
India's BEE proposes voluntary star labels for batteries in solar projects and grid storage, with separate ratings for lead-acid and lithium-ion chemistries.
India is planning a star-rating system for batteries used in solar photovoltaic panels and large-scale energy storage, with ratings from one to five stars based on watt-hour efficiency. The framework, likely finalised by September, will be voluntary initially, according to two people aware of the development and a government document reviewed by Mint.
The Bureau of Energy Efficiency (BEE) under the power ministry will run the programme, modelled on its existing appliance-labelling scheme. Separate star systems may be created for lead-acid and lithium-ion batteries due to differences in chemistry and performance, one of the persons said. A June consultation involved the BEE, battery makers Amara Raja and Exide, and state-run NTPC Ltd and Engineers India Ltd.
The push follows energy security concerns after the West Asia war drove crude oil above $100 a barrel, widening India's import bill. The country relies on imports for nearly 90% of its oil demand. India aims to reach 500 GW of non-fossil capacity, including wind and solar, by 2030. Battery energy storage systems are critical to managing the variable output of those sources.
India currently has 798 megawatt-hours of battery storage capacity and plans to place 47 GW of battery storage orders, requiring $38 billion in investment. The International Energy Agency said in February that battery storage is the fastest growing power technology. In 2025, 108 GW of new battery storage was deployed worldwide, 40% more than in 2024. Lithium-iron phosphate (LFP) batteries now account for around 90% of deployments, the IEA said.
The Mechanism: Separate Ratings for Lead-Acid and Lithium-Ion
The star rating will measure energy efficiency – the amount of energy delivered by a fully charged battery compared to the energy supplied to charge it. The BEE is still determining the methodology. One issue discussed was where to place the label, since batteries are often integrated into appliances and consumers may not see it. Some experts argue the label must be visible to drive consumer awareness. Shyamasis Das, research fellow at the Centre for Social and Economic Progress, said dealers should be mandated to share the star rating, and that labels could be placed on the vehicle itself for electric two-wheelers.
What would confirm the setup? If the BEE finalises the methodology by September and major battery makers like Amara Raja and Exide align production to target higher star ratings, the system gains credibility. What would weaken it? If the system remains voluntary and adoption is slow, or if the methodology for assessing efficiency proves contentious – for example, over label placement on integrated systems – the impact may be muted.
For traders and investors, the star-rating system could shift demand toward higher-efficiency batteries, benefiting manufacturers that can achieve top ratings. The separate rating for lead-acid vs lithium-ion segments the market, potentially affecting pricing and adoption rates. LFP batteries, which dominate global deployments, are cheaper and better suited to frequent cycling than EV chemistries, the IEA noted.
India's battery storage plans are part of a broader shift in energy commodities. See our commodities analysis for more on how these trends affect supply chains and pricing.
Queries emailed to the BEE, the power ministry, Amara Raja, Exide, NTPC, and Engineers India remained unanswered. Mint reported on 17 June that the government is planning a similar voluntary star-rating system for electric two-wheelers, now expanded to include battery energy storage.
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