NEW DELHI: If you are planning to buy a new air conditioner (AC) next year, be prepared for a change in both price and performance. The Union Ministry of Power has issued a new notification tightening the energy efficiency standards for all new ACs sold in India from April 1, 2026.
The move, aimed at reducing the country’s overall energy consumption, will make new ACs more efficient, leading to lower electricity bills for consumers. However, the use of improved technology is also expected to increase the upfront cost of the appliances.
What’s Changing? The New Star Rating Explained
The Bureau of Energy Efficiency (BEE) is upgrading its mandatory star rating system. This means the efficiency benchmark for each star level will be raised. In simple terms:
- A new 1-star AC sold from April 2026 will have to be more energy-efficient than a current 2-star AC.
- Similarly, the efficiency of a current 4-star AC will be roughly equivalent to that of a new 3-star AC under the revised norms.
The efficiency is measured by the Indian Seasonal Energy Efficiency Ratio (ISEER). The higher the ISEER value, the more efficient the air conditioner is, meaning it provides better cooling for lower power consumption.
Impact on Consumers: Higher Price, Lower Bills
The implementation of stricter norms will have a direct two-fold impact on consumers:
- Higher Purchase Price: To meet the new efficiency standards, manufacturers will need to incorporate better technology and components, which is expected to increase the retail price of new AC units.
- Lower Electricity Bills: The significant improvement in energy efficiency will result in lower electricity consumption, leading to substantial long-term savings on monthly power bills.
The government’s goal is to push the market towards more sustainable products. While an initial deadline for the revision was set for July 1, 2025, the Centre has now permitted companies to follow the existing standards until March 31, 2026.
BEE first made star ratings for ACs mandatory in 2010 and has been periodically upgrading the standards to promote energy conservation and reduce the carbon footprint.
