India’s Energy Storage Market Reaches 490MWh by Mid-2025, Marked by Strong Policy Support but Slower Growth

India’s energy storage market has reached a total installed capacity of around 490 megawatt-hours (MWh) by the end of June 2025, according to recent industry data. While the overall growth trajectory remains positive, the first half of the year recorded a slower pace of new deployments compared to 2024, reflecting both policy transition and project execution delays.

Solar-Plus-Storage Systems Lead Market Adoption

The integration of solar energy with battery storage continues to dominate India’s clean energy landscape, representing approximately 56% of total installed capacity. Southern and western states remain the major contributors, collectively accounting for over 70% of cumulative installations. Meanwhile, the national capital region saw the highest number of new installations, contributing nearly 83% of added capacity during the first half of 2025.

Policy Incentives Drive Market Expansion

Government initiatives have significantly shaped India’s energy storage growth. Funding programs and recent mandates requiring co-located storage in solar tenders—with at least a two-hour storage duration or 10% of the solar project capacity—have accelerated developer participation. These measures are seen as key steps toward achieving a more reliable and dispatchable renewable energy supply.

Capacity Additions Dip Despite Strong Pipeline

Despite favorable policies, newly installed energy storage capacity stood at just 48.8MWh, marking a 74% year-over-year decline from the 186MWh recorded during the same period in 2024. However, other market indicators remain strong. Tendered capacity for storage projects rose by 44%, and auction activity increased by 113%, signaling an active project pipeline.

The lowest tariff discovered for firm and dispatchable renewable energy projects during this period was INR 4.82 per kilowatt-hour (kWh), highlighting continued cost competitiveness in the sector.

Expanding Storage Portfolio Across Technologies

India’s operational pumped hydro storage capacity remains stable at around 5 gigawatts (GW). Meanwhile, the project development pipeline shows significant diversification:

• l 13.7 gigawatt-hours (GWh) of standalone battery energy storage systems (BESS)

• l 3.9GWh of solar-wind hybrid projects with storage

• l 3.2GWh of solar-plus-storage projects

• l Over 1.4GWh of round-the-clock renewable projects

Additionally, more than 81GW of pumped storage is under different stages of planning and construction.

Regional Leaders and Future Outlook

Western states lead in standalone battery storage projects, followed by other renewable-rich regions across the country. During the first half of 2025, government agencies issued over 16GW of energy storage tenders and auctioned more than 9GW of projects, including both standalone and hybrid configurations.

Notably, solar-plus-storage tenders increased by over 380% year-on-year, demonstrating growing investor confidence in hybrid renewable systems.

India’s evolving policy framework and rapidly expanding project pipeline underscore the nation’s determination to establish a resilient, flexible, and sustainable power grid capable of supporting its ambitious renewable energy transition.