Costs, Star Ratings and 2026 Rules
BEE star rating and ISEER explained: how to read an AC label in India
What the BEE star label on an Indian room AC or geyser shows, how ISEER works, why star tables are revised and how to turn the label into rupees.
The BEE star label on a room air conditioner sold in India tells you four things that matter for cost: the star band (1 to 5), the ISEER value that sets the band, the annual energy consumption in units (kWh) under BEE's standard usage assumption, and the label period (the years for which that star table applies). Higher ISEER means more cooling per unit of electricity. The stars alone are not enough to compare models: two 5-star ACs can have different ISEER values and different annual units, and a label from an older table period is not directly comparable with one from a newer period. Compare the annual units and convert the difference to rupees.
Part of the AC and geyser price factors overview.
Who sets the label
The Bureau of Energy Efficiency (BEE), a statutory body under the Ministry of Power set up under the Energy Conservation Act, 2001, runs the Standards and Labelling programme. BEE issues labelling regulations for each appliance, including room air conditioners and stationary storage type electric water heaters, and publishes the star tables. Manufacturers test their models, register them with BEE and print the label. BEE also runs check testing of labelled products.
What is on an AC label
| Label item | What it means | How to use it |
|---|---|---|
| Star band | 1 to 5 stars for the label period | Quick filter only |
| ISEER | Indian Seasonal Energy Efficiency Ratio | Compare efficiency between models of the same size |
| Annual energy consumption (kWh/year) | Units used per year under BEE's standard assumption of operating hours | Convert to rupees at your tariff |
| Cooling capacity (W) | Rated cooling output | Check it matches the tonnage you need |
| Label period | Years for which the star table applies | Compare only labels of the same period |
| Brand, model, type | Inverter or fixed speed, split or window | Match with the invoice |
How ISEER works
Older AC labels used EER, the cooling output divided by power input at a single outdoor temperature. India moved to ISEER, which weights performance across a range of outdoor temperatures (in bands from about 24°C to 43°C) according to how many hours a typical Indian year spends at each. BEE's room AC labelling regulations (2017) set the bins at 24°C to 43°C and assume 1,600 cooling hours a year. This rewards inverter ACs, which run more efficiently at part load in milder weather.
In formula terms:
ISEER = total cooling delivered over the reference season ÷ total electricity used over the same season
An ISEER of 5.0 means about 5 units of cooling energy for each unit of electricity. The label's annual consumption figure is based on BEE's standard assumption of operating hours per year; the label or the BEE regulations state the assumption used. Your own hours will differ.
Why star bands are revised
BEE tightens the star tables periodically so that the bands keep pace with technology. When a new table comes in, the ISEER needed for each band rises, and a model that was 5-star under the previous table can drop to 4-star or lower. The star table published with the Ministry of Power's room AC notification ran from 1 July 2022 to 31 December 2024 (S.O. 4634(E), 2021); industry and press reports indicate a further revised table applies from 1 January 2026, but BEE's website did not show that notification when checked in October 2026, so check the current table on the BEE website or the label portal before relying on any specific cut-off value.
What this means for buyers:
- Stock made under an older table can still be on sale with its old label. Check the label period.
- Compare annual units and ISEER, not stars, when one label is old and one new.
- A "5-star" claim in an advertisement should match the label on the product.
Turning the label into rupees (illustrative)
| Model | ISEER (illustrative) | Annual units on label (illustrative) |
|---|---|---|
| 1.5-ton model A | 4.0 | 1,100 kWh |
| 1.5-ton model B | 5.2 | 850 kWh |
If you expect to use the AC 1,200 hours a year and the label's standard assumption is 1,600 hours:
- Model A: 1,100 × 1,200 ÷ 1,600 = 825 units
- Model B: 850 × 1,200 ÷ 1,600 = about 638 units
- Difference: about 187 units a year
- At ₹7.50 per unit in your top slab: about ₹1,400 a year
If model B costs ₹7,000 more, simple payback is about five years. Use the payback calculator to include tariff rises, and the 3-star vs 5-star guide for more cases.
Labels for geysers
Stationary storage type electric water heaters have their own BEE labelling regulation (2016). Their star band reflects standing heat loss: how much energy the tank loses keeping water hot when no one is using it. A better-insulated tank loses less heat and earns more stars. The label does not tell you how many units heating the water itself will take; that depends on how much hot water you use. See geyser running cost and water heater types.
Thermostat setting: the free efficiency gain
BEE's public campaigns encourage setting ACs at 24°C and say each degree higher saves roughly 6% of electricity. In 2025 the government also discussed standardising the temperature range of new ACs; check BEE or the Ministry of Power for whether any rule has been notified. Whatever your label says, the setting you choose shifts your bill noticeably.
Common mistakes
- Comparing a 5-star 1-ton with a 3-star 1.5-ton and concluding the 5-star is "cheaper to run" without checking the room needs.
- Assuming the stars on a product page match the product delivered. Check the label on the box and unit.
- Using the label's annual units as your bill without adjusting for your hours.
FAQ
Is the BEE label mandatory on room ACs?
Room air conditioners are covered by BEE's labelling regulations, and models sold in India display the label. You can verify a model's registration through BEE's star label resources.
Does a 5-star label guarantee low bills?
No. It means the model met the efficiency band under test conditions. Your bill depends on room heat load, hours, setting and installation quality.
Why does my new 5-star AC have a lower ISEER than my friend's older 5-star?
It probably does not; more likely it has a higher ISEER under a stricter table. Compare ISEER values directly.
Sources
- Bureau of Energy Efficiency — Standards and Labelling, room AC and water heater regulations, star tables
- Ministry of Power — Energy Conservation Act, 2001 and notifications
- India Code — text of the Energy Conservation Act
