India Adds 8.2 GWh of Battery Storage Capacity in H1 2026

In a significant development for the energy sector, India has added 8.2 GWh of battery energy storage system (BESS) capacity during the first half of 2026. This figure represents a remarkable increase from the 98.4 MWh of capacity installed in the same period in 2025, showcasing a major shift in the country's approach to energy storage. The report from Mercom India Research highlights that this substantial growth is indicative of the Indian market moving beyond pilot phases and into the implementation of large-scale storage solutions.

During the second quarter of 2026, India installed 3.6 GWh of battery storage, which reflects a 22% decrease from record installations in the first quarter. Despite this slight dip, the overall figures for the first half of the year confirm the momentum in the energy storage sector. Standalone battery storage systems accounted for nearly 98% of the quarterly additions, while solar-plus-storage projects contributed another 8%. This trend illustrates a significant transition towards dedicated grid services, aligning India with more established energy markets.

Regionally, Rajasthan emerged as the leader in cumulative installed battery storage capacity, holding a 36% share, followed by Gujarat at 20% and Maharashtra at 5%. However, the report also points to a growing gap between the amount of storage capacity tendered and the actual capacity auctioned, as the industry seeks to establish a pricing model that meets demand. In the first half of 2026, tenders totaled 28 GW, but only about 9 GW was auctioned, reflecting an 18% decline year-on-year.

The volatility in battery prices and discovered tariffs remains a challenge for the sector. Recent auctions have led to lower prices, prompting some procurers to pause their purchasing decisions in anticipation of further decreases. Conversely, rising prices can lead to quicker purchasing decisions as buyers seek to secure contracts. Raj Prabhu, CEO of Mercom Capital Group, emphasized the increasing need for energy storage, stating that installations surged in 1H 2026 as large-scale standalone projects transitioned from the tendering phase to actual installations on the ground.

Looking forward, the outlook for India's energy storage sector remains robust, with a significant pipeline of projects under development. The growth trajectory will depend on how swiftly tendered capacities are converted into auctions and awarded contracts. Additionally, ensuring bankable contracts, reliable grid infrastructure, stable supply chains, and favorable project economics will be essential for sustaining this momentum. As solar energy additions rise and the demand for storage increases, India is poised to strengthen its position in the global energy landscape.