Developers warn that rising battery prices could push up storage tariffs and delay renewable energy expansion.
Battery storage tariffs in India are expected to surge as increasing input costs make several low-priced projects financially impractical , developers and lenders said at an industry event in New Delhi.
According to Reuters, India has around 260 GWh of battery energy storage projects under various stages of development as it accelerates efforts to support round-the-clock renewable power. However, industry executives warned that the sharp fall in tariffs over the past two years was based on expectations that battery cell prices would continue declining.
“With costs now rising, the question is how many of those projects will survive,” said Debamalya Sen, president of the India Energy Storage Alliance (IESA).
IESA estimates installed battery storage capacity has climbed more than elevenfold to 8.7 GWh in the first half of 2026 from 0.78 GWh at the end of 2025 and is expected to reach 10 GWh by year-end. That remains well below India’s renewable generation capacity of about 283 GW.
Industry executives attributed increasing battery costs to China’s withdrawal of export incentives, higher lithium, copper and aluminium prices, and supply disruptions linked to the Iran conflict. State Bank of India Deputy General Manager Asesh Chakrabarti said the lowest winning tariff of ₹148,000 per MW per month recorded in 2025 “is not sustainable” under current battery prices.
Mahindra Susten CEO Avinash Rao added, “Tariffs have to be realistic to ensure projects can secure financing, are built on time and remain viable throughout their useful life.”
