As the world moves rapidly toward carbon neutrality, heat pumps are emerging as one of the most critical technologies for clean heating and high-efficiency cooling. India, the world’s third-largest energy consumer, is quietly initiating its own heat pump transformation.
In 2024, the Bureau of Energy Efficiency (BEE) in India released a new energy efficiency standard, IS 16325:2024, officially including heat pump products in the national certification system for the first time. This marks the transition of the Indian heat pump industry from a marginal alternative to a regulated mainstream solution.
This article provides a comprehensive overview of India’s new policy shift, the market opportunities, implementation challenges, and how OEM manufacturers like SolarEast can strategically respond.
In early 2024, the Indian government announced IS 16325:2024, which places domestic and commercial heat pump water heaters under mandatory star-rated energy efficiency certification.
This applies equally to domestic and imported products, making certification a prerequisite for mainstream market access.
Certification involves:
Laboratory testing in BIS-accredited Indian labs;
Performance evaluations based on COP, heating capacity, and standby power consumption;
Star labeling and registration with BEE.
2.1 Market Size and Growth Potential
According to IEA data, India’s heat pump market is projected to grow at a CAGR over 50%, reaching a multi-billion dollar scale by 2030. Key growth drivers include:
Policy support: Green procurement subsidies and waived transmission fees for renewable energy until 2028;
Extreme climate pressure: Summer temperatures exceeding 45°C, with a projected air conditioning shortfall of 10 million units;
Energy security: India targets 50% of electricity from renewables, with heat pumps named a priority efficient technology.
2.2 Key Application Scenarios
| Application Scenario | Market Share | Growth Drivers |
| Residential Heating/Cooling | 45% | Urban expansion driving air conditioning demand, low efficiency of conventional units |
| Commercial Buildings | 30% | Hotels, office retrofits adopting centralized HP systems |
| Agricultural Drying | 15% | Government mandates max moisture ≤13%, subsidies favor HP dryers |
| Industrial Processes | 10% | Food, pharma requiring precise thermal control |
3.1 Technical Barriers
Unstable electricity grid: Voltage fluctuations (180–260V) require wide-voltage adaptation;
Diverse climates: Northern cold winters, southern hot humid summers;
Compact installations: Apartment-heavy cities demand space-efficient designs;
Noise sensitivity: Residential consumers demand silent operation.
3.2 Regulatory Complexity
Requires technical documentation, English manuals, star label artwork;
Testing cycle lasts 3–6 months depending on model;
SolarEast supports its partners with documentation, local registration, and lab coordination.
4.1 Agricultural Drying Subsidy
Traditional drying leads to 20% grain loss; heat pumps cut this to under 5%;
In 2024, heat pump dryers are included in the Agricultural Modernization Program with 30% subsidy, aiming for 15% adoption by 2028;
SolarEast offers high-temperature heat pump drying solutions for wheat, rice, etc.
4.2 Compressor Import Flexibility
As of April 2025, India relaxed BIS certification for imported air conditioning compressors;
70% of compressors are imported, China supplies 58%;
SolarEast offers energy-efficient inverter compressors for Indian climate adaptation.
4.3 Energy Efficiency Laws and Temperature Limits
From June 2025, commercial AC temperature must be set ≥20°C or face penalties;
Every 1°C increase can reduce consumption by 6%;
Target COP raised to 3.5–4.0. SolarEast’s systems fully comply.
4.4 Clean Power Export Plan
India to export 2 GW of clean electricity to UAE and others;
SolarEast’s PV + heat pump integrated system supports zero-carbon building targets.
| Brand | Strategy | Notes |
| A.O. Smith | Local Factory | Introduced HP water heaters for mid-to-high-end homes |
| Voltas | Government Pilot | Solar-integrated HP systems for public sector buildings |
| Midea/Gree/Haier | Agent + OEM | Channels built in Delhi, Mumbai, expanding nationwide |
SolarEast is a global heat pump manufacturer with:
Full refrigerant portfolio: R290, R32, R410A, R134a;
1000+ models with EN, CB, BIS certifications;
Rich export experience in EU, Middle East, Southeast Asia;
Fast OEM/ODM customization and multilingual technical support.
We’re actively looking for Indian B2B partners—distributors, project firms, local brands—to co-create locally adapted, certified heat pump solutions.
India is no longer just an emerging market—it’s a strategic stage for any serious HVAC manufacturer.
SolarEast is ready to be your trusted OEM heat pump partner. If you're looking for certified, adaptable, and competitively priced heat pumps with full support for private labeling, contact us today.
Let’s build India’s clean energy future—together.