Energy efficiency generates substantial financial savings while simultaneously improving environmental quality. Despite these benefits, developing countries like India are missing out on energy efficiency opportunities and instead concentrating on increased energy production. This paper identifies the efficient technologies in the household sector in India, and details their benefits to the consumer as well as to the society. It identifies the barriers that prevent the government from achieving its energy efficiency goals, analyses programs that addresses these barriers, and explores the creation of an institutional mechanism. (C) 2003 Elsevier Science Ltd. All rights reserved.