Mar 25: India added 547 MWh of battery energy storage capacity in 2025, a 26% increase compared to 433 MWh added in 2024, according to the newly released 2H & Annual 2025 India’s Energy Storage Landscape Report by Mercom India Research.
India‘s cumulative installed battery energy storage capacity reached 1,082 megawatt-hours (MWh) as of December 2025.
Solar-plus energy storage systems accounted for more than 54% of cumulative installed capacity, followed by about 23% from solar-plus-wind with round-the-clock projects and nearly 21% from standalone battery energy storage systems, with the remaining share contributed by solar-plus-wind with storage and floating solar-plus-storage projects.
As of this report’s publication, the cumulative installed capacity of pumped storage projects (PSPs) stood at over 7 gigawatts (GW), of which almost 6 GW was operational.
India’s energy storage sector is now entering a crucial growth phase. Rising tender volumes, changing auction tariffs, and supportive policy frameworks signal increasing market momentum.
“India’s energy storage sector reached an inflection point in 2025. Strong policy support, a growing pipeline, and the increasing need to manage renewable energy variability have brought storage to the center of the power sector transition. Installations are set for exponential growth, but the market’s long-term success will depend on realistic bidding, regulatory clarity, aligning storage economics with grid requirements, and addressing policy barriers such as the 18% GST on standalone battery storage compared to 5% for renewable energy projects. Energy storage is set to play a defining role in India’s clean energy future, critical to maintaining grid reliability, enabling flexibility, and ensuring stability as renewable penetration continues to rise,” said Raj Prabhu, CEO of Mercom Capital Group.
As of December 2025, Bihar (24%), Chhattisgarh (16%), and Rajasthan (15%) were the top three states in terms of cumulative installed energy storage capacity.
Additionally, there were more than 1 GW of solar-plus-wind projects with round-the-clock capabilities, and 415 MWh of renewable energy-plus-storage projects with unspecified renewable and storage configurations.
Gujarat had the largest pipeline of standalone battery storage capacity under development.
Multiple agencies issued energy storage tenders totaling 20 GW during 2H 2025 and auctioned 15 GW of energy storage and storage-linked projects. Tender activity rose 30% compared to 15 GW in 1H 2025, while auction volumes surged 64% compared to 9 GW in 1H 2025.
Key Highlights from Mercom India Research’s 2H & Annual 2025 India’s Energy Storage Landscape Report:
- India added 547 MWh of battery energy storage capacity in 2025
- Bihar led in cumulative installed capacity, contributing 24% of the total
- Solar-plus-storage systems accounted for more than 54% of the total installed capacity as of December 2025
- India had over 7 GW of cumulative installed pumped storage projects
- In 2H 2025, 20 GW of energy storage projects were tendered, and 15 GW were auctioned
Mercom India’s 2H and Annual 2025 India’s Energy Storage Landscape Report spans 135 pages and provides a comprehensive analysis of all aspects of the country’s energy storage sector. It offers valuable insights into market dynamics, the policy framework driving capacity additions, and the overall trajectory of industry growth.
