It is well known that one unit of electrical energy saved is equal to more than two units produced. One way of economizing the power is utilization of energy efficient systems at all locations. In the present study, the air conditioning system is analysed and an innovative way is suggested. We use natural low temperature of shallow sub surface (1 - 3 m) of the earth—geothermal cooling system. It is known that majority of the households and the apartment complexes in India have two tanks for water storage. One is the underground water sump and the other is the overhead water tank. In our study, we use these two water storage systems for space cooling during summer and also for heating during winter. The main aim of our paper is air-conditioning of the space in an economic way to save electricity. It is based on a simple idea of transferring the low temperature from underground water sump to the room in the house using water as a mode of transport. Since India is a tropical country located at low latitude, most of the year, the air temperature is high and demands space cooling. However, for a couple of months during severe winter months (Dec.-Jan.) at Ahmedabad, heating of the space is required. For heating the space, we suggest to use the well-known solar water heater. Effective use of heat exchanger is shown through computation, modelling schemes and lab experiment. We recommend geothermal cooling for 10 months in a year and solar hot water system during 2 months of winter. It is observed that the ambient air temperature of 35°C - 40°C in the room can be brought down to 26°C without much consumption of electricity. In a similar manner, the room temperature at night (13°C) during winter in Ahmedabad can be increased to 27°C through circulation of water from solar water heater in the heat exchanger.
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