Tesla has submitted a proposal to Indian officials seeking incentives to establish a battery storage system factory.

Reuters said Tesla proposed to support India’s battery storage capability with its Powerwall system which stores electricity generated by solar panels, or taken from the grid, for use at night or during power outages.

Indian officials had said subsidies would not be available but were considering consumer support instead.

A source told Reuters it was not certain the plan would go ahead but Tesla and the India government were keen.

Tesla has also pitched an EV factory for India to produce an affordable EV priced at US$24,000. Those talks had been overseen directly by prime minister Narendra Modi.

According to Reuters, Tesla was keen to establish presence in the country as India plans to increase its non fossil fuel power capacity to 500GW by 2030, up from 186GW now.

Indian officials have emphasised the importance of reducing the cost of battery storage systems to unlock the market as demand was expected to be substantial.

The plans would also require significant policy changes.

As India faces challenges meeting power demand, battery storage products such as the Powerwall are increasingly in demand.