India’s Battery Storage Capacity Surges 941% QoQ In Q1 2026

India recorded a sharp increase in battery energy storage deployments during Q1 2026, adding 4.6 GWh of capacity, representing 941% increase from 442.7 MWh that Mercom India Research reported for the previous quarter.   

With the latest additions, the country's cumulative installed battery energy storage capacity reached 5.9 GWh by the end of March 2026. Rajasthan led with a 42% share, followed by Gujarat at 25% and Maharashtra at 9%.  

Standalone battery storage systems accounted for the majority of the cumulative, contributing 73% of the total, while projects combining solar and wind power with storage with round-the-clock (RTC) capabilities represented 15%, while solar-plus-storage projects made up 11%.  

Other emerging configurations, including solar-plus-wind with storage and floating solar with storage, accounted for a small share of the market.  

In its report titled Q1 2026 India’s Energy Storage Landscape Report, Mercom also highlights continued momentum in pumped storage development. India had 7.2 GW of installed pumped storage capacity as of March 2026, with 5.7 GW operational. However, this segment has a massive 57.2 GW project pipeline across different stages of development.  

India's overall energy storage development pipeline reached 69 GWh during the quarter, as per the report, led by Gujarat at 10 GWh. This comprises 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 with RTC capabilities.  

Moreover, analysts count 6 GWh of renewable energy-plus-storage projects with unspecified configurations for both renewable energy and storage.  

Tendering activity also increased during the quarter, with agencies issuing 18 GW of tenders, as per the report, up 47% from the previous quarter. However, auctioned storage capacity declined to just over 4 GW, marking a 61% drop compared to Q4 2025. 

Analysts noted that energy storage is becoming increasingly important for India's power sector as renewable energy installations grow and solar generation gains a larger share in the energy mix.  

Mercom Capital Group CEO Raj Prabhu attributes a list of contributing factors for this growing interest in energy storage in India. “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.”   

As large volumes of solar and wind come online, Prabhu sees storage continuing to play a critical role in maintain grid reliability. He added, “The next challenge is ensuring sustainable growth through realistic bidding, regulatory certainty, and policies that recognize storage as a strategic grid asset.” 

The complete Mercom report can be purchase from its website.