Cover Story | The Green List

Gearing up for Greenathon

The ecosystem for green devices is near complete, and the market is no longer limited to the bottom of the pyramid

The increasing quest for energy-efficiency has led to many innovations in the past few years that are decidedly protecting the environment. Being a responsible trade media, the objective at Sourcing Electricals & Lighting is to increase awareness about such innovations and assist its readers in improving their understanding of green concerns and the business opportunities therein. At the beginning of the year, we do this by literally shouting from the rooftops and publishing The Green List, a compendium of efficient lighting and electrical products that saw light of day in the previous year and that we really liked.

Conservation is no longer a concern that is being pushed down the throats by governments, it is an economic compulsion that none can ignore. Soaring electricity rates are incessantly burning holes in the pockets, and solar-powered products seem to be the only way out. No wonder the List features many products powered by the Sun.

The product that tops the List is the solar lantern, which has been in use in the country for around a decade. This mini-wonder has been a hit among the masses, especially in rural areas. Today, some 5,60,295 solar lanterns are in use across country, being sold at price points ranging from Rs.400 to Rs.3,000.

Other solar solutions too are becoming a must have, and their market is not just at the bottom of the pyramid. Street lights, water heaters and pumps are routinely being powered by the Sun, and they are adding great value to residential and commercial structures. This year’s list also features solar-powered inverters and if they are considered as installations, their count would reveal a remarkable story.

Energy Alternatives India, a Chennai-based research firm, has done a marvellous job by putting a figure to solar installations in the country. It has found that currently there are around 54,795 street lighting installations which have been ordered by the central and state government agencies and corporates. The number of home lighting installations is around 3,42,607 while 6,818 solar water pumps are in use. Solar water heaters, which are mostly used in residential and commercial complexes, occupy around 140 million cubic metres of collector area.

According to a Frost & Sullivan study, LEDs offer better return on investment as compared to other lighting technologies. The report has estimated the domestic LED lighting market at around Rs.400 crore in 2010, which will continue to grow at a compounded annual rate of 45.53% till 2015. Another leading consulting company McKinsey has predicted that as against 10% in 2010 globally, nearly 67% of all lighting business will come from LED-based lighting of homes, work and outdoors by the year 2020. 

At the same time the market for solar-based LED lighting is evolving at lightning speed. As in the case with appliances, the market for LED lighting too is taking off in off-grid regions, and the LED-solar combo is promising a new life to people. In urban spaces, the application of LED is increasingly being mandated in high use areas such as public lighting and downlights in retail space; and the creativity of designers is taking off due to the versatility of this wonder lamp.

The message is that the market for solar-powered products has taken roots, and more appliances are getting affixed to solar panels to make them independent of the electricity grid. What’s further boosting the business of solar products is the government’s keenness to see them proliferate. One of its key objectives is to promote rooftop solar photovoltaic applications.

But solar-powered products do not work in isolation, they need the backing of effective power storage solutions. In other words, batteries. Their supply is going to increase multi-fold, given the increasing use of environment-friendly off-grid devices. But the irony is that batteries themselves are great polluters. Although they represent a small amount of the garbage that consumers routinely discard, they account for about 80% of mercury contamination. Batteries gradually break down in landfills and release heavy metals, which then leach into ground water. Toxins are released into the atmosphere, and then the mercury contaminates the general environment.

The most common of them (NiCads) are made from nickel and cadmium. However, the most environment-friendly batteries are the ‘nickel metal hydride’ type with no toxic heavy metals at all. These recyclable batteries store more electricity, outlast other types, and cost almost the same. And when they finally wear out, they can be tossed with a clear conscience.

The rush in the battery market has already begun, and non-lighting companies have taken the lead. Power backup companies like Su-Kam and Luminous, who hold significant shares in the inverter market, have quickly realised the potential of the solar-based inverter that powers LED lights. Both companies have launched user-friendly packs that consist of an inverter,  PV panel and a LED light, all at an affordable price targeted at the rural market.

Governments throughout the world have created a new ‘green market’ through mandates. In the last few years, though no new addition has been made by Bureau of Energy Efficiency (BEE) to its list of products to be compulsorily star-rated, a host of products are expected to be added soon. And then, it may become near impossible to market a product that consumes energy and does not bear the star label. This is, therefore, the right time to begin thinking in terms of a totally green business, something that is more than simply manufacturing or selling.