Home Appliances Drive Energy Efficiency in Indian Households

India is witnessing a transformative phase of economic growth and rapid urbanization, driven by its ambitious vision to become a Viksit Bharat by 2047. As disposable incomes rise and aspirations evolve, there has been an increase in the demand for products that enhance comfort and convenience. Home appliances such as air conditioners, refrigerators, washing machines—once considered luxuries—have now become essentials in modern households. To add to this, climate change-induced temperature rise is accelerating the need for cooling solutions, especially air conditioners across geographies.

The evolution of lifestyle and rising temperatures put together is fuelling a significant surge in the country’s energy consumption. As per Bureau of Energy Efficiency (BEE) India Energy Scenario, the residential sector accounts for 24% of India’s total electricity usage, making it the second-largest consumer of electricity with an annual growth rate of 6%. This rise is propelled by widespread adoption of electrical appliances in everyday life across households. While this trend reflects socio-economic progress, it also brings forth a critical challenge—managing the environmental impact of this growing energy footprint of Indian households. This surge underscores the urgent need for energy-efficient innovations—particularly in the home appliance sector, which touches millions of Indian households daily.

Role of the Appliances Industry in the Energy Efficiency Ecosystem

Integrating energy-efficient appliances at home can promote a more cost-effective lifestyle, reduce the carbon footprint of households and thereby contribute to broader environmental sustainability efforts.

Use of green refrigerants: To make appliances more energy-efficient and kinder to the planet, the consumer durables industry has already shifted to using environment friendly refrigerants in cooling appliances such as R600a in refrigerators and R32 in air conditioners for lower global warming potential. Brands like Godrej have also pioneered the use of the world's most eco-friendly refrigerant- R290 in its deep freezers and select models of ACs.

Transition to higher energy rated appliances: Appliances with higher BEE star rating help to reduce electricity bills and environmental impact. Starting Jan 2026, BEE is tightening its current energy rating standards for several appliances to push the entire market towards higher energy efficiency. Consumers using a 5-star split AC in comparison to a 2-Star split AC can reduce their annual power consumption substantially saving around 30% running cost of their AC. Similarly, a 5-Star rated direct cool refrigerator can save over 35% and frost-free refrigerator can save over 45% in energy costs compared to its 2-Star counterpart.

Upgrade to premium and advanced features for energy saving: Premiumisation is a clear trend across appliance categories and brands are offering several value-added features in their products that aid energy efficiency.

Home appliances with Inverter technology can help to optimise energy. For example- Inverter technology in air conditioners adjusts cooling continuously based on room temperature preventing excessive energy use, whereas in washing machine it allows the machine’s motor to run at variable speeds depending on the load and wash conditions to save energy, and in refrigerators it optimizes cooling and energy usage to keep food fresher for longer.

Often, there is no need for appliances to operate at full capacity- here appliances with convertible modes can prove efficient. For example: 5-in-1 convertible ACs allow to choose between 5 capacity levels based on the number of people in the room and comfort requirements which can save up to 70% power. Similarly, for refrigerators it is easy to convert freezer into fridge with convertible mode or use Holiday Mode to minimize power when away on vacation.

Additionally, AI-Powered appliances can deliver greater energy efficiency through optimised performance levels. Example AI-powered refrigerators automatically sense the food load inside and monitor heat load from door openings to optimize cooling and energy usage, Smart ACs with Filter Cleaning Reminders help save more electricity, and AI Powered front load washing machines can intelligently optimizes the wash and rinse for optimal wash resulting in saving precious water and energy. These innovations are setting the stage for a future where smarter appliances lead to smarter energy savings.

Regular maintenance of appliances is essential: Regular servicing is seen to have a direct bearing on energy consumption. For example, Godrej Smart ACs with Filter Cleaning Reminders help save up to 20% electricity. To maximize the benefits of energy-efficient appliances, consumers are advised to follow the product usage instructions provided by brands and ensure timely maintenance and servicing by authorized service providers.

R&D and Green Factories: Research and development (R&D) is at the heart of innovation in the consumer durables industry. From building smarter, more energy-efficient appliances to localising key components manufacturing and reducing import dependency, and manufacturing responsibly through green factories are essential for India to match and exceed global standards. 

The appliance industry—through innovation, responsible manufacturing, and consumer education—has a pivotal role in ensuring India meets its energy efficiency goals without compromising on comfort or progress. However, innovation alone is not enough. As India continues its growth trajectory, it is imperative that this development is powered responsibly. A meaningful shift requires collaboration at every level, where the government sets clear policies and provides incentives, manufacturers invest in advanced technologies and local production, and consumers make informed energy-conscious choices. Together, this united effort will help India meet its energy efficiency and climate goals.