India Proposes Mandatory Energy Ratings for Large Buildings

The Ministry of Power has released a draft notification proposing mandatory energy ratings for large commercial, office, and residential buildings across India. The proposal aims to improve energy efficiency, encourage sustainable construction, and create a uniform national framework for evaluating how buildings perform on energy use, marking one of the more significant regulatory shifts in India's building energy policy in recent years.

A New Code Replacing the Old One

The proposed rules have been issued under the Energy Conservation Act, 2001, following amendments made to the Act in 2022. They replace the existing Energy Conservation Building Code (ECBC) with a new framework called the Energy Conservation and Sustainable Building Code (ECSBC). According to the draft notification, the new rules will apply to all newly constructed buildings and building complexes with a built-up area of 20,000 square metres or more, covering commercial, office, and large residential buildings. The shift from a voluntary-leaning code to a more clearly enforced national standard reflects growing pressure to bring large-scale construction in line with India's broader climate commitments.

How the Rating System Will Work

The Bureau of Energy Efficiency (BEE) will introduce a BEE Star Rating system specifically for buildings under this framework. Every eligible building will be required to achieve at least a 3-Star BEE Rating, or an equivalent minimum rating under other approved certification systems. Building owners or occupiers will be required to display the energy rating prominently at the premises, and the rating must also appear in advertisements, brochures, and promotional material so that buyers, tenants, and investors can assess a building's energy performance before making decisions. This visibility requirement is designed to give energy efficiency the same weight in property decisions that buyers already give to location, price, and amenities.

• Applies to buildings with 20,000 sq m or more built-up area
• Minimum requirement: 3-Star BEE Rating (or equivalent)
• Registration fee for commercial/office buildings: ₹1 lakh
• Renewal fee: ₹50,000
• Rating validity: 10 years for commercial and office buildings
• BEE may conduct inspections or sample verification of rated buildings

Compliance and Enforcement

Under the draft proposal, commercial and office building ratings will remain valid for 10 years, after which renewal will be required. To maintain accountability, BEE may carry out inspections or sample verification of rated buildings to ensure they continue to meet their declared energy performance standards over time, rather than treating the rating as a one-time certification with no follow-up.

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Why This Matters

India currently relies on the 2017 version of the ECBC, under which compliant buildings typically achieve energy savings of at least 25 per cent compared to conventional construction. Under the earlier 2007 code, enforcement was left largely to individual state governments and municipalities, which had limited success in ensuring consistent compliance nationwide. With India projected to add significant new commercial floor space in the coming years, embedding mandatory, verifiable energy performance standards into large-scale construction is intended to lock in efficiency gains from the design stage onward, rather than relying on the more fragmented, state-by-state adoption seen under previous codes.

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