Simple Tips to Reduce AC Electricity Bill

Simple Tips to Reduce AC Electricity Bill

Discover easy ways to improve cooling efficiency, lower energy consumption, and choose energy-efficient air conditioners. Buy an AC on Easy EMIs from Bajaj Finance.

Get a pre-approved loan offers up to Rs. 5 lakh

Quick approval | Flexible tenure options | Zero approval fees

In summary

To understand how to reduce AC electric bill, focus on temperature settings, energy ratings, maintenance, and usage habits. Keeping the thermostat between 24 to 26 degree Celsius and choosing efficient AC models can help manage electricity consumption.

  • Set the AC temperature between 24 to 26 degree Celsius to maintain comfort while reducing unnecessary power usage.
  • Choose a 5 Star rated AC with a higher BEE star rating for better energy efficiency and lower electricity consumption.
  • Clean AC filters regularly to maintain airflow and prevent the system from using extra power.
  • Use sleep mode, timers, and energy-saving features to reduce cooling during low usage periods.
  • Ensure proper room insulation to prevent cool air from escaping and improve AC performance.

You can also buy a new air conditioner on Easy EMIs at over %EMI−storeheft% partner stores across %EMI−locheft% cities, including Reliance Digital, Croma, and Vijay Sales.

How to reduce your AC electricity bill

Reducing an AC electricity bill depends on efficient usage, correct temperature settings, regular maintenance, and selecting the right air conditioner. Setting the thermostat between 24 to 26 degree Celsius, using energy-saving modes, cleaning filters, and choosing higher BEE star-rated models can help manage power consumption. Proper insulation and timely servicing also improve cooling efficiency by reducing the load on the AC. These simple practices can support better performance while keeping monthly electricity costs under control.


If you want to replace your AC, visit any of Bajaj Finance's 1.5 lakh partner stores — like Vijay Sales, Croma, Reliance Digital, and more — across 4,000 cities, including Tier 2 cities like Jaipur, Lucknow, Kochi, Bhopal, and more in India. Choose your preferred model, then use the Bajaj Finance Insta EMI Card or Bajaj Finance Easy EMI Loan to finance it. Convert the cost into Easy EMIs that suit your monthly budget and enjoy zero down payment on select models, take it home without any upfront payment. Check your loan eligibility online in minutes so you know exactly what you can get before you step into the store.

What are the most effective ways to reduce AC electricity bill

Setting the AC temperature between 24 to 26 degree Celsius is one of the most effective ways to reduce AC electricity bill while maintaining comfortable indoor cooling. Other methods, such as selecting an energy-efficient model, improving room insulation, and maintaining the AC regularly, can help lower AC bill and improve overall performance.


MethodWhat to doExpected saving
Maintain the right temperatureSet the thermostat between 24 to 26 degree Celsius instead of using the lowest settingReduces unnecessary compressor load and power consumption
Choose an efficient AC modelSelect a 5 Star BEE-rated AC with a higher EER value for better energy performanceHelps reduce electricity usage over long-term operation
Clean filters regularlyRemove dust from filters and schedule timely servicingImproves airflow and prevents excess energy consumption
Improve room insulationKeep doors and windows closed and reduce heat entryHelps the AC cool faster and run for shorter periods

Using these methods can help understand how to reduce air conditioning bill while maintaining effective cooling. Small changes in AC usage habits and regular maintenance can contribute to lower monthly electricity costs.

What are the energy-saving tips to lower AC bill

Keeping the AC thermostat between 24 to 26 degree Celsius is the most effective way to reduce AC electricity consumption while maintaining cooling performance. Simple steps such as using a ceiling fan, selecting a higher BEE-rated model, improving insulation, and maintaining the AC regularly can help reduce power usage and lower monthly electricity costs.


TipActionSaving or Impact
Set the right temperatureKeep the AC temperature between 24 to 26 degree Celsius instead of setting it at the lowest levelReduces compressor workload and helps avoid unnecessary electricity consumption
Use a ceiling fan with ACTurn on a ceiling fan and increase the AC thermostat by 2 degree CelsiusCan help save around 12% energy by improving air circulation
Choose a higher BEE ratingSelect a 5 Star BEE-rated AC instead of a 1 Star BEE-rated modelProvides better energy efficiency and can reduce long-term electricity usage
Improve room insulationKeep doors and windows closed and block direct sunlightPrevents cool air loss and helps the AC maintain temperature with less effort
Clean AC filters regularlyRemove dust from filters and schedule timely servicingMaintains airflow and prevents excess power consumption caused by restricted cooling

Following these energy-saving practices can help lower AC bill while improving cooling efficiency. Small changes in temperature settings, maintenance, and AC selection can make a noticeable difference in electricity consumption over time.

How to calculate AC power consumption using the EER formula

EER measures an AC’s cooling efficiency by comparing its cooling output in BTU with the electrical power it consumes in watts. A higher EER indicates better cooling output for the electricity used. The formula helps estimate daily consumption before choosing an AC model.

