India adds 8.2 GWh of new BESS capacity in H1 2026

India added a massive 8.2 GWh of battery energy storage system (BESS) capacity during the first half of 2026, marking a completely new scale of build-out when compared to the 98.4 MWh installed in the same period last year.

Looking at the quarterly breakdowns, second-quarter installations of 3.6 GWh were down 22% quarter-over-quarter from record installations in Q1. Despite the slight quarterly dip, the newly published Mercom India Research report confirms the market has firmly moved beyond pilot phases. Standalone battery storage accounted for nearly 98% of quarterly additions, and 83% of cumulative installations across the subcontinent. Another 8% were solar-plus-storage projects.

The 83% standalone figure proves the Indian market is rapidly shifting from commercial solar-plus-storage co-location into dedicated grid services, something seen in established markets.

Regionally, the state of Rajasthan led cumulative installed battery storage capacity with a 36% share, followed by Gujarat at 20% and Maharashtra at 5%.

However, the report highlights a widening gap between tenders and auctions as the industry searches for a price that fits demand. Storage tenders totaled 28 GW during the first half of 2026, while only approximately 9 GW was actually auctioned, down 18% year-on-year. Mercom noted that battery prices and discovered tariffs remain volatile; when a recent auction produces substantially lower prices, procurers often pause in the expectation that prices could fall further, whereas rising prices can encourage buyers to move more quickly.

Raj Prabhu, CEO of Mercom Capital Group, noted that the need for storage is growing.

“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.”