It's still about cost, just long-term now

The pocketbook rules. Definitely for the price-sensitive Indian consumer. The evolution of the Indian consumer from simply considering the ticket price of an appliance to considering the cost of running the appliance over its lifetime, or its energy efficiency, is a sign of growing maturity. The Indian consumer continues to be price-sensitive. What has changed is his or her understanding of cost. This transformation has been slow and steady, brought through regulatory measures and increased awareness among consumers, retailers, manufacturers and, most importantly, making the financial benefits obvious.

Leading the charge is the Bureau of Energy Efficiency (BEE), the government agency responsible for the star-studded red-arch label found on more than 30 different appliances. BEE began its star rating programme in May 2006, a simple system that classified appliances based on energy use - the most energy efficient get five stars and the least, one. The star energy-efficiency rating is mandatory for 11 appliances, including air conditioners, ceiling fans, refrigerators, LED lamps and television sets. For another 23 appliances such as microwave ovens, computers and solar water heaters, it is voluntary. Over a time, the rating becomes mandatory. For consumers, the star rating has always been a guide to determine the cost of running the appliance. The idea of paying for energy efficiency has been popularised by quantifying savings through lower operation costs through the lifetime of the appliance.

India's domestic electricity consumption is rising. At present, it accounts for more than a quarter of total energy demand. Growing incomes and global warming will drive up appliance use and energy consumption, making energy efficiency crucial.