.jpg)
5-Star vs 3-Star AC: How Much Electricity Can You Save on Your Power Bill?
AC Electricity Consumption, AC Industry in India: With the increasing demand for ACs in India, this industry is also growing rapidly. At the same time, people's electricity bills are also rising. According to a survey, fans, ACs, and coolers account for 40% of household electricity consumption.
The air conditioners (ACs) which provide respite from the heat have become a basic need for many families in India. But the one major concern of buying AC is the amount of money that would be spent on the electricity bill each month. But this concern is bringing about a shift in the strategy of the companies. The customers nowadays demand the Air conditioners that can cool the room temperature along with saving electricity. This is why the companies are shifting their attention towards 5-star Air conditioners, inverter technologies, and features that will help to understand power consumption. This is because the customers are now not interested in just knowing the cost of the AC but also in its total cost after years.
As per the estimate by the IMARC Group, the Indian market of air conditioning was valued at $6.15 billion in 2025. Further, it is expected to reach a value of $7.07 billion in 2026 and $21.59 billion in 2034. Rising temperatures, urbanization, and the need for cooling in homes are driving this market.
A 2024 survey by the Bureau of Energy Efficiency (BEE) and CLASP shows that fans, ACs, and coolers account for a significant portion of household electricity consumption. According to this survey of 4,321 households across 20 states, these appliances accounted for 40% of total household electricity consumption. ACs alone accounted for 11% of total household electricity consumption, compared to 12% in urban households.
