We all are aware of the fact that effective from January 1, 2026, the Bureau of Energy Efficiency (BEE) has enforced stricter, higher-efficiency norms for room Air Conditioners (ACs). As a consequence of it, most of the (2025) top AC devices have lost one star rating, and in the last three plus months many of the prominent players in the Indian air conditioner market have come out with their new ‘-Star’ models.
BEE measures the ratio of total cooling load to energy consumed over a season, factoring in varying outdoor temperatures. Their standard is known as Indian Seasonal Energy Efficiency Ratio (ISEER). The higher the ISEER value, better is the energy efficiency.
If we consider the new models, we find the new ‘-Star’ models are on an average ~ 4% more energy-efficient with ~10% lower operating costs. Although the operating cost has come down, the new buyers have to pay almost 8.5% more for the same ‘-Star’ model. Of course, the new machines use much better components, and now application of AI is quite dominant in the industry, which is obviously an offsetting plus point.
Contextually, we have to remember that BEE 2026 norms for AC ratings represent a significant tightening of efficiency benchmarks, designed specifically to align Indian cooling appliances with the highest global standards, such as those in Singapore and some European markets.
The most common question that arises now is: why has BEE made the star ratings so stringent in 2026? First of all, with rapid advancement in technology, stricter thresholds was necessary to ensure that a 5-star rating continues to represent the top-tier, cutting-edge efficiency rather than a standard, average product.
Additionally, as the global warming continues to increase, the need for ACs will also continue to grow, thus focus on lowering their operating costs was very essential. Beside that as long as ACs consume energy from the national grid, it would also reduce the national electricity demand.
Introducing higher standards, the BEE has ensured mass distribution of technologically advanced ACs that will definitely create a win-win situation.
Pravita Iyer
Publisher & Director
