How Better Fridges, Fans & ACs Helped Indian Families Save Rs 1.34 Lakh Crore in One Year

Late in the afternoon, when Bhubaneswar’s heat settles over the city, Spectra Vision’s store buzzes with families comparing refrigerators, fans and washing machines. Among the rows of gleaming models stands Siba Prasad, a veteran with 35 years in appliance retail. He watches as a young couple leans in to inspect a star label on a refrigerator.

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“When I began selling appliances, people only asked about price and durability,” he says. “Nobody talked about electricity use. Today, consumers want to know exactly how much they will save every year. Energy efficiency has become part of daily conversations.”

This moment reflects a shift taking place across India — a change in how households think about comfort, bills and the environmental impact of the appliances they rely on. It is a shift shaped by stronger government policies, better technology and over two decades of technical support from organisations such as CLASP, a global non-profit that partners with governments to advance appliance efficiency.

“For me, the shift became real only after I joined CLASP,” says Neha Dhingra, director of CLASP India. “Growing up in India, where power cuts were normal, we all learnt to conserve electricity. But I never understood that efficiency was a technical lever. It is not just about saving energy; it is about affordability, comfort and quality of life. That connection only became clear with experience.”

Gaurav Dhawan, senior vice president and business unit head at Orient Electric, sees the change too. “We realised it when customers began asking for BLDC fans at shop counters. Nearly 20 percent of ceiling fans sold in the country today are BLDC models, and this number is rising every year.”

Their words capture India’s evolving relationship with electricity in a decade shaped by heatwaves, longer summers and an increasing need for cooling.

The everyday appliances powering India’s energy story

In a typical Indian home, cooling and refrigeration consume the most electricity. Fans whir for hours, refrigerators run without pause, and air conditioners have become essential in many regions. These machines influence both household budgets and national energy demand.

“Cooling is no longer a luxury,” Neha observes. “It is a basic need. The way we cool our homes will shape India’s environmental and developmental future.”

Retailers like Siba see this shift before it appears in reports. A sizeable number of customers now walk in asking specifically for star ratings. Many do not fully grasp the monetary implications, but they know more stars mean lower bills. Siba spends much of his day converting those stars into annual savings for families choosing between models.

Dhawan explains how this demand encouraged the industry to innovate, “Orient Electric was one of the earliest adopters and sellers of BLDC fans. With more consumers seeking energy efficiency, we are preparing more models and offerings.”

Siba recalls a customer doubting a label’s authenticity because he expected a hologram. “Some appliances now use QR codes. When he scanned it and saw the official Bureau of Energy Efficiency (BEE) website confirm the consumption figures, it changed his mind immediately. He bought the refrigerator because he trusted the information.”

Across the city, Guru Prasad Das of Balaji Electronics sees similar behaviour. “Back then, people only cared whether the appliance would last,” he says. “Now they talk about efficiency, electricity bills and sometimes even environmental impact.”

He remembers a student who convinced his parents to buy a five-star washing machine after understanding how much energy and water it could save. “The younger generation sees long-term value very quickly,” Guru says.

The growing power of how India cools, cooks and lives

India’s climate and development goals place energy efficiency at the forefront. More efficient appliances reduce pressure on the grid, lower costs for families and support reliable access for communities.

“Energy efficiency is central to India’s climate and development strategy,” Neha explains. “It improves resilience during heatwaves, reduces emissions, makes electricity more affordable and strengthens energy security. Saving energy benefits everyone.”

Dhawan recalls working closely with BEE and CLASP during the consultations for the revised ceiling fan labelling programme. “It was the first time manufacturers, government teams and technical experts came together. The process was data-driven and collaborative. It became clear that efficiency is not just about meeting a number; it is about balancing consumer needs, product performance, cost and long-term national goals.”

The numbers speak clearly. Appliance efficiency contributes nearly 60 percent of India’s annual energy efficiency targets. Consumers saved an estimated Rs 1.34 lakh crore in electricity costs in 2023–24 due to efficient appliances.

These gains come from items used every day.

How better technology became a new normal

India’s Bureau of Energy Efficiency launched its ‘Standards and Labelling’ programme almost two decades ago. Progress since then has been steady, supported by stronger regulations, a growing consumer base seeking better products and committed technical assistance from organisations like CLASP.

Neha describes the journey as one built on evidence and patience. “There was no dramatic turning point. It has been a steady process of gathering data, presenting it clearly and supporting policymakers in taking ambitious decisions. Over time, appliance efficiency has become central to India’s energy narrative.”

