- Exchange your old AC for a new 5-star rated AC and save up to ₹6300 annually on electricity bills under PM Modi AC Yojana.
- Get discounts and recycling certificates when you submit your old AC to authorized centers and buy branded energy-efficient air conditioners.
- Energy Ministry and Bureau of Energy Efficiency are implementing this scheme aligned with India Cooling Action Plan to reduce power usage and grid stress.
PM Modi AC Yojana (not the official scheme name) is a government scheme designed to reduce electricity consumption by encouraging citizens to replace old and inefficient air conditioners with new 5-star energy-rated models. With rising temperatures across India, air conditioner demand is soaring, increasing the load on electricity grids. This scheme aims to offer financial benefits and environmental advantages by promoting energy-saving cooling solutions.
What is PM Modi AC Yojana?
This scheme focuses on energy conservation and lowering grid stress by facilitating the replacement of older, power-consuming AC units with modern 5-star rated air conditioners. Consumers can recycle their old ACs at authorized recycling centers to receive certificates, which make them eligible for discounts on new AC purchases.
Benefits and Savings Under PM Modi AC Yojana
- Electricity Bill Savings: Switching to a 5-star rated AC can save approximately ₹6300 per year on power bills due to higher energy efficiency.
- Recycling Discounts: Submitting old AC units for recycling provides certificates that can be utilized to get price reductions on new units.
- Special Offers on Branded ACs: Leading brands like Blue Star, Voltas, and LG are offering discounts as part of this scheme.
- Support from Power Distribution Companies: There may be additional bill discounts or incentives provided by electricity distributors for consumers purchasing eligible ACs.
Implementation and Alignment
This scheme is prepared by the Ministry of Power and Bureau of Energy Efficiency, aligning closely with the India Cooling Action Plan. It supports national goals to promote energy-efficient cooling technologies and address climate challenges associated with rising temperatures.
Similar Initiatives – BSES Delhi AC Replacement Scheme
Alongside this national scheme, the BSES power distribution company in Delhi is running a similar program. Under the BSES AC Replacement Scheme, consumers can exchange a working old 3-star or lower rated AC for a new 5-star rated model with a discount up to 63%. Eligibility requires the old AC to be functional and replacement is limited to a maximum of three AC units per customer number.

How to Apply Online for this AC replacement scheme?
You can visit the BSES AC replacement scheme page or send whatsApp at +91- 8448792209 for any queries / assistance. You can also contact BRPL Helpline 19123 from 09:00AM to 05:00 PM (Monday to Friday).
Steps to Register for AC replacement Scheme
- Visit the official website at this link: https://bsesbrpl.co.in:9810/DSM/frmLoginWeb.aspx
- Click on “Register Here” Link.
- After registration, login into your account and fill all the details in the form and submit.
EESL’s High Energy Efficient AC’s
EESL is also selling energy efficient 5 start air conditioners which are up to 14% more efficient than the conventional AC available in the market. You can buy these AC’s online at eeslmart.in.
Visit this link to buy EESL 5 Star AC’s: https://eeslmart.in/air-conditioning
Rising AC Demand and Electricity Load
India’s rising temperatures have escalated the demand for air conditioners. Sales surged from approximately 8.4 million units in 2021-22 to a forecasted 11 million units in 2023-24. While ACs enhance comfort, this increase raises energy consumption and strains the electricity grid, highlighting the importance of energy-efficient solutions promoted by schemes like PM Modi AC Yojana.
Tips for Maximizing Energy Saving with AC
- Set AC temperature to 24 degrees Celsius for optimal balance between comfort and energy efficiency.
- Use energy-efficient appliances to reduce electricity bills and environmental impact.
- Recycle old AC units responsibly through authorized channels to avail discounts and support sustainability.
For more details and updates on PM Modi AC Yojana or other similar schemes, you can visit official government portals of Ministry of Power and Bureau of Energy Efficiency.