India BESS Market Estimated at USD 348.40 Million in 2026 as 92 GWh Pipeline Drives Grid-Scale Battery Storage Growth Through 2032

India's battery energy storage system (BESS) market is moving from a tender-heavy phase into execution-led scale-up. According to Makreo Research and Consulting's newly updated India Battery Energy Storage System (BESS) Market and Forecast to 2032 - Analysis by Application (Utility, Commercial and Industrial, Residential), Battery Type, Storage System, Connection Type, Energy Capacity, and Geography, the India BESS market is estimated to reach a revenue of USD 348.40 million in 2026, expanding at a compound annual growth rate CAGR of 29.05% between 2026 and 2032. Makreo's analysis shows the country's total pipeline of BESS projects has grown to 92 GWh in 2026, an increase of 74 GWh from just 19 GWh in 2024, even as commissioned capacity remains at an early stage of build-out at 0.8 GWh as of January 2026, with nearly 5 GWh of projects projected to come online by the end of the year.

The report lands at an inflection point for the sector. As Ratul Puri, Chairman of Hindustan Power, observed in a recent industry interview, India's BESS market is "transitioning from aggressive tendering to execution-led scale." Independent research from JMK Research and Analytics and the Institute for Energy Economics and Financial Analysis (IEEFA) found that India allocated 10.4 GW of standalone BESS capacity in 2025 alone, lifting the country's cumulative tendered energy storage capacity from 6.8 GW in 2018 to 90.7 GW by 2025. That gap between bidding activity and physical commissioning defines the strategic questions this report is built to answer: which technologies, applications, states and companies are best positioned to convert India's tendering boom into bankable, investable energy storage projects through 2032.

India BESS Market Size and Growth Outlook to 2032-
Makreo Research's analysis places the India battery energy storage system market on a 29.05% CAGR trajectory from 2026 through 2032, with 2026 revenue estimated at USD 348.40 million. The market's growth curve is still in its early innings: as of late 2025, India's actual installed gigawatt-hour capacity stood at just over 1 GWh, equivalent to only 2.8% of the government's 50 GWh target for the year, underscoring how much of the current 92 GWh project pipeline has yet to convert into operating assets. Makreo expects nearly 5 GWh of projects to come online by the end of 2026 as financial closure and commissioning catch up with the tendering wave of the past two years.

India has set a national target to meet 4% of its electricity demand from storage by 2030, translating into approximately 200 to 250 GWh of grid-scale storage capacity. Supporting this ambition, the Union Cabinet approved a Production Linked Incentive (PLI) scheme with a budgetary outlay of nearly INR 18,100 crore to build a robust domestic manufacturing base for battery technologies, a measure Makreo's analysts view as foundational to closing India's cell manufacturing gap. Expert insights compiled in the report suggest that merchant market integration, co-location incentives, grid modernisation initiatives, and the development of indigenous battery cell chemistry could further accelerate BESS adoption in India through 2032.

Grid-Scale Battery Storage: Tenders, Tariffs and the Execution Gap-
Utility-scale and grid-scale battery storage remain the largest application segment in Makreo's India BESS market analysis, but 2025 also exposed the sector's growing pains. According to the JMK Research and IEEFA study, tariffs for standalone BESS fell sharply through the year: the lowest discovered tariff in 2025 reached INR 1.48 lakh per MW per month, well below the indicative benchmark tariff of INR 2.3 lakh per MW per month set for the year. Nearly 75% of allocated two-hour standalone capacity now sits in an "at-risk" tariff category, with genuinely viable outcomes largely confined to early-stage, smaller state-led auctions in Karnataka, Tamil Nadu, Telangana and Gujarat.

Execution timelines tell a parallel story. Despite roughly 102 GWh of storage tenders issued across 2025, only around 0.7 GWh had actually been commissioned as of early 2026, according to Hindustan Power's Ratul Puri, while total grid-scale BESS capacity installed nationally stood at approximately 1.8 GWh as of March 2026, with most of that capacity coming online only in the final six months of the fiscal year. Tender structures are also evolving in response: while two-hour, two-cycle configurations dominated 2025 allocations, four-hour duration systems have gained share since mid-2025 as offtakers prioritise evening peak-demand coverage, and tendering agencies are increasingly signalling interest in diversifying beyond lithium-ion toward flow batteries and sodium-ion technology to reduce global supply-chain exposure, a shift already visible in Bondada Engineering's July 2026 award of a 100 MWh vanadium redox flow battery project from NTPC Renewable Energy at Khavda Solar Park.

Recent project awards illustrate both the scale and the mechanics of India's utility-scale battery storage build-out:
• Coal India Limited received a Letter of Award from GRIDCO Limited, Odisha, in April 2026 for a 320 MWh (80 MW, four-hour) BESS plant worth approximately INR 400 crore, split across two clusters at Padampur-Bolangir and Bhatli-Basta, secured through SECI's March 2026 auction under a build-own-operate model with Viability Gap Funding support of INR 18 lakh per MWh.

