India’s New AC Set Point Rule: A Small Tweak with Big Implications

19 Jun 2025
Shaurya Anand

Why a shift from 16°C to 20°C could reshape the nation’s energy future and cooling habits.

Recently, the Government of India announced a regulation to increase the minimum air conditioner (AC) set point from 16°C to 20°C. The decision has generated much debate and raised important questions: What is the intent behind this move? What impacts can we expect — and what lies ahead?

As heat stress intensifies and summer seasons lengthen, air conditioning is increasingly seen not as a luxury but as a necessity. Understandably, when seeking relief, people tend to set their ACs at lower temperatures — often 18°C or below — in the hope of achieving faster cooling. However, the real measure of comfort isn’t just the immediate blast of cold air, but thermal comfort: a state where people feel neither too hot nor too cold, in balance with the temperature and humidity of their surroundings.

Why Set Points Matter More Than You Think

In the face of intense heat, it is natural for people to lower their AC temperature to 18°C or even 16°C, hoping for quick relief. But cooling comfort isn’t just about cold blasts of air — it is about achieving thermal comfort: a state where people feel neither too hot nor too cold, balanced with humidity and air movement. For most Indian conditions, the average thermal comfort temperature usually lies between 24°C and 28°C, which is much higher than what most ACs are typically set at.

When air conditioners are set at unnecessarily low temperatures, they work harder, drawing more power, leading to higher bills, faster wear and tear, and larger carbon footprints. According to the Bureau of Energy Efficiency (BEE), each 1°C increase in AC set point can cut energy consumption by up to 6%. A shift from 20°C to 24°C, for example, could deliver energy savings of around 24% — a substantial impact when multiplied across millions of units nationwide.

This is not a standalone move. India’s policy applies across residential and commercial sectors, building on earlier initiatives like BEE’s voluntary 24°C default setting, energy labelling programmes, and promotion of inverter technology. But the urgency has grown sharper: sales of room air conditioners surged from about 6 million units in 2020 to around 14 million in 2024 — an annual growth rate of 24%, which far exceeds the 12% projected under the high-growth scenario of the Indian Cooling Action Plan (ICAP). ICAP also estimates that AC ownership could rise from today’s 8% of households to nearly 40% by 2037-38 which will further increase residential AC stocks.

If these trends continue unchecked, space cooling could drive 150 GW of additional peak power demand — nearly 40% of India’s total projected peak load by 2037-38. This would not only strain power infrastructure but lock in higher carbon emissions for decades.

That’s where this small policy intervention gains significance. By nudging consumers towards modest set points, the government aims to flatten the cooling demand curve, ease peak load stress, and buy time for the grid to decarbonize. In effect, it’s a low-cost, high-impact tool in India’s climate action toolkit.

Beyond Set Points: The Bigger Picture of Sustainable Cooling

Cooling demand is deeply intertwined with sectors beyond residential comfort. It affects building design, transportation, food preservation, medicine, and public health. And as India urbanizes and incomes rise, cooling demand will only accelerate.

Achieving sustainable cooling requires a multi-pronged approach:

  • Right-sizing air conditioners to match room size ensures efficiency and comfort without excess energy draw.
  • Inverter ACs provide variable cooling that adapts to actual room conditions, delivering both savings and quieter operation.
  • Ceiling fans used alongside ACs at higher set points, can provide perceived cooling equivalent to lowering the set point by several degrees.
  • Passive cooling strategies — such as proper building orientation, shading, cross-ventilation, and use of natural materials — can reduce space cooling demand.

What’s often overlooked is the refrigerant story which is the lifeline of AC systems. Running ACs at lower set points increases compressor load, raising the risk of refrigerant leakage. This not only wastes energy but also releases potent greenhouse gases (GHGs) into the atmosphere. The new set point regulation indirectly supports India’s commitments under the Kigali Amendment to the Montreal Protocol, under which the country has pledged to phase down high–global warming potential (GWP) refrigerants on a defined timeline.

A Climate, Energy, and Social Equity Lens

From a climate standpoint, this intervention supports India’s Nationally Determined Contributions (NDCs) under the Paris Agreement by targeting one of the fastest-growing sources of energy-related emissions. It links directly to Sustainable Development Goals (SDGs): SDG7 (Affordable and Clean Energy) SDG11 (Sustainable Cities and Communities), SDG12 (Responsible Consumption and Production) and SDG13 (Climate Action).

On the economic side, higher set points reduce household electricity bills, which is particularly important for middle- and low-income families. For distribution companies (DISCOMs), lower peak demand means fewer blackouts and reduced need for expensive capacity additions.

From a social perspective, however, success depends on consumer awareness and acceptance. For many, lower set points are equated with better cooling — a perception that needs to shift. Here, manufacturers, retailers, and government campaigns have a vital role to play, just as they did in transforming consumer attitudes towards LED lighting or energy-efficient appliances.

The Road Ahead

Real impact of this move will depend on how well it is communicated, implemented, and complemented by other measures — building codes, incentives for high-efficiency equipment, training for technicians, and support for alternative cooling technologies.

But it is a start. A modest adjustment in set points may seem inconsequential in the face of India’s vast cooling challenge. Yet, when multiplied across millions of units in households and offices nationwide, it signals a quiet revolution — one that can help secure a cooler, greener, and more sustainable future for all.

The government’s move reflects the realities of a warming world and the need to optimize our response in ways that are both technically sound and socially just. And while the benefits may not be immediately visible, over time, this small step could help build a greener, cooler, and more resilient future for all.

Tags
Air conditioners
Air quality
Climate change
Cooling