Bengaluru, Sep 15: India added 8.2 gigawatt-hours (GWh) of battery storage capacity in the first half (1H) of 2026, 84 times the 98.4 megawatt-hours (MWh) installed in 1H 2025, according to the newly released Q2 and 1H 2026 India‘s Energy Storage Landscape Report by Mercom India Research.
 
Cumulative installed battery storage capacity reached 9.3 GWh at the end of June 2026, highlighting the sharp acceleration in storage deployment as utilities increasingly procure standalone systems for grid balancing, peak demand management, and renewable energy integration.
 
Standalone battery storage dominated cumulative installations, accounting for 83% of capacity. Solar-plus-wind projects with storage offering round-the-clock (RTC) capabilities accounted for 9%, followed by solar-plus-storage projects at 8%. Other solar-plus-wind projects with storage and floating solar-plus-storage accounted for marginal shares.
India also had 7.4 GW of installed pumped storage capacity as of June 2026, with approximately 6 GW operational. Uttarakhand added 250 MW of pumped storage capacity during Q2 2026.

The rapid expansion of installed capacity is shifting the industry’s focus beyond deployment volumes toward project execution and long-term performance. 

India’s energy storage installations spiked in 1H 2026 as large-scale standalone battery storage projects moved from tenders and policy announcement phase to installations on the ground. The need for storage is growing with rising solar additions, higher daytime generation, rising curtailment, and harder-to-meet evening demand. The outlook is strong, with a large pipeline, but growth will depend on how quickly tendered capacity moves to auctions and awards, and whether projects have bankable contracts, reliable grid infrastructure, stable supply chains, and workable project economics,” said Raj Prabhu, CEO of Mercom Capital Group.

Rajasthan led cumulative installed battery storage capacity with 36%, followed by Gujarat with 20% and Maharashtra with 5%. Together, the three states accounted for more than 60% of the country’s installed capacity, reflecting a concentration of early storage deployment in markets with significant utility-scale procurement activity.

In Q2 2026, India added 3.6 GWh of battery energy storage capacity, down 22% quarter-over-quarter (QoQ) compared to the record additions in Q1. Standalone battery storage accounted for 98% of quarterly installations, while solar-plus-storage contributed the balance.

Despite the QoQ decline, Q2 additions remained substantial, highlighting the continued scale of battery storage deployment.
 
Standalone battery storage accounts for more than half of the development pipeline, followed by solar-plus-storage and solar-plus-wind projects with storage, each accounting for 15%. Other renewable energy-plus-storage projects represented nearly 13%, while solar-plus-wind projects with storage (with RTC capabilities) accounted for about 2%.
 
The development pipeline is more than eight times the country’s currently installed battery storage capacity, highlighting the scale of projects that could move toward commissioning over the coming years. However, connectivity, transmission readiness, land acquisition, approvals, financing, and supply-chain dependence remain key execution risks.
 
Gujarat had the largest pipeline of standalone battery storage capacity, followed by Rajasthan and Andhra Pradesh.
 
Battery storage procurement also expanded sharply during 1H 2026. A total of 28 GW was tendered, up 86% YoY compared to 15 GW in 1H 2025. However, auctioned capacity declined 18 % YoY with 9 GW compared to 11 GW, highlighting a widening gap between tender issuance and completed auctions.
 
Key Highlights from Mercom India Research’s Q2 and 1H 2026 Energy Storage Landscape Report:
  • India added 8.2 GWh of battery storage capacity in 1H 2026, 84 times the capacity added in 1H 2025
  • Cumulative installed battery storage capacity reached 9.3 GWh as of June 2026
  • Standalone battery storage accounted for 83% of cumulative installed capacity
  • Rajasthan led cumulative installed battery storage capacity, accounting for 36% of the total
  • Energy storage tendering reached 28 GW in 1H 2026, up 86% YoY, while 9 GW was auctioned
Mercom India‘s Q2 and 1H 2026 Energy Storage Landscape report provides a comprehensive analysis of India‘s battery and pumped storage markets, including installations, project pipelines, tenders and auctions, state-level markets, policies, project economics, technology trends, and key growth and execution challenges.
 
For the complete report, visit: https://www.mercomindia.com/product/india-energy-storagelandscape-q2-2026. This report is valuable for understanding India‘s energy storage market landscape, policies driving capacity additions, and the expansion trajectory.

Leave a Reply

Your email address will not be published. Required fields are marked *