India’s commercial and industrial (C&I) renewable energy sector is expected to witness significant growth over the next decade, with installed renewable energy capacity projected to triple from 32 GW in 2025 to 100 GW by 2032, according to a new report released by the India Energy Storage Alliance (IESA) and Customized Energy Solutions.
The report also projects rapid expansion in the country’s Energy Storage System (ESS) capacity. Installed storage capacity is expected to grow more than ten-fold, reaching 31 gigawatt-hours (GWh) by 2032 as businesses increasingly adopt energy storage solutions to improve reliability, reduce costs and support clean energy integration.
According to the report, the growth will be driven by multiple factors, including corporate decarbonisation commitments, rising electricity tariffs, increasing focus on energy security and supportive state-level renewable energy policies. Businesses across industries are increasingly investing in renewable energy and storage solutions to lower operational costs while meeting sustainability targets.
Several states have introduced policy measures to accelerate the adoption of renewable energy and storage technologies. Maharashtra’s new Renewable Energy and Storage Policy mandates storage systems for every new renewable energy project with a capacity above 100 kW. The policy also requires power distribution companies (discoms) to procure 10% of their electricity from energy storage systems by FY2035-36.
States such as Gujarat, Karnataka, Tamil Nadu and Rajasthan are also promoting renewable energy deployment through measures including cost-reflective banking, exemptions on transmission charges and other regulatory incentives aimed at encouraging investments in clean energy infrastructure.
The report highlights that industrial facilities are expected to account for more than 50% of total energy storage installations over the coming years. Demand is also projected to rise rapidly from critical infrastructure such as data centres, hospitals, metro rail networks, railway stations and airports, where uninterrupted power supply is becoming increasingly essential.
The report will be officially launched during India Energy Storage Week (IESW) 2026, scheduled to be held from July 8 to 10 at Yashobhoomi (IICC), New Delhi. The event is expected to bring together more than 200 exhibitors and over 10,000 industry leaders, policymakers and technology experts from across the clean energy ecosystem.
Commenting on the findings, IESW President Debamalya Sen said the research demonstrates that India’s commercial and industrial energy storage market is entering a new phase of rapid expansion. He noted that supportive state government policies and rising demand from the corporate sector have transformed energy storage from a backup solution into a strategic asset for strengthening energy security and accelerating decarbonisation.
The report underscores the growing importance of renewable energy and energy storage in helping India achieve its long-term clean energy ambitions while supporting reliable, cost-effective and sustainable power for businesses and critical infrastructure.
Disclaimer: This report has been editorially prepared using publicly available information and agency inputs. While every effort has been made to ensure accuracy, unintentional errors or omissions may occur. Readers are encouraged to verify critical information from official sources.
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