The Bureau of Energy Efficiency (BEE) has implemented mandatory energy efficiency star-labelling for multiple appliances from January 1, while cooling appliance prices are set to rise significantly from January 1, 2026. The new regulations cover refrigerators, televisions, LPG gas stoves, cooling towers, and chillers, marking a significant expansion in mandatory energy labelling requirements.

Expanded Mandatory Star Labelling Requirements

According to a gazette notification issued by BEE, the new mandatory star-labelling regulation applies to several appliances that previously had voluntary labelling. The comprehensive list includes refrigerators, televisions, LPG gas stoves, cooling towers, chillers, deep freezers, distribution transformers, and grid-connected solar inverters.

The draft regulation for these appliances was introduced in July for public feedback, and the current changes are based on stakeholder responses. Star labelling was already mandatory for room air conditioners, electric ceiling fans, electric water heaters, washing machines, and LED lamps.

Significant Price Increases for Cooling Appliances in 2026

From January 1, 2026, new BEE star rating norms will drive substantial price increases for cooling appliances. Air conditioners will face price increases of 7-10%, while refrigerators will see hikes of 3-5%. Blue Star Managing Director B Thiagarajan explained that the new 5-star AC under revised norms will be 10% more energy efficient but will increase prices by approximately 10%.

"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%," Thiagarajan stated.

Industry Response and Cost Pressures

Godrej Enterprises Group Business Head Kamal Nandi indicated that the durables industry faces multiple cost pressures including currency depreciation, adverse commodity costs, and the scheduled energy regime changeover. Voltas Senior Business Leader Jayant Balan noted that trade partners and consumers are moving early to secure current pricing ahead of the expected 7-8% increase.

Daikin Airconditioning India Chairman Kanwaljeet Jawa highlighted that this marks the fifth time energy labelling standards have increased since 2012. When asked whether air conditioner prices will return to pre-GST reform levels, Jawa indicated "It will be around that," suggesting the price increases will largely offset the 10% GST reduction consumers received in September.

Regulatory Impact and Energy Efficiency Goals

The expansion of mandatory star labelling aims to help customers make informed choices and ensure standardisation across the appliance sector. An official stated that the list of mandatory appliances for star labelling is updated periodically to enhance energy efficiency standards.

Despite cost implications, leading manufacturers including Voltas, Daikin, Blue Star, and Godrej Appliances remain committed to the enhanced energy efficiency standards, viewing them as essential for reducing carbon footprints and supporting India's sustainability goals.