Tenfold growth of the industrial energy‑storage market in India

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The Indian commercial and industrial sector stands on the brink of an energy revolution. According to the latest industry report, the installed capacity of energy storage systems is set to increase more than tenfold over the next seven years. The main drivers behind this exodus from the traditional grid are corporate climate goals, rising electricity prices, and revolutionary changes in state-level regulations.

Tenfold growth in seven years

The report titled “India Stationary Storage Market for C&I Applications: Insights Till 2032”, jointly prepared by the India Energy Storage Alliance and Customized Energy Solutions, will be officially presented during India Energy Storage Week 2026 in New Delhi.

Expert forecasts indicate a powerful technological leap:

  • The capacity of renewable energy installations in the business segment will rise from 32 GW in 2025 to as much as 100 GW in 2032.
  • The accompanying corporate energy storage market will accelerate more than tenfold, reaching 31 GWh.

“The Indian energy storage market for the commercial and industrial sector is not just growing – it is accelerating rapidly. Thanks to progressive policies in individual states and rising demand from corporations, storage is becoming a strategic tool for building resilience and decarbonization, not merely an emergency backup system,” notes Debmalya Sen, President of IESA.

Heavy industry, data centers, and new regulations

The largest consumers of battery systems will continue to be industrial facilities, which will account for more than half of all installations in the country. Meanwhile, the fastest growth in demand will come from data centers and critical infrastructure – including hospitals, metro stations, railways, and airports, where uninterrupted power supply is of fundamental importance.

The primary factor stimulating this boom is innovative regulatory action at the state level:

  • Maharashtra has introduced regulations requiring the installation of an energy storage system for every new renewable energy project above 100 kW. Additionally, local distribution companies have been mandated to procure 10% of their energy from storage systems by the 2035–36 financial year.
  • Gujarat, Karnataka, Tamil Nadu, and Rajasthan are also implementing facilitations, offering favorable energy settlement rules, exemptions from transmission fees, and flexible tariff policies.

The end of the diesel era

The report clearly shows the evolution of the needs of Indian businesses. Storage systems are no longer viewed solely as simple backup solutions in case of grid failure. Companies are increasingly deploying advanced, large-scale systems to:

  • Integrate with rooftop photovoltaic installations.
  • Completely replace polluting and emission-heavy diesel generators.
  • Manage energy procurement within access to the open market.

From a technological standpoint, lithium iron phosphate (LFP) batteries currently dominate the Indian market, valued for their safety and long lifespan. At the same time, interest is growing in alternatives for long-duration energy storage, such as vanadium flow batteries and the emerging sodium-ion technology.

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