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.
| Type | Purchase and running cost pattern | Good for | Watch out for |
|---|---|---|---|
| Fixed-speed split AC | Usually cheaper to buy than inverter; compressor switches fully on and off, so units used depend strongly on hours and setting | Rooms used for short periods; tight budgets | Fewer models in higher star bands; temperature swings; check the label validity year |
| Inverter split AC | Usually costs more upfront; variable-speed compressor tends to use fewer units over long daily use | Bedrooms and living rooms used many hours a day | PCB repairs can be costly outside warranty; voltage protection and good installation matter |
| Window AC | Lower purchase and installation cost; no copper pipe run; usually fewer high-efficiency models | Rented homes, rooms with an existing window opening | Noisier indoors; needs a suitable window or wall cut-out; lower star options limited |
| Portable AC | Moderate price; usually lower efficiency for the same capacity | Temporary use where fixed installation is not allowed | Exhaust hose must vent outside; often struggles in large or hot rooms |
| Electric storage geyser | Low to moderate price; standing heat loss adds units when kept on; BEE label reflects this | Bathrooms with several users needing hot water at once | Needs pressure relief valve, earthing and RCCB; switch off when not needed |
| Electric instant water heater | Low price, small size; high power draw while running but no tank loss | Kitchens and single-tap use | Limited flow; high wattage may need wiring upgrade; not for showers in every model |
| LPG or PNG gas geyser | Low running cost where gas is cheap; low electricity use | Homes with piped gas or LPG and good ventilation | Carbon monoxide risk if installed in a closed bathroom; installation by trained fitter only |
| Solar water heater | Higher upfront cost; very low running cost in sunny months; GST on solar water heaters is 5% from 22 September 2025 | Independent houses and terraces with sun and space | Electric backup needed in cloudy weeks; society permission for terrace; hard water scaling |
| Heat-pump water heater | Highest upfront cost among electric options; uses a fraction of a resistive geyser's units for the same hot water | Families with high daily hot-water use | Needs 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.