The poor efficiency of vapor compression chillers emerges due to the simultaneous treatment of sensible and latent cooling loads. By employing desiccant coated heat exchangers (DCHEs) for removing latent loads, the energy efficiency is enhanced as the conventional cooling coil is used for high-temperature sensible cooling. Currently, DCHEs have limitations due to low sorption capacity, high regeneration temperature, short operating time, corrosion, and deliquescence of the desiccating material. To address these research gaps, we synthesized a composite polymer desiccant by combining a superabsorbent polymer and less corrosive potassium formate salt. Desiccant characterization experiments showed that the new desiccant exhibited 4–8 times gain in sorption capacity when compared to pure/composite silica gel. The dynamic performance studies showed that the cycle time could be extended up to 15 min and 40–50 °C was sufficient for regeneration in contrast to the previous constraint of 5 min and 60–80 °C, respectively. Further, the new composite desiccant removed 3 times higher cooling load than silica gel based DCHEs and recorded 2 times higher thermal efficiency. When integrated with conventional air-conditioners, DCHE could trim up to 50% of the electrical power, and short payback periods of less than 2 years were obtained.