Experts Discuss Advancing Affordable, Energy-Efficient, and Locally Produced Ceiling Fans in India

This blog was coauthored by Gerry George, NRDC India specialist, cooling and energy efficiency.

Almost every home and office in India has a ceiling fan. Ceiling fans are the primary way for most Indians to keep cool during scorching hot summers-which are getting more intensewith each passing year. Over the past couple of years, strong energy efficiency standards have spurred investment in energy-saving models; however there is vast room for improvement. In September, NRDC and our partner GreenTree Global, in collaboration with India's Department of Science & Technology, brought together key stakeholders from the industry-including manufacturers, suppliers, retailers, government agencies, and research and civil society organizations-for the workshop "Advancing Energy-Efficient Ceiling Fans in India." The participants discussed existing challenges and potential solutions for advancing affordable, domestically produced, and high-efficiency ceiling fans as the country moves to increase cooling access while reducing energy consumption.

Ceiling fans have huge energy savings potential

Ceiling fans have a large energy footprint, accounting for around 40 percent of India's residential electricity consumption. India's stock of ceiling fans already measures 450 million-equivalent to almost 50 percent of the global stock. With the growing popularity of ceiling fans, India's stock of ceiling fans is expected to reach 950 million units by 2038. India's Bureau of Energy Efficiency upgraded the Standards and Labeling program for ceiling fans to a mandatorycategory in 2023. Today, all ceiling fans in India must display an energy efficiency star rating label. As per the estimates of the India Cooling Action Plan (ICAP), replacing commonly used ceiling fans (which consume 70 watts of energy) with energy-efficient fans (which consume around 50 watts of energy) could result in energy savings of 10 to 15 percent by 2027-28, with the potential for even higher savings.

Existing technology options

Currently, there are two prominent technologies in the Indian ceiling fan market:

1. The AC induction motor-based fan: This fan is simple, durable, and widely used in India. It comprises a stator and a rotor and operates through electromagnetic induction, generating a rotating magnetic field within copper or aluminum windings when supplied with AC voltage.
2. The Brushless Direct Current (BLDC) fan: These fans offerup to 66 percent greater efficiency than traditional induction motor-based fans, reducing electricity consumption. BLDC fans utilize permanent magnet rotors and sophisticated controllers for precise speed and direction management, ensuring smooth operation.

While the technology has improved, there is still a large scope for further innovations that could revolutionize the ceiling fan market and improve efficiency, performance, and design to meet evolving energy conservation and comfort demands. Several challenges-such as cost, affordability, supply chain management, trade dynamics, regulations, and quality enforcement-are slowing new product development and uptake.

Industry challenges

Stakeholders at the workshop shared their perspectives on durability issues, market demand, consumer expectations, and gap areas for R&D. They highlighted sector needs and solutions that would help drive innovation in technology, financing, and the market for ceiling fans, including:

Cost instability of BLDC ceiling fans:The cost of raw materials and overall cost of production for BLDC ceiling fans has not been consistent over time. Due to higher servicing costs and processing materials expenses, the total life cycle cost of BLDC fans is significantly higher than that of induction fans. BLDC fans also often use permanent magnets, which can be both a significant cost and an environmental issue. More sustainable ferrite magnets are available in India, but a reliable supply chain is still missing.

Sustainability of induction technology:Despite the push for BLDC technology, induction motors remain cost-effective and sustainable. The industry continues to sustain induction technology due to the lower dependency on rare earth materials and lower cost of ownership.

Durability concerns and warranty proposals:Manufacturers are highly sensitive to product durability. To ensure quality assurance for electronics, warranty mandates could act as a stopgap measure. However, quality assurance of electronics needs to be prioritized over extended warranties to guarantee product longevity and customer satisfaction.

Component sourcing and import dependency:Printed circuit board (PCB) components account for 80 to 85 percent of the cost of materials. Most PCB components are currently imported, which creates a reliance on foreign supply chains. Once wafer plants and chip packaging units are established in India, import dependency is expected to decrease, leading to long-term cost benefits for ceiling fan manufacturers.

Key research areas for ceiling fans:Optimizing airflow velocity for different climates, reducing leakage current in electronics, and establishing a thermal comfort target for India were highlighted as areas for further research. More investment is needed in blade, motor, and electronics technology, along with system-level durability testing to ensure long-term performance and energy efficiency.

At the workshop, participants were driven by the objective of reducing the cost of manufacturing a high-efficiency ceiling fan. Given the rising heat and heat-related illnesses, making ceiling fans more affordable and providing the most basic form of cooling to all in India has become more urgent than ever. Greentree Global, in collaboration with NRDC, released a fact sheeton the ceiling fan technology road map at the workshop. Over the next several months, we will continue to work with industry players to develop a road map for building an ecosystem of affordable, high-efficiency, domestically produced ceiling fans in India.

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