India is facing a surge in demand for cooling solutions, driven by increasingly hot summers, making cooling not a luxury, but a necessity. Among the various cooling appliances, ceiling fans are the most commonly found appliance in Indian households. With nearly 41 million units sold every year, they account for a significant 20% of India's residential electricity consumption. However, a staggering 97% of these fans are not energy-efficient, leading to high energy consumption, increased greenhouse gas emissions, and inflated energy bills. This situation highlights a massive opportunity to transform India's ceiling fan market towards greater energy efficiency, benefiting the environment, consumers, and the nation's energy consumption.
The India Cooling Action Plan (ICAP) projects a ninefold increase in cooling demand between 2018 and 2037, which could lead to a fivefold increase in energy consumption under a business-as-usual scenario. Recognizing this challenge, the Bureau of Energy Efficiency (BEE) made it mandatory in 2022 for ceiling fans to be manufactured with star-rating labels. Five-star rated fans consume up to 50% less power compared to unlabeled or lower-rated fans. Very recently, the Government of India has also issued mandatory quality norms for ceiling fans to prohibit the sale of sub-standard ceiling fans in India. As per the data maintained by BEE, approximately 25% of the Star Labelled models are in the 5-star category.
To further boost the adoption of energy-efficient fans, Energy Efficiency Services Limited (EESL) launched an initiative to deploy ten million energy-efficient fans across India. This initiative aligns with ICAP's mission and demonstrates a strong commitment to a greener future. By ensuring that the projected stock of 700 million ceiling fans in India by 2037-38 are energy-efficient, the country can reduce its energy consumption by almost 15%, helping achieve its climate ambitions. EESL has joined hands with CLASP and other civil society partners through a Memorandum of Understanding signed at the 14th Clean Energy Ministerial in July 2023, to bring about substantial change.
Fan manufacturers play a crucial role in translating policies into tangible solutions. Under BEE's mandatory star-label policy, manufacturers are increasingly designing and producing energy-efficient fans that meet these standards without compromising performance. CLASP provides technical assistance to small, micro, and medium enterprises (SMEs) to enhance their supply chains and build their capacity to produce efficient fans. In addition, CLASP helps these enterprises to comply with regulatory requirements for fans in India, ensuring a robust, sustainable local market for efficient cooling solutions.
However, despite the efforts made, only a small fraction of Indian households opt for energy-efficient fans. While ceiling fans boast an impressive 90% adoption rate in Indian households, a mere 5% opt for energy-efficient models in the expansive 50 million annual sales market. Experts have emphasized the need for Research and Development (R&D), a robust supply chain, and the adaptation of international best practices to promote affordable, indigenous, high-efficiency ceiling fans.
