AC and water heater types compared

How the main types of room air conditioner and water heater used in Indian homes compare on cost, running cost and what to watch for.

This table compares types of unit, not brands. It shows how the purchase and running cost of each type usually behave, which homes they suit and the points that most often cause problems. The descriptions are general; the BEE label of the specific model is what tells you its rated efficiency. All rupee amounts elsewhere on this site are illustrative examples.

Use this table to narrow your choice, then compare two or three specific models on their BEE labels and written installation terms.

Select a column header to sort.

TypePurchase and running cost patternGood forWatch out for
Fixed-speed split ACUsually cheaper to buy than inverter; compressor switches fully on and off, so units used depend strongly on hours and settingRooms used for short periods; tight budgetsFewer models in higher star bands; temperature swings; check the label validity year
Inverter split ACUsually costs more upfront; variable-speed compressor tends to use fewer units over long daily useBedrooms and living rooms used many hours a dayPCB repairs can be costly outside warranty; voltage protection and good installation matter
Window ACLower purchase and installation cost; no copper pipe run; usually fewer high-efficiency modelsRented homes, rooms with an existing window openingNoisier indoors; needs a suitable window or wall cut-out; lower star options limited
Portable ACModerate price; usually lower efficiency for the same capacityTemporary use where fixed installation is not allowedExhaust hose must vent outside; often struggles in large or hot rooms
Electric storage geyserLow to moderate price; standing heat loss adds units when kept on; BEE label reflects thisBathrooms with several users needing hot water at onceNeeds pressure relief valve, earthing and RCCB; switch off when not needed
Electric instant water heaterLow price, small size; high power draw while running but no tank lossKitchens and single-tap useLimited flow; high wattage may need wiring upgrade; not for showers in every model
LPG or PNG gas geyserLow running cost where gas is cheap; low electricity useHomes with piped gas or LPG and good ventilationCarbon monoxide risk if installed in a closed bathroom; installation by trained fitter only
Solar water heaterHigher upfront cost; very low running cost in sunny months; GST on solar water heaters is 5% from 22 September 2025Independent houses and terraces with sun and spaceElectric backup needed in cloudy weeks; society permission for terrace; hard water scaling
Heat-pump water heaterHighest upfront cost among electric options; uses a fraction of a resistive geyser's units for the same hot waterFamilies with high daily hot-water useNeeds space and airflow; outdoor or utility placement; fewer service networks in smaller towns

The cost patterns above are general. Always compare the BEE label of the exact models: star band, ISEER for ACs, annual units and the label's validity period. GST on room air conditioners (HSN 8415) is 18% from 22 September 2025 (previously 28%), and on solar water heaters 5% from the same date, as announced after the 56th GST Council meeting; check the rate on your invoice for other items. Official sources: Bureau of Energy Efficiency, GST Council, CBIC GST, Bureau of Indian Standards and your State Electricity Regulatory Commission for tariffs.