India’s battery energy storage sector is set for a major expansion, with deployment projected to triple in 2026 according to new industry estimates. The surge comes as rooftop and utility-scale solar installations continue breaking records and states face increasing pressure to stabilize their distribution grids.

Lower lithium-ion prices, rising hybrid projects, and large-scale government tenders are driving unprecedented interest in storage systems across commercial, industrial, and residential segments.

Grid Stability Driving Investment

As solar penetration increases in states like Gujarat, Rajasthan, Karnataka, and Maharashtra, DISCOMs are adopting BESS to manage load balancing, prevent voltage fluctuations, and reduce peak-hour power shortages.

A senior official from SECI told SolSetu: “Storage is no longer optional. With solar generation expanding this rapidly, India needs at least 30–40 GWh of BESS to ensure grid reliability by 2030.”

Key Growth Drivers

Industry analysts highlight several factors behind the upcoming growth spike:

• Global battery prices expected to fall 8–12% annually
• Large hybrid (solar-wind-storage) tenders announced for 2026
• Industrial consumers adopting BESS to reduce demand charges
• Rooftop solar owners exploring storage to maximize self-consumption
• Government incentives for domestic cell manufacturing

Companies in India are also exploring alternative chemistries such as sodium-ion and iron-flow batteries to reduce reliance on imported lithium.

Major Projects Under Development

Several large BESS projects expected to go live in 2026 include:

• ReNew’s hybrid solar-wind-storage plant in Rajasthan
• NTPC Green’s 1 GWh national storage initiative
• Tata Power’s C&I storage rollout across metro cities

These deployments are expected to push India closer to its long-term renewable energy storage targets.

Residential Storage Demand Rising

With electricity tariffs rising, homeowners are increasingly exploring small-capacity storage systems paired with rooftop solar to reduce grid dependency during peak hours.

Several installers told SolSetu that residential storage inquiries have doubled since mid-2025.

Outlook for 2026

If current tender activity continues, India may add over 4 GWh of new battery storage in 2026 alone, marking the beginning of large-scale adoption across sectors.

SolSetu will continue monitoring India’s battery storage rollout and publish updates as government notifications and tender results become available.