The UJALA scheme, which recently celebrated its seventh year anniversary, has been a massive success leading to a tenfold increase in the adoption of LED light bulbs. The USP of the scheme is its innovative bulk procurement process, which guarantees volumes of business that enable manufacturers to increase economies of scale but distributes LEDs at a subsidised cost to end consumers.
Can a UJALA like scheme help accelerate the penetration of energy efficient fans in the country?
Ceiling fans, the workhorses present in every conceivable location in India, account for nearly 25% of household energy usage in India, and about 6% of total consumption. Every year, about 40 million (4 crore) celing fans are sold in the country - that's one for every 6 households in the country.
The most energy-efficient ceiling fans that are currently available in the market are fans that use brushless direct current electric motors (BLDC motors), a technology that requires an electronic motor controller to drive the rotor. BLDC motor ceiling fans are up to 50% more energy efficient than regular induction motor fans. But less than 5% of homes are BLDC ceiling fans.
Going forward, the high cost of BLDC fans could be a bottleneck for its fast growth - BLDC fans cost 2-2.5 times as much as conventional fans. While prices will fall further with increased demand and economies of scale, such a decrease could be quite gradual. Can the government do something to make it steep?
An interesting development in the context of energy efficiency fans is that ceiling fans will require a mandatory star rating from July 2022 onwards. This will require certification of all-new model ceiling fans sold in India from July 2022. The implication of mandatory star rating of ceiling fans is tremendous as the first major area that will be affected will be government procurement.
I can see the beginnings of UJALA for BLDC fans. Let's hope it grows further.
