October 07, 2025 – India’s cumulative installed energy storage capacity reached 490 MWh by the end of June 2025, according to the newly released India’s Energy Storage Landscape 1H 2025 Report by Mercom India Research.
In 1H 2025, 48.4 MWh of energy storage capacity was added in India, representing a 74% decline compared to 186 MWh added in the same period last year.
The decline in installations in 1H reflects the sector’s dependence on hybrid project-linked deployments where commissioning delays and slower tender activity continue to drive fluctuations in growth.
Solar-plus-storage systems accounted for nearly 56% of India’s cumulative installed capacity. This was followed by more than 32% from solar-plus-wind projects with round-the-clock capability, and over 12% from standalone battery energy storage systems. The remaining share came from floating solar with storage, and solar-plus-wind projects with storage capabilities.
India also has an operational pumped storage capacity of 5 GW as of the time of the report’s publication.
Strong policy support, including Tranche II of viability gap funding and the Central Electricity Authority’s (CEA) mandate to include co-located storage in all solar tenders with a minimum duration of two hours, equivalent to 10% of solar capacity, is helping accelerate the adoption of energy storage across the country.
“Lower installation numbers in the first half are not a setback – they represent a pause before the next phase of strong growth,” said Raj Prabhu, CEO of Mercom Capital Group. “Strong policy support through the ISTS waiver extension and the expanded VGF program is laying the foundation for rapid deployment. Investor confidence is rising, tender activity is accelerating, and the sector is now positioned for sustained growth. These measures will drive cost stability, mobilize new capital, and solidify energy storage as a cornerstone of India’s clean energy transition.”
As of June 2025, Karnataka (33%), Chhattisgarh (24%), and Gujarat (16%) were the top three states in terms of cumulative installed energy storage capacity.
As of June 2025, India had nearly 13.7 GWh of standalone battery storage, approximately 3.9 GWh of solar-plus-wind projects with storage capabilities, nearly 3.2 GWh of solar-plus-storage projects, over 1.4 GWh of solar-plus-wind projects with round-the-clock capabilities, and 415 MWh of renewable energy-plus-storage projects at various stages of development. Additionally, over 81 GW of pumped storage was in the development pipeline, with nearly 12.4 GW under construction, about 3.3 GW in pre-construction, more than 2.4 GW under examination post detailed project report submission, and nearly 63 GW in the survey and investigation phase.
Gujarat had the largest pipeline of standalone battery storage capacity under development, followed by Maharashtra and Rajasthan. Favorable provisions in renewable energy policies of these states, along with annual energy storage obligations in place through FY30, were key drivers of growing demand for energy storage.
Various government agencies issued energy storage tenders totaling over 16 GW in 1H 2025 and auctioned more than 9 GW of projects, with or without associated renewable energy capacity. Solar-plus-storage tenders saw significant momentum, recording nearly 381% year-over-year increase over tenders issued in 1H 2024.
Key Highlights from Mercom India Research’s India’s Energy Storage Landscape 1H 2025 Report:
- India’s cumulative energy storage capacity reached 490 MWh as of June 2025
- India added over 48 MWh of energy storage capacity in 1H 2025
- Solar-plus-storage systems accounted for approximately 56% of the cumulative installed energy storage capacity as of June 2025
- Karnataka led the cumulative installed energy storage capacity, contributing over 33% of the total
- India had 5 GW of operational pumped storage capacity, with over 81 GW in various stages of development
- In 1H 2025, more than 16 GW of energy storage projects were tendered, and over 9 GW were auctioned
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