Coming: Inverter ACs for Rs 30,000 this summer

This summer, consumers will have one more reason to beat the heat as inverter air-conditioners will be available for Rs 30,000, a good Rs 7,000 cheaper than the ones available in the market today.
State-run EESL will float its first tender for procuring one lakh inverter ACs (1.5 tonnes) next week, which would be retailed at Rs 30,000 per unit compared to market price of Rs 37,000 of reputed brands.
"Energy Efficiency Services Ltd (EESL) will float the first tender to procure one lakh inverter air conditioners next week. The company has estimated a retail price of these ACs at around Rs 30,000 per unit as against existing price of Rs 37,000 in the market," an official said.

The official added, "The consumer would be able to buy these ACs online. The company would soon finalise whether it would sell the ACs through its own online channel or by tying up with online marketplace like Snapdeal, Flipkart or Amazon."
The company has already tied up with the Snapdeal to sell its energy efficient 9-watt LED lamps, which are also distributed through other channels like power distribution companies.
The official said that the bulk procurement and incentives can reduce the cost of energy efficient ACs and increase their uptake as happened in the case of LED lamps where procurement price dropped to as low as Rs 38 from a level of over Rs 300.

In 2016, the annual sales of ACs were around five million and the market is growing at an annual rate of around 15 per cent. The efficiency of ACs is regulated by Bureau of Energy Efficiency through the STAR labelling system where the efficiencies are enhanced every 2-3 years.

The best-in-class 1.5 tn 5-star rated ACs manufactured and sold through existing distribution channels are of 3.5 EER (energy efficiency rating). Even for the best Inverter-based 1.5 tonne ACs, the maximum is around 5 EER.
According to the Lawrence Berkeley National Laboratory (LBNL) study of room AC sector in India, the room AC growth is expected to add about 150 GW to the peak demand by 2030 if the present rate of enhancement of efficiency as under the BEE star labelling initiative in ACs is maintained.

However, it said that if measures are taken to enhance efficiencies, much in the same manner as has been done in the case of LEDs by EESL, this can limit the peak demand to 90 GW.
Increasing demand for air conditioners therefore, poses a challenge to electricity grids, which are already struggling to satisfy existing demand. As per a recent study by International Energy Agency (IEA), the penetration of ACs will rise from 5 to 70 per cent by 2040.
A strategy borne out of India's imperative to reduce consumer energy bills and meet climate mitigation commitments, needs to leap-frog and accelerate the introduction of super-efficient air conditioners.