong technology is only one part of the equation. 

For investors and customers, bankability increasingly depends on whether a startup can demonstrate: 

Performance and reliability. Can the technology perform consistently in real-world conditions? 

Safety and technical validation. Has the solution been tested and independently validated? 

A clear use case. Is there a defined customer problem and willingness to pay? 

Commercial traction. Has the startup moved towards revenue and market validation? 

A credible supply chain. Can the company manufacture and deliver at scale? 

Competitive economics. Can the solution make commercial sense? 

A scalable route to market. Can the startup move beyond individual pilots? 

Early investor interest can begin around an innovative technology, but institutional investment becomes easier when startups can demonstrate commercial validation, revenue and a credible path to scale. 

An opportunity for India’s energy innovators 

The discussion points to a broader opportunity: India’s energy transition will require not just more renewable generation, but a deeper ecosystem of technology companies capable of making the energy system smarter, more reliable, more efficient and more resilient. 

For founders building in energy storage, grid technologies, power electronics, renewable energy, green hydrogen, energy software, energy efficiency, indigenous energy technologies and related areas, the opportunity is expanding. 

The Renewable Energy Incubation Centre, an initiative by NSRCEL in partnership with KREDL, FSID (IISc), and UNSW Sydney, supports energy startups through business incubation, technical validation, policy and market access, grant and funding support, and global exposure. 

The program is designed to help startups validate, pilot and scale solutions for India’s evolving energy ecosystem.