The Government of India has proposed making energy performance ratings mandatory for all new commercial and institutional buildings with a built-up area of 20,000 square metres or more. The move is aimed at improving energy efficiency in one of the country’s fastest-growing electricity-consuming sectors while encouraging sustainable building practices.
The proposal has been introduced through a draft notification issued by the Ministry of Power to amend the Energy Conservation and Sustainable Building Code (ECSBC). Once notified, the requirement will apply to all eligible buildings and building complexes where construction begins after the new rules come into effect.
Under the proposed framework, project owners will be required to obtain an energy performance rating either through the Bureau of Energy Efficiency (BEE) or a registered rating agency. The rating system is expected to provide a standardized method for evaluating and disclosing the energy performance of buildings across the country.
According to the draft notification, the initiative seeks to establish a nationally recognized energy rating framework that promotes transparency, enables uniform assessment standards, and encourages the adoption of energy-efficient building designs and technologies. It will also help prospective occupants, investors, and buyers compare buildings based on their energy performance.
The explanatory note accompanying the draft states that the building sector is among India’s fastest-growing energy-consuming sectors. Rapid urbanization, expanding commercial activities, infrastructure development, and increasing demand for thermal comfort have significantly increased electricity consumption in buildings, making energy conservation an important policy priority.
The proposed mandatory ratings are expected to encourage developers and building owners to incorporate energy-efficient materials, advanced HVAC systems, improved insulation, smart lighting, renewable energy integration, and other sustainable design features from the planning stage itself. Such measures can help reduce operational energy consumption, lower carbon emissions, and improve long-term cost savings.
