Context: According to latest data from the Bureau of Energy Efficiency (BEE), Ministry of Power, inverter ACs accounted for less than 1 per cent of the overall room AC (RAC) market of 4.7 million units in the financial year 2015-16 (FY16). As of FY23, the share has increased to 77 per cent, while the fixed-speed RACs went down to 23 per cent.
What is Energy conservation act 2001?
- Government of India enacted the Energy Conservation (EC) Act, 2001 to realize the benefits of energy efficiency through reduced energy consumption.
- The Act provides the legal framework, institutional arrangement and regulatory mechanism to embark upon an energy efficiency drive in the country.
- Energy efficiency institutional practices and programs in India are being guided through various voluntary and mandatory provisions of the Act.
- The Government of India set up Bureau of Energy Efficiency (BEE), also referred to as 'BEE' or 'Bureau' on 1st March 2002 under the provisions of the EC Act, 2001.
- The mission of the Bureau is to assist in developing policies and strategies with a thrust on self-regulation and market principles, within the overall framework of the EC Act, 2001 with the primary objective of reducing energy intensity of the Indian economy.
What is Standards & Labeling Program?
- The objective of the S&L program is to help consumers make an informed choice about various energy-consuming appliances, in terms of energy savings, that would result based on each appliance’s energy efficiency performance.
- This scheme also helps the consumer determine the cost-saving potential of the marketed household and other equipment.
- The broad objective of the scheme is:
- To reduce the end-use energy consumption of appliances without diminishing the service levels.
- To create awareness amongst the consumers, to make an informed decision considering the cost-effectiveness & energy performance while purchasing appliances.
- To monitor and verify energy savings that incur annually through the sale of energy-efficient appliances
- The scheme was launched by the Hon'ble Minister of Power in May 2006 and is currently invoked for 30 appliances/equipment.
- A star rating, ranging from 1 to 5 in the ascending order of energy efficiency is provided to products registered with the Bureau. An endorsement label is also provided for some products.
What is a label?
- Describes energy performance (in the form of energy use, efficiency or energy cost)
- “Labels” mainly give consumers the necessary information to make informed purchase.
- There are two types of labels:
a) Comparative label : allow consumers to compare efficiency of all the models of a product in order to make an informed choice. It shows the relative energy use of a product compared to other models available in the market.
b) Endorsement label : define a group of products as efficient when they meet minimum energy performance criteria specified in the respective product schedule/ regulation/statutory order.
| Mandatory appliances | Voluntary appliances |
| Frost free refrigerator | Side by Side/Multi Door Refrigerator |
| Stationary Storage Type Electric Water Heater | Solar water heater |
| Colour Television | Computer |
| Room Air Conditioner (Variable Speed) | Washing machines |
| Tabular fluorescent lamps | Micro wave oven |
| LED lamps | Hi energy Li batteries |
| Deep freezers | Chillers |
| Ultra high definition televisions | Tyres |
| Room air conditioners | Domestic gas stove |
| Ceiling fans | Pedestal fan, table/walled fan |
| Direct cool refrigerator | Diesel generator set |
| Distribution transformer | Submersible Pump Set |
| Diesel Engine Driven Monoset Pumps for Agricultural Purposes |

There are strict rules and regulations regarding energy conservation, ecological efficiency, and environmentally friendly standards that industries must meet. Registration requires manufacturers to show compliance with specific performance parameters like cooling abilities and energy consumption. In addition to completed forms, other documents and test results are needed to complete the registration process.
BEE subjects the appliance to tests, comparing its efficiency to baseline values. BEE-approved appliances require producers to manufacture products that achieve a BEE star rating for energy efficiency. Registration is granted if these standards are met. BEE compliance registration is crucial for proving to consumers that the manufacturer meets energy efficiency standards and provides valuable information to customers.