On June 10, 2025, the Union Government announced plans to regulate air conditioner (AC) temperature settings to a range of 20–28°C. The initiative aims to cut electricity use and promote energy conservation. It’s a crucial move, considering cooling systems account for 10% of India’s energy demand.
While critics argue the move restricts individual thermal comfort, experts believe such regulations are long overdue. Currently, AC manufacturers offer temperatures ranging from 16 to 30 °C.
The science behind temperature regulation
So, why is it imperative to regulate AC temperatures and minimise AC use?
“The lower you set your AC temperature, the more time and energy it takes to cool the room. For example, cooling to 20°C uses more energy and more time than cooling to 25°C. And to keep the room that cool, the AC has to run longer, which increases energy use,” explains Anand Wagh, Fellow and Head of the Centre for Renewable Energy and Energy Efficiency at World Institute of Sustainable Energy (WISE), Pune.
According to the Bureau of Energy Efficiency (BEE), raising the AC temperature by one degree can lead to a 6% reduction in energy consumption for each degree increase in temperature. “It may not seem like a lot at an individual level, but collectively, it amounts to significant energy savings. Considering the motive of energy conservation, this proposal is a very good move, provided that a lot of us do not require a temperature setting of 16 or 17°C for thermal comfort,” says Gautham Molleti, Senior Associate at the Center for Study of Science, Technology and Policy (CSTEP), a Bengaluru-based think tank.
Shooting energy demand: AC sector dominates
Over the past decade, India has seen a 45% increase in power demand in 2023-24. India met an all-time maximum power demand of 250 gigawatts (GW) during the financial year 2024-25. India’s peak power demand is projected to reach 277.2 GW in 2026-27 and 366.4 GW in 2031-32, according to the 20th Electric Power Survey of the Ministry of New and Renewable Energy.
As of 2025, India is one of the fastest-growing AC markets in the world, with 14 million units sold last year. In the summer of 2024, room AC sales surged by 40% to 50% year-on-year amid a record-breaking surge in temperatures. According to the National Family Health Survey (NFHS)-5 data, 24% households owned an AC or an air cooler in India; 40% households were urban, and 15% were in rural areas.
A working paper by India Energy and Climate Centre estimates that by 2035, room air conditioners could contribute up to 180 GW — nearly 30% of India’s total electricity demand.
“We never had ACs growing up, but today I cannot imagine my home without one. After long hours stuck in traffic, you want to come back to a cool and comfortable space,” says Diksha P, a bank employee in Bengaluru. She adds that the worsening heat in a relatively cool city like Bengaluru prompted her to purchase an AC last year. Bengaluru experienced a severe heatwave in February 2025 with temperatures reaching 35.9 degrees Celsius, surpassing even Delhi’s temperature on the same day.
Is the new AC rule restrictive?
According to various studies, reducing exposure to cold indoor temperatures can be good for overall health.
Thermal comfort varies from person to person depending on age, gender, clothing, physical activity and even personal preferences. Physiologically, people have different metabolic rates, which refers to how quickly they can generate heat, and this determines their bodily changes to temperature alternation.
However, very low AC temperature can have an adverse health impact. Research shows that sudden temperature drops in AC temperatures can exacerbate respiratory problems such as asthma, COPD etc. Studies have found that occupants of buildings with ACs consistently report more than average symptoms than occupants of buildings with natural ventilation, despite the quality of air being better in air-conditioned buildings.
The symptoms include ophthalmic symptoms (dry, itchy, strained, and tired eyes), allergic symptoms (stuffy nose, mucous membrane irritation, runny or stuffy nose, breathing difficulties, and dry throat), and general and neurological symptoms (headache, lethargy, and fatigue).
“Some people stick to a certain AC setting out of habit, regardless of actual thermal comfort, making it hard to shift preferences. But conserving energy requires a trade-off—and that’s where behavioural change plays a crucial role,” says Gautham.