• Hindustan Power won SECI bids for a 150 MW solar-plus-storage project requiring approximately 300 MWp of solar capacity and 300 MWh of BESS under the ISTS-XX tender in November 2025, adding to more than 750 MWh of BESS capacity the company added across its portfolio during the year, including a 360 MWh project with Solar Energy Corporation of India, an ISTS-linked project exceeding 250 MWh with SJVN Limited, and a 120 MWh standalone BESS project with Bihar State Power Generation Company Limited.

• The Uttar Pradesh Electricity Regulatory Commission adopted a competitively bid tariff for a 375 MW/1,500 MWh standalone BESS project under the Viability Gap Funding programme in January 2026.

• The Adani Group entered the BESS segment in November 2025 with a 1,126 MW/3,530 MWh project at its Khavda Renewable Energy Park in Gujarat, deploying more than 700 BESS containers and targeting commissioning by March 2026, with a stated roadmap for an additional 15 GWh of BESS capacity by FY2027 and 50 GWh over five years.

• JSW Energy's step-down subsidiary, JSW Energy PSP Eleven, secured a Rs 443.74 crore order from Bondada Renewable Energy in July 2026 for a 200 MW/400 MWh BESS and power conversion system package, to be executed from its 5 GWh-per-annum battery assembly plant in Pune, as the company builds toward a locked-in energy storage capacity of 29.6 GWh, comprising 26.4 GWh of pumped hydro storage and 3.2 GWh of battery storage, against a stated target of 40 GWh of total storage capacity by 2030.

India's Largest BESS Tender Yet Signals a Fresh Tendering Wave-
Even as 2025's awarded capacity works through execution, India's tendering pipeline for 2026 has continued to expand, and by a wide margin. The Solar Energy Corporation of India (SECI) issued what industry trackers describe as the country's largest BESS tender to date under its FDRE-IX auction, seeking 1,200 MW of Firm and Dispatchable Renewable Energy capacity on a build-own-operate basis with a mandatory four-hour co-located storage requirement, translating into demand for 4,800 MWh of battery capacity from this tender alone. POWERGRID separately floated a 500 MW/1,000 MWh standalone BESS tender in July 2026 to strengthen inter-regional grid stability, with bids due in mid-August 2026, while Rajasthan issued a 500 MW/2,000 MWh standalone BESS tender after the Government of India relaxed its Viability Gap Funding guidelines to give states greater flexibility in project design, a move that followed similar requests from Kerala, Odisha, Bihar and Chhattisgarh.

On the manufacturing side, the government opened bidding in July 2026 for a further 10 GWh tranche of its Advanced Chemistry Cell (ACC) Production Linked Incentive scheme, this tranche carved out explicitly for grid-scale battery storage applications, aiming to reduce India's reliance on imported cells and build a globally competitive domestic battery ecosystem. The Ministry of Power has separately expanded Viability Gap Funding support for standalone BESS with an outlay of INR 5,400 crore to back an additional 30 GWh of storage capacity, split between 25 GWh allocated across fifteen states, led by Rajasthan, Gujarat and Maharashtra, and 5 GWh reserved for NTPC Limited, a scheme expected to mobilise close to INR 33,000 crore in project investment. New domestic manufacturing capacity is also coming online to meet this demand, with Bengaluru-based Midwest Energy commencing commercial production in July 2026 at a 1.2 GWh battery energy storage system facility featuring integrated cell-to-container manufacturing.

Commercial and Industrial Energy Storage Gains Momentum-
Commercial and industrial (C&I) energy storage is emerging as a distinct growth vector within the India BESS market, moving beyond pure grid-scale tendering toward corporate offtake, diesel-displacement and data-centre resilience use cases.

Jupiter Wagons' subsidiary Jupiter Electric Mobility (JEM Energy) signed memoranda of understanding with Chalukya Power and Pickrenew Energy in May 2026, adding 110 MWh of utility-scale and C&I BESS business to its FY2026-27 orderbook and pushing its cumulative BESS orderbook past INR 150 crore, with the company targeting INR 200 crore for the year and INR 500 crore in battery and BESS revenue by FY2027-28. Belding India, a company historically focused on pharmaceutical packaging, unveiled an indigenously developed Hybrid BESS at India Energy Storage Week (IESW) 2026 in New Delhi that targets a 40 to 80% reduction in diesel consumption for C&I customers across sectors including data centres, hospitals, manufacturing and telecom, backed by a new 55:45 joint venture with HD Fabcon focused on large-scale battery infrastructure.

