The present paper is concerned with theoretical and experimental study and development of effective suction gas heat exchanger for hermetically sealed compressor. A single tube counter flow heat exchanger had been used, where water itself had been taken as a coolant. Energy consumption parameters as well as COP values have been obtained analytically for both the cases. Energy consumption parameter is 12% less as an average for a heat exchanger attached system compared to the system with out heat exchanger in a time span of 90 minutes. COP values obtained with heat exchanger are firmly better than that of the values with out Heat exchanger. COP values observed to be 7% higher for a heat exchanger coupled system compared to the system with out heat exchanger in the same time span of 90 minutes. In the present scenario where systems optimization is a necessity the present work would be useful in developing a energy efficient system with few modifications. This work would be useful to tackle the heat transfer related issues present in many gas compressors used in pumping and process industries.