Your 5-Star AC May Be a 4-Star Now: BEE's 2026 Label, Decoded
BEE raised the bar for split ACs on 1 January 2026, so last year's 5-star is roughly today's 4-star. How to read the label period, ISEER and units per year.
Basgo saysOld 5-star ≈ new 4-star. Read the label's years.
Walk through any Diwali sale and you’ll find two air conditioners wearing the same 5 Star sticker, a full star apart in efficiency. Neither shop is lying. The Bureau of Energy Efficiency (BEE) changed the scale on 1 January 2026, and older stock still carries the old one.
What changed on 1 January 2026
BEE’s star label for split ACs runs on a table of ISEER numbers (more on ISEER below), and the table is raised every few years as ACs improve. The latest change, notified in August 2025, did three things:
- Split ACs moved up roughly one band from 1 January 2026. Industry reports summed it up simply: a 5-star on the old scale counts as a 4-star now, a 4-star as a 3-star, and so on. The new table runs until 31 December 2027.
- Another step comes on 1 January 2028. From then, an inverter AC can’t be sold with just one star.
- Window ACs got a new table from 2026 that runs until 2029, so nothing more changes for them for a while.
The new split-AC bands, as published by the industry:
| Stars | ISEER needed (2026–2027) |
|---|---|
| ★ | 3.50–3.79 |
| ★★ | 3.80–4.29 |
| ★★★ | 4.30–4.99 |
| ★★★★ | 5.00–5.59 |
| ★★★★★ | 5.60 and above |
On the old 2022–2025 scale, an ISEER of 5.0 was enough for five stars. Now it earns four.
“ISEER”, decoded
ISEER stands for Indian Seasonal Energy Efficiency Ratio: how much cooling the AC delivers for each unit of electricity, averaged over a typical Indian year rather than one ideal test day. Higher is cheaper to run. Two ACs with the same stars can differ in ISEER, so the number beats the sticker.
How to read the label in 30 seconds
Find these three things on the BEE sticker, in this order:
- The label period. The years printed on the label tell you which scale the stars were measured against. A 2022–2025 label means one star less on today’s scale.
- ISEER. Compare this number between any two ACs, whatever their stars say.
- Units per year. The electricity the AC uses in a year of typical use. Subtract one AC’s figure from the other’s and multiply by your tariff: that’s the yearly saving you’re paying extra for.
Stars come last. They’re a summary of the number, and the summary changed this year.
What it means at the shop
- Old-label 5-stars are fine, at the right price. The AC is exactly as efficient as it was in December. Pay 4-star money for it, not 5-star money.
- Buying an inverter AC to keep for 8–10 years? Skip anything that only just scrapes the lowest band. From 2028 that band won’t be allowed for inverter models, which tells you where the market is heading.
- Buying a window AC? Today’s label holds until 2029.
And the price? The GST cut, then the climb back
GST on air conditioners fell from 28% to 18% on 22 September 2025. At the same pre-tax price, that’s 7.8% off the sticker, so a ₹45,000 AC became about ₹41,500.
Then 2026 took much of it back. Makers raised prices by roughly 5–15% through the year, citing copper (up sharply on world markets), a weaker rupee raising the cost of imported parts, and the cost of meeting the new label norms. A new 5-star is genuinely a better machine than last year’s 5-star, and it’s priced like one.
Don’t wait for another tax cut. The GST Council met on 8 October 2026, changed no rates, and now reviews them once a year.
Two brochure claims to ignore
- “Cools even at 52°C.” That’s the hottest outdoor temperature the AC keeps working in. It’s useful in Rajasthan, but it says nothing about efficiency. The ISEER test covers outdoor temperatures of 24–43°C.
- “The government won’t let ACs go below 20°C.” It was proposed in June 2025 (a 20–28°C range), but as of October 2026 it hasn’t been notified. What is a rule since 2020: star-labelled ACs ship set to 24°C by default. You can still change it.
Honest verdict
The stars on an AC sold this winter might be on either scale. Read the label period, compare ISEER and units per year, and pay for efficiency, not stickers. An old-label 5-star at 4-star price is a good deal. A new-label 5-star costs more because it is more efficient. For how the inverter in that AC works, see our inverter vs non-inverter guide.
Questions people ask
What changed in the BEE star rating for ACs in 2026?
From 1 January 2026, BEE raised the efficiency needed for each star on split ACs by roughly one band, so a 5-star rated on the 2025 scale is about a 4-star on the new one. The new split-AC table runs until 31 December 2027, and another tightening follows from 1 January 2028. Window ACs have a new table that runs until 2029.
Is a 2025 5-star AC still a good buy?
Yes, if it's priced like a 4-star. Its efficiency hasn't changed, only the scale it's measured on. Compare the ISEER number and the units per year printed on the label, not the stars, and pay accordingly.
What ISEER should I look for in 2026?
Higher is better. A 5-star on the old (2022–2025) label needed an ISEER of 5.0 or more. Published tables put the new 5-star at about 5.6 and above. Most useful of all, compare the units per year on two labels: that's the difference in your electricity bill.
Did AC prices fall after the GST cut?
GST on ACs fell from 28% to 18% on 22 September 2025, which takes about 7.8% off the same pre-tax price. But makers raised prices by roughly 5–15% through 2026, citing copper, a weaker rupee and the new label norms, so most of that saving is gone. The GST Council's October 2026 meeting made no rate changes.
Is there a rule that ACs can't be set below 20°C?
Not yet. In June 2025 the Power Ministry proposed limiting AC settings to 20–28°C, but as of October 2026 no notification has made it law. What is in force since 2020 is that star-labelled room ACs ship set to 24°C by default.