India’s cumulative installed energy storage capacity reached 490 megawatt-hours (MWh) as of the end of June 2025, according to a report released by Mercom India on Wednesday.

The report, which provided an overview of India’s energy storage landscape, noted that approximately 48.4 MWh of capacity was added in the first half of 2025, marking a 74 per cent decline compared to 186 MWh installed during the same period last year. The slowdown was attributed to the sector’s reliance on hybrid project-linked deployments, where commissioning delays and reduced tender activity affected growth.

Solar-plus-storage systems accounted for 56 per cent of the cumulative capacity, followed by 32 per cent from solar-plus-wind projects with round-the-clock capability, and 12 per cent from standalone battery energy storage systems. India also had 5 GW of operational pumped storage capacity as of June 2025.

“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,” he added.

Karnataka (33 per cent), Chhattisgarh (24 per cent), and Gujarat (16 per cent) led in cumulative installed storage capacity. As of June 2025, India had about 13.7 GWh of standalone battery storage, 3.9 GWh of solar-plus-wind projects with storage, 3.2 GWh of solar-plus-storage projects, and 1.4 GWh of solar-plus-wind round-the-clock projects in various stages of development.

Also Read: Kerala becomes First State to approve ESG Policy for Responsible Investments

The report highlighted that more than 81 GW of pumped storage is in the development pipeline, including 12.4 GW under construction, 3.3 GW in pre-construction, and approximately 63 GW under survey and investigation. Gujarat leads in standalone battery storage development, followed by Maharashtra and Rajasthan, driven by favourable renewable policies and annual storage obligations.

During H1 2025, government agencies issued over 16 GW of energy storage tenders and auctioned more than 9 GW of projects, with or without associated renewable capacity. Solar-plus-storage tenders recorded a 381 per cent year-on-year increase compared to H1 2024.

Be a part of Elets Collaborative Initiatives. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook , connect with us on LinkedIn and follow us on Twitter, Instagram.

"Exciting news! Elets technomedia is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest insights!" Click here!