Stricter efficiency standards for air conditioner makers in the works

This would help bring in more efficiency in cooling and can potentially control sudden power demand spikes as well as slash electricity bills

air conditioner, ACs
ACs alone could contribute to 120 gigawatts (Gw) of peak power demand by 2030, and 180 Gw by 2035, accounting for nearly 30 per cent of the total projected power demand, according to IECC.
Puja Das New Delhi
3 min read Last Updated : May 02 2025 | 11:37 AM IST

Don't want to miss the best from Business Standard?

With another ominous summer set to hit India this year, the Centre is looking to make the efficiency standards for air conditioner (AC) makers more stringent. 
This would help bring in more efficiency in cooling and can potentially control sudden power demand spikes as well as slash electricity bills. The Ministry of Power is considering a significant revision of the Indian Seasonal Energy Efficiency Ratio (ISEER) — used for measuring the energy efficiency of ACs. It is calculated as the ratio of the cooling seasonal total load to the cooling seasonal energy consumption. ISEER value may be raised from the current 3.5 to over 4 kilowatt-hours per kilowatt-hour (kwh/kwh) for one-star split ACs, with corresponding adjustments for other star ratings, according to two industry executives. 
During the last 15 years, the ISEER value has been revised from 2.8 to 3.4 kWh/kWh. Currently, energy performance standards for split ACs range between 3.5 and 5.6 across all star levels, while for unitary or window ACs, it ranges from 2.9 to 3.7. 
A higher ISEER value indicates a more energy-efficient air conditioner. For instance, a 5-star AC with an ISEER of 6.2 is 24 per cent more energy-efficient than a 5-star AC with an ISEER of 5. This revision is part of the regular exercise conducted by the ministry in consultation with the Bureau of Energy Efficiency (BEE) every three years. However, the proposed change in ISEER for room ACs comes in response to the unprecedented hot weather and rising AC usage. Inefficient cooling devices are the primary reason for fires during hot weather. They also cause sudden demand spikes during high power consumption hours. 
Queries sent to the secretary and spokesperson of the ministry and the director general of BEE remained unanswered. The ISEER value will be revised based on international standards. Currently, the power ministry and BEE are discussing the new values with stakeholders, including manufacturers, for all-star levels from 1 to 5, a government official said. The official added, “Once an agreement is reached and approved by the ministry, the new standards will be implemented in new products starting in 2027.”   According to a study by the India Energy and Climate Center (IECC) at the University of California, Berkeley, India adds 10-15 million new ACs each year and is projected to add an additional 130-150 million over the next decade.
 
ACs alone could contribute to 120 gigawatts (Gw) of peak power demand by 2030, and 180 Gw by 2035, accounting for nearly 30 per cent of the total projected power demand, according to IECC. 
However, the cost of these efficient ACs might be a sticking point. A sectoral expert, who didn't want to be named, said, a more energy efficient product involves higher price for consumers because of compressor cost.  
 
 

One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :air conditionersair conditionerelectricity demandsenergy consumptionsummer heat

Next Story