Written by PPL Newsroom• October 1, 2026• 9:39 am• Innovation

India’s battery storage could reach 45–50 GWh by March 2028, says Crisil

Storage-linked solar and wind auctions are driving a steep rise from about 1 GWh in FY26, though costlier batteries and inexperienced developers could slow some projects.

India is expected to commission 45–50 gigawatt-hours (GWh) of grid-scale battery storage over the current and next financial years, according to a Crisil Ratings report released on 28 September 2026. That compares with about 1 GWh commissioned by the end of FY2026. Batteries matter because they hold midday solar power for the evening, when demand peaks.

The numbers behind the forecast

One GWh is a million kilowatt-hours, so the projection is a very large jump from today’s base. Crisil says 50 GWh to 55 GWh is scheduled for commissioning during the next two fiscal years. It expects actual additions of 45 GWh to 50 GWh, allowing for delays and project risks.

The pipeline is mostly public. Around 40 GWh has been awarded through government-led auctions, with distribution utilities as the buyers. Another 10–15 GWh is likely to serve commercial and industrial consumers or the merchant market.

Policy is a major driver. Projects that include batteries made up nearly 40% of auctioned capacity in FY2026, up from about 5% in both FY2024 and FY2025. The need follows the growth in renewables, which rose to 39 per cent of installed capacity and 15 per cent of energy generated last fiscal, Crisil said.

Where the risks lie

Crisil does not expect a smooth run. About 21 per cent of the capacity under construction, roughly 12 GWh, has weak return potential, which may delay commissioning. Battery prices hardened in 2026, while the tariffs bid for these projects were relatively low. Around 8–9 GWh of that 12 GWh also faces the problem of sponsors with limited implementation experience. Crisil puts battery prices at $70/kWh to $75/kWh in 2026.

Other trackers count a larger installed base. Mercom India Research reported that cumulative installed battery storage reached 9.3 GWh by the end of June 2026. The gap with Crisil’s roughly 1 GWh figure for March 2026 probably reflects different counting methods. Neither source’s definition is spelt out in the material reviewed here.

What this means for India

Solar output falls after sunset while demand stays high, so storage is central to running a grid with more renewable power. The Central Electricity Authority estimates India will need 236.2 GWh of battery storage by 2031-32, so even 50 GWh would be only a first step. Much of the capacity is bought by state distribution companies, so their finances and how well developers deliver will decide whether the stored power reaches consumers at an affordable price.

What happens next

The government has already put support in place. According to the Institute for Energy Economics and Financial Analysis, it introduced viability gap funding of Rs91 billion for 43.2GWh of BESS capacity. It also waived inter-state transmission charges for co-located projects commissioned on or before 30 June 2028.

The pace from here will depend on battery prices, project economics and developers’ ability to deliver. Crisil’s assessment covers projects awarded between FY2024 and FY2026 by nearly 100 renewable energy developers. How many of those projects reach commissioning on schedule will be the clearest test of India’s storage build-out.