'New rating norms to increase demand for inverter ACs'

New star rating methodology by the Bureau of Energy Efficiency applicable from January, 2018, would lead to increase in demand for inverter models, say air conditioner makers.
Besides, it would also benefit the customers by reducing running cost as it will consume less energy although price for a five star AC would go up, they said.
"We expect post this announcement, sales of inverter AC will increase as inverter technology is highly energy efficient," LG India Business Head- Air conditioners, Vijay Babu told PTI.
Panasonic India Business Head, Air Conditioning Group, Mohammed Hussain said: "With this new rating system, the consumer will wish to upgrade the model to a five star, resulting in buying a model with higher price. This will also make the consumer upgrade to an Inverter AC. Thus, it would be a psychological price increase for the consumers".

Indian Seasonal Energy Efficiency Ratio (ISEER) was voluntarily introduced in 2015 and was adopted by leading AC makers for their range of inverter ACs. Hence the price of the Inverter range would remain the same.
"The new norms will also benefit the customers by reducing running cost, as it will consume less energy," Voltas India UPBG & M&CED President & Chief Operating Officer Pradeep Bakshi said.

Carrier Midea India Managing Director Krishan Sachdev said that the new ISEER norms, which is used for the new star rating methodology, will be in the consumer's interest.
"Though cost of the new inverter products may be higher, the quick ROI for a customer will make the new products an easy decision. Once consumers understand the benefits of buying a highly energy efficient air conditioner, the industry will also see positive growth," he said.

On August 24, the Bureau of Energy Efficiency (BEE) introduced ISEER for air conditioners to address the issue of different climatic zones in India.
ISEER measures energy efficiency of air conditioners based on a weighted average of performance at outside temperatures between 24 and 43 degrees Celsius based on Indian weather data.
Asked whether the new norms would help the AC industry to grow, Babu said: "In 2016 H1 sales there is an impressive contribution of highly energy efficient ACs including inverter ACs, we expect this trend will continue and this move will certainly push consumers to upgrade".
The vendors will be stocking the old inventory till the end of 2017, said Hussain.

"Effectively, the flushing out of inventories will be till March'18. Hence, the impact will be seen from April 2018," he added.