Indian government bans energy consuming one-star AC’s

India: The Indian government, in a move to curb the raising pollution levels, has banned the high energy consuming one-star ACs in Indian market. This initiative will ultimately reduce the price difference between inverter and non-inverter models.

Along with this the government has introduced new improved energy efficiency guidelines for frost-free refrigerators and also made it compulsory for companies to follow the energy rating rules for hi-end inverter ACs starting from 2018.

According to manufacturers, the price of entry level ACs that is the two-star ACs is said to increase. Also the prices of four- and five-star refrigerators are said to increase significantly, and make the most energy efficient five-star inverter ACs dearer by approximately INR 5,000. The number of frost-free refrigerator models with high energy labels will reduce significantly this year and with the new specifications for the refrigerator, last year's four-star refrigerator will now become three star with new energy ratings. The rules have been imposed by the Bureau of Energy Efficiency (BEE) which is the nodal body under the power ministry for energy efficiency rating of consumer electronics.

According to TechSci Research, the move is welcomed as it makes perfect sense to improve energy efficiency in the country and would reduce the carbon emissions at thermal stations and reduce global warming. The move would also reduce the power take-off time.

According to a report published by TechSci Research “India Air Conditioners Market Forecast and Opportunities, 2020”, the Indian air conditioners market is projected to grow at a CAGR of over 10% during 2015-20. The split air conditioners segment was the highest revenue generator, followed by VRFs and window air conditioners in 2014. Northern India generates the highest revenue in the country’s air conditioners market, followed by Southern and Western regions.