New RMI Study Finds Next-Gen ACs Cut Energy Costs by 50% in India

NEW YORK, May 1, 2025 /PRNewswire/ -- A new study by RMI and the Global Cooling Efficiency Accelerator (GCEA) reveals that next-generation air conditioners (ACs) use 60% less energy than conventional units and cut lifetime energy costs by more than 50%—a breakthrough in energy-efficient cooling technology.

The nine-month study, conducted in Palava City, India, in partnership with Lodha and CEPT University, tested high-efficiency AC prototypes under extreme summer conditions and compared them to standard units. The results show that super-efficient ACs not only consume significantly less energy but also improve comfort and grid reliability. Key findings include:

• Super-efficient ACs used 60% less energy than a typical AC in real-world conditions over the nine-month testing period. Unlike typical units, the super-efficient ACs consistently achieved the target temperature and relative humidity for optimal comfort.
• Typical ACs use significant extra energy to control humidity—a factor not captured by current AC performance metrics. Testing revealed that up to 25% more energy is used just to manage humidity in conventional units.
• In addition to energy savings, super-efficient ACs reduce peak electricity demand by 50% compared with typical ACs. This helps prevent power outages and avoids costly infrastructure upgrades by lowering stress on the grid.
• Over their lifetime, super-efficient ACs can save consumers more than 50% on energy bills, resulting in a substantially lower total cost of ownership.
• These findings show that next-generation ACs could transform cooling worldwide. If the 3 billion ACs expected to be installed globally by 2050 were super-efficient models, we could avoid 68 gigatons of emissions—more than the world's total annual emissions today.

Air conditioning is set to become the world's second-largest driver of electricity demand by 2030—behind only electric vehicles and generating over three times the load of data centers. If current technologies persist, rising cooling needs will fuel a cycle of higher demand, rising costs, and pressure on already-stressed power grids. This study shows that scaling super-efficient ACs offers a clear solution: cutting energy use, lowering costs, improving comfort, and easing strain on the grid.

Read the report: https://rmi.org/insight/bringing-super-efficient-air-conditioners-to-the-market/

About RMI:

Rocky Mountain Institute (RMI) transforms global energy systems through market-driven solutions to secure a prosperous, resilient, clean energy future for all. RMI works with businesses, policymakers, and communities to scale renewable energy solutions, reduce energy waste, and boost access to affordable clean energy.

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