If you are planning to buy a new air conditioner or refrigerator, you may have to spend more from January 1, 2026. Prices of these common household appliances are set to rise after new energy-efficiency rules announced by the Bureau of Energy Efficiency (BEE) come into effect. The changes are aimed at saving power in the long run, but they will increase the cost of appliances in the short term.
The BEE is the government body that decides how energy-efficient appliances should be. It uses a star rating system, where more stars mean lower electricity consumption. From January 1, 2026, this star rating system is being revised for cooling appliances such as air conditioners and refrigerators. Under the new system, efficiency standards will become stricter.
Because of this change, many appliances currently sold as high-rated models will automatically move to lower ratings. For example, a 5-star air conditioner under the old system will become a 4-star model under the new rules, even if the product itself has not changed. To qualify again as a 5-star product, manufacturers will need to redesign their appliances using better technology and components.
This upgrade is not cheap. Companies will have to invest in improved compressors, motors, and heat-exchange systems to meet the new benchmarks. These higher manufacturing costs are expected to be passed on to customers. According to industry estimates, air conditioner prices could rise by around 10 percent, while refrigerator prices may increase by about 5 percent.
Apart from energy norms, other factors are also pushing prices higher. The Indian rupee has weakened against the US dollar, making imported parts more expensive. Raw material prices, especially copper, which is widely used in motors and compressors, have also gone up. Together, these cost pressures are adding to the final retail price of appliances.
The timing of the price hike is important. The new rates will apply to appliances manufactured after January 1, 2026. This means consumers may still find some older stock at lower prices in stores, especially in the early months of the year. As a result, retailers may see increased buying activity as customers try to purchase appliances before prices rise further.
While the immediate impact is higher prices, the government believes the long-term benefits will outweigh the cost. More energy-efficient appliances use less electricity, which can help households save on power bills over several years. At a national level, lower electricity consumption also reduces pressure on power supply and supports energy conservation goals.
For buyers, the key decision is timing. Those planning to purchase an AC or refrigerator soon may benefit from buying earlier, before the new prices fully reflect the updated norms. However, buyers who choose newer, more efficient models may see savings in electricity costs over time.