Demand from AI-driven data-centre expansion is also pulling BESS deeper into the C&I conversation. Best Power Equipments (India) signed a partnership at Data Centre World London 2026 to expand its data centre power and BESS solutions into the United Kingdom, building on an existing presence across Asia and the Middle East, while Pace Digitek's subsidiary Lineage Power signed its third strategic BESS partnership at IESW 2026, a supply MoU with Bondada Renewable Energy covering DC blocks, C&I cabinets, residential BESS, power conversion systems and energy management systems, as the company works to double its BESS manufacturing capacity from 5 GWh to 10 GWh and targets BESS for roughly 55% of FY2026-27 revenue.

Residential Battery Energy Storage Systems Enter the Mainstream-
Residential battery energy storage, the smallest but fastest-emerging segment in Makreo's application-level analysis, saw its first major commercial rollout in early 2026. Ola Electric began deliveries of its Ola Shakti home BESS, powered by the company's indigenous 4680 Bharat Cells, starting with a 6 kW/9.1 kWh variant in Bengaluru in late January 2026 following Bureau of Indian Standards certification, with a smaller 3 kW/5.2 kWh configuration following shortly after. The product is positioned as a domestically engineered and manufactured alternative to conventional lead-acid inverters and diesel generators for Indian households, farms and small businesses.

Havells India entered the residential and C&I storage segment through a strategic collaboration with Norway's Pixii AS, signed in mid-2026, under which the two companies will pursue pilot installations before progressing toward co-developed, locally manufactured BESS products for the Indian market. These moves signal that residential energy storage, long treated as a peripheral use case in India's BESS narrative, is beginning to attract serious manufacturing and go-to-market investment from both automotive-adjacent and traditional electricals players.

Manufacturing, Capacity Expansion and Localisation Drive Supply Chain Growth-
Domestic manufacturing capacity is scaling rapidly to meet India's battery storage capacity requirements. Powertrac Group, an Ahmedabad-based renewable energy solutions provider, invested INR 6 billion (approximately USD 66 million) in a 1,000 MWh-per-annum containerized BESS manufacturing facility producing lithium-iron-phosphate battery pack assemblies, part of the company's broader ambition to operate 1,000 MW of independent power producer capacity by 2030. Waaree Group is building a 4 GWh cell production line alongside a 5 GWh pack-and-container facility, having separately secured INR 10 billion in funding for a 20 GWh cell and battery pack plant, after winning a 10 MWh BESS order in Tamil Nadu in November 2025. Vikram Solar reported record FY2026 revenue of INR 4,802 crore, up 40% year-on-year, and used its March 2026 analyst meeting to outline a target of 15 GWh of BESS capacity by FY2030, alongside an interim 5 GWh BESS capacity milestone by FY2027 and 7.5 GWh of battery cell capacity by FY2029, following the March 2026 launch of its VION lithium-ion battery brand for e-mobility and home backup applications.

International technology partnerships are also deepening India's BESS supply chain. Evervolt Green Energy was appointed the regional distributor for Beijing HyperStrong Technology, a global BESS provider that has commissioned more than 400 projects and deployed over 50 GWh worldwide, to jointly develop the C&I storage market across India and Sri Lanka. Policy support is reinforcing this manufacturing push: the extension of the Basic Customs Duty exemption on capital goods used for lithium-ion cell manufacturing, announced in the Union Budget 2026, is expected to reduce capital expenditure for both cell manufacturing and downstream BESS project development.

Competitive Landscape: Market Share, Positioning and Company Profiles-
Makreo Research's India Battery Energy Storage System (BESS) Market Competition Assessment Report 2026 profiles 12 leading companies across battery manufacturing, system integration, renewable energy development and utility-scale storage. These include Tata Power Renewable Energy, Adani Energy Solutions, JSW Energy, Amara Raja Energy & Mobility, Siemens Energy India, Sterling and Wilson Renewable Energy, Hitachi Energy India, Exide Energy Solutions, Reliance New Energy, LG Energy Solution India, Fluence BESS India and Amperehour Solar Technology.

Request Free Sample Report: https://www.makreo.com/report/india-battery-energy-storage-system-bess-market-competition-assessment-report-2026

Tata Power Renewable Energy led the market by revenue in FY2026, reporting total income of INR 63,681 crore and an installed and pipeline clean-energy capacity of 17.5 GW. The report evaluates major participants across revenue, market positioning, infrastructure capacity, product portfolio, technology capabilities and gigafactory expansion.

