Aiming for the stars: how inverter ACs are catalysing the energy-efficiency revolution

Context: According to latest data from the Bureau of Energy Efficiency (BEE), Ministry of Power, inverter ACs accounted for less than 1 per cent of the overall room AC (RAC) market of 4.7 million units in the financial year 2015-16 (FY16). As of FY23, the share has increased to 77 per cent, while the fixed-speed RACs went down to 23 per cent.

What is Energy conservation act 2001?

• Government of India enacted the Energy Conservation (EC) Act, 2001 to realize the benefits of energy efficiency through reduced energy consumption. 
• The Act provides the legal framework, institutional arrangement and regulatory mechanism to embark upon an energy efficiency drive in the country. 
• Energy efficiency institutional practices and programs in India are being guided through various voluntary and mandatory provisions of the Act. 
• The Government of India set up Bureau of Energy Efficiency (BEE), also referred to as ‘BEE’ or ‘Bureau’ on 1st March 2002 under the provisions of the EC Act, 2001. 
• The mission of the Bureau is to assist in developing policies and strategies with a thrust on self-regulation and market principles, within the overall framework of the EC Act, 2001 with the primary objective of reducing energy intensity of the Indian economy.

What is Standards & Labeling Program?

• The objective of the S&L program is to help consumers make an informed choice about various energy-consuming appliances, in terms of energy savings, that would result based on each appliance’s energy efficiency performance. 
• This scheme also helps the consumer determine the cost-saving potential of the marketed household and other equipment. 
• The broad objective of the scheme is:
  • To reduce the end-use energy consumption of appliances without diminishing the service levels.
  • To create awareness amongst the consumers, to make an informed decision considering the cost-effectiveness & energy performance while purchasing appliances.
  • To monitor and verify energy savings that incur annually through the sale of energy-efficient appliances
• The scheme was launched by the Hon’ble Minister of Power in May 2006 and is currently invoked for 30 appliances/equipment.
• A star rating, ranging from 1 to 5 in the ascending order of energy efficiency is provided to products registered with the Bureau. An endorsement label is also provided for some products.

What is a label?

• Describes energy performance (in the form of energy use, efficiency or energy cost)
• “Labels” mainly give consumers the necessary information to make informed purchase.
  • There are two types of labels:

a) Comparative label : allow consumers to compare efficiency of all the models of a product in order to make an informed choice. It shows the relative energy use of a product compared to other models available in the market. 

b) Endorsement label : define a group of products as efficient when they meet minimum energy performance criteria specified in the respective product schedule/ regulation/statutory order.