How Setting Your AC At 20 Degrees Celsius Could Cut Your Electricity Costs

The government will soon make it mandatory for air conditioners across India to operate only between 20 degrees Celsius (C) and 28 degrees C, Union Minister Manohar Lal Khattar announced on Tuesday.

"Regarding air conditioning standards, a new provision is being implemented soon. The temperature standardisation for ACs will be set between 20 degrees Celsius to 28 degrees Celsius, meaning we won't be able to cool below 20 degrees Celsius or warm above 28 degrees Celsius," Mr Khattar said in a press conference. 

This was "to bring uniformity to air conditioning use and help reduce excessive power consumption due to extremely low cooling settings," the Minister of Housing & Urban Affairs told reporters.

The announcement comes at a time when electricity demand is touching record highs, driven largely by extreme heatwaves and increased use of air conditioners.

How Much Electricity Would This Save?

Increasing the AC temperature by only 1 degree C can lead to a 6% reduction in electricity consumption, according to the Bureau of Energy Efficiency (BEE).

So, if your AC was previously running at 18 degrees C and is now limited to a minimum of 20 degrees C, that is a 12% saving already. Most households tend to set ACs around 20-22 degrees C, and moving up to 24-26 degrees C can save up to 24%-30% in energy usage.

Experts at BEE have also estimated that if India adopts 24 degrees C as the default setting across all ACs, it could save approximately 20 billion units of electricity annually, translating to savings of over Rs 10,000 crore in energy costs.

Why This Matters

In 2024, India's energy demand during peak summer days surged past 250 GW, an all-time high and a significant chunk of this was driven by residential cooling. According to the International Energy Agency (IEA), the country's cooling demand is projected to increase tenfold by 2050, making energy efficiency in this sector more urgent than ever.

Setting a 20 degrees C lower limit helps reduce grid stress, encourages smarter AC use, and promotes energy-efficient appliances.

Countries like Japan have already adopted similar practices, with recommended AC settings at 28 degrees C.

Will Comfort Be Compromised?

The BEE says that human comfort is generally maintained at 24 degrees C-26 degrees C when combined with the use of ceiling fans or proper insulation. Setting the AC at 18 degrees C is not only energy-intensive but also creates an uncomfortable chill, especially when moving between indoor and outdoor environments.

Practical Tips For Consumers

• Use ceiling fans along with ACs.
• Install smart or programmable thermostats.
• Buy 5-star BEE-rated ACs for better efficiency.