Government promotes LEDs in Delhi; to distribute LED bulbs to households

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April 28, 2015: India is taking a giant leap forward with the government actively promoting LEDs on account of their low energy consumption. Delhi has become the starting point of this drive 50,000+ users registered under the scheme

LEDs could reduce energy consumption by 88 per cent when compared to an incandescent bulb and by 50 per cent compared to CFLs. Keeping this in mind, the government is implementing various schemes that promote LED lighting. In a recent move, Prime Minister Narendra Modi launched a scheme to promote energy efficiency by using LED lights, with the view that it is more economical to conserve power than to produce it.

The scheme, launched under the Demand Side Management-based Efficient Lighting Programme (DELP), has been proposed by Energy Efficiency Services Ltd (EESL) in consultation with Delhi’s government and power supply bodies including Bombay Suburban Electric Supply (BSES) Rajdhani Delhi, BSES Yamuna and Tata Power Delhi Distribution Limited (TPDDL).

LED lighting in India, according to a report by the Electric Lamp and Component Manufacturers Association of India (ELCOMA), is all set to become a Rs 104.60 billion market by 2016. The earlier predictions had suggested a market size of Rs 55 billion, but according to ELCOMA, the number has doubled, driven by government initiatives.

What’s in store

For consumers: Under the scheme, LED bulbs will be distributed to consumers in Delhi who procure electricity from vendors including BSES Rajdhani Limited, BSES Yamuna Limited and Tata Power Delhi Distribution Limited. Every household and even business set-ups can avail two LED bulbs against each Consumer Account (CA) number by registering themselves on a website launched specially for this scheme (www.eeslindia.org/Delhi-Launch). There are currently more than 50,000 registered members for the scheme.

Registration of consumers online or through SMS, using their CA number, is meant to ensure that a consumer registers just once and only authentic users benefit from the scheme.

The LED bulbs will be provided to all domestic consumers at an initial cost of Rs 10 each. The remaining cost will be charged at an EMI of Rs 10 each for 12 months, which will be added to their electricity bills. Distribution of the bulbs will begin on March 1, 2015. The bulbs, which are currently priced between Rs 350 and Rs 600 in the market, will cost Delhi consumers only Rs 130 under this scheme. The price is low since the government will procure these bulbs in bulk.

The move to distribute LED bulbs against EMI payments has been made to reduce the sudden cost burden on consumers. It will also ensure faster adoption of LEDs.

Reports suggest that an estimated Rs 162 can be saved by households annually by installing one LED bulb. This means that the cost of the LED will be recovered within 15 months.

For manufacturers: According to ELCOMA’s reports, the LED lighting industry will grow five fold from Rs 40 billion, currently, to Rs 200 billion by 2020.

With the government launching various schemes and programmes that promote the use of LED lighting across the country in order to achieve energy efficiency, manufacturers are all set to cash in on these initiatives.

On the commercial front, manufacturers can build their businesses by supplying to government programmes at competitive prices. On the consumer front, these initiatives will help to ease the shift to LED lighting and increase LED usage in various applications.

The LED-specific initiatives, coupled with the government promoting the concept of ‘Make in India’ to encourage the procurement of Indian manufactured goods, will encourage manufacturers to set up units in India, which will make LED prices more competitive.

The government has set the ball rolling to ensure that the whole country, including households, commercial units and even manufacturers get the benefits of LED lighting.

Benefits for Delhi consumers

  • Cost-effective life cycle as a single LED outlasts about 30 incandescent lamps

  • LED bulbs will be offered at a cost of Rs 130 as against a market price of Rs 350-600

  • LED lights will reduce energy consumption by 243 million Kwh

  • Every household can save Rs 162 per annum (per bulb replaced) with LED lights

  • Three-year free replacement warranty

Terms and conditions

  • The DELP scheme (backed by Energy Efficiency Services Limited or EESL) offers up to two LED bulbs to eligible grid-connected domestic consumers of BSES Rajdhani, BSES Yamuna and TPDDL

  • Consumers should clear all their electricity bill arrears, if any, by February 28, 2015, to be eligible for the DELP scheme

  • Consumers must pay Rs 10 per LED as the upfront cost, at the time of receiving the bulb. And they should authorise the applicable discom to recover the balance cost of Rs 120 per LED bulb through the electricity bill, in equal monthly instalments, within one year from the date of the first bill after the LED was installed, depending on the respective billing cycle

  • Users should permit any authorised representative of EESL and/or the applicable discom to undertake spot-checks or inspections of the LEDs, so that the government can evaluate the product’s performance and the levels of consumer satisfaction

  • Consumers should instal the LEDs received under this scheme in high usage areas and not remove or store in reserve for later use

  • Those failing to comply with any of the above-mentioned rules will be barred from the DELP scheme

How can a consumer/company register to receive LED bulbs?

SMS ‘<CA Number>_<number of bulbs required>’ to 7042299688

Register online: www.eeslindia.org/delp-delhi