Energy storage in India was long viewed as a niche and costly solution, with limited deployment until around 2018. High costs, immature technologies, and regulatory uncertainty constrained adoption during the early years. Since then, growing government focus, stronger policy support, and the rapid scale-up of renewable energy targets have brought energy storage into sharp focus.

Energy storage systems have now become central to grid stability, helping manage renewable intermittency, meet peak demand, improve power quality, provide backup during outages, and enable deeper integration of renewable energy. Recent battery energy storage system auctions by state distribution companies underscore this shift, reflecting strong policy intent and increasingly aggressive bidding behavior.

India auctioned 19,690 MWh of battery energy storage in 2025, a 447% year-over-year increase. The lowest tariff discovered in 2025 was ₹148,000 (~$1637.45)/MW/month, 35.6% lower than the lowest tariff of ₹230,000 (~$2,433.74)/MW/month in 2024.

This year saw the lowest auction tariffs to date. It also witnessed an increase in storage tenders and auctions due to the introduction of the viability gap funding program to enhance the cost-effectiveness of energy storage and make battery energy storage systems more feasible.

Here is a list of the lowest solar tariffs for BESS discovered in auctions in 2025:

#1 SVR Electro Projects won the Transmission Corporation of Andhra Pradesh auction for setting up 1,000 MW/2,000 MWh of capacity at a tariff of ₹148,000 (~$1637.45)/MW/month.

#2 Maharashtra State Electricity Distribution Company’s auction for 2,000 MW/4,000 MWh capacity was won by four companies, each at the second lowest tariff of ₹165,998 (~$1,850.94)/MW/month.

#3 Stockwell Solar Services, Oswal Cables, Patanjali Renewables, Micromax Informatics, and RCVS Innovations won Rajasthan Rajya Vidyut Utpadan Nigam’s auction for 1,000 MW/2,000 MWh BESS at the third lowest tariff of ₹177,500 (~$1,963.83)/MW/month.

#4 Sun Drops Energia (KP Group) was the winner of Gujarat Urja Vikas Nigam’s 2,000MW/4,000 MWh BESS Phase VII auction with the fourth lowest tariff of ₹185,390 (~$2,051.13)/MW/month.

#5 Patel infrastructure won NHPC’s auction for 500 MW/1,000 MWh BESS at the fifth lowest BESS tariff of ₹208,000 (~$2,301.28)/MW/month.