Energy Efficient Fans in India

The Indian government has succeeded massively in increasing the penetration of LED bulbs in this huge 1.2 billion plus country, through a mix of subsidies and smart payment schemes. The government went in procurement of a huge number of energy efficient LED bulbs, for distribution to customers. This led to a collapse in prices of LED bulbs from around $4 to less than $1. With a combination of upfront capital subsidies and allowing monthly payment through electricity bills, the government has managed to distribute more than 100 million LED bulbs.

This is a win-win situation for both government and the consumers, as both benefit from a reduction in electricity usage as well as a consequent reduction in electricity costs. This scheme has been one of the most successful policies for the new Modi government in India in the power sector. Also as millions have benefited from this scheme, it also helps the ruling party to get votes as this scheme is directly experienced by the consumers at the ground, unlike other policies which are more in the realm of B2B transactions.

After this success, the government through its arm EESL is now moving with a war footing in the energy efficient fan scheme. The government wants to replicate its success in energy efficient fans and tube lights. The government hopes that its huge scale of operation will lead to a drastic reduction in prices and allow millions of fans to be distributed, replacing the old energy guzzling fans that are currently in service.  Through a mix of upfront payment and monthly payments, consumers can get these new fans. The government has set a plan to reduce 40,000 MW of energy demand through the distribution of energy efficient appliances such as fans, bulbs, lights and ACs. The government has started to move on a war footing with the scheme to be rolled out in 5 states. The fans will be given at a $20 price, with another $2 monthly payment.

India has become a power surplus country in the short span of 2 years, thanks to the Power Minister Piyush Goyal who has implemented some terrific policies. Not only has the policy formation been good, the execution has been exemplary. While critics would say that more than 200 million people do not have access to electricity, still the performance till date has been astounding to say the least. Getting 30 states in India to cooperate is a gargantuan task, given that electricity is a concurrent subject. Goyal has managed to do that and much more. I think it has been a just reward with the PM giving him the additional charge of the mining industry besides coal, renewable energy and power that he already manages. Unlike the past government of UPA which looted the country through endless corruption and scams, meritocracy has a place in this government.

Kumar said, “After success of the LED bulb scheme, EESL is now planning to distribute LED tubelights. We had procured around 50,000 such tubelights at about Rs. 300 per unit. We have planned to procure 1 crore such tubelights.”These 18-20 watt LED tubelights come as an easy substitute for the conventional 42-watt ones.Kumar expressed hope that the price of these tubelights will also drop on the lines of LED bulbs.EESL’s latest procurement price for LED bulbs is Rs. 54.90 per unit. When it started procuring these lights, the market price was over Rs. 300 per unit.EESL is distributing LED bulbs at a price ranging between Rs. 75 and Rs. 90. It has already distributed over 13 crore LED bulbs so far against the target of 77 crore.

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