Beyond the star ratings

In face of such unprecedented demand levels, the need of the hour is to prevent ACs from turning into energy guzzling, mass polluters. The Indian heating, ventilation & air conditioning (HVAC) industry along with the regulators and the government need to keep pace with global technological advancements to plan for energy efficient installations. At the top of the agenda are moves like phasing out of harmful chemicals in accordance with the Montreal Protocol and creating a conducive climate for larger sections of the population to adopt energy efficient AC technologies. 

India’s tryst with energy efficient ACs

Air conditioners have been known to contribute to increasing greenhouse gas (GHG) pollution because of their significant energy use and the climate-forcing effects of the refrigerants they employ. 

To combat these damaging effects, the star labelling programme for home appliances was first introduced in India by the Bureau of Energy Efficiency (BEE) in 2006. A standard for energy efficiency of air conditioners, the star labelling programme became compulsory by 2010. By 2014, the BEE updated its appliance star rating standards, pushing efficiency standards for refrigerators up by two notches and by a single notch up for room air conditioners.

However, in spite of the changing consumer mindset toward environmentally responsible purchases and positive developments, India has a lot of catching up to do in efficiency standards, not only in comparison to the West, but also with Asian counterparts like China and Korea. A recent study by the Centre for Science and Environment (CSE) has revealed areas for improvement in the star rating system. Current testing protocols call for running ACs at an ambient of 35°C, but actual temperatures seen in summer are much higher. Above 45°C, a five star AC functions with the energy efficiency of a single star AC. Further, Star Ratings in India are based on full capacity and not partial usage, causing the energy efficiency to be lower than what is indicated by the rating stars.

Though the minimum requirement for energy efficiency standards in India currently meets the global norms, the maximum standard falls way below international levels. This implies that a five star rated AC in India may only be a 2.5 star rated AC in Australia, for instance. 

Scope of newer technologies

The penetration of AC in India is abysmally low at 3-4 percent compared to a country like China, which boasts of an AC penetration rate of 25 percent. Lower still, is the penetration of inverter technology, a game changer in the energy efficient air conditioning industry. While Japan leads with 100 percent penetration of the technology, similar economies like Taiwan and Korea also boast of nearly 70 percent penetration. Inverter air conditioners function on the principle of varying speed of the compressor to maintain optimal temperature rather than the staid on/off options in a regular air conditioner. With the compressor drawing less or more power to maintain the desired temperature, inverter ACs are an ideal option for India, with varying room sizes, climatic conditions, erratic weather and overburdened  power supply system. What could be the possible barriers preventing us from embracing this technological advancement?

While price is still a significant factor in consumer choice, the inverter AC market, which is at present garnering 10 per cent of the market share, can see a boost in sales with endorsement from the BEE, especially among the premium segment buyers, for whom energy efficiency matters more than cost.

Conformity to standards is the need of the hour!

Adherence to the standards addresses the maintenance procedures, compliance audits, and management of the components which could influence the performance parameters. The Star Labelling Programme has given an impetus to the HVAC industry to standardise performance rating. While the industry has voluntarily adopted the performance rating system, it is also important that the programme is extended to adopt advancements in energy efficiency technology as well.

Given India’s increasing demand for commercial space, it is imperative that the government incentivises and propels the uptake of the newer inverter VRF technology, an energy efficient system for central and room air conditioning. With the falling capital cost in renewables energy segment, it is only encouraging that the government assists the industry with R&D funds for the development and adoption of the solar AC products to suit Indian climatic conditions

The existing compliance frame work is effective on the products sold in the open market, unlike the products sourced through government purchasing tenders and contracts that lack independent testing and quality checks. What India additionally needs is an improvement in compliance mechanism to reap maximum results. This will further help in addressing corrective mechanism in case of non-compliance that was seen during initial testing of the ACs. Similarly, the light commercial AC segment is on an upswing and the industry is striving to adopt new technologies for improved performance parameters. While there may be a short term increase in price, higher volumes and locally available technology will eventually drive down prices, apart from the savings in energy bills; thereby making inverter ACs a viable proposition in the long run. 

With the industry poised for a rapid growth, improvement in the skill set of manpower in handling technological advancements will be critical as well. Stakeholders like RAMA, ISHRAE, government bodies like the BIS, BEE and independent certification bodies, together need to build a platform to devise mechanisms for enhancing skill sets, and create qualitative engagement that is essential to adopt the technological advancements and in turn, widen the customer base. 

To optimise performance, the HVAC industry in India is already working toward employing energy efficient refrigerants like hydrocarbons. However, as they are highly flammable, hydrocarbons pose significant safety risks and their deployment is governed by several international standards. Mandating standards for the use of such refrigerant would also figure among the top priorities for the industry and regulators alike. 

Conclusion

The standardisation of the product performance and safety regulations results into harmonisation, safer products and greater fit-for-purpose solutions to the market place. The cost-benefit analysis in the adoption of the new technologies would pave way to its success. Consumers may initially miff at the price hike on account of implementing stricter energy efficiency measures. However, it will encourage the government to offset any market disturbance by incentivising newer technology, which will help achieve energy efficiency goals. 

At the same time, this will help revitalise the suffering domestic manufacturing market, which has seen negative growth over the past few years. This, coupled with a stronger compliance mechanism will ensure higher efficiency products in the marketplace, thereby saving energy for the nation.
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Peeyush Gupta is the director - sales and marketing, UL, South Asia