How Much Can You Save On Electricity Bill By Raising Your AC Temperature 1°C?

Last Updated:June 11, 2025, 17:16 IST

If you’re running your AC for 8 hours a day, that small tweak in temperature could save you anywhere between Rs 3 and Rs 5 per day

In a move aimed at curbing electricity consumption and promoting energy efficiency, the Centre is considering setting a standard operating temperature for air conditioners. Under the proposed measure, consumers may no longer be able to set their ACs arbitrarily high or low, as authorities prepare to enforce fixed temperature limits in the near future.

The policy is rooted in the idea that small changes in thermostat settings can lead to big savings, not just for individual households, but for the national power grid as well.

Why One Degree Matters

It may sound trivial, but adjusting your AC temperature by just 1 degrees Celsius can have a measurable impact. Lowering the temperature by 1°C can increase power usage by 3-6%, while raising it by the same margin reduces consumption by a similar percentage. In simple terms, if you bump up your AC setting from 24°C to 25°C, you can cut your electricity use by 3-6%.

Let’s take an example: A 1.5-ton 5-star inverter AC, considered one of the more energy-efficient models, typically consumes around 1 kWh per hour at 24°C. Increasing the setting to 25°C could save you around 0.05 kWh (or 50 watts) per hour.

Translating Watts to Wallet

If you’re running your AC for 8 hours a day, that small tweak in temperature could save you anywhere between Rs 3 and Rs 5 per day, depending on local electricity rates (assumed here at Rs 8 per unit). That adds up to Rs 100-Rs 150 in monthly savings and around Rs 1,200-Rs 2,000 annually.

These savings can grow even more for households where ACs run for longer durations, common in cities like Delhi, Mumbai, or Chennai during peak summer months.

Energy efficiency isn’t just about temperature settings. The model and rating of your AC make a significant difference. According to the Bureau of Energy Efficiency (BEE), a 5-star rated AC consumes much less power than a lower-rated model. Inverter ACs also adjust compressor speed based on room temperature, offering better performance at lower energy use, especially when paired with moderate thermostat settings.

Room insulation, regular maintenance, and complementary use of ceiling fans also help reduce load on air conditioners. Poor insulation forces ACs to work harder, increasing energy draw. Cleaning filters, sealing gaps, and limiting sunlight exposure with curtains or blinds can significantly improve performance.

While the government has not yet issued a final directive, the proposal to mandate a fixed AC temperature – possibly around 24°C or 25°C – is part of a larger national effort to manage peak electricity demand. India faces increasing pressure on its grid during summer months, and such micro-level changes in consumption could add up to macro-level relief.

The initiative may also encourage manufacturers to pre-program ACs with default settings aligned to government norms. Consumers, however, may still have some flexibility within a defined range.

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