India is planning to introduce a standardised energy-efficiency labelling system for batteries used with solar photovoltaic (PV) panels and large-scale energy storage systems. The rating will range from one to five stars, with Watt-hour (Wh) serving as the key metric for the classification, according to two people aware of the development and a government document reviewed by Mint.
The proposed system will be implemented on the lines of the energy-efficiency labelling programme for electrical appliances run by the state-owned Bureau of Energy Efficiency (BEE) under the Union power ministry, where higher ratings indicate greater energy efficiency and improved generation and storage performance.
The new framework, likely to be finalised by September, is expected to be voluntary initially, the first of the two persons cited earlier said, both speaking on condition of anonymity.
“Different star-rating systems may be created for lead-acid and lithium-ion batteries due to differences in chemistry and performance,” this person added, referring to deliberations at a consultation held in June involving the BEE, battery makers Amara Raja and Exide, and state-run NTPC Ltd and Engineers India Ltd (EIL).
The government’s expansion of the star-rating system, which was designed for energy conservation, follows energy security concerns triggered by the West Asia war when crude oil prices skyrocketed to above $100 per barrel. The spike significantly widened India’s import bill, as the world’s most populous country relies on imports for nearly 90% of its oil demand.
The plan gains importance in light of India’s ambitious solar and wind energy expansion and their variable nature. Battery energy storage systems (BESS) are seen as critical to the country’s energy transition, as they store electricity and supply it to the grid during peak demand. India aims to achieve 500 GW of non-fossil capacity, including wind and solar, by 2030.
Queries emailed on 3 July to the BEE, the Union power ministry, Amara Raja and Exide, as well as NTPC and EIL remained unanswered.
Rating debate
Mint reported on 17 June that the government is planning to introduce a voluntary star-rating system for electric two-wheelers. This plan is now being expanded to include battery energy storage systems, covering a range of applications, including utility-scale power supply and installations integrated with power generation and distribution projects.
The ongoing discussions are largely about determining an appropriate methodology for assessing the energy efficiency of batteries, defined as the amount of energy delivered by a fully-charged battery compared to the energy supplied to charge it fully, the persons cited earlier said.
“Another issue that was discussed involved the placement of the star-rating label, as batteries are often integrated into appliances, and consumers may not be able to see the label,” said the second person cited earlier.
Some experts say the visibility of the label is paramount. “The star-rating label contains a lot of technical information, but what catches the attention of a consumer is the number of stars on the label. Visibility of the label is very important for consumer awareness. The dealers or retailers should be mandated to share the star rating information with the consumer. In case of vehicle, like electric car or two-wheeler, the label of the battery star rating can also be put on the vehicle itself. It should not be a footnote item,” said Shyamasis Das, research fellow at the Centre for Social and Economic Progress (CSEP), a New Delhi-based think-tank.
“Because the concept of star rating was new, it was made voluntary initially. But it is no longer an experiment. When the mandatory labelling regime kickstarts should be decided and informed now to avoid delay in future. We should be working on energy conservation on a war footing,” said Das.
“There were some ideas about whether we can show the star-label digitally or electronically for batteries,” said the first person cited above.
Beyond EVs
Batteries have several use cases, including automobiles, industrial applications, telecommunications, and residential use, among others.
India has a battery storage capacity of 798 megawatt-hours (MWh), and plans to place 47 gigawatts (GW) of battery storage capacity orders requiring an investment of $38 billion.
Battery energy storage is touted to be the fulcrum of global energy transition and the planned pivot from fossil fuels.
The International Energy Agency, in a report in February, had said that battery storage is the fastest growing power technology today.
"In 2025, 108 GW of new battery storage capacity was deployed worldwide, 40% more than in 2024. Installed capacity is now eleven times higher than in 2021. Lithium‑iron phosphate (LFP) batteries now account for around 90% of deployments; while less energy‑dense than rival chemistries commonly used in EVs, LFP batteries are typically cheaper and better suited to more frequent cycling. Just five years ago, the market share of LFP batteries in deployments was well below 50%," it said, adding that around 80% of new battery capacity in 2025 was utility‑scale.