ACs, refrigerators to get costlier from January 2026; here's why
Under the revised rating system effective January 1, 2026, a 5-star AC rated in 2025 will be downgraded to a 4-star.
- Dec 31, 2025,
- Updated Dec 31, 2025 8:32 PM IST
Prices of cooling appliances such as room air conditioners (ACs) and refrigerators are likely to rise by 5–10 per cent from January 1, 2026, as the revised star rating norms of the Bureau of Energy Efficiency (BEE) come into force, news agency PTI reported on Wednesday.
The price increase is expected to nearly erase the benefit consumers got from the 10 per cent GST cut on room air conditioners in September, while manufacturers are also facing higher costs due to the weaker rupee and rising global copper prices.
Despite this, companies like Voltas, Daikin, Blue Star and Godrej told the news agency the new norms will help improve energy efficiency and reduce carbon footprints.
Blue Star Managing Director B Thiagarajan said the new 5-star air conditioners under the revised BEE norms will be around 10 per cent more energy efficient but will also lead to a similar increase in prices. "New 5-star is a new product itself, which in today's context, will be equivalent to 6 or 7-star. That new product, which will be introduced, has a price difference of around 10 per cent," he was quoted as saying.
Under the revised rating system effective January 1, 2026, a 5-star AC rated in 2025 will be downgraded to a 4-star. Similarly, a current 4-star will become a 3-star, while a 3-star model will be reclassified as 2-star, with a price difference of around 5 per cent.
Godrej Enterprises Group Business Head and EVP at Appliances Business Kamal Nandi said the consumer durables industry is being impacted by currency depreciation, higher commodity prices and the scheduled energy regime change. "In the immediate context, energy regime changeover-linked price hike to the tune of 5–7 per cent for ACs and 3–5 per cent for refrigerators looks likely," Nandi said.
Voltas' Jayant Balan said India's cooling industry is entering a transformative phase with the upcoming BEE star rating revision. "These policy shifts are accelerating demand, as trade partners and consumers move early to secure current pricing and mitigate the average expected increase of 7–8 per cent on new inventory, noting that actual changes may differ based on specifications and product categories," he said.
Daikin Airconditioning India Chairman and Managing Director Kanwaljeet Jawa said this is the fifth time energy labelling standards have been tightened between 2012 and 2024. He said that while the AC industry benefited from GST reforms and saw higher sales, it also needs to balance growing demand with sustainability goals. According to him, prices will rise due to the new BEE labelling standards, higher copper and raw material costs, and the weaker rupee. When asked if AC prices would return to pre-GST levels, he said, "It will be around that."
(With inputs from PTI )
Prices of cooling appliances such as room air conditioners (ACs) and refrigerators are likely to rise by 5–10 per cent from January 1, 2026, as the revised star rating norms of the Bureau of Energy Efficiency (BEE) come into force, news agency PTI reported on Wednesday.
The price increase is expected to nearly erase the benefit consumers got from the 10 per cent GST cut on room air conditioners in September, while manufacturers are also facing higher costs due to the weaker rupee and rising global copper prices.
Despite this, companies like Voltas, Daikin, Blue Star and Godrej told the news agency the new norms will help improve energy efficiency and reduce carbon footprints.
Blue Star Managing Director B Thiagarajan said the new 5-star air conditioners under the revised BEE norms will be around 10 per cent more energy efficient but will also lead to a similar increase in prices. "New 5-star is a new product itself, which in today's context, will be equivalent to 6 or 7-star. That new product, which will be introduced, has a price difference of around 10 per cent," he was quoted as saying.
Under the revised rating system effective January 1, 2026, a 5-star AC rated in 2025 will be downgraded to a 4-star. Similarly, a current 4-star will become a 3-star, while a 3-star model will be reclassified as 2-star, with a price difference of around 5 per cent.
Godrej Enterprises Group Business Head and EVP at Appliances Business Kamal Nandi said the consumer durables industry is being impacted by currency depreciation, higher commodity prices and the scheduled energy regime change. "In the immediate context, energy regime changeover-linked price hike to the tune of 5–7 per cent for ACs and 3–5 per cent for refrigerators looks likely," Nandi said.
Voltas' Jayant Balan said India's cooling industry is entering a transformative phase with the upcoming BEE star rating revision. "These policy shifts are accelerating demand, as trade partners and consumers move early to secure current pricing and mitigate the average expected increase of 7–8 per cent on new inventory, noting that actual changes may differ based on specifications and product categories," he said.
Daikin Airconditioning India Chairman and Managing Director Kanwaljeet Jawa said this is the fifth time energy labelling standards have been tightened between 2012 and 2024. He said that while the AC industry benefited from GST reforms and saw higher sales, it also needs to balance growing demand with sustainability goals. According to him, prices will rise due to the new BEE labelling standards, higher copper and raw material costs, and the weaker rupee. When asked if AC prices would return to pre-GST levels, he said, "It will be around that."
(With inputs from PTI )