Tejas Joshi Explains: 3 Star AC vs 5 Star AC - Which One Saves More in the Long Run?

Planning to buy an air conditioner this summer? You've probably asked yourself: Should I go for a 3-star AC or spend more on a 5-star AC for better savings? According to Tejas Joshi, a popular finance influencer, the answer lies in energy efficiency and usage. He simplifies the math behind AC energy ratings and shows you exactly when and how a 5-star AC starts saving you money. If you're looking to cut electricity bills while staying cool, read this before making your purchase.

Understanding Power Consumption: 3-Star vs 5-Star

Tejas shares the basic formula:

Power Consumption (Watts) = Cooling Capacity / ISEER Value

3 Star AC:

• Cooling capacity = 5000 W
• ISEER = 4
• Power consumption = 1250W/hour

5 Star AC:

• Cooling capacity = 5280 W
• ISEER = 5.2
• Power consumption = 1015W/hour

How Much Electricity Does Each Use?

Since 1 electricity unit = 1000W:

• 3-Star AC = 1.25 units/hour
• 5-Star AC = 1.05 units/hour

Now, assuming ₹7 per unit as electricity cost:

• 3-Star AC = ₹8.75/hour
• 5-Star AC = ₹7.07/hour

When Does a 5-Star AC Become Worth It?

Let's look at the price difference:

• 3-Star AC cost = ₹37,490
• 5-Star AC cost = ₹46,000

Using the equation:

• ₹37,490 + ₹8.75x = ₹46,000 + ₹7.07x
• Solving for x gives 5065 hours.

What does this mean?

If you use your AC for more than 5065 hours in its lifetime, a 5-star AC becomes the better deal. Below that? A 3-star may suffice.

The Final Verdict

If you're someone who uses an AC regularly—over 5 hours a day for 3+ years—investing in a 5-star AC is financially smarter. Not only will you reduce long-term energy bills, but you'll also be making an environmentally responsible choice.

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As Tejas Joshi explains, short-term savings on appliance cost don't always translate to long-term gains. Think beyond the price tag—consider energy efficiency, usage hours, and break-even points to make an informed investment.