Policy and Regulatory Tailwinds Shaping the India BESS Market Forecast to 2032-
A stack of federal and state-level measures continues to underpin India's energy storage projects pipeline. Viability Gap Funding for standalone BESS, waivers on inter-state transmission system (ISTS) charges, the formal recognition of storage as an asset class under the Electricity Amendment Rules 2025, and rolling Energy Storage Obligations (ESO) for renewable-heavy states have collectively de-risked project financing and improved bankability. The Ministry of Power has separately mandated that co-located energy storage equivalent to at least 10% of installed solar capacity, with a minimum two-hour duration, be included in future solar tenders, while a temporary waiver of technology-transfer registration requirements for lithium-ion cell bidders, effective from January 2026, is intended to widen participation in grid-connected BESS tenders. Looking further out, the Central Electricity Authority's National Electricity Plan estimates that India will need in the order of 47 GW, or roughly 236 GWh, of grid-scale storage capacity by 2031-32 to manage the widening gap between midday solar generation and evening peak demand.

Capital Markets and M&A Signal Sector Maturation-
India's broader renewable energy capital markets are showing signs of consolidation that will shape the financing environment for future battery storage capacity additions. Shell's planned exit from Sprng Energy, a 5 GW renewable energy platform valued in a prior transaction at approximately USD 1.55 billion, drew competing bids from the National Investment and Infrastructure Fund (NIIF), KKR and Sembcorp in what industry observers describe as one of India's largest renewable energy M&A deals to date. Transactions of this scale, alongside rising private capital commitments to standalone BESS manufacturing and project development, point to a maturing investment landscape in which storage-integrated renewable portfolios are increasingly viewed as a distinct, investable asset class.

India BESS Market Outlook and Segmentation to 2032-
Makreo Research and Consulting's India Battery Energy Storage System (BESS) Market and Forecast to 2032 report provides segment-level analysis across the following dimensions:
• Application: Utility, Commercial and Industrial, Residential
• Battery Type: Lithium-ion Batteries, Lead-Acid Batteries, Flow Batteries, Sodium-Based Batteries, and Others
• Storage System: Front-of-the-meter and Behind-the-meter configurations
• Connection Type: On-grid and off-grid deployments
• Ownership Model: Utility-owned, Third-party owned, and Customer-owned
• Energy Capacity: Below 100 MWh, 100 to 500 MWh, and Above 500 MWh
• Component: Battery Pack and Racks, and Energy Management Software (EMS)
• Geography: North, South, East and West India, with state-level demand analysis

The base year of the study is 2026, with a forecast period extending from 2026 to 2032 and a historical review spanning 2023 to 2026. The report is scheduled for release by the end of this week. A companion India Battery Energy Storage System (BESS) Market Competition Assessment Report 2026 provides market share, positioning, mergers and acquisitions tracking, and detailed company profiles for the sector's leading players.

• India Battery Energy Storage System (BESS) Market and Forecast to 2032: https://www.makreo.com/report/india-battery-energy-storage-system-bess-market-and-forecast-to-2032
• Global Battery Energy Storage System (BESS) Market and Forecast to 2031: https://www.makreo.com/report/global-battery-energy-storage-system-bess-market-and-forecast-to-2031

In addition to syndicated market research, Makreo offers Custom Research and Market Survey services tailored to client-specific decisions:
• Market Survey / Customer Validation Study: https://www.makreo.com/market-survey
• Consulting Services / Market Expansion and Opportunity Assessment: https://www.makreo.com/custom-research

Frequently Asked Questions
What is the projected size and growth rate of the India BESS market through 2032?
Makreo Research estimates the India battery energy storage system market will reach a revenue of USD 348.40 million in 2026 and grow at a compound annual growth rate of 29.05% between 2026 and 2032, supported by a project pipeline that has expanded to 92 GWh in 2026 from 19 GWh in 2024.

Who are the leading companies in the India BESS market?
Makreo Research's competition assessment identifies Tata Power Renewable Energy Limited, which led the sector by revenue in FY2026, alongside Adani Energy Solutions Limited, JSW Energy Limited, Amara Raja Energy and Mobility Limited and Sterling and Wilson Renewable Energy Limited among the leading players, within a broader set of twelve manufacturers, system integrators and independent power producers profiled in the company's India BESS Market Competition Assessment Report 2026.

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Makreo Research and Consulting is a global market research and intelligence firm headquartered in Mumbai, India, with additional offices in Pune, India, and Mississauga, Canada. Makreo supports BESS manufacturers, energy storage providers, renewable energy developers, EPC companies, utilities, independent power producers, battery manufacturers, system integrators and investors across strategy and corporate planning, business development and sales, mergers and acquisitions and corporate development, product management and research and development, procurement and supply chain, tendering and bidding, project development, regulatory and compliance, market intelligence, investment and project finance, sustainability and ESG, government affairs, grid planning, and operations and asset management, helping clients navigate market entry, product development, competitive benchmarking, investment decisions and strategic planning.

To discuss your market entry, expansion strategy, or competitive benchmarking needs, contact us at sales@makreo.com

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