New AC Rule in India: Why You Can’t Set Your AC Below 20°C Anymore!

June 11, 2025: In a bold move to curb soaring energy consumption and tackle increasing power demands, the Indian government is preparing to introduce a nationwide rule capping air conditioner temperatures. If implemented, ACs will not be allowed to cool below 20°C or heat above 28°C, Power Minister Manohar Lal Khattar announced at an event in Delhi.

“This is a first-of-its-kind experiment, aiming to standardize temperature settings across the country,” Khattar said.

Why the AC Temperature Cap?

The primary goal is to reduce electricity consumption during peak summer months, when air conditioners contribute heavily to national energy use.

• According to Pankaj Agarwal, senior official from the power and housing ministry, ACs account for around 50 GW of electricity use—nearly 20% of India’s maximum load.
• Studies show that raising AC temperature by just 1°C can reduce energy use by 6%, potentially saving 3 GW of power during peak hours.

With 100 million ACs already in use and another 15 million installed annually, small changes could lead to massive savings. A University of California, Berkeley study estimates up to 60 GW of peak demand could be saved by 2035, avoiding a whopping ₹7.5 trillion ($88 billion) in infrastructure costs.

Fighting Blackouts and Heatwaves

India’s power grid faced record highs last year, peaking at 250 GW. This year, demand is expected to reach 270 GW as heatwaves intensify.

On Monday alone, demand surged to 241 GW, the highest recorded so far in 2025.

“Even if the peak reaches 270 gigawatts, we are fully prepared,” Khattar assured.

Standardising AC settings is expected to reduce blackout risks and lessen pressure on the power grid, especially during extreme weather.

Pushing Toward Renewable Energy

In tandem with the AC policy, the government is accelerating its clean energy initiatives. Plans are underway to invite bids for 30 GWh of battery storage systems, with ₹5,400 crore in subsidies to incentivize participation. These storage systems will help manage solar and wind energy more efficiently, reducing dependence on fossil fuels.

Tenders for the project will be rolled out within the next three months, Khattar confirmed.