India’s New AC Rules: A Bold Step Towards Energy Efficiency, Environmental Protection, and Climate Resilience

Air conditioners (ACs) have become a ubiquitous part of urban and semi-urban life in India, offering essential relief from scorching heatwaves and humid conditions. However, their unchecked use significantly contributes to rising electricity demand, greenhouse gas (GHG) emissions, the urban heat island (UHI) effect, and overall environmental degradation. In a landmark move, the Government of India has announced that, starting June 2025, all new air conditioners sold must operate strictly within a temperature range of 20°C to 28°C. Currently, many AC units in India allow cooling as low as 16°C and heating up to 30°C. Once this provision is enforced, users will no longer be able to set their ACs below 20°C or above 28°C. This decision is part of India’s broader strategy to combat climate change, enhance energy efficiency, and reduce the growing burden on the national power grid.

ACs and Their Environmental Impact

1. Contribution to Urban Heat Island (UHI): ACs release hot air into the atmosphere while cooling indoor spaces, exacerbating local ambient temperatures, especially in densely populated urban areas. This creates a feedback loop where higher temperatures increase AC usage, which in turn raises outdoor temperatures.

2. Climate Change Driver: Most ACs use hydrofluorocarbons (HFCs), potent greenhouse gases with high global warming potential. Increased electricity consumption also leads to higher fossil fuel combustion.

3. Pollution and Energy Demand: The rising demand for cooling increases the burden on thermal power plants, contributing to air pollution and CO2 emissions. Moreover, inefficient ACs lead to increased particulate matter and heat emissions.

Understanding the Loop: Current Scenario

Rising temperatures → More AC usage → More energy demand → More fossil fuel usage → More emissions → Global warming → Rising temperatures.

This vicious cycle threatens both environmental sustainability and energy security.

The New AC Rule

• Mandatory Operational Range: All new AC units must function within a minimum temperature of 20°C and a maximum of 28°C.

• Energy Efficiency Compliance: Adjustments in the Bureau of Energy Efficiency (BEE) star-rating system to push manufacturers towards better energy standards.

• Postponement of Stricter Standards: New stringent BEE norms will now take effect from January 1, 2026.

Areas Covered Under the Rule

The new AC temperature regulation is expected to apply across residential homes, commercial buildings, offices, retail outlets, and automobile air conditioning systems, aligning with the Bureau of Energy Efficiency (BEE) comfort standards; while the rule sets permissible temperature limits between 20°C and 28°C, the recommended ideal comfort setting is 24°C, with 24°C for homes and cars, and 24°C to 25°C for commercial spaces, offering a balance between comfort and energy efficiency.

Objectives Behind the Policy

1. Environmental Protection: Minimize GHG emissions and urban heat.

2. Energy Conservation: Reduce electricity consumption and peak demand.

3. Economic Benefits: Lower electricity bills and reduce public expenditure on energy subsidies.

4. Climate Resilience: Support India’s climate commitments under the Paris Agreement.

5. Public Health: Mitigate the adverse health effects of poor air quality and extreme heat.

6. Grid Stability: Prevent grid overload and reduce the need for emergency power infrastructure.

Why the Government Wants to Limit AC Temperature Settings

• Curb Excessive Electricity Consumption
  Air conditioners contribute significantly to India’s electricity demand, around 50 gigawatts, or 20% of the total energy use. Many users set ACs to very low temperatures (16 to 18°C), which leads to unnecessary power usage.
  Studies show that 24 to 25°C is optimal for both comfort and efficiency.

• Flatten Peak Load Demand
  During peak summer months, excessive AC use causes grid stress and even power outages. Standardizing temperature settings can help reduce peak demand, making power distribution more stable.

• Promote Energy Efficiency
  According to the Bureau of Energy Efficiency (BEE), increasing the AC set temperature by just 1°C can save up to 6% electricity. Shifting from 20°C to 24°C can result in up to 24% energy savings

• Encourage Behavioral Change: The new rule aims to create awareness and influence consumer consumers toward more sustainable cooling habits.

• Mitigate Emissions: The rule directly addresses emissions from both power generation and refrigerants.

Environmental, Energy, Economic and Health Impact

1. Environmental Impact

• Reduced Emissions: The new rule helps lower greenhouse gas emissions by reducing electricity consumption and curbing the use of hydrofluorocarbon (HFC) refrigerants, which are potent climate pollutants. This contributes significantly to the reduction of carbon emissions and supports India’s broader climate goals.