“We have speed limits, noise limits and even limits to the amount of water we use. We live in a regulated society. Absolute freedom only leads to anarchy,” adds Vivek Gilani, founder and director of Fair Conditioning Foundation.
Experts suggest policy measures needed to reduce the carbon footprint in the long run:
- Enforcing stricter building codes to adopt passive cooling architectural designs in building constructions.
- Expanding the Standards and Labelling programme to include more energy-consuming appliances and increase minimum energy efficiency standards.
- Decentralising renewable energy sources and ensuring equitable distribution to enable more inclusive access.
- Regulating the cooling industry to increase energy efficiency of low-star air conditioners.
- Incentivising energy conservation to encourage larger participation.
- Public awareness campaign to switch to green and sustainable modes of cooling.
Lack of regulations in the AC sector
Experts warn that air conditioning consultants often promote larger AC units than people actually need, as part of their marketing strategy. “Most often, people do not need a one-tonne AC, and now the norm is becoming to purchase one and a half tonne AC, which is just a waste of energy,” says Vivek. He adds that the cooling industry, in the name of energy-efficient ACs, is pushing bigger units regardless of the customers’ needs. “The size of the space matters. If your building is well-ventilated, you will need a one-tonne AC for 200 square feet of space. AC consultants push one-ton AC for a mere 100 square feet of area.”
Furthermore, the expensive energy efficient ACs are made affordable only for the upper-class community, leading to an increase in sales of ACs which consume more energy. “ACs are categorised as a mandatory appliance under BEE’s Standards and Labelling programme and that’s why it should have a star rating. Without a star rating, you’re not supposed to sell it,” says Gautham.
Higher star-rated ACs are more energy efficient, with 5-star models using 10–20% less power than 3-star ones. Although 1- and 2-star ACs aren’t widely sold, lower-rated units cost less, so most buyers opt for them despite higher energy use. However, this only incurs heavier electricity bills, says Gautham.
“While price is an important element to consider, buying a low-starred AC due to low price only incurs more cost in the future because of its high energy consumption. One will pay heavier electricity bills with a low-starred AC, which many are not aware of.” A study by the Council on Energy, Environment and Water (CEEW) showed that though over 70% wanted to purchase a high-star labelled AC, only 14% went on to purchase a four or five-star labelled AC and attributed cost as a barrier.
Read more: Informal settlements try out new cool roof solutions to beat the heat
Future of sustainable cooling in India
A working paper by India Energy and Climate Centre proposes a solution to strengthen the one-star level Minimum Energy Performance Standards (MEPS), rather than only raising the energy efficiency of high-level star ACs. That way, low-star ACs become both affordable and energy efficient. In 2023, the Union Government’s Star Labelling Programme resulted in energy efficiency improvement of split ACs by 43% and for window ACs by 17% for one-star ACs.
“Just like RO purifiers, the AC sector is dominating the whole discourse and is attempting to delegitimise and discourage other cooling techniques,” says Vivek. He believes that most of India can stay cool without an AC by adopting passive cooling techniques, such as better ventilation, shaded windows, and insulation to reduce heat.
Heating, Ventilation and Air Conditioning (HVAC), a system designed to control temperature, humidity and air quality indoors, is not sustainable by nature. Gautham says ACs work as a short-term fix, but when combined with passive cooling and sustainable HVAC designs, they offer long-term thermal comfort—especially if backed by strong policy support.
How can you cool your room by minimising AC usage
- Shade your home’s windows and walls. Plant trees and shrubs to keep the house cooler during peak hours/seasons.
- A good air conditioner will cool and dehumidify a room in about 30 minutes, so use a timer and leave the unit off for some time.
- Clean the air-conditioner filter every month to cool quickly and use less energy. A dirty air filter reduces airflow and may damage the unit.
- Create designs for cross-ventilation within in rooms in your home to reduce heat gain.
- Use light-coloured or reflective roofing materials to reduce the amount of solar heat absorbed by the building.
- Use water to cool the air during increased heat events, such as through fountains or water features, or by using porous materials in building construction that allow for evaporation.