Tesla is reportedly planning to manufacture and sell battery storage systems in India, with a proposal submitted to Indian officials seeking incentives for the construction of a factory.

While Tesla has been in discussions about establishing an electric vehicle (EV) factory in India for weeks, the focus on renewables has not been widely reported.

In recent meetings held in New Delhi, Tesla proposed the introduction of its "Powerwall" battery storage system to support India's energy storage capabilities. The Powerwall can store power from solar panels or the grid for use during nighttime or outages.

Although Tesla requested incentives for the battery storage factory, Indian officials indicated that these incentives may not be available. However, they suggested that the government could support the company by offering subsidies to consumers purchasing such products.

Tesla is keen on expanding its presence in India beyond EVs, seeking residential and industrial customers for its battery storage systems. The company aims to establish the Powerwall business in India, which would require significant policy-level adjustments.

India has faced electricity shortages during peak demand despite increasing supplies to towns and villages. The country primarily relies on coal-based power generation, and energy storage technologies are not yet widespread. India aims to increase its non-fossil fuel power capacity to 500 GW by 2030.

Tesla's Powerwall, designed for domestic and light commercial use, could potentially be adapted for larger solutions for the industry. However, Indian officials have emphasized the need for Tesla to reduce the cost of its battery storage products. With incentives, the Powerwall costs over $5,500 in California, and it is eligible for U.S. federal tax credits and local incentives for solar and energy storage.

Neither Tesla nor Indian government officials have responded to requests for comment on the matter.