June 16 : India added 4.6 gigawatt-hours of battery energy storage capacity in Q1 2026, a 941% increase compared to 442.7 megawatt-hours added in Q4 2025, according to the newly released Q1 2026 India’s Energy Storage Landscape Reportby Mercom India Research.
India’s cumulative installed battery energy storage capacity reached 5.9 GWh as of March 2026.
Standalone energy storage accounted for 73% of India’s cumulative capacity, followed by 15% from solar-plus-wind with storage (RTC capabilities) projects and 11% from solar-plus-energy storage projects. The remaining share was split among emerging configurations, including solar-plus-wind with storage and floating solar with storage, each contributing less than 1%.
The pumped storage project pipeline remained strong, with 57.2 GW of projects in various stages of development. Out of 7.2 GW installed, 5.7 GW of PSPs were operational as of March 2026.
The energy storage sector is now becoming an integral component of India’s power system, driven by rapid growth in renewable capacity, increasing solar penetration, and evolving regulatory frameworks.
“The strong growth in Q1 2026, coupled with a rapidly expanding project pipeline, reflects how quickly energy storage is becoming a core part of India’s power infrastructure. Policy support, including the expansion of the VGF program and mandatory storage requirements for new solar projects, has accelerated market development and strengthened the sector’s long-term outlook. The next challenge is ensuring sustainable growth through realistic bidding, regulatory certainty, and policies that recognize storage as a strategic grid asset. As renewable energy penetration increases, storage will play a critical role in maintaining grid reliability and supporting the integration of large volumes of solar and wind,” said Raj Prabhu, CEO of Mercom Capital Group.
Rajasthan (42%), Gujarat (25%), and Maharashtra (9%) were the top three states in terms of cumulative installed energy storage capacity.
In Q1 2026, India’s energy storage development pipeline reached 69 GWh, comprising 41 GWh of standalone storage, 11 GWh of solar-plus-wind with storage, 9 GWh of solar-plus-energy storage, and 1 GWh of solar-plus-wind with storage projects (RTC capabilities). Additionally, there were 6 GWh of renewable energy-plus-storage projects, with unspecified configurations for both renewable and storage.
Gujarat had the largest pipeline of standalone battery storage capacity at 10 GWh.
Multiple agencies issued tenders totaling 18 GW during Q1 2026 and auctioned more than 4 GW of standalone storage projects. Tender activity rose 47% from 12 GW in Q4 2025, while auction volumes declined 61% from 11.1 GW in Q4 2025.
Key Highlights from Mercom India Research’s Q1 2026 India’s Energy Storage Landscape Report:
- India added 4.6 GWh of battery energy storage capacity in Q1 2026
- Cumulative installed battery energy storage capacity reached nearly 5.9 GWh as of March 2026
As of March 2026, India had 7.2 GW of installed pumped storage projects Gujarat had the largest pipeline of standalone battery storage capacityMultiple agencies issued tenders totaling 18 GW during Q1 2026
Mercom India’s Q1 2026 India’s Energy Storage Landscape Report spans 78 pages and provides a comprehensive analysis of all aspects of the country’s energy storage sector. It offers valuable insights into market dynamics, policy frameworks driving capacity additions, and the overall trajectory of industry growth. For the complete report, visit: https://www.mercomindia.com/product/india-energy-storage-landscape-q1-2026