Mercom Capital Group says corporate energy storage funding in H1 2026 was slightly lower YoY, but deal volumes increased significantly
M&A activity and battery storage project acquisitions both recorded sharp increases during the period
Indian companies featured in several funding deals, including Bondada Engineering that secured financing for a large standalone BESS project
Global energy storage companies attracted $8.9 billion in corporate funding across 73 deals in H1 2026, according to a report by Mercom Capital Group. It was a 2% decline on a year-on-year (YoY) basis from $9.1 billion raised across 55 deals in H1 2025, but an increase of 33% in the number of deals.
According to Mercom, this indicates broader and resilient transaction activity despite policy, trade, and supply chain uncertainty.
Venture Capital (VC) funding totaled $1.6 billion across 51 deals, down 6% YoY (H1 2025: $1.7 billion in 36 deals). Energy storage downstream companies attracted the largest share of VC funding among 15 categories. Other leading categories included metal-hydrogen batteries, lithium-based batteries, battery recycling, energy storage systems, and materials and components.
EnerVenue Holdings raising $300 million was the largest VC funding deal, followed by $233 million raised by terralayr, and $200 million by Liminal Energy. India’s Waaree Energy Storage Solutions secured $111 million and Lunar Energy $102 million during the reporting period.
Announced debt and public market financing totaled $7.3 billion across 22 deals, compared with $7.4 billion across 19 deals in H1 2025. Corporate M&A activity increased sharply during the period 15 transactions, representing a 275% increase over 4 transactions in the corresponding period last year.
Energy storage project acquisitions also increased. About 14 GW of battery storage capacity changed hands across 63 transactions, compared with 6.1 GW across 31 transactions in H1 2025.
Standalone battery storage accounted for the largest share, with 10 GW across 45 transactions. Renewables-plus-storage projects accounted for another 3.8 GW across 18 transactions, more than double the 1.6 GW acquired during all of 2025.
There were several deals in the Indian market across all categories, pointing to the growth of the energy storage segment in the country. Apart from Waaree Energy Storage Solutions' $111.16 million, Gujarat Fluorochemicals subsidiary GFCL EV Products secured $80 million in equity financing, while Indian battery cell manufacturer e-TRNL Energy raised about $3.02 million, or INR 274 million, in seed funding.
On the project financing side, Bondada Engineering received approval for INR 5 billion ($55.01 million) in credit facilities from Canara Bank for the debt portion of its 200 MW/400 MWh standalone BESS project with Tamil Nadu Green Energy Corporation.
The complete report, titled 1H and Q2 2026 Funding and M&A Report for Energy Storage, can be purchased from Mercom’s website with prices starting from $299.
