Energy-efficient cooling gets a push as govt mulls AC swap scheme: Details

The Power Ministry is drafting a scheme to replace ACs older than 10 years with 5-star rated models, potentially offering rebates and buybacks

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The Ministry of Power and the Bureau of Energy Efficiency (BEE) are working on a plan to help households replace air conditioners (ACs) that are over 10 years old with newer, more energy-efficient models. The scheme is likely to offer incentives to promote the shift to 5-star rated ACs, which consume significantly less electricity.

 

Why old ACs need replacement

 

As earlier reported by Business Standard, India’s annual air conditioner sales have surged to nearly 11 million units in 2023–24 from 8.4 million units in 2021–22, reflecting a sharp rise in cooling demand.

 

Buildings across the country consumed close to 500 terawatt-hours (TWh) of electricity last year, with cooling alone accounting for nearly a quarter of that consumption, according to government estimates.

 

Most older ACs in Indian households are rated below three stars, making them far less efficient than modern units. As per the Bureau of Energy Efficiency (BEE), replacing such outdated models with new five-star-rated ACs can lead to annual savings of up to ₹6,300 in electricity bills and ease the load on the national power grid, especially during peak summer months.

 

What the new govt AC scheme may offer

 

The scheme, while still being drafted, is similar to the Ujala scheme, which helped distribute millions of LED bulbs in the past decade. Different proposals that are being considered include:

• Manufacturer Exchange Discounts: AC manufacturers may offer upfront discounts on new models in exchange for old units.
• Electricity Bill Rebates: In partnership with power distribution companies (discoms), bill credits or rebates for households that switch to more efficient appliances may be considered.
• Limited Rollout to Start: Initially, the programme may target metro cities where AC usage is high.

 

According to a recent report by The Economic Times, the scheme may also offer a buyback option through certified recyclers. This means a certificate from authorised recyclers or e-waste partners can be redeemed for a discount on a new purchase.

 

Industry response and next steps

 

To ensure smooth implementation, the government has been consulting with leading AC manufacturers such as Voltas, Blue Star, LG, Samsung, and Lloyd. These discussions will help finalise the framework of the incentive scheme, including:

- Pricing strategies

- Logistics for old unit collection

- Recycling and disposal norms

 

Expected launch timeline

 

While the final details of the scheme are still being worked out, officials suggest that it could be announced later this year. Discussions are ongoing between the Power Ministry, BEE, and industry stakeholders.

 

For now, consumers are advised to wait for the official rollout before making any major replacement decisions.