- New government scheme offers subsidy for replacing ACs older than 10 years with 5-star energy efficient models.
- Exchange old ACs through authorized e-waste partners to get discounts or scrap value benefits.
- Regular energy efficiency rating updates planned to promote energy saving and reduce electricity consumption.
If you own an air conditioner that is over 10 years old, you have a great opportunity to save electricity and money. Electricity Ministry of India is working on a special scheme that allows you to exchange your old AC for a new 5-star energy efficient model at a subsidized price. This aims to help save a significant amount of electricity consumed by older, less efficient air conditioners.
Key Features and Benefits of Subsidized 5-Star AC Replacement Scheme
The scheme is designed to encourage customers with ACs older than 10 years to upgrade to new, energy-saving models. Here is how it works:
- Exchange Process: You can scrap your old AC by handing it over to manufacturers or government-authorized e-waste partners.
- Discount Offers: Energy distribution companies (DISCOMs) will give discounts on the new AC purchase. These discounts will be made possible through bulk purchasing and competitive bidding, modeled on the successful UJALA scheme which distributed over 36 crore LED bulbs.
- Alternative Benefit: Manufacturers may offer a higher scrap value for old ACs which is compensated by government incentives or energy credits, adjusted in your electricity bill.
- Purchase Options: You may buy the new 5-star AC from retail stores at a discounted rate or market price depending on the route you choose.
Industry and Government Coordination
Last week, the Union Minister of Power had discussions with leaders from major AC manufacturers such as Blue Star, Daikin India, and Voltas to finalize the scheme rules. An internal committee has been set up in the Ministry of Power to finalize the framework and implementation details.
Importance and Impact of the Scheme
Blue Star’s Managing Director revealed that about 5 crore ACs in India are over 10 years old and consume a lot of electricity. Customers often shift these old ACs to another room or resell them, leading to higher electricity use and inefficient cooling. By scrapping these and upgrading to modern 5-star rated ACs, you can expect significant energy savings.
Energy Efficiency Norms and Future Updates
Bureau of Energy Efficiency (BEE) plans to revise AC energy efficiency standards every two years instead of 3-4 years as done earlier. Updates will occur in 2026 and 2028, keeping in view the last revision made in July 2022.
Also Read – Old AC Exchange Scheme 2025 with New 5-Star Model to Save Electricity Coming Soon?
Challenges Faced by the Industry
Manufacturers have expressed concerns over frequent rating updates, citing high research and development costs—approximately
400 crore INR per update. Industry experts believe updates should occur only with significant technological advances. The Managing Director of Blue Star noted each rating change improves energy efficiency by around 10%, though the price may rise by 5-7%. By 2030, the number of ACs in India is expected to triple or quadruple, which could increase energy demand by 300-400%.
This ongoing evolution stresses the need for advanced technologies that make ACs as energy efficient as LED lighting and electric vehicles.