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India’s Energy Storage Sector Sees 26% Growth in 2025 with 547 MWh of New Capacity
March 25, 2026
India’s energy storage sector marked a year of significant progress in 2025, with total capacity growing by 26% year-over-year. According to recent industry data, the country added 547 MWh of new storage capacity during the year, driven by the urgent need to balance the national grid as more solar and wind power comes online. This growth reflects a maturing market where developers and utilities are increasingly recognizing that “green” energy must also be “steady” energy. The surge in installations is a clear sign that India is moving past the experimental phase and into large-scale deployment of storage technologies.
The majority of these new additions came from standalone battery energy storage systems (BESS) and hybrid solar-plus-storage projects. As renewable energy penetration increases, storage has become the primary tool for “shifting” solar power generated during the day to meet high demand during the evening peak hours. This transition is being supported by falling battery prices and supportive government policies, including production-linked incentives and specialized storage tenders. For the industrial sector, this expanded capacity means a more resilient grid and more opportunities to access 24/7 renewable power through specialized energy contracts.
Looking ahead, the momentum in the storage market is expected to accelerate even further as India targets a carbon-neutral future. With several gigawatt-scale tenders currently in the pipeline, the 2025 growth figures are likely just the beginning of a decade-long expansion. As storage becomes a standard part of the energy infrastructure, it will play a vital role in reducing the country’s reliance on fossil fuels for peak power management. For businesses and investors, these figures confirm that the integration of storage is no longer a niche trend but a cornerstone of India’s modern energy strategy.