  1. Check the AC cooling capacity mentioned in BTU.
  2. Find the EER value listed for the AC model.
  3. Divide the BTU value by EER to calculate power consumption in watts.
  4. Convert the calculated watts into kilowatts by dividing by 1,000.
  5. Multiply kW by daily usage hours to estimate electricity consumption.

AC CapacityEERPower WattsDaily kWh at 8 hrsDaily cost at Rs. 8/unit
1.5-ton split AC101,200 W (1.2 kW)9.6 kWhRs. 76.80

For example, a 12,000 BTU AC with an EER of 10 consumes around 1,200 W or 1.2 kW of power. If used for 8 hours daily, it may consume approximately 9.6 kWh per day, costing around Rs. 76.80 at Rs. 8 per unit. Actual consumption can vary based on temperature settings, room size, insulation, and usage patterns.

How to save electricity while using an AC

Setting the AC temperature at 24 degree Celsius and maintaining clean filters are the top two actions to reduce AC electricity usage at home. These steps help manage compressor workload, improve airflow, and support lower power consumption without affecting cooling performance.


ActionHow to implementEstimated saving
Set the right temperatureKeep the AC at 24 degree Celsius as a baseline and increase the temperature by 1 degree Celsius when possibleEach 1 degree Celsius increase can save around 6% electricity
Clean AC filters regularlyRemove dust from filters and schedule servicing to maintain airflowHelps prevent excess energy use caused by restricted airflow
Use timer and sleep modesSet automatic switching based on room usage and sleeping hoursReduces unnecessary cooling during low usage periods
Improve room insulationKeep doors and windows closed to prevent cool air lossHelps the AC reach the set temperature faster

Setting the AC to 18 degree Celsius may cool the room faster initially, but it can use up to 40% more electricity compared to operating at 24 degree Celsius. Choosing the right temperature and usage habits helps maintain cooling while controlling energy costs.


Implementing energy-saving strategies is crucial for reducing your AC electricity bills and minimising environmental impact. For those in smaller living spaces, a portable air conditioner offers a flexible and efficient cooling solution without the need for permanent installation. Explore the wide range of 1.5-ton AC options for larger spaces, which balance power and efficiency.

Why is AC electricity bill so high and how can it be fixed

An AC electricity bill is usually high due to below 24 degree Celsius temperature settings, dirty filters, and low BEE star ratings that increase power consumption. Understanding these causes and making simple changes can help improve AC performance and reduce monthly electricity expenses.


CauseWhy it increases your billFix
Low temperature settingRunning an AC below 24 degree Celsius makes the compressor operate for longer periods, increasing electricity consumptionSet the AC temperature between 24 to 26 degree Celsius and use sleep or timer modes when required
Dirty AC filterDust accumulation restricts airflow and can reduce AC efficiency by up to 15%, making the system use more powerClean AC filters regularly and schedule servicing to maintain proper airflow
Low BEE star ratingAC models with lower ratings consume more electricity and can cost around Rs. 2,000 to Rs. 3,000 more per year compared to efficient modelsChoose a higher BEE star-rated AC with better energy performance

Reducing unnecessary cooling, maintaining the AC regularly, and upgrading to an energy-efficient model can help save electricity costs. Bajaj Finance provides Easy EMI options at partner stores, making it easier to purchase suitable AC models with flexible payment options.

What are my financing options to buy an AC

Bajaj Finance offers two financing options at over %EMI−storeheft% partner stores across %EMI−locheft% cities in India. Here is how they compare:


OptionLimitKey features
Bajaj Finance Insta EMI CardPre-approved card loan offer up to Rs. 3 lakhZero annual fee; 3 to 60 months tenure; works at 1.5 lakh partner stores; 1 million eligible products
Bajaj Finance Easy EMI LoanLoan limit up to Rs. 5 lakhQuick loan approval; 3 to 60 months tenure; basic KYC documents needed; ideal for higher-value purchases

How to choose? Both options require physical presence at a partner store. The Insta EMI Card is ideal for shoppers who want to purchase across multiple categories over time. The Easy EMI Loan suits buyers looking to finance a higher-value air conditioner purchase in a single transaction.


Also explore the latest offers. You may find a great deal on an air conditioner model that matches your cooling needs.

How do I buy an AC on EMI at a Bajaj Finance partner store

The process is simple and typically takes 10 to 15 minutes once you are at the store.

  • Browse models on Bajaj Mall: Compare air conditioner models on Bajaj Mall before visiting a store.
  • Find a partner store: Use the Bajaj Finance store locator to find a nearby partner outlet such as Croma, Vijay Sales, or other authorised retailers.
  • Check the air conditioner in person: Review the key features, specifications, capacity, and performance to choose the model that best suits the cooling requirements and budget.
  • Choose a suitable EMI option: At checkout, ask the store executive about the Bajaj Finance Insta EMI Card or Easy EMI Loan. Confirm available tenure options and whether the chosen model comes with a zero down payment offer.
  • Complete payment and schedule installation: The in-store process is quick, and most partner stores offer installation as part of the purchase.

