India added 547 MWh of battery energy storage capacity in 2025, a 26% increase compared to 433 MWh added in 2024, according to Mercom India Research’s newly released 2H & Annual 2025 India’s Energy Storage Landscape Report.
With this, India’s cumulative installed battery energy storage capacity reached 1,082 MWh as of Dec. 31, 2025.
The report stated that 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. The remaining share was 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 GW, of which almost 6 GW was operational.
“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,” said Raj Prabhu, CEO of Mercom Capital Group. “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.”
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