Industry innovation kept pace. BLDC fans, once uncommon, are now familiar. The number of manufacturers producing high-efficiency fans has tripled, and prices have fallen. Inverter technology in refrigerators, washing machines and air conditioners has become standard across price ranges.

Retailers feel this transition immediately. Siba notes that low-efficiency models rarely appear in shops now. Customers expect at least three stars, often four or five. Guru sees inefficient fans left unsold while sleek BLDC fans move quickly. Even government offices now prioritise efficiency in bulk purchases.

The people ensuring every label tells the truth

Much of the real work happens at the state level. Officials conduct inspections, train retailers, check label accuracy and enforce rules in local markets.

Siba remembers a workshop in Bhubaneswar organised by government authorities with support from CLASP. “The programme did not stay in the classroom. Officials joined us in the markets and taught us how to verify labels, check QR codes and ensure compliance. That hands-on guidance made a big difference.”

Since then, he inspects every appliance before display. Cylindrical geysers sometimes hide their labels, so he photographs them for customers. Many shoppers ask why instant geysers lack star labels, and he explains the difference between storage and instantaneous models.

Guru faces similar challenges with air conditioners. Display units often carry multiple labels. His team verifies the correct one for the actual model and removes the rest to avoid confusion.

Such clear communication sustains trust.

What’s helping India build a smarter appliance market?

Over the past decade, CLASP has become a key partner in strengthening India’s appliance efficiency landscape. The organisation blends global expertise with a deep understanding of India’s market realities. It analyses performance benchmarks, conducts market studies, supports policy design and helps state governments bring regulations into practice.

“Our work is rooted in evidence,” Neha says. “We collaborate closely with government, industry and other partners, and we make sure our recommendations are credible and suited to India’s needs. The analysis is not theoretical; it leads directly to stronger standards.”

CLASP also works with financiers to improve household access to high-performance appliances. “Financing is essential,” Neha notes. “Households should be able to afford efficient products even if the upfront cost is slightly higher.”

With these elements in place, India entered a year of significant policy change.

How 2024 raised the bar for what enters our homes

The year 2024 brought an exceptional leap for India’s appliance efficiency programme with the introduction of 18 new and strengthened policies. These policies are expected to avoid millions of tonnes of CO₂ by 2033, raise minimum performance requirements across multiple categories and accelerate the shift towards technologies like inverter compressors and BLDC motors.

Retailers noticed the difference immediately. Manufacturers significantly reduced the supply of low-efficiency models. Consumers now walk in expecting better products. Demand for induction cooktops, BLDC fans and inverter air conditioners continues to rise, reflecting a broader cultural shift.

Dhawan explains, “Manufacturers are working to shift product lines to higher-efficiency models, optimise costs and strengthen compliance testing. The transition is demanding, but it has opened major opportunities. Retailers ask for more labelled products, and early adopters of BLDC technology have gained a competitive edge.”

Siba hears customers ask detailed questions about inverter compressors, label validity and annual electricity consumption. Guru sees the same. “Customers today even ask about smart features that optimise energy use,” he says. “A few years ago, hardly anyone cared.”

Dhawan adds, “Looking ahead, three areas stand out: widespread adoption of BLDC motors, smart and IoT-based controls and advanced aerodynamics and lightweight materials. From a policy angle, steady timelines, more awareness and incentives for efficient models can accelerate progress.”

The road ahead: Towards universal efficiency

CLASP’s analysis shows that appliance efficiency could deliver around 20 percent of India’s national energy savings in the coming decade. Cooling, refrigeration and industrial motors hold the greatest potential because of how widely they are used.

Neha envisions a future where affordability and efficiency move together. “People should not have to choose between affordability and efficiency. Every appliance should provide comfort without burdening the household budget.”

Such a future would ease pressure on the power grid, lower peak demand during heatwaves, support resilience in rural and low-income communities and strengthen domestic manufacturing.

Retailers like Siba and Guru feel optimistic. They hope for better tools, simple comparison charts and small incentives for retailers to promote high-efficiency models. They trust these steps will help families adopt efficient appliances even faster.

Neha captures the spirit of the journey: “Every avoided watt strengthens the grid and improves quality of life.” Each choice brings India closer to a future where homes feel lighter, bills fall steadily, and comfort grows with intention.

All pictures courtesy CLASP