The performance of a capacity controlled system, which are tandem, pole change, bypass and inverter driven compressor, has been compared with that of a con- ventional constant speed system. It has been found that capacity modulated system can offer more than 14 percent improvement in SEER over the conventional system. Comparative test results show that two compressor system can attain an improvement in SEER up to 42% over the conventional on/off system, and is feasible without additional investment.