Costs, Star Ratings and 2026 Rules

What drives the price of an AC, geyser or heat-pump water heater in India, how to read the BEE label, and the GST and refrigerant rules that apply.

The sticker price of a room air conditioner in India is set mostly by four things: capacity (tonnage), energy efficiency (the BEE star band and its ISEER value), compressor type (fixed-speed or inverter) and format (split or window). For water heaters the drivers are type (storage, instant, gas, solar or heat pump), tank size and, for storage electric geysers, the BEE star label that reflects standing heat loss.

This section explains each driver separately so you can tell what you are paying for. It also covers the rules that change the number on the bill: GST, which for room ACs dropped from 28% to 18% from 22 September 2025, the BEE labelling that every star claim must follow, and the basics of refrigerants such as R-32, R-410A and R-290 that affect servicing later.

Start with the overview of AC and geyser price factors. Every rupee figure on this site is an illustrative example to show the arithmetic, not a market price or a quote from any brand or dealer. This site does not rate or rank brands.

Costs, Star Ratings and 2026 Rules

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