The central government has proposed an amendment to the Energy Conservation Act, 2001, to make energy performance rating compulsory for residential and commercial buildings with a built-up area of 20,000 square meters or more. According to an official notification by the ministry of power, the proposed amendment requires new buildings whose construction starts after the date of publication of the notification to acquire a star rating, ranging between 3-star and 5-star, from the Bureau of Energy Efficiency (BEE) or any other rating agencies registered with it. After the amendment to the Energy Conservation Act in 2022, the Energy Conservation and Building Code (ECBC) has been amended to the Energy Conservation and Sustainable Building Code (ECSBC).
According to the new rating methodology issued by the Bureau of Energy Efficiency (BEE), as reported by Business Standard, a building with a 5-star rating will fall under the Super ECSBS category, while a building with a 4-star rating will fall under the ECSBS Plus category. The ECSBS Code will be applicable to a building with a 3-star rating. Building rating agencies including Green Rating for Integrated Habitat Assessment (GRIHA), Indian Green Building Council (IGBC), Green Business Certification Inc (GBCI), and Assocham will have to register with the Bureau and submit their respective rating methodology. Under the new rules, all large buildings will have to obtain a rating from BEE or any of the other agencies, requiring a minimum 3-star rating in the case of GRIHA and BEE Star Rating, Gold rating under IGBC and LEED (GBCI), and GEM-3 rating under GEM (Assocham).
The amendment proposes a structured procedure for building owners to obtain BEE Star Ratings. As per the official notification, the procedure involves registering on the web portal of the Bureau of Energy Efficiency by paying the prescribed fee, followed by submitting compliance documents along with a Certificate of Compliance issued by a Certified Energy Auditor (Building) or empanelled Third-Party Assessor. Based on this submission, the Bureau shall issue a provisional Star Rating Certificate for the building. For the issuance of the final Star Rating Certificate, the owner or occupier shall submit the required compliance documents, and the rating will be issued within 30 days of receipt.
The framework includes provisional and final ratings, which will remain valid for 10 years from the date of issuance. The ministry stated that mandatory renewal for commercial and official buildings and voluntary renewal for residential buildings will be required. The ministry noted that large commercial, institutional and residential buildings account for a significant share of the country's electricity consumption, contribute substantially to peak electricity demand, and are an important source of greenhouse gas emissions. The ministry emphasized that improving the energy performance of buildings is critical for enhancing energy security, reducing energy intensity, lowering carbon emissions, and supporting India's commitments towards sustainable development and climate change mitigation.