• Lower Fossil Fuel Dependence: By reducing overall electricity demand, the rule indirectly lowers the country’s dependence on fossil fuels.

• Improved Air Quality and Public Health: Less reliance on polluting power sources contributes to better air quality and associated health outcomes.

2. Energy Impact

• Massive Energy Savings: Setting ACs at higher temperatures can significantly reduce electricity usage. 60 gigawatts of electricity could be saved by 2035. Berkeley study. Expected savings of ₹18,000–20,000 crore over the next three years due to reduced energy consumption.

• Reduced grid stress and fewer outages

3. Economic Impact

• Avoided Infrastructure Costs: The rule could help India avoid ₹7.5 lakh crore ($88 billion) in future investments for power infrastructure.

• Boost to Green Innovation: It creates market incentives for the adoption of energy-efficient technologies and eco-friendly appliances.

• Long-term Cost Reduction: Households and industries benefit from lower electricity bills and operational costs.

4. Health Impact

• Reduced Risk of Respiratory Illnesses: Overuse of air conditioners at very low temperatures can dry out nasal passages and airways, making people more susceptible to coughs, colds, sinusitis, and respiratory infections.
• Prevention of Sudden Temperature Shocks: Moving between extremely cold indoor environments and hot outdoor temperatures can cause thermal stress, leading to headaches, fatigue, and increased cardiovascular strain.
• Improved Sleep Quality: Maintaining a moderate room temperature (around 24°C) supports natural circadian rhythms, potentially leading to better sleep and mental well-being.
• Protection for Vulnerable Groups: Elderly individuals, children, and people with chronic conditions like arthritis or asthma are more sensitive to cold indoor environments; this rule helps protect their health by discouraging unsafe cooling levels.
• Reduced Skin and Eye Dryness: Extremely cold and dry air from ACs can cause dry skin, irritated eyes, and dehydration. Maintaining higher temperatures helps retain natural moisture levels in the skin and eyes.

Challenges in Implementation

1. Consumer Resistance: Many users prefer setting ACs to lower temperatures for immediate comfort. Users in extremely hot and humid regions may initially find 20°C less cooling than preferred.

2. Industry Adaptation: Manufacturers may face costs adapting to new standards. Older AC units may need upgrades or software updates to comply with the new temperature limits.

3. Enforcement and Awareness: Ensuring compliance across millions of sales points in India is a logistical challenge.

Government’s Complementary Measures

1. Battery Storage Investments: To stabilize the grid during peak AC demand.

2. Energy Efficiency Labelling: Improved BEE labels to guide consumers toward energy-conscious choices.

3. Promotion of Inverter Technology: Encouraging adoption of inverter ACs which are more efficient than fixed-speed models.

Global Comparison

• Japan: Sets air conditioner (AC) temperatures to 28°C as the recommended default in government offices; actively promotes energy-efficient cooling technologies and building insulation to reduce energy demand.

• USA: The Department of Energy (DOE) enforces minimum efficiency standards for cooling systems and promotes the use of smart thermostats; the ENERGY STAR program offers consumer guidance. A typical recommended setting for cooling is 25.5°C (78°F).

• China: Implements strict Minimum Energy Performance Standards (MEPS) for air conditioners; strongly encourages green building practices and the use of renewable energy-powered cooling. Regulations require public buildings to maintain AC settings not lower than 26°C.

• South Korea: Operates government-led demand response programs to manage peak electricity demand; provides financial incentives for the adoption of energy-efficient appliances and promotes awareness about optimal AC use.

• Italy: Government regulations set a minimum indoor cooling temperature of 27°C for public buildings, but some regions recommend not lower than 26–28°C, with occasional variations such as not less than 20°C in certain public or private buildings during extreme heatwaves.

• Spain: Enforces rules to set air conditioning no lower than 27°C in public buildings and commercial spaces (e.g., shops, offices, airports) as part of national energy-saving measures.

• Greece: Requires air conditioning in public sector buildings to be set no lower than 27°C to conserve energy and reduce peak electricity loads.

    India's new air-conditioner regulations mark a crucial turning point in aligning consumer comfort with sustainable development. By regulating temperature settings, pushing energy-efficient technologies, and investing in supportive infrastructure, the country is making significant strides in climate action. However, successful implementation will require a combined effort from policymakers, industry, and consumers. The world is watching, and India's approach may serve as a blueprint for other developing nations grappling with similar challenges in an increasingly warming world.