Why Your AC Bills Are Rising and How to Reduce AC Bill with Smart Usage
The Indian summers are at their peak since the last five years. The cumulative figure of heatwave days rose from 177 in 2010 to 536 in 2024, showing an increase of over 200%, and 2024 was the hottest year since 1901. Similarly, as the heat is rising in India, so are the Electricity bills. The steady increase in Electricity bills over the last five years is averagely in retail power tariffs rising by 4% to 5% annually. In many urban areas, the estimated increase in electricity tariffs in 2025 is between 15% and 25% compared to only two years ago.
And to beat this heat wave, Air Conditioners have become a necessity, yet we have to be mindful about our electricity consumption, which ultimately affects our planet as well as our pocket.
The smarter approach is to use your AC more efficiently, moreover, using AC mindfully in a way that doesn’t put a dent in our pockets as we beat this heat. In this guide, we will discuss everything that you should know, like some tricks, smart habits, and small upgrades that can help reduce your electricity bill.
How Much Energy Does an Air Conditioner Use?
The amount of energy required by an AC varies based on its tonnage, star rating, usage hours, and temperature settings. On average:
- 1-ton AC uses around 0.8-1.2 units/hour.
- 1.5-ton AC uses around 1.2-1.8 units/hour.
- 2-ton AC uses 2-2.5 units/hour.
- 2.5-ton AC uses around 2.5-3.2 units/hour.
- 3-ton AC uses around 3-4 units/hour.
This means that running a 2.5-ton or 3-ton AC for 8 hours a day will easily lead to a consumption of more than 600-900 units in a month.
This is why a bigger AC will cool faster, but it will cost you a lot more in your electricity bills if not used in a smart way!
Top 15 Effective Ways to Reduce AC Electricity Bill
You don’t need drastic measures to cut down your AC bill, as most of the savings are in simple habits and smart usage. Here are some effective ways to cut down electricity consumption without compromising comfort.
1. Set the Temperature Between 24°C-26°C- Reducing the temperature results in an increase of electricity bill by 5-7%. So, you should avoid setting the temperature too low.
2. Use Sleep Mode at Night- You can use the sleep mode of your AC, as the AC consumes less electricity in this mode.
3. Clean AC Filters Regularly- If you don’t clean the filters, your AC consumes more electricity, which is unnecessary.
4. Seal Doors and Windows Properly- By not sealing doors and windows properly, the cool air comes out, and the AC runs for a longer time.
5. Use Curtains or Blinds During Daytime- This will reduce heat buildup and decrease the cooling load.
6. Switch to an Inverter AC- These ACs use less power in the long run as they vary the speed of the compressor.
7. Avoid Frequent On/Off Cycles- It uses more power than running it continuously.
8. Use Ceiling Fans Along with AC- This will blow cool air faster and allow you to set a higher temperature.
9. Schedule Regular Servicing- It ensures that your AC operates efficiently and uses less power.
10. Install AC in a Shaded Area- Exposure of AC to the sun increases the load on the compressor, resulting in a higher power consumption.
11. Reduce Heat from Appliances- Switch off unnecessary electrical appliances, as they consume power and also generate heat inside the room.
12. Use Energy-Efficient (5-Star) Models- The higher the rating of the appliance, the more it is energy-efficient, resulting in a lower electricity bill.
13. Insulate Your Room- Insulation of the room ensures that cool air is retained for a longer period of time.
14. Use Timer Settings- Set a timer for the AC, as it helps in avoiding wastage of power when the AC is running for a long period of time.
15. Upgrade Old AC Units- Old AC units consume a large amount of power compared to new units.
How to Reduce AC Bill in Summer (Smart Usage During Peak Heat)
Summer is the season when your AC works the hardest, and your electricity bill increases the fastest. Rather than giving the same old advice, the focus in this article should be on the usage of the AC during the peak heat of summer.
- Pre-cool your room before the peak heat of the afternoon- It is better to start your AC a bit early so that it doesn’t struggle during the peak heat of the day.
- Avoid using very low temperatures during heatwaves- Your AC will be running continuously without cooling your room, as the heat outside is extremely high.
- Use your AC in shorter cycles instead of running it continuously- If you use your AC in shorter intervals, you can save a lot of money on your electricity bill.
- Shift your heat-generating activities to the evening hours- If you use your AC, ironing machine, or cook during the day, you are essentially heating your room, which is the last thing you want during the summer heatwaves.
- Use Zoning (Cool only the room you’re in)- Cooling the whole house during the summer will increase the amount of electricity consumed.
A few time-related changes like these will help lower your air conditioning bills significantly.
AC Electricity Cost Comparison Table
The electricity cost varies significantly depending on the tonnage and star rating of your AC. Here is a realistic estimate of how different ACs affect your hourly and monthly electricity costs.
| AC Type | Star Rating | Power Consumption (Units/hr) | Hourly Cost (₹8/unit) | Monthly Bill (8 hrs/day) |
| 1 Ton | 1 Star | 1.2 | ₹9.6 | ₹2,304 |
| 2 Star | 1.1 | ₹8.8 | ₹2,112 | |
| 3 Star | 1.0 | ₹8 | ₹1,920 | |
| 5 Star | 0.8 | ₹6.4 | ₹1,536 | |
| 1.5 Ton | 1 Star | 1.8 | ₹14.4 | ₹3,456 |
| 2 Star | 1.6 | ₹12.8 | ₹3,072 | |
| 3 Star | 1.5 | ₹12 | ₹2,880 | |
| 5 Star | 1.2 | ₹9.6 | ₹2,304 | |
| 2 Ton | 1 Star | 2.5 | ₹20 | ₹4,800 |
| 2 Star | 2.3 | ₹18.4 | ₹4,416 | |
| 3 Star | 2.2 | ₹17.6 | ₹4,224 | |
| 5 Star | 1.8 | ₹14.4 | ₹3,456 | |
| 2.5 Ton | 1 Star | 3.2 | ₹25.6 | ₹6,144 |
| 2 Star | 3.0 | ₹24 | ₹5,760 | |
| 3 Star | 2.8 | ₹22.4 | ₹5,376 | |
| 5 Star | 2.4 | ₹19.2 | ₹4,608 | |
| 3 Ton | 1 Star | 4.0 | ₹32 | ₹7,680 |
| 2 Star | 3.7 | ₹29.6 | ₹7,104 | |
| 3 Star | 3.5 | ₹28 | ₹6,720 | |
| 5 Star | 3.0 | ₹24 | ₹5,760 |
Note: The values are approximate, as your actual bill may vary depending on your usage, the price of electricity, and the conditions in the rooms.
