India Room Air Conditioner Market Annual Stocktake 2025
This report presents the findings of the India Room Air Conditioner (RAC) Market Annual Stocktake 2025, an assessment by the Alliance for an Energy Efficient Economy of the country’s installed RAC stock, estimated at close to 100 million units. It examines the technology transition, demand across climatic zones, efficiency loss in ageing units, and the policy case for replacement.
Key Insights from the report:
- Inverter models now account for about 77% of new sales, up from about 1% in 2015, and roughly half of the installed base. However, efficiency loss in service pushes stock consumption to about 121 TWh a year, against 94 TWh at rated performance, an avoidable 27 TWh and 11 GW at peak. Most of this loss comes from about 27 million 1-3 Star fixed-speed units aged five years or more, concentrated in Maharashtra, Tamil Nadu, Gujarat, Delhi and Uttar Pradesh. Replacing them could save about 16 TWh a year and 7 GW of peak demand.
- The report recommends phased action for 2027-29: buy-back and scrappage schemes with incentives paid on verified retirement, reverse-logistics and refrigerant recovery hubs in the priority states, and extension of MEPS and BEE labelling across the full service life.
- Together, these steps would close the gap between rated and in-use performance, strengthening demand forecasts and the potential for demand flexibility programmes.
