China’s trade-in programme could reduce households $943 million in cooling bills this year

New analysis shows the programme could accelerate China’s energy efficiency gains from room air conditioners by 70% in 2025

Beijing, 15 July – China’s consumer goods trade-in programme could help households save up to $943 million USD in electricity bills this year by doubling the pace of energy efficiency gains in the country’s vast stock of room air conditioners. This is according to a new report by energy think tank Ember, which examines the energy and climate impacts of the government’s expanded home appliance replacement scheme.

Launched in 2024 and expanded in 2025 with CNY 300 billion ($41.7 billion USD) in government funding, the programme offers financial incentives for consumers to replace outdated home appliances with newer, more efficient models.

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Shiyao Zhang
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While aimed at boosting domestic consumption, it also supports energy savings by promoting the purchase of top-rated appliances – for room air conditioners, the scheme favours the most efficient Grade 1 models.

Ember’s analysis shows that China’s trade-in programme could raise the overall energy efficiency of room air conditioners by 5.0% to 6.1% in 2025, up to twice the recent historical annual average.

This efficiency gain could cut electricity use for residential cooling during peak summer months by as much as 4.1%, compared to if efficiency stayed at 2024 levels. Over the course of the year, households could save up to $943 million USD in electricity bills.

These savings matter. China has more room air conditioners than any other country, and cooling demand is one of the fastest-growing sources of household electricity use. In 2024 alone, space cooling accounted for 70% of the increase in summer household electricity consumption, driving record peak loads on the power grid.

China’s consumer goods trade-in programme targets more than boosting domestic consumption. By incentivising households to replace outdated appliances with top-rated models, the programme supports both household spending and tangible energy saving. The current programme is scheduled to end in 2025, but its impacts will be long-lasting, contributing to China’s transition to a more sustainable and resilient growth model.

Biqing Yang
‍Asia Analyst

By helping households save energy and cut costs, the trade-in programme shows how well-designed policy can support short-term economic goals while advancing long-term energy and climate targets.

However, sustaining long-term efficiency gains will require more than short-term incentives. The report underscores the need to continue to replace outdated appliances, tightening performance standards and aligning market incentives.

This is especially critical in China’s mature room air conditioner market where most households already own one or more units. Without these measures, there is a risk of locking in decades of excessive energy consumption and emissions.

About Ember

Ember is an independent energy think tank that aims to accelerate the clean energy transition with data and policy. It creates targeted data insights to advance policies that urgently shift the world to a clean, electrified energy future.

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China’s trade-in programme could reduce households $943 million in cooling bills this year

New analysis shows the programme could accelerate China’s energy efficiency gains from room air conditioners by 70% in 2025

Media enquiries

Full materials

About Ember

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