India battery storage prices are rising due to higher costs.
Developers and lenders at an industry event on Wednesday said that they expect battery storage tariffs to increase in India, because high input costs make low-priced project more difficult to maintain.
South Asia is expanding its battery storage capacity to supply renewable energy around the clock. Approximately 260 gigawatt hours (GWh) are currently in various stages of development.
The India Energy Storage Alliance's (IESA) president, Debamalya Sen, said that the tariffs for standalone batteries storage projects have fallen sharply in the last two years as a result of expectations that battery costs will continue to fall.
"With costs rising, it is a question of how many projects will'survive?," he said at an event organized by IESA.
The IRAN WAR is pushing up battery costs.
According to IESA, the installed?battery capacity has increased more than 11-fold from 0.78 GWh at the end 2025 to 8.7 GWh during the first half of 2026. It is expected to rise to 10 GWh before the end 2026.
This is still a far cry from the 283 GW of renewable energy capacity.
Battery costs have increased due to the withdrawal of China's export incentives, which is the world's biggest battery supplier. Also, rising prices for copper, lithium and aluminium linked?to the Iran War, has also contributed.
State Bank of India, India's largest lender, said that some projects which had been funded have not moved forward because?battery costs rose and suppliers did not honour earlier price commitments.
In 2025, the 'lowest (tariff) price' was 148,000 rupees (1,548.85 dollars) per megawatt/month. Asesh chakrabarti said that at current battery prices this is not sustainable.
India's companies have been offering lower tariffs in order to win state government contracts.
Mahindra Susten - the clean energy division of the Mahindra Group - has warned against a "race towards the bottom" when it comes to tariffs.
Avinash Rao, CEO of Mahindra Susten, said that "tariffs...?must be realistic in order to ensure?projects are financed, built on time, to the required standards and remain viable for their entire useful life."
(source: Reuters)
