Ambiful HaqGuides · checked 4 October 2026
Is it worth replacing your old AC? Work out the running cost from the star label
An AC’s BEE star label gives its electricity use in units a year, assuming 1,600 hours of cooling. Scale that to your own hours, multiply by your tariff, and compare the yearly saving with the price of a new one.
A more efficient AC saves money every month, but it also costs money up front. Whether replacing pays off depends on your use and your electricity rate, and the star label gives you everything needed to work it out.
What the label tells you
The BEE star label on a room AC states the electricity consumption in units (kWh) per year, worked out for 1,600 hours of cooling a year, and the ISEER (efficiency). It also shows the period the label is valid for: an AC whose label period is over was rated under an older, easier table.
The sum
- Your hours a year: hours a day × days a year you use it (8 hours × 6 months ≈ 1,460 hours).
- Your units a year = label units × your hours ÷ 1,600.
- Your cost a year = your units × your rate per unit (on your bill: the energy charge divided by the units used).
- Do this for your old AC and the new one. The difference is your yearly saving; the new price (less any exchange value) divided by that saving is the years it takes to pay back.
A worked example
Old AC: 1,500 units a year on its label. New 5-star AC: 800 units, ₹46,000 with ₹4,000 exchange. At 1,460 hours and ₹8 a unit, the old one costs about ₹10,950 a year to run, the new one about ₹5,840: a saving of about ₹5,110 a year, so the ₹42,000 takes about 8 years to pay back. Whether that is worth it depends on how long you keep an AC and how much the old one breaks down.
Questions
- How many hours does the AC star rating assume?
- 1,600 hours of cooling a year, under BEE’s labelling rules for room ACs.
- Does a 5-star AC always save money?
- It uses less electricity, but whether it pays back its higher price depends on your hours of use and your tariff. Work it out with the sum above.
How Ambiful Haq helps
Haq Compare reads the star label from a photo, works out the running cost at your own rate and use, and tells you whether replacing your old one pays back, without telling you what to buy.
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Sources
This guide explains the law in general terms. It is not legal advice about your own situation; for that, talk to a lawyer. Laws, fees and portals change: check the official sources above before you act.