The Ni–MH batteries were tested for battery energy storage characteristics, including the effects of battery charge or discharge at different rates. The battery energy efficiency and capacity retention were evaluated through measuring the charge/discharge capacities and energies during full and partial state-of-charge (SoC) operations. Energy efficiency results were obtained at various charge input levels and different charge and discharge rates. The inefficient charging process started to take place at ca. 90% state-of-recharge (SoR) when charged at no more than 0.2C rate. For the NiMH-B2 battery after an approximately full charge (∼100% SoC at 120% SoR and a 0.2C charge/discharge rate), the capacity retention was obtained as 83% after 360h of storage, and 70% after 1519h of storage. The energy efficiency was decreased from 74.0% to 50% after 1519h of storage time. The Coulomb efficiency was initially 83.34%, and was reduced to 57.95% after 1519h of storage. The battery has relatively higher energy efficiency at approximately 50% SoC. The energy efficiency was calculated to be more than 92% when the NiMH-C3 battery was charged to 30–70% SoC then discharged to 0% SoC at a 0.2C charge/discharge rate. In consideration of energy efficiency, charge acceptance, capacity retention rate, and power output needs, as well as Nelson’s analysis on HEV power requirements, the Ni–MH battery is appropriate to work at ca. 50±10% SoC with an operating limitation of 50±20% SoC. This work is potentially beneficial for determination of the current SoC level during the battery pack being operated for energy storage applications.