The Bureau of Energy Efficiency (BEE), India is proposing to make the new star rating methodology mandatory from January 2018. Though the AC segment will see a growth in the demand, in line with the global trends, it is also believed, that the prices of star labelled ACs are expected to shoot up.

The new rating system called the Indian Seasonal Energy Efficiency Ratio (ISEER) was introduced on a voluntary basis for Variable Speed Inverter Air Conditioners in June 2015. View notification

This rating system has already been adopted by the inverter AC manufacturers. The BEE is now proposing the star labelling mandatory for both fixed speed and variable speed ACs. The new rating system is expected to bring in more energy efficiency and reduce consumer’s electricity bills. Considering the rising utility costs, this intiative will lower the operating costs for customers.