In a bid to take energy efficiency to another level, the government has decided to make LED (light emitting diode) lamps available to the public at an upfront cost of `10 in 100 cities and to replace existing inefficient street lights with LED systems free of cost.
The move is part of a scheme to save Rs 40,000 crore in energy bills in the next few years. The Energy Efficiency Services Limited (EESL), a government public sector undertaking (PSU), has decided to extend domestic efficient lighting programme (DELP) to 100 more cities.
As of now, the programme has been initiated in Delhi where in a household gets two LED lights at an upfront cost of Rs 10. Talance would be recovered through the monthly electricity consumption bills over a one year period at a rate of Rs 10 per month. “The LED, which has a market price of Rs 350, will carry a warranty of three months,” said a senior EESL official. The PSU has been able to provide the 7-watt LED light at one-third of the market price because it has been able to bring down the cost of the lamp from Rs 400 per piece in 2013 to Rs 104 in 2015. The official said the procurement of millions of lamps for 100 cities would further reduce the cost, thereby making LED lights affordable and competitive.
As per official estimates, domestic power accounts for half of the total electricity consumption of major cities and the programme will help in reducing consumers’ power bills by 15-20%. It is estimated that on an average, two LED bulbs will replace an incandescent bulb and a compact fluorescent lamp (CFL).
The government has envisaged a model wherein existing street lights — which account for 20% of power consumption of cities — will be replaced by LED lights in 100 cities free of cost. Under the model, the EESL will install the lights and the municipal bodies will have to share the subsequent savings on account of lesser energy bills with the PSU for the next three to five years.
Officials said the model implemented in some of the government buildings showed that the entire cost of installation of the new system is recovered in three years and the PSU also earns some money.