India’s commercial and industrial (C&I) energy storage market is entering a new phase of growth, according to a report jointly released by the India Energy Storage Alliance (IESA) and Customized Energy Solutions (CES). Titled “India Stationary Storage Market for C&I Applications: Insights Till 2032,” the report reveals that businesses are steadily shifting from diesel-based backup power to advanced battery energy storage systems (BESS). This transition is being driven by ambitious corporate decarbonization goals, rising electricity tariffs, the growing adoption of renewable energy, and the need for reliable power across industrial facilities and critical infrastructure.
Renewable Energy and Energy Storage to Grow Together
The report projects significant growth in both renewable energy and battery storage over the next seven years. India’s C&I renewable energy capacity is expected to increase from 32 GW in 2025 to 100 GW by 2032. At the same time, energy storage system (ESS) installations are forecast to expand nearly tenfold, reaching 31 GWh by 2032.
Industrial manufacturing facilities are expected to remain the largest users of battery storage, accounting for more than half of total installations. Meanwhile, rapidly expanding sectors such as data centers, hospitals, and railway infrastructure are likely to generate strong demand for specialized energy storage solutions that ensure uninterrupted and resilient power supply.
State Policies Accelerate Battery Energy Storage Adoption
Supportive government policies are emerging as a major catalyst for India’s C&I energy storage market. Among the states, Maharashtra has taken a leadership position by mandating energy storage systems for all new renewable energy projects exceeding 100 kW. The state has also directed electricity distribution companies (DISCOMs) to procure 10% of their electricity from energy storage systems by FY 2035-36.
In addition, states such as Gujarat, Karnataka, Rajasthan, and Tamil Nadu are encouraging battery storage deployment through transmission charge waivers and cost-reflective energy banking policies. These regulatory initiatives are making energy storage projects more financially viable while accelerating renewable energy integration.
New Opportunities for EPC Contractors and Solar Developers
The expanding battery energy storage market is creating significant business opportunities for engineering, procurement, and construction (EPC) contractors, solar developers, and system integrators.
Corporate customers are increasingly seeking customized battery energy storage systems that can seamlessly integrate with rooftop solar installations and open-access renewable energy projects. As a result, developers offering integrated solar-plus-storage solutions are expected to gain a competitive advantage.
Currently, Lithium Iron Phosphate (LFP) batteries continue to dominate the market because of their safety, long cycle life, and cost competitiveness. However, the report also highlights growing opportunities for long-duration energy storage technologies, including vanadium redox flow batteries and sodium-ion batteries, as industries look for storage solutions capable of supporting longer backup durations and greater grid flexibility. Many businesses are replacing diesel generators with battery storage systems to reduce emissions, lower operating costs, and improve energy reliability.
Industry to Discuss Future Roadmap at India Energy Storage Week 2026
The report’s findings will take center stage at India Energy Storage Week (IESW) 2026, scheduled from July 8-10 at Yashobhoomi, New Delhi. Industry leaders, policymakers, technology providers, and energy experts will discuss the latest market trends, evolving technical standards, and policy developments shaping India’s stationary energy storage sector.
Battery Storage Becomes Central to India’s Energy Transition
As India accelerates its journey toward net-zero emissions, battery energy storage is becoming an essential component of the country’s commercial and industrial energy ecosystem. With stronger state-level mandates, declining battery prices, and increasing corporate investments in renewable energy, the C&I battery energy storage market is poised for sustained expansion through 2032. As reported by mvapulse.com, the rapid deployment of stationary storage systems will not only improve energy resilience but also strengthen India’s renewable energy infrastructure, making clean, reliable, and cost-effective power more accessible for industries nationwide.
