PM Modi AC Yojana: As temperatures each year increase and heatwaves have become the order of the day, cooling appliances such as air conditioners no longer qualify as luxuries. With increasing electricity bills and skyrocketing energy use, the central government is weighing a big relief for families by way of a new scheme, which may be able to convert them to efficient ACs at little cost. This is how this plan has the potential to transform the way Indians keep themselves cool.
Government’s New Energy-Efficient AC Scheme
The government, with the assistance of the Ministry of Power and the Bureau of Energy Efficiency, is drafting a new plan to incentivize energy-efficient air conditioners. The plan is part of a larger initiative to cut down electricity consumption, save bills, and achieve India’s climate targets. In the proposed plan, individuals could get paid when they trade in old ACs for a new five-star-rated model. Although the scheme is yet to be finalized, it will be expected to come under the overall India Cooling Action Plan (ICAP), which will aim to cut the country’s cooling energy demand by 40% by 2038.
Why This Scheme Is Important
The majority of houses in India continue to use ACs with less than 3-star ratings, which use more electricity. Government statistics reveal that air-conditioning constitutes around a quarter of the 500 terawatt-hours of power consumed by buildings in 2023–24. According to the Bureau of Energy Efficiency, replacing an AC with a lower rating, or switching to a five-star one, can reduce a household’s electricity bill by up to ₹6,300 annually. This will save households money and decrease the strain on the country’s power grid, particularly in peak summer seasons.
How the Scheme May Work
Some suggestions are being explored to make the program beneficial to everyone. One such way is a buyback scheme through authorized recyclers. Customers can submit their old ACs and receive a certificate, which can be utilized to obtain a discount on a new energy-saving model. Another suggestion is instant manufacturer discounts, where companies such as LG, Samsung, Blue Star, Lloyd, and Voltas could provide special exchange benefits. Also, the government could provide rebates on electricity bills in collaboration with discoms to make people switch to five-star models at a lower cost.
Emphasis on Climate Targets
This plan helps the nation’s overall battle against climate change. Air conditioning is estimated to consume around 30% of India’s overall electricity consumption by 2050. Therefore, making a change to energy-saving appliances today can play a great role in the future. The government has initiated talks with large AC manufacturers to finalize parameters such as collection procedures for used ACs, discount percentages, and hassle-free implementation of the plan.
Delhi’s BSES Scheme Offers an Example
Another such scheme is already operational in Delhi under BSES, where consumers can avail of up to 60% discount on replacement of old ACs (up to 3-star models) with new five-star or inverter ACs. The scheme is only for functioning ACs, and a maximum of three units per CA number can be replaced by each consumer. This demonstrates that cheap energy-saving cooling is already available and can be replicated nationwide.
Why Five-Star ACs Are the Smart Choice
Not only are five-star ACs more environmentally friendly, but they are also cheaper in the long term. Being very energy efficient, they use much less power for the same cooling output and thus lower bills every month. With savings made over a couple of years, it is possible to recover the upfront cost.