What did the Energy Conservation (Amendment) Act, 2022 change for industry?
The 2022 amendment let the government set up a carbon credit trading scheme, require designated consumers to use a minimum share of non-fossil energy, bring large residential buildings, vehicles and vessels under the Act, and raise penalties to up to Rs 10 lakh.
The main changes
- Carbon credit trading: the government may specify a carbon credit trading scheme and issue carbon credit certificates to registered entities (new section 14AA).
- Non-fossil share: designated consumers can be told to meet a minimum share of energy or feedstock from non-fossil sources (section 14(x)).
- Energy now covers fossil, non-fossil and renewable sources.
- Buildings: the energy code becomes the Energy Conservation and Sustainable Building Code and can cover residential buildings with 100 kW connected load or 120 kVA contract demand; states may set lower limits.
- Vehicles and vessels are brought under energy consumption standards.
- Industrial units that miss notified norms can be ordered to close, but not within two years of the norms being notified.
Voluntary buyers
Anyone, not only designated consumers, may now buy energy saving certificates or carbon credit certificates on a voluntary basis.
Penalties
Penalties were replaced with higher amounts, covered in the penalties page linked below.
What Senseible does here
Senseible keeps a dated, sourced record of energy and fuel use from invoices, the kind of data a registered entity needs when its energy use is reported or questioned.
Sources: Energy Conservation (Amendment) Act, 2022 (No. 19 of 2022), Gazette of 20 December 2022, BEE, Energy Conservation Act, 2001 chapters
Last reviewed 2026-10-23.