AC Star Ratings in India: How to Save Money on Electricity Bills

Understand AC star ratings in India
March 6, 2024
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In the heat of an Indian summer, air conditioners (ACs) are not just a luxury but a necessity for many. However, with the comfort of cool air comes the concern of rising electricity bills.

Understand AC star ratings in India
Understanding the energy-star ratings for ACs will help you save on electricity bills

One effective way to manage this is by understanding the AC star rating system in India.

This guide simplifies the concept of star ratings and explains how choosing the right AC can lead to significant savings on your electricity bills.

What Are AC Star Ratings?

The Bureau of Energy Efficiency (BEE) in India has developed a star rating system to help consumers identify the energy efficiency of an air conditioner.

Ratings range from 1 to 5 stars, with 5 stars being the most energy-efficient.

This system makes it easier to compare different models and brands based on their energy consumption.

How Do Star Ratings Save Money?

A higher star rating indicates lower electricity consumption for the same cooling performance compared to a lower-star-rated model.

Here’s a simplified example to illustrate this:

  • A 5-star rated AC might consume 1.5 units of electricity per hour.
  • In contrast, a 3-star rated AC could consume 2 units of electricity per hour for the same cooling effect.

Over a month, the difference in energy consumption can be substantial, leading to lower electricity bills for the more efficient 5-star AC.

Real-life Scenario: 3-star vs 5-star bill difference

Consider two households in New Delhi, each using their AC for 8 hours a day over the summer months (approximately 120 days).

  • Home A uses a 5-star rated AC.
  • Home B uses a 3-star rated AC.

Assuming the rate of electricity is ₹7 per unit, the cost difference in their electricity bills over the summer can be a revealing indicator of how star ratings impact savings.

Calculating the Savings

For Home A (5-star AC):
1.5 units/hour x 8 hours/day x 120 days x ₹7 = ₹10,080

For Home B (3-star AC):
2 units/hour x 8 hours/day x 120 days x ₹7 = ₹13,440

The difference in their electricity bills for the summer would be ₹3,360, with Household A saving more due to the higher star rating of their AC.

Comparison of Power Consumption and electricity bill savings for different Star ACs in India

Star RatingAnnual Energy Consumption (kWh)Estimated Annual Electricity Bill (INR)*Efficiency
1 Star1,2009,600Least Efficient
2 Stars1,1008,800Low Efficiency
3 Stars1,0008,000Moderate Efficiency
4 Stars9007,200High Efficiency
5 Stars8006,400Most Efficient
*Assuming an average electricity rate of INR 8 per kWh.

This table serves as a straightforward guide for consumers to understand the impact of AC star ratings on energy consumption and potential savings on electricity bills.

By choosing a higher star-rated AC, consumers can enjoy significant savings and contribute to environmental conservation through reduced energy consumption.

Tips for Choosing the Right AC: 3-star or 5-star?

Which size AC to buy in India?

  1. Consider Room Size: Larger rooms might require ACs with higher cooling capacity, affecting the choice of star rating within your budget.
  2. Usage Pattern: If you use the AC extensively, investing in a higher star rating can be more cost-effective in the long run.
  3. Initial vs. Operating Cost: Higher star-rated ACs may have a higher initial cost but tend to save money over time through lower electricity bills.
  4. Check Latest Models: Energy efficiency standards are periodically updated, so a model rated highly a few years ago might not be as efficient according to current standards.


Understanding and considering the AC star ratings in India can be a game-changer for reducing electricity bills without compromising on comfort.

By choosing a higher star-rated air conditioner, you can enjoy a cooler home more economically and sustainably.

Remember, the initial investment in a high-efficiency AC can lead to substantial savings over time, making it a wise choice for both your wallet and the environment.

Also note that a higher-star AC might not lead to savings if you don’t use the right temperature setting, especially in Indian weather. Read this Ideal AC Temperature Settings for Indian Weather

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