You’ll notice that even a small increase in the star rating makes a significant difference in your bill. Although the initial cost of the AC increases with the star rating, the AC pays for itself in the long run with the reduced amount of electricity used.
→ If you want a more detailed analysis of electricity consumption based on your AC’s tonnage, then you should check out these guides:
→ You can also check out detailed guides on star-wise power consumption:
Quick Formula to Calculate AC Electricity Bill
You can estimate your AC bill using this simple formula:
Monthly Bill = Power Consumption (kW) × Hours Used per Day × 30 × Electricity Rate
Example:
1.5-ton AC (1.5 kW) × 8 hours × 30 days × ₹8/unit = ₹2,880/month
This helps you track and adjust your usage accordingly. You can also use NoBroker AC Electric Consumption Calculator to get calculations according to your usage and needs.
Inverter AC vs Non-Inverter AC: Which One Helps in Saving Electricity?
If you are in a dilemma in choosing an inverter AC and a non-inverter AC, the difference is in the utilization of electricity.
Inverter AC
- The speed of the compressor is adjusted as per the need to cool the room.
- The temperature is regulated at a constant rate without frequent changes.
- Less electricity is consumed as the AC does not have to start and stop repeatedly.
- It is energy-efficient as it is used for long hours a day.
If you’re thinking of which one is better in terms of saving electricity, then:
Non-Inverter AC
- Works at a fixed speed of the compressor (either on or off).
- Turns off and on in cycles to keep the set temperature.
- Uses more power because of the turning off and on cycles.
- Not very efficient if used for a long time.
Inverter ACs seem to be a better option if you wish to cut down your electricity bills, as they consume 30-40% more energy than non-inverter ones.
To know about Inverter AC vs Non- Inverter AC in depth, you can check out our guide on Inverter AC vs Non-Inverter AC.
Common Mistakes That Increase Your AC Electricity Bill
It is not the AC but our habits that may be increasing our electricity bills. We need to correct some common mistakes to cut down our electricity bills significantly.
- Keeping the temperature below 20 degrees Celsius unnecessarily- It does not cool faster by reducing the temperature; instead, it consumes more power by running for a longer period.
- Not servicing your AC regularly- It becomes inefficient due to dust and worn-out parts, and hence operates at a higher rate than required.
- Not closing doors and windows completely- Even a small amount of leakage will cause the AC to run continuously to maintain the temperature.
- Using your AC in rooms that are not well insulated- It increases the amount of heat entering from the sides and ceiling, due to which your AC will have to run continuously.
- Ignoring unusual noises or performance issues- Sometimes, these minor issues can result in increased power consumption, which may prove to be costly later.
- Running AC in empty rooms- One of the easiest ways to waste electricity is by cooling rooms that do not have any activity.
- Blocking airflow with furniture or curtains- This affects the cooling performance of your air conditioner, increasing the workload of your AC.
Most of the time, it is not your air conditioner, but your small habits, which quietly increase your bills. Paying attention towards these small issues can help you reduce your bills.
Conclusion
It’s not about compromising on comfort, but using your air conditioner in a better manner. It’s about the small changes you make in the usage of your air conditioner, like setting the temperature, using your air conditioner in the right manner, and using efficient air conditioners, which can help you in the long run.
It’s about using your air conditioner in the right manner, especially in these times of increasing electricity prices, so you can enjoy the comfort of your air conditioner without worrying about your bills.
FAQ’s
1. How to reduce AC bills without reducing the usage?
Ans- To increase the cooling efficiency, it is advised to increase the temperature and use fans.
2. What is the average AC bill per month in India?
Ans- It is usually between ₹1,500 to ₹4,000 based on the type of AC.
3. How much electricity does a 1.5 ton AC consume per hour?
Ans- It usually consumes around 1.2 to 1.8 units per hour.
4. Does running the AC at 24°C help in reducing electricity bills?
Ans- Yes, it is advisable as it reduces electricity bills.
5. Which AC type consumes less electricity, Inverter or Non-Inverter?
Ans- Inverter ACs consume less electricity compared to Non-Inverter ACs.
6. What is the cost of running an AC for 24 hours?
Ans- The cost may vary between ₹200 and ₹400 per day, depending upon the type of AC and the rate of electricity.
7. How do I reduce my AC bill in the summer season?
Ans- You may reduce your bill by using eco mode, avoiding the usage of the AC during peak hours, and ensuring proper insulation.
8. Do ceiling fans help reduce the AC bill?
Ans- Yes, the fans help circulate the cool air. You may increase the temperature setting.
9. What is the electricity bill for a 1-ton AC per month?
Ans- The bill may vary between ₹1,500 and ₹2,000 for an 8-hour usage per day.
10. Does servicing the AC reduce the electricity bill?
Ans- Yes, servicing the AC may reduce the bill.