Harsh summer driving up demand for AC rentals in Bengaluru

Many retail outlets in Bengaluru are also seeing an increased demand for air conditioners due to harsh summer. Picture courtesy: X/@ashok_hegde

Akansha S, a resident of Koramangala who has been living in Bengaluru for the past five years, never thought she'd need to consider getting an AC.

"Since my flat is on the top floor, the cooler I bought is pretty ineffective.  I'm living in a rented apartment, so a friend suggested renting an AC. It's hassle-free and cheaper," said the 28-year-old techie.

Akansha is not alone. Many in the city, particularly those who live in rented houses or move houses frequently are now renting ACs.

Bengaluru, once known as an air-conditioned city, is witnessing a harsh summer. After reaching 36.6°C on March 30, the second-hottest temperature for that month since 37.2°C in 2017, it soared to 38.5°C, the second-highest in April since 2016 (39.2°C).

Also, read: Is Bengaluru losing its cool?

On May 1, it was 38.1°C, raising concerns whether it will surpass the record high of 38.9°C recorded in May 1931 or reach 40°C for the first time in Bengaluru's history.

Start-ups see demand for rental ACs

The harsh summer in Bengaluru this year is not only driving up sales of air conditioners and coolers but also creating a surge in demand for rental ACs in the tech hub. While AC rental trends have existed for many years in other cities, it is gaining popularity in Bengaluru now. Start-ups such as Rentomojo, Cityfurnish, and Furlenco offer ACs for rent. Moneycontrol checked some of the sites and found only a few units available due to high demand.

These start-ups collaborate with AC manufacturers and purchase units in bulk, partner with logistics firms such as Porter for delivery to households and offices, and tie-up with home service firms like Urban Company for installation and maintenance. Users need to download the app, select rental duration, and pay online, and the product is dispatched once the KYC process is completed. They charge an average monthly rent of Rs 1,500- Rs 2,000.

Sumeet Saxena, general secretary, All India Air Conditioning & Refrigeration Association, told Moneycontrol: "The rental market is popular among people with transferable jobs as well as start-ups, new establishments looking to cut costs".

"The places seeing higher temperatures this year compared to the usual are seeing new demand trends. We offer flexibility, reliability, and sustainability as a rental solution. Our AC rental starts at Rs 1,999/month," said Geetansh Bamania, founder of RentoMojo.

Neerav Jain, founder of Cityfurnish, said, "Our AC rentals start from Rs 1,599 per month. The major benefits of renting include flexibility for short/mid-term needs, without the hassle of maintenance, gas filling, etc., as all of these are taken care of by us. Returning or renewing at the end of the term means there's no need to remain stuck with an AC, especially if a customer frequently relocates or plans to change apartments or jobs. Our growth has already surpassed last year's peak,".

"Typically, people who are new to businesses or who are in a place for a limited period, like the migrant population with transferable jobs, move into rented accommodation. They don't want to invest in their machines because then they have to deal with the hassle of installation and removal, especially since split air conditioners are being used more than window ACs. Window ACs were easier to move and install, however, installation of split ACs is a tedious process. So, they prefer to avoid the hassle and rent ACs, which also include maintenance. Some startup firms prefer not to invest in capital expenditures, so it's easier for them to just rent equipment." said Saxena.

Harsh summer, no rain

The Bengaluru India Meteorological Department (IMD) last recorded rainfall of around 106.6mm in November 2023. Since then, there has been no notable rain: 0.7mm in December 2023, 2mm in January 2024, and no trace of rain in February, March, and April 2024.

Also, read: In a first since 1983, zero rainfall in Bengaluru in April

Saxena said summers are becoming increasingly harsh each year so there is a rise in the demand for air conditioners. "Air conditioning equipment typically has a limited lifespan of about four to five years due to aging compressors, refrigerant gases, and other components. As parts and gases evolve, older systems become obsolete and unrepairable. For instance, R134A gas, once popular, has been replaced by more sustainable options like R410 and R404 gas mixtures. This trend is likely to continue, which contributes to the increasing demand for newer models" he added.

Architect Naresh V Narasimhan said, "The first thing people should take is discontinuing the use of glass facades/structures that allow excessive heat penetration. All windows should be shaded to reduce direct sunlight from further warming the interiors. While architecture can only play a limited role in mitigating heat, the impacts of climate change are pervasive across the globe. Leveraging the albedo effect by painting roofs white could lower temperatures to some extent."

"In my childhood, there were no fans in Bengaluru. Then fans became common, and now almost every room in some households has an AC," he said. "The environmental impact of widespread AC usage is significant, as it consumes a considerable amount of energy."

Power consumption up

According to Bangalore Electricity Supply Company Limited (Bescom), peak power demand has increased in March and April, especially due to the usage of ACs at night.

In April 2023, the peak load and consumption within Bescom limits reached 7,800 MW, escalating to 8,381 MW by April 2024. Similarly, peak consumption rose from 7,740 MW in March 2023 to 8,232 MW in March 2024.

Under the Karnataka government's Gruha Jyoti Scheme, those who consume up to 200 units a month will get free electricity, but consumers will have to pay the entire bill if it exceeds.

Also, read: First floods, now dry days: Decoding tech hub Bengaluru’s water woes