New Delhi: India’s energy storage capacity witnessed record growth in the first quarter (Q1) of 2026, with the country adding 4.6 gigawatt-hours (GWh) of battery energy storage capacity.
According to the latest report by Mercom India Research, this marks a massive 941% increase compared to the previous quarter, highlighting India’s rapid transition toward a cleaner and more reliable power system.
The strong growth comes as India accelerates renewable energy deployment and invests heavily in technologies that can store electricity for use when solar and wind power are unavailable.
What Is Energy Storage and Why Is It Important?
Energy storage systems work like giant batteries. They store electricity generated from renewable sources such as solar and wind and release it when demand is high or generation is low.
Read also: India Plans 100 GW Pumped Storage Capacity by 2035–36 to Boost Renewable Energy and Grid Stability
Key Benefits
- Improves grid reliability
- Supports renewable energy integration
- Reduces power shortages
- Helps manage peak electricity demand
- Enhances energy security
Experts say energy storage will play a crucial role in helping India achieve its clean energy targets over the next decade.
India Energy Storage Capacity: Major Highlights From the Report
According to Mercom India’s Energy Storage Landscape Report:
- India added 4.6 GWh of battery energy storage capacity in Q1 2026.
- Growth surged 941% quarter-over-quarter.
- Cumulative installed battery energy storage capacity reached 5.9 GWh by March 2026.
- Standalone battery storage accounted for 73% of total installed capacity.
- Solar-plus-wind and solar-plus-storage projects contributed a significant share of the market.
Rajasthan Emerges as the Top State
Rajasthan led the country in cumulative installed battery storage capacity.
State-wise Share
- Rajasthan – 42%
- Gujarat – 25%
- Maharashtra – 9%
The state’s strong renewable energy ecosystem and large-scale solar projects have helped it maintain leadership in energy storage deployment.
Project Pipeline Remains Strong
India’s future energy storage pipeline continues to expand rapidly. The report noted that the country’s energy storage development pipeline reached approximately 69 GWh in Q1 2026.
Pipeline Breakdown
- 41 GWh of standalone battery storage
- 11 GWh of solar-plus-wind with storage
- 9 GWh of solar-plus-storage projects
- 1 GWh of round-the-clock renewable projects
- 6 GWh of renewable energy-plus-storage projects
This indicates that the sector is expected to grow significantly in the coming years.
Pumped Storage Projects Also Gain Momentum
Apart from batteries, India is also expanding pumped storage projects (PSPs). These projects store energy by pumping water to a higher reservoir and generating electricity when the water flows back down. According to the report:
- PSP pipeline stood at 57.2 GW
- Around 7.2 GW had been installed
- Approximately 5.7 GW was already operational by March 2026
Pumped storage is expected to complement battery storage in supporting India’s growing renewable energy capacity.
Industry Experts See Strong Long-Term Growth
Raj Prabhu, CEO of Mercom Capital Group, said the rapid growth in Q1 2026 reflects how quickly energy storage is becoming a core part of India’s power infrastructure.
Industry analysts believe falling battery prices, supportive government policies, and increasing renewable energy capacity will continue driving investment in the sector.
Read also: India Plans 100 GW Pumped Storage Capacity by 2035–36 to Boost Renewable Energy and Grid Stability
