- SOLAR
Solar Plus Battery Storage (BESS) in India: Why Hybrid Is Now the Default (2026)
In 2025, India put out 69 battery storage tenders adding up to roughly 102 GWh. By the end of the year, only about 758 MWh had actually been commissioned.
At first glance that looks like a failure. It isn't. It shows how quickly solar-plus-storage has gone from pilot projects to the standard way India buys new renewable capacity, so quickly that construction hasn't caught up yet.
The reason is simple physics. Solar produces nearly all its power in a six-hour window around midday, but demand peaks after the sun goes down. Every tender that pairs solar with batteries, whether it's called hybrid, RTC or FDRE, is there to close that gap.
Below we explain what each tender type asks for, the numbers behind the current boom, and why 2026 is the year storage stopped being optional for large developers.
Hybrid vs RTC vs FDRE: what's the difference?
You'll see these three terms in almost every storage tender.
Tender type | What it requires |
|---|---|
Hybrid solar-plus-storage | A solar plant with a battery on the same site, sized to move part of the daytime output into the evening |
RTC (Round-the-Clock) | Renewable power supplied continuously, 24 hours a day, with storage filling the gaps |
FDRE (Firm and Dispatchable Renewable Energy) | Guaranteed delivery at set times or during peak hours, often mixing solar, wind and storage |
The goal behind all three is the same. A grid operator or DISCOM wants contracted, predictable power, not raw solar output that drops off every evening just as demand climbs.
Why storage is now policy, not just preference
The Ministry of Power has gone past encouraging storage and is now telling agencies to include it. Its advisory asks every renewable energy implementing agency and state government to put at least two hours of co-located storage, equal to 10 percent of installed capacity, into all upcoming solar tenders.
The money side has grown too. Viability gap funding (VGF) for BESS was expanded by 30 GWh, on top of the existing 13.2 GWh target for 2027-28. Of that 30 GWh, 25 GWh is split across 15 states and 5 GWh goes to NTPC.
That's the shift. Hybrid solar-BESS used to be something an EPC could offer to stand out. Now it's a basic tender requirement. In 2026, hybrid solar-plus-storage projects make up roughly 8 to 12 percent of India's solar EPC market, and that share should keep rising as more tenders carry storage clauses.
India's BESS market in numbers (2026)
Metric | Figure |
|---|---|
BESS tenders floated in 2025 | About 69 tenders, roughly 102 GWh, up 35% on 2024 |
BESS commissioned by end-2025 | About 758 MWh cumulative from 5 projects (around 547 MWh of it in 2025) |
Total storage pipeline, 2026 (IESA/CES) | 92 GWh, the largest on record for India |
VGF-backed BESS projects, 2025 | 22 projects, 28.5 GWh in total |
Government VGF target | 13.2 GWh by 2027-28, plus a further 30 GWh scheme |
Typical build time | 18 to 24 months from PPA signing to commissioning |
Fall in BESS tariffs since 2022 | Reported at about 86% |
If you're looking at project economics, the tariff drop is the number to watch. SECI's August 2026 round-the-clock renewables tender was won at Rs 5.25 per kWh. State utility BESS tenders, such as UPPCL's, have cleared at Rs 6.45 to 6.46 per kWh for four-hour systems. Compare that with January 2025, when SECI's first fixed-hour FDRE project came in at Rs 8.50 per kWh.
Why so little BESS has been built so far
The gap between tendered and built capacity doesn't mean the model is broken. A BESS project usually takes 18 to 24 months to go from PPA signing to commissioning, and the tender wave only really picked up after VGF support arrived in 2023. Much of what was awarded simply hasn't had time to get built.
What the gap does tell you is where the near-term work is. Developers and EPCs who can deliver hybrid projects reliably inside that window are looking at a backlog, not a shrinking market.
There is a real risk, though. An estimated 40 to 55 GW of renewable and hybrid capacity is stuck waiting on PPAs, because DISCOMs are holding off on signing in the hope that tariffs fall further. Developers who've already spent on development are left exposed. In January 2025, the Central Electricity Regulatory Commission cancelled one SECI standalone BESS tender for exactly this reason. Hybrid is becoming the default, but it isn't a smooth ride yet.
What this means across the value chain
Developers and IPPs. Tenders have swung firmly towards storage. Any new solar bid needs a BESS co-location plan from day one, not one bolted on after a tender clarification asks for it.
EPCs. Being able to build hybrid projects is turning into a real edge. At 8 to 12 percent of the EPC market, hybrid work is spread across far fewer specialist contractors than plain solar. That means less price pressure and better margins for those who build the capability early.
States. Gujarat, Maharashtra and Rajasthan are each expected to commission around 1.5 GWh of BESS in 2026, more than anywhere else. That's where hybrid project experience will build up fastest.
Materials and structural suppliers. BESS enclosures, foundations and the way they tie into existing solar mounting structures are a separate, growing spec, distinct from standard PV structural work.
The bottom line
Solar-plus-BESS isn't a trend any more. Indian renewable procurement has already turned that way, pushed by the Ministry of Power's advisory, a fast-growing VGF scheme and tariffs that have fallen about 86 percent since 2022. Firm, round-the-clock renewable power can now compete with conventional generation.
The lag between tenders and commissioning is a short-term build bottleneck, not a sign of weak demand. It's also the window in which developers, EPCs and suppliers who move now can get ahead before the backlog clears.
At Metalbook, we work on the materials and structural side of solar and hybrid energy projects across India. If you're evaluating a hybrid solar-BESS project or the structural needs that come with it, our team can help you work through the details.
