Rising demand for space-cooling and particularly the use of ACs has the potential of putting enormous strain on India’s power system by not only pushing up the overall electricity demand but also requiring to build generation and distribution capacity to meet the demand at peak times. India already has a few policies/programmes to address this increasing demand from ACs. A systematic understanding of consumer behaviour is crucial to design these interventions effectively and to periodically assess their outcomes. In this report, PEG presents insights on questions related to the purchase and usage behaviour of room air-conditioners which are based on a survey of 1500 households in five Tier-2 cities across India. This study adds to the limited literature examining the household behaviour related to the purchase and use of AC in India.