Govt Plans Incentives to push Switch From old ACs to 5-star Models in India
- brg_news_room
- 3 days ago
- 1 min read
INDIA: In a move to curb rising electricity consumption and promote the adoption of energy-efficient technologies, the Union government is formulating a financial incentive scheme aimed at encouraging consumers to replace outdated, inefficient air conditioners with new five-star-rated models.
The Ministry of Power, in collaboration with the Bureau of Energy Efficiency (BEE), is currently evaluating the proposal, which is anticipated to substantially reduce urban power demand and lower household energy bills.
A major concern is the widespread use of outdated AC units—most of which are rated below three stars—resulting in excessive energy use compared to newer, more efficient models. According to the Bureau of Energy Efficiency (BEE), upgrading to a five-star-rated AC could save households up to ₹6,300 (US$ 74) annually on electricity bills, while also easing pressure on the power grid, especially during peak summer periods.
How the Incentive Scheme May Work
Though the final framework is still under development, the Union government is considering a comprehensive incentive scheme to make energy-efficient upgrades more accessible and attractive for consumers. Proposed mechanisms include:
Buyback via Certified Recyclers: Consumers could hand in their old ACs to registered recyclers in exchange for a certificate redeemable when purchasing a new five-star unit.
Manufacturer-Backed Discounts: AC manufacturers may offer instant discounts on new energy-efficient models in return for older units.
Electricity Bill Rebates: In partnership with power distribution companies (discoms), the government may explore offering bill credits to households switching to high-efficiency appliances.
Source: Bureau of Energy Efficiency (BEE)