Govt to Help You Buy a 5-Star AC? All You Need to Know
The central government is working on a new scheme under the PM Modi AC Yojana that aims to replace old air conditioners with energy-efficient 5-star ACs. This initiative could be a game-changer for households, helping them reduce electricity bills while also easing the pressure on India’s power grid.
Let’s explore how this scheme will work, what benefits it brings, and what it means for everyday users.
What Is the Purpose of PM Modi’s New AC Scheme?
Every summer, the demand for air conditioners in India rises sharply. In fact, AC sales have grown from 84 lakh units in 2021–22 to over 1.1 crore in 2023–24. This increase in AC usage puts a heavy load on the country’s electricity grid.
To manage this issue, the Ministry of Power and the Bureau of Energy Efficiency (BEE) are planning a scheme that encourages people to replace their old, power-hungry ACs with modern 5-star rated ones. These ACs consume less electricity and help save energy. The plan also supports India’s long-term vision under the India Cooling Action Plan (ICAP).
What Benefits Will This AC Scheme Offer?
Under this scheme, users are likely to get several useful benefits. First, people will be able to return their old ACs to certified recycling centres. In return, they will receive a certificate that can be used to buy a new energy-efficient AC at a lower price.
Second, popular AC brands like LG, Voltas, and Blue Star are expected to offer discounts when customers exchange old ACs for new ones. These instant discounts will make it easier and more affordable for people to upgrade.
Third, the government is planning to collaborate with electricity distribution companies (DISCOMs). Together, they may offer credits on electricity bills for those who install energy-saving ACs. All these steps aim to promote the use of appliances that consume less power.
How Will This Scheme Benefit Households?
The benefits of using a 5-star AC go beyond just comfort. According to the Bureau of Energy Efficiency (BEE), switching from an old AC to a new 5-star rated one can help a household save up to ₹6,300 per year on electricity bills. This means lower expenses during peak summer months.
Not only will it help your wallet, but it will also reduce the stress on electricity grids across the country. Less energy consumption also means a smaller carbon footprint, which supports India’s fight against climate change.
How Does This Scheme Help in Fighting Climate Change?
The India Cooling Action Plan (ICAP) has set a major goal — to reduce the country’s total cooling energy demand by 40% by the year 2038. As the need for cooling continues to rise, experts believe that up to 30% of India’s total electricity use in the future may go toward cooling alone.
That’s why it’s important for both the government and citizens to switch to energy-efficient appliances. The use of 5-star ACs will not only reduce energy waste but also help India reach its climate goals faster by lowering emissions and cutting down power usage.
What’s Happening in Delhi Under a Similar Scheme?
In Delhi, BSES has already launched a similar offer where customers can get up to 60% discount on new 5-star inverter ACs. This offer is available when they exchange their old 3-star or lower-rated ACs. The old AC must be in working condition, and each customer can avail this benefit for up to three ACs.
This kind of plan makes it easier for people to switch to better and more efficient cooling options. It’s not just good for the environment—it also helps people save money without compromising on comfort.
Will Everyone Get These Benefits?
The PM Modi AC Yojana is still in its planning stage, and the government will soon announce full details. However, the aim is to make the scheme available across India, especially in urban and semi-urban areas where AC usage is highest.
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