India’s energy storage sector witnessed strong growth in 2025, with the country adding 547 MWh of battery energy storage capacity, marking a 26% year-on-year (YoY) increase compared to 433 MWh added in 2024. This milestone, highlighted in Mercom India’s latest Energy Storage Landscape Report released in March 2026, reflects the accelerating role of storage in supporting India’s renewable energy expansion.
With these additions, India’s cumulative installed battery energy storage capacity crossed 1,082 MWh (over 1 GWh) as of December 31, 2025, signaling a key inflection point for the sector. Solar-plus-storage systems dominated the market, accounting for over 54% of total installed capacity, followed by solar-plus-wind hybrid projects and standalone battery storage systems.
The report also highlights that India’s pumped storage capacity exceeded 7 GW, with nearly 6 GW operational, reinforcing the country’s reliance on both battery and hydro-based storage solutions. States such as Bihar, Chhattisgarh, and Rajasthan emerged as leaders in installed capacity, while Gujarat leads the pipeline for upcoming standalone battery storage projects.
According to Raj Prabhu, CEO of Mercom Capital Group, India’s energy storage sector has reached an “inflection point”, driven by strong policy support, rising renewable energy penetration, and increasing demand for grid flexibility. With over 20 GW of storage tenders issued and 15 GW auctioned in the second half of 2025 alone, the sector is poised for exponential growth. However, challenges such as regulatory clarity, GST disparities, and storage economics alignment will be critical for long-term scalability.
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