You can also check your loan eligibility online in advance by entering your mobile number and OTP, helping plan the air conditioner purchase better before visiting the store.

Save more with Smart Savings Calculator

Combine the best offers, EMI plans, and exclusive vouchers with Smart Savings Calculator to save big.

20k+ people used their offers at the store

Why use the Smart Savings Calculator

Bajaj Finance’s Smart Savings Calculator helps you unlock maximum savings every time you shop at partner stores. It brings together all available brand, dealer, and scheme offers—so you can see your total savings instantly and shop smarter with Easy EMIs.

1. Dealer offers - Grab exclusive in-store deals at over 1.5 lakh partner stores across India. Enjoy local discounts and special prices you will not find online.

2. Brand offers - Access limited-time discounts from top brands across electronics, appliances, and more. Discover brand-specific savings selected just for you.

3. Bajaj offers - Unlock exclusive Bajaj Finance deals on popular products—available only to our customers. More rewards, more value.

4. Scheme offers - Take advantage of time-sensitive offers on select EMI schemes. Get extra benefits after paying just 3 EMIs—visible during EMI selection at checkout.

Calculate your extra savings today!

Frequently asked questions

General

EMI details

How to get a lower electricity bill with your AC?

Getting a lower electricity bill with an AC requires maintaining the right temperature, improving usage habits, and choosing an energy-efficient model. Set the AC temperature between 24 to 26 degree Celsius, clean filters regularly, use timer or sleep modes, and keep doors and windows closed to prevent cool air loss. Selecting a higher BEE star-rated AC can also help reduce long-term electricity consumption by improving energy efficiency.
 

Keeping the AC temperature between 24 to 26 degree Celsius saves the most electricity while maintaining effective cooling. Setting the temperature too low, such as 18 degree Celsius, makes the compressor work harder and increases power consumption. The Bureau of Energy Efficiency (BEE) also recommends using energy-efficient AC models with higher star ratings to reduce electricity usage. Combining the right temperature setting with regular maintenance, clean filters, and proper insulation can help lower monthly AC electricity bills.
 

You can reduce monthly AC electricity costs by setting the temperature between 24 to 26 degree Celsius, maintaining clean filters, and using energy-saving modes. Choosing a higher BEE star-rated AC can also help reduce power consumption over time. Avoid setting the temperature too low, as running the AC below 24 degree Celsius increases compressor workload. Proper room insulation, regular servicing, and using timers can further help lower electricity bills while maintaining effective cooling.
 

The best ways to reduce AC usage at home include setting the temperature between 24 to 26 degree Celsius, improving room insulation, and using energy-saving features. Clean AC filters regularly to maintain proper airflow and prevent excess power consumption. Use sleep mode or timers to avoid unnecessary cooling during low usage periods. Keeping doors and windows closed, using a ceiling fan, and selecting an energy-efficient AC model can also help reduce electricity usage while maintaining cooling performance.
 

Yes, a 5 Star AC generally saves more electricity than a 3 Star AC because it has a higher energy efficiency rating and uses power more effectively. A 5 Star BEE-rated AC can consume less electricity during operation compared to a 3 Star model with similar capacity and usage conditions. The actual savings depend on factors such as room size, temperature settings, insulation, and usage hours. Choosing a higher-rated AC can help reduce long-term electricity costs.
 

Yes, you can easily bring home your preferred air conditioner using Bajaj Finance’s Easy EMI options. Whether you already have the Insta EMI Card or are new to it, here is how to begin:


If you have the Bajaj Finance Insta EMI Card:

  • Explore products on Bajaj Mall: Choose from a wide range of the latest and most popular air conditioner models.
  • Visit a partner store: Check out the air conditioner in person at any of Bajaj Finance’s 1.5 lakh partner stores across 4,000 cities in India.
  • Use your Insta EMI Card at checkout: Convert the cost into Easy EMIs that fit your monthly budget.
  • Zero down payment on select models: Take your chosen air conditioner home without paying anything upfront.

If you do not have an Insta EMI Card:

Check your Insta EMI Card eligibility online using your mobile number and OTP. If you are eligible, apply instantly and enjoy a smarter, more affordable way to buy your favourite air conditioner on Easy EMIs.

Show More Show Less

Disclaimer

While care is taken to update the information, products, and services included in or available on our website and related platforms/websites, there may be inadvertent inaccuracies or typographical errors or delays in updating the information. The material contained in this site, and on associated web pages, is for reference and general information purpose and the details mentioned in the respective product/service document shall prevail in case of any inconsistency. Subscribers and users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/service document and applicable terms and conditions. In case any inconsistencies observed, please click on reach us.

*Terms and conditions apply