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Stark differences in energy efficiency, affordability, and economic viability demonstrate the need for the UJALA scheme in transforming India’s lighting market into one that is sustainable, cost-effective, and energyefficient

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A ground-breaking step in ENERGY EFFICIENCY

Ten years of UJALA scheme

by Blitz India Media
January 15, 2025
in Special
Stark differences in energy efficiency, affordability, and economic viability demonstrate the need for the UJALA scheme in transforming India’s lighting market into one that is sustainable, cost-effective, and energyefficient
Blitz Bureau

THE UJALA (Unnat Jyoti by Affordable LEDS for All) scheme – launched on January 5, 2015 by Prime Minister Narendra Modi – marked its 10th anniversary as a groundbreaking initiative in energy efficiency.

Introduced as the Domestic Efficient Lighting Programme (DELP) and later rebranded, UJALA set out to revolutionise household lighting by providing affordable energy-efficient LED bulbs, tubelights, and fans to millions of Indian homes. Over the past decade, more than 36 crore LED bulbs have been distributed across the country, making energy-saving technologies accessible to households while addressing challenges such as high electrification costs and carbon emissions.

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The effort, jointly undertaken by the Energy Efficiency Services Limited (EESL) and DISCOMs under the Ministry of Power, sought to make energy-saving technologies accessible while addressing challenges such as high electrification costs and carbon emissions.

Over the past decade, UJALA has evolved into the world’s largest zero-subsidy domestic lighting programme, exemplifying India’s commitment to reducing energy consumption, enhancing environmental awareness, and fostering economic efficiency.

Illuminating efficiency

The scheme was conceived to address the pressing need for energy efficiency in India’s households, where traditional lighting systems consumed significant electricity and imposed high costs on consumers. A 7W LED bulb provides the same amount of light as a 14W Compact Fluorescent Lamp (CFL) and a 60W Incandescent Lamp (ICL), thereby saving nearly 90 per cent energy compared to ICLs and 50 per cent in the case of CFLs.

In 2014, the retail price of an LED bulb was significantly higher than a CFL and an ICL. Consequently, the share of LEDs in the lighting market was less than one per cent in 2013– 14. This high initial cost served as a major barrier to adoption, highlighting the need for an intervention to make LEDs affordable and accessible.

Stark differences in energy efficiency, affordability, and economic viability demonstrate the need for the UJALA scheme in transforming India’s lighting market into one that is sustainable, cost-effective, and energyefficient

The UJALA scheme enables consumers to purchase LED appliances at significantly reduced rates: Rs 70 per LED bulb, Rs 220 per LED tube light, and Rs 1110 per energy-efficient fan. These prices were determined through competitive bidding and included components such as the cost of the appliance, distribution, awareness campaigns, Annual Maintenance Cost (AMC), cost of capital, and administrative expenses.

Stark differences in energy efficiency, affordability, and economic viability demonstrate the need for the UJALA scheme in transforming India’s lighting market into one that is sustainable, cost-effective, and energyefficient

Economic advantage

In terms of energy consumption, an LED bulb uses only 1 unit of electricity when operated for 140 hours, whereas a CFL and an ICL consume 2 units and 9 units respectively over the same period. This translates into substantial cost savings, as the operating cost of an LED bulb is just Rs 4 for 140 hours, compared to Rs 8 for CFL and Rs 36 for ICLs.

The annual cost of ownership further underscores the economic advantage of LEDs, standing at Rs 12, which is less than one-third of a CFL (Rs 40) and merely onetenth of an ICL (Rs 108). These stark differences in energy efficiency, affordability, and economic viability demonstrate the need for the UJALA scheme in transforming India’s lighting market into one that is sustainable, cost-effective, and energy-efficient.

Transformative changes

As of January 6 this year, the UJALA scheme has distributed 36.87 crore LED bulbs, making it one of the most widely adopted initiatives in the country. Its implementation across all states has brought about transformative changes, reduced annual household electricity bills, and enabled consumers to save money while improving their quality of life.

By ensuring transparency through eprocurement and fostering competition, the programme has significantly reduced transaction costs and time, leading to enhanced process efficiency. Transforming the market, so far, the UJALA scheme has germinated the sale of 407.92 crore LED bulbs in the Indian market.

Beyond economic benefits, the scheme has made notable contributions to environmental sustainability by reducing the nation’s carbon footprint. These efforts have aligned with India’s larger goals of energy conservation and climate change mitigation.

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