The Government of India is working on a draft framework to standardise the default temperature settings of air conditioners to help reduce power consumption and enhance energy efficiency, Union Power Minister Manohar Lal announced on June 10, 2025. This initiative comes as part of a broader national effort to manage India’s rising electricity demand and promote the use of energy-efficient appliances.

The proposed range for standardised AC settings is between 20°C and 28°C, a range that authorities believe can balance comfort and power savings. Notably, this would also apply to air conditioners installed in automobiles, besides residential and commercial units.

Government in Consultation Phase

Speaking at a press briefing, Power Minister Manohar Lal said that the Centre is currently holding consultations with appliance manufacturers, automobile companies, and State governments to finalise the framework. “Once consultations are over, guidelines will be released, considering climatic conditions like humidity across different states,” he said.

While the exact range and implementation timeline are yet to be finalised, the Bureau of Energy Efficiency (BEE), under the Ministry of Power, is actively working on the draft policy. The Minister also indicated that several states have asked for climate-specific adjustments, especially those with high humidity levels.

The government is also discussing with automobile manufacturers whether the same temperature norms can be applied to car air conditioners. This would mark a significant step in regulating cooling across all sectors, which is crucial given the growing number of AC units in India.

Why Energy Efficiency is Urgent

India’s peak electricity demand hit 241 GW on June 9, underlining the stress on the country’s power grid, especially during summer months. According to Power Secretary Pankaj Agarwal, even a 1°C increase in AC temperature setting can result in a 6 percent reduction in energy consumption.

“There are crores of AC units already in operation across India, and more are being added each year. Imagine the energy savings if each of them is set optimally,” Agarwal said. This potential has prompted the ministry to prioritise the standardisation of AC temperature settings.

The BEE has supported this stance, stating that setting the AC at 24°C instead of 22°C or lower could lead to significant energy savings on a national scale. For a country with growing urbanisation and middle-class expansion, cooling demand is only expected to rise. Hence, early intervention is critical.

The Role of BEE

The Bureau of Energy Efficiency (BEE) has been tasked with drafting the proposed guidelines. It is responsible for developing policies that encourage energy-efficient appliances and systems, and plays a key role in India’s broader climate and energy goals.

BEE’s mandate includes:

• Promoting the use of energy-efficient appliances

• Ensuring preferential treatment for green products

• Setting performance standards for electrical devices

• Recommending incentive-based policies for energy saving

Officials from BEE, speaking anonymously, said, “Discussions are ongoing, but there is no final decision yet on the exact temperature range or the date for releasing the guidelines.”

The agency is currently conducting studies to assess the impact of various temperature levels on both user comfort and energy savings, considering India’s diverse climatic conditions.

ACs in Vehicles Also Under Focus

One of the most notable developments is the government’s decision to include automobile ACs in the standardisation process. Typically, car air conditioners are set to very low temperatures, consuming a lot of energy and increasing fuel consumption in conventional vehicles.

Consultations with automobile manufacturers are expected to address the feasibility of implementing default settings in both electric and fuel-powered vehicles. If implemented, this would be India’s first such regulation covering mobile air conditioning systems.

The idea is to have a uniform baseline temperature across all new AC systems, whether they are in residences, offices, malls, or vehicles, to reduce strain on both energy infrastructure and the environment.

Nationwide Impacts and Benefits

Standardising AC temperatures could yield widespread benefits:

• Lower power bills for consumers

• Reduced peak load on the national grid

• Increased lifespan of AC units due to optimised usage

• Enhanced comfort levels without overcooling

• Reduced carbon emissions and improved sustainability

This initiative aligns with India’s commitment under the Paris Agreement to improve energy efficiency and reduce greenhouse gas emissions.

In addition, reducing electricity consumption helps decrease the reliance on coal-based power, thus contributing to cleaner air and lower pollution levels in urban areas.

Industry and Consumer Reception

Initial responses from AC manufacturers and automobile companies have been cautiously optimistic. While manufacturers have acknowledged the importance of energy-saving initiatives, they have also requested clarity on how default settings will affect product design and consumer preference.

Consumers, on the other hand, are likely to see reduced electricity bills and better energy usage patterns. However, the success of this policy will depend on public awareness and user compliance.

To address this, the government is also considering a nationwide awareness campaign post-framework finalisation. It would aim to educate consumers on:

• Benefits of optimal AC settings

• Energy-saving tips for summer

• Understanding star-ratings and efficiency metrics

Not a New Idea Globally

It is important to note that similar efforts have been made in other parts of the world. For instance:

• Japan has long promoted 28°C as the recommended office AC temperature

• Australia and Singapore also advocate higher default settings to reduce energy bills

• The US Department of Energy recommends 78°F (around 25.5°C) during summer

India's framework, when finalised, will be in line with global best practices, adapted to the country’s local climate and consumption patterns.

Looking Ahead

The next steps include finalising stakeholder consultations, conducting pilot studies, and issuing official guidelines under the Ministry of Power. Implementation may be phased, starting with new AC units, and later expanded to existing models through firmware updates or user guidance.

With no deadline confirmed yet, the final framework is expected to come out later in 2025, after comprehensive consultations with all stakeholders.

In the long run, this policy could pave the way for a broader standardisation of appliance efficiency norms, from refrigerators to lighting systems, making India’s households and industries more energy-conscious.

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