Bureau of Energy Efficiency (BEE) was formed under the Ministry of Power in Government of India. In 2010, the government has made it mandatory for certain items to have ratings and labels on its products which specify the performance of the product and help the customers in making right choices before buying such product. The rating given by the BEE indicates a company’s compliance level in BEE. A company or a product having a higher BEE level indicates the standard performance of the company in relation to competition. Company should annually try to achieve the highest BEE rating to increase the market share of its product.

A company mainly requires a BEE certificate to prove their BEE status in the market. The certificate is valid for a year and it needs to be renewed every year based on the BEE implementation during the period. It helps the company in both regulatory and promotional activities. In regulatory it sets performance standards for appliances and designs labeling scheme for the same. The star rating on various appliances like AC, refrigerator, Fans, Pumps, Water Heaters, etc is mandatory required to have BEE rating. It helps in developing norms for energy consumption. In the promotional activity, it helps in creating promotional programs for energy efficiency and to develop testing facilities. It also helps in attracting the customers by achieving the highest level of BEE ratings.

BEE has defined minimum standards for certain products which are required to be fulfilled in order to get a license to sell in Indian markets. As per the respective product category the prescribed standard testing, procedures and rules are required to be compiled to get the right labels from the BEE. These labels are certified marks which are stamped on the product in form of ratings from 1 to 5 which indicated the performance level for each product. For labeling the same, the BEE authority works with technical expert committees, an industry association, consumer organizations, testing laboratories, etc.