Updated Date: 09-Jan-2026
Author: Abhishek Rastogi
Sources: IMARC Group
According to IMARC Group’s report titled “India Energy Storage Systems (ESS) Market Size, Share, Trends and Forecast by Technology, Application, End User, and Region, 2026-2034”, the report offers a comprehensive analysis of the industry, including India energy storage systems (ESS) market trends, share, growth, and regional insights. The report presents a thorough review featuring the India energy storage systems market size, share, trends, and research of the industry.
How Big is the India Energy Storage Systems (ESS) Industry?
The energy storage systems (ESS) market size in India was 8.9 GW in 2025. Looking forward, IMARC Group estimates the market to reach 16.2 GW by 2034, exhibiting a CAGR of 6.84% during 2026-2034.
India Energy Storage Systems (ESS) Market Trends:
The India Energy Storage Systems (ESS) Market is experiencing a surge driven by the accelerated adoption of lithium-ion battery technology and ambitious renewable energy integration targets. The government is backing this momentum through substantial funding mechanisms, including Viability Gap Funding schemes that support development of approximately 43 GWh of battery capacity. These schemes are reshaping project economics and making storage deployment more attractive to investors and developers alike.
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Lithium-ion demand reached approximately 15 GWh in FY2024, primarily from consumer electronics and electric vehicles, and projections indicate this could jump to 127 GWh by FY2030. This dramatic increase reflects declining battery costs, which have dropped from around Rs 8-9 per unit to Rs 6-7 per unit between the years, making storage solutions increasingly competitive. The sector is also witnessing a shift toward hybrid renewable projects, with hybrid tenders’ share increasing from about 12% to over 49% in recent auctions. Storage is no longer an optional add-on but a critical component for ensuring grid stability and managing the intermittency challenges that come with large-scale solar and wind installations.
India Energy Storage Systems (ESS) Market Growth Drivers:
The growth of the India Energy Storage Systems Market is being propelled by transformative policy measures and unprecedented government support. The Ministry of Power approved Rs 54 billion in Viability Gap Funding for an additional 30 GWh of BESS projects on top of the initial 13.2 GWh allocation. This funding structure provides staggered payments—20% after financial closure, 50% at commissioning, and 30% after one year of operation—significantly de-risking investments and attracting private capital. The Central Electricity Authority projects a requirement for 73.93 GW/411.4 GWh of storage capacity by 2031-32 to support 364 GW of solar and 121 GW of wind capacity, underscoring the massive deployment needed to meet renewable energy targets.
Market development is being accelerated through tender activity and regulatory frameworks. In the first quarter alone, Standalone ESS tenders reached 6.1 GW, accounting for 64% of all utility-scale storage tenders—already surpassing total issuance from the previous year. Recent BESS auctions in Maharashtra and Rajasthan secured monthly tariffs as low as Rs 219,001-221,100/MW, representing almost a 40% reduction compared to projects without VGF support. Additionally, the government has waived Inter-State Transmission System charges for co-located BESS projects and PSPs commissioned through June 2028, improving project viability. The Central Electricity Regulatory Commission has enabled storage systems to provide ancillary services and participate in day-ahead markets, creating new revenue streams. These cumulative measures are establishing India as a promising market for energy storage deployment.
An In-Depth Analysis of Prominent Companies in the Industry by IMARC Group:
Leading players are making significant strides in expanding their energy storage capabilities. JSW Energy commissioned a 1 GWh battery energy storage project in Fatehgarh, Rajasthan, comprising two 500 MWh units capable of two-hour storage cycles. The company currently operates 16.2 GWh of energy storage capacity and is preparing to commission a 5 GWh battery assembly unit in Pune by Q3 FY26, which will support domestic content requirements and cater to both utility-scale and commercial storage projects. JSW Energy has set an ambitious target of reaching 40 GWh energy storage capacity by 2030. The company secured 500 MW capacity in SECI’s 1 GW/2 GWh standalone BESS tender and won a 500 MWh BESS auction from SECI in Kerala.
NTPC has been allocated 5 GWh capacity under the expanded VGF scheme and is integrating BESS with its existing thermal power fleet to deliver power outside solar-generating hours. The first turbine at the 250 MW Tehri pumped hydro energy storage plant in Uttarakhand has been connected to the grid, marking progress in large-scale storage infrastructure. Foxconn announced plans to construct a battery energy storage system facility in India with a key focus on the electric vehicle sector. Major developers like Sembcorp, NTPC, Solarcraft Power India, Hero Solar Energy, and Reliance NU Suntech have won capacity in recent SECI tenders for solar-plus-storage projects. The market witnessed installations soar from just 51 MWh to over 341 MWh between years, demonstrating the sector’s explosive growth trajectory and increasing participation from both domestic and international players.
Comprehensive Market Report Highlights & Segmentation Analysis:
The market report offers a comprehensive analysis of the segments, highlighting those with the largest India energy storage systems (ESS) market share. It includes forecasts for the period 2026-2034 and historical data from 2020-2025 for the following segments.
Analysis by Technology:
- Pumped Hydro
- Electrochemical Storage
- Electromechanical Storage
- Thermal Storage
Analysis by Application:
- Stationary
- Transportation
Analysis by End User:
- Residential
- Non-Residential
- Utilities
Regional Analysis:
- North India
- South India
- East India
- West India
Other key areas covered in the report:
- COVID-19 Impact on the Market
- Porter’s Five Forces Analysis
- Strategic Recommendations
- Market Dynamics
- Historical, Current and Future Market Trends
- Market Drivers and Success Factors
- SWOT Analysis
- Value Chain Analysis
- Comprehensive Mapping of the Competitive Landscape
- Top Winning Strategies
- Recent Industry News
- Key Technological Trends & Development
Note: If you need specific information that is not currently within the scope of the report, we can provide it to you as part of the customization.
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