The energy rating table for air conditioners in India changed beginning on July 1, 2022, tightening ratings by one level, thereby making existing product lines one star lower than they previously were. Therefore, a 5-star air conditioner purchased this summer will now fall into the 4-star category and so on, with much higher energy efficiency guidelines now outlined for 5-star models. Industry sources believe that this change will push up air conditioner prices by 7 to 10%, primarily due to the higher cost of production.
There is a six-month window from July 1 to liquidate old stock, but all new manufacturing will have meet the new energy rating table guidelines. The energy rating norms for air conditioners were originally scheduled to change in January 2022, but manufacturers had requested the Bureau of Energy Efficiency (BEE) to delay it by six months so that they could clear existing inventory that was piled up due to the pandemic disruptions over the last two years. The next change in the rating norms for air conditioners is due in 2025.
Godrej Appliances Business Head Kamal Nandi welcomed the new energy rating norms, saying that the company will improve the energy efficiency of its air conditioners by about 20%, which is required considering it is a power-guzzling product.
Lloyd’s Sales Head Rajesh Rathi said the upgraded energy norms will push up the raw material cost for production by about INR 2,000 to 2,500 (about US$ 25 to 32) per unit; so, while the price will go up, consumers would be getting a more energy-efficient product. “The new norms will make India energy norms one of the best globally,” he said.
Manufacturers also believe that the new energy rating norms will speed up the obsolescence of non-inverter air conditioners, since their price will increase as compared to the latest inverter air conditioners. At present, inverter air conditioners account for 80 to 85% of the market, compared with only 45 to 50% in 2019.
Next in line is the tightening of energy norms for refrigerators beginning in January next year. The industry feels that the change in ratings will make it difficult to manufacture highly rated energy efficiency refrigerators, like 4-star and 5-star, due to a significant increase in cost.
