Rising Stars: Energy Efficiency Revamp to Impact Cooling Appliance Prices

Cooling appliance prices are set to increase by 5-10% come January 1, 2026, due to the Bureau of Energy Efficiency's new star ratings. These changes, compounded by currency depreciation and rising commodity costs, will influence manufacturers' margins and prompt a transformation in consumer behavior and industry standards.

Starting January 1, 2026, cooling appliances like air conditioners and refrigerators will see a price hike of 5-10%, spurred by new star ratings from the Bureau of Energy Efficiency (BEE). These adjustments are expected to offset recent GST reforms that had reduced prices by 10%.

The depreciating Indian rupee, coupled with global copper price increases, is squeezing manufacturers' margins, yet companies such as Voltas, Daikin, and Blue Star remain optimistic. They believe the new standards will lower carbon footprints, with products becoming 10% more energy efficient under the BEE norms, despite a similar uptick in costs.

Voltas leader Jayant Balan highlights the evolving consumer and retailer dynamics, emphasizing a shift towards locking in current pricing before the changes occur. Meanwhile, BEE's expanded mandatory star-labelling to other appliances aims to standardize quality and support informed consumer decisions, as the industry commits to balancing efficiency with rising demand.

(With inputs from agencies.)