The Energy saving on the Chiller systems has many advantages such as cost reduction due to power savings and the reduction of the maximum demand without changing on the cooling effect. The old chiller models have a compressor driven by a constant-speed induction motor directly connected the 3phase power supply with separate Air handling unit (AHU). This system takes large starting current and the large variation in room temperature which is controlled by a static on-off controller. The energy loss is owing to frequent on-off cycles when the room temperature is close to the preset value. Hence the inverter system is introduced on the chiller for the significant energy saving and demand reduction on the power supply. The practical results on power consumption were compared and the energy consumption can be reduced to less than half that of an old one, with chiller inverter model. The investment cost in the replacement of chiller by new VRV system can be recovered in short duration by the amount of saved energy.