India To Standardise AC Temperature Settings between 20C to 28C To Reduce Power Consumption
Moneylife Digital Team 12 June 2025
In a move aimed at reducing power consumption and promoting energy efficiency, the Indian government is set to enforce new rules that will limit the operational temperature range of air conditioners (ACs) across the country. Earlier this week, Union minister for housing and urban affairs Manohar Lal Khattar announced that ACs will soon be restricted from cooling below 20°C (degrees Celsius) or heating above 28°C. 
 
The announcement comes amid a prolonged heatwave gripping Delhi and several parts of northern India, with the Indian Meteorological Department (IMD) issuing an orange alert for extreme temperatures. 
 
Speaking to the media, Mr Khattar said that the temperature standardisation provision is being introduced to ensure uniform usage of air-conditioners and help manage the soaring power demand during the summer months. 
 
According to the minister, most ACs currently operate at settings as low as 16°C or 18°C, which is not only energy-intensive but also unnecessary from a thermal comfort standpoint. Once implemented, users will no longer be able to cool spaces below 20°C or heat them beyond 28°C.
 
Experts believe that the regulation, while seemingly restrictive, is a practical solution to India’s recurring power crises during peak summer. The bureau of energy efficiency (BEE) has long advocated for higher AC temperature settings to reduce electricity consumption. 
 
Studies indicate that each 1°C increase in air-conditioning temperature can reduce power usage by around 6%. Raising the temperature setting from 20°C to 24°C alone could result in energy savings of up to 24%. Given that nearly 100mn (million) air-conditioning units are already in use across India, and 15mn new ones are added every year, even marginal improvements in efficiency can yield enormous results.
 
India’s electricity consumption has been climbing rapidly, particularly in urban areas. The country recorded its highest ever power demand at 250GW (gigawatts) last year and this year’s demand is expected to cross 270GW. On 9 June 2025, India saw a peak load of 241GW, despite a dip in May due to early monsoon rains. In May 2025 alone, India consumed 148.71bn units of electricity, down 4% from May 2024, but forecasts suggest that power needs will again rise sharply as the monsoon recedes.
 
The government’s broader objective with the new AC temperature rule is to ease pressure on the national power grid, cut electricity costs for consumers, and support climate goals by reducing reliance on fossil fuel-based power generation. 
 
According to a University of California, Berkeley study, better air-conditioner efficiency standards could slash India’s peak power demand by up to 60GW by 2035. This would avoid the need for an estimated Rs7.5 lakh crore or around US$88bn in new power infrastructure investment.
 
BEE also dispels the common belief that setting an air-conditioner to a lower temperature cools a room faster. In reality, the compressor uses the same amount of energy regardless of the set temperature; setting the AC to 18°C instead of 24°C simply makes the compressor run longer, wasting electricity without offering tangible comfort benefits. 
 
In fact, the BEE states that indoor environments are comfortable for most people in the 24°C–25°C range, particularly when humidity and air movement are properly regulated.
 
While the government is yet to announce detailed enforcement mechanisms, the upcoming policy will apply to both residential and commercial air-conditioners. Manufacturers will be required to reprogram devices to ensure compliance with the new 20°C–28°C range. Once the provision comes into effect, ACs will no longer function outside this set band. The government also plans to monitor adherence to the new rules and assess their impact over time.
 
Reactions to the proposed change have been mixed. While many experts and environmentalists have welcomed the move as a step in the right direction, sections of social media have expressed concern over the regulation, viewing it as unnecessary government intrusion into private life. 
 
However, officials maintain that the regulation is a necessary response to the twin challenges of rising electricity demand and environmental degradation. 
 
According to officials, air-conditioners account for about 50GW of electricity demand—roughly 20% of India’s total demand. Even a 1°C increase in the default setting could save around 3GW during peak usage.
 
India is not alone in this approach. Other countries have introduced similar measures to reduce electricity consumption and carbon emissions. Spain, for example, mandates that public buildings maintain cooling at no lower than 27°C and heating at no higher than 19°C. 
 
China enforces a minimum cooling temperature of 26°C in government offices and penalises violators. In the US, the department of energy recommends a setting of 26°C for home cooling. Singapore and Australia also advise households to maintain AC settings between 24°C and 26°C, though these are not legally enforced.
 
The Indian government’s move, therefore, aligns with global best practices and represents a significant shift toward sustainable energy use. By encouraging behavioural change in how Indians use air-conditioners, the policy could substantially reduce the country’s energy footprint. 
 
With temperatures rising due to climate change and urbanisation surging, the need for efficient cooling systems has never been more urgent. If implemented effectively, the AC temperature cap could play a critical role in helping India meet its energy and environmental goals while reducing the risk of summer blackouts and cutting household electricity bills.
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