Big buildings over 20,000 sqm may need BEE energy rating soon
The Ministry of Power (MoP) has issued a draft notification proposing a mandatory star rating framework for large office, commercial and residential buildings under the Energy Conservation and Sustainable Building Code (ECSBC).
The proposal, issued under Section 14(a) read with Section 14(p) of the Energy Conservation Act, 2001, would make energy performance ratings compulsory for all new buildings and building complexes with a built-up area of 20,000 square metres or more.
If notified, the framework would apply to buildings where construction commences after publication of the notification in the Official Gazette.
Rating framework
The draft seeks to establish a nationally harmonised building energy rating system administered by the Bureau of Energy Efficiency (BEE), while also recognising existing green building certification programmes.
Under the proposed framework, buildings would be assigned one of three BEE Star Ratings based on their level of compliance with the ECSBC:
- 5 Star – Super ECSBC
- 4 Star – ECSBC Plus
- 3 Star – ECSBC
The minimum compliance requirement would be equivalent to BEE 3 Star, GRIHA 3 Star, Indian Green Building Council (IGBC) Gold, Leadership in Energy and Environmental Design (LEED-GBCI) Gold, or GEM-ASSOCHAM (GEM-3).
Building owners would be required to obtain ratings either directly from BEE or through rating agencies registered with the Bureau.
Registration process
The proposed regulations require building owners to register on BEE’s online portal and submit compliance documentation along with a Certificate of Compliance issued by a Certified Energy Auditor (Building) or an empanelled Third-Party Assessor.
A provisional rating certificate would be issued initially, followed by a final rating upon verification of complete compliance documents. The final certificate would be issued within 30 days of submission.
For commercial and office buildings, the final rating would remain valid for 10 years. Applications for renewal would have to be submitted within three months of expiry.
The draft prescribes a one-time, non-refundable registration fee of Rs 1 lakh for commercial and office buildings and Rs 50,000 for residential buildings. Renewal of ratings for commercial and office buildings would attract a fee of Rs 50,000.
Disclosure requirements
The proposed framework mandates public disclosure of building ratings.
Building owners or occupants would be required to prominently display the assigned rating at visible locations within the premises. Ratings would also need to be disclosed in advertisements, brochures and promotional materials shared with prospective buyers, tenants and other stakeholders.
The Bureau would be empowered to undertake sample verification of ratings independently or through Certified Energy Auditors (Building) and empanelled Third-Party Assessors.
In cases of non-compliance, the Bureau may direct removal of displayed ratings and place its findings in the public domain. State governments would be authorised to impose penalties under the relevant provisions of the Energy Conservation Act.
Rating agencies
The draft notification also proposes mandatory registration of all building rating agencies with BEE. Agencies such as GRIHA, IGBC, Green Business Certification Inc. (GBCI) and ASSOCHAM would be required to submit their rating methodologies and provide annual details of buildings certified by them.
According to the Ministry, the move seeks to address the absence of a mandatory and nationally uniform framework for evaluating building energy performance, which has resulted in varied implementation practices across states and a lack of centralised data on building efficiency.
Power sector impact
The building sector accounts for a significant share of India’s electricity consumption and contributes substantially to peak demand. The Ministry stated that the proposed framework could improve demand-side management by encouraging energy-efficient building design and creating more predictable electricity consumption patterns.
It is also expected to support grid planning, facilitate integration of renewable energy systems and establish a national database on building energy performance for policy and regulatory purposes.
The Ministry has invited comments and objections on the draft notification within 21 days from its publication in the Gazette of India.
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