Government of India Proposes Mandatory Energy Ratings for Buildings Above 20,000 Sq. Metres – What It Means for the Future of Design

A building can look sustainable on paper and still consume more energy than expected once it is in use. Designing buildings with sustainability in mind is important, but making sure they use energy efficiently matters just as much.

The Government of India’s proposed energy rating framework brings this issue into focus. It could change how developers, architects and engineers approach energy efficiency in large buildings across the country.

What Is Changing?

In July 2026, the Government of India proposed a nationwide framework to make energy ratings mandatory for new commercial and institutional buildings with a built-up area of 20,000 sq. metres or more. The draft notification, issued by the Ministry of Power, aims to establish a consistent approach to assessing and comparing the energy performance of large buildings.

Since this is a draft proposal, the framework is not being presented here as a requirement already in force. However, it signals a growing focus on making building energy performance more transparent and measurable.

But why does this matter when green building certifications already exist?

Green certifications assess sustainability across different criteria, which may include energy, water, materials and indoor environmental quality. However, a green-certified building can still consume significant amounts of energy during operation.

An energy performance rating brings the focus specifically to energy efficiency. The two approaches complement each other: certification recognizes broader sustainability efforts, while an energy rating can offer a more focused way to assess a building’s energy performance.

A building can be green-certified, but that does not automatically mean it consumes less energy.

Why Developers and Architects Need to Think About Energy Early

Many decisions that affect energy consumption are made long before a building is occupied. Its orientation, façade design, glazing, shading and HVAC systems can all influence how much energy it needs throughout its life.

For developers, these decisions also affect operating costs and long-term building value. Higher energy consumption can increase expenses, while inefficient systems may lead to additional maintenance and future upgrades.

For architects, the challenge is to balance appearance with performance. A glass façade, for example, may create the desired visual effect, but it can also increase heat gain and cooling requirements if it is not designed appropriately.

These factors are easier to address during the design stage than after construction. When architects, MEP engineers and sustainability consultants work together from the beginning, they can identify practical ways to improve efficiency without compromising the building’s functionality or appearance.

From Meeting Standards to Understanding Performance

Meeting a requirement is one thing. Understanding how a building will actually perform is another.

Energy modelling and building performance simulations allow design teams to test different options before making final decisions. They can examine whether better shading, an alternative glazing system or a more efficient HVAC design could reduce energy demand.

For example, if a building has a high cooling load, the team can investigate whether the cause is excessive heat gain through the façade, the cooling system design or a combination of factors.

This makes it easier to compare alternatives and identify improvements while changes are still practical and cost-effective.

Of course, simulated performance and actual energy consumption are not always identical. Occupancy, maintenance and operating practices also influence how a building performs. Effective commissioning and ongoing monitoring are therefore important to achieving the intended results.

Why Building Performance Analysis Matters

Choosing energy-efficient equipment alone does not guarantee that an entire building will operate efficiently. Its performance depends on how different systems work together.

Consider an HVAC system. Its efficiency is influenced not only by the equipment selected, but also by the building’s cooling requirements, insulation, glazing, controls and operating schedules.

Building performance analysis helps engineers understand these connections and identify opportunities for improvement. It can also support value engineering by allowing teams to compare solutions based on energy efficiency, cost and occupant comfort.

As energy ratings receive greater attention, this analysis can help project teams understand where energy is being consumed and what can be done differently.

The objective is not simply to achieve a rating. It is to make informed decisions that translate into better-performing buildings.

How McD BERL Supports the Transition

At McD BERL, we look at how engineering systems work together rather than treating each system as a separate component.

Our work across energy analysis, high-performance HVAC, re-engineering, value engineering, renewable energy integration and sustainable building solutions helps project teams identify practical ways to improve building performance.

For instance, improving energy efficiency may involve reviewing cooling loads, assessing the building envelope, optimising HVAC systems or comparing alternative design solutions. The right approach depends on the project and its requirements.

Building performance analysis and energy simulations help teams evaluate these options before changes become difficult or expensive to implement.

As the industry places greater emphasis on energy efficiency, we see an opportunity to bring engineering analysis into the design process earlier and make building performance a more deliberate part of project decisions.

Looking Beyond the Green Label

Green building certification has helped bring sustainability into mainstream construction. The proposed nationwide energy rating framework could add another layer of accountability by placing greater emphasis on energy performance.

For the industry, this means looking beyond whether a building meets sustainability criteria and paying closer attention to how efficiently it uses energy.

That requires thoughtful design, well-integrated engineering systems and an understanding of how buildings perform in practice.

At McD BERL, we believe better buildings begin with better decisions. When energy performance is considered from the start, sustainability becomes more than a design objective; it becomes something teams can actively work towards and improve.

Because designing a sustainable building is important. Making sure it performs efficiently is what takes it further.

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