Perinjanam gram panchayat in Kerala is preparing to implement India’s first panchayat-level Battery Energy Storage System (BESS) with a government sanction of Rs20 mn for the pilot project. The system will store three point one six megawatt (MW) of solar energy generated every month and supply it to the Electricity Department during peak night hours. The initiative is described as a pioneering model for decentralised renewable energy at local government level.

Under the BESS model, solar power produced during the day will be stored in a large lithium battery system and dispatched during hours of high demand when tariffs rise. The Electricity Department currently pays an average of Rs three point zero four per unit for direct solar supply while tariffs increase to Rs seven per unit during peak demand. The project is expected to increase revenue for the panchayat and participating households by enabling sales at higher tariffs.

Perinjanam’s solar transition began in 2018 under the leadership of K K Sachith and has expanded through rooftop installations on houses and public buildings. The programme now includes 860 households and more than 100 institutions that collectively generate three point one six MW every month. Community uptake was supported by local financing and administrative coordination.

The Perinjanam Cooperative Bank provided collateral free loans to participants, and all beneficiaries repaid their loans within four years and began earning income from surplus generation. A nine point five kilowatt (kW) installation at the Perinjanam Government School now powers around 800 streetlights and has reduced monthly street lighting expenditure from Rs90,000 to Rs32,000. The pilot BESS is expected to consolidate the panchayat’s role as a national exemplar of decentralised solar adoption and community led energy finance.