Founded in 1998, Bangalore-based Promptec Renewable Energy Solutions is a pioneer and industry leader in LED, solar lighting and power solutions. P.P. Joshy talks to Electrical Monitor on how solar power in conjunction with energy-efficient consumption devices like LED lights is just what energy-starved India needs. Joshy is also upbeat about the fact that technology, economies of scale and competition are significantly bringing down capital costs of LED systems. An interview by Venugopal Pillai.
To start with tell us in brief about Promptec's range of lighting products products made by Promptec.
Promptec has been into the LED lighting space and has developed several innovative products in the lighting and solar space. Promptec has significant focus on outdoor lighting, industrial lighting, office lighting and solar lighting. Our biggest growth drivers include solar LED lighting due to cost advantage of Solar LED lights when compared to CFL solar lighting, office lighting and outdoor lighting.
Although much is known about the advantages of LED lighting over CFL and GLS, the market penetration of LED in India has not been significant. What could be reasons?
High growth requires a high rate of capital infusion, which is difficult to come across in today's markets. Thankfully, our early investors have seen and believed in Promptec's strengths and growth. They have infused capital when needed and have also helped raise capital to stay ahead of the curve.
Another challenge in rapid adoption of LED lights is the higher initial upfront cost. Promptec is actively working with NBFCs to setup financing for installations, which could then easily be paid from the energy savings thus generated.
However, the costs of LED lights are down by almost by 60 per cent when compared to what they used to be say two years ago. Likewise, the costs are going to come down significantly over next year or so. In some of the segments the break-even on the investments has come down to less than 5-6 months when compared to 1-2 years, couple of years back.
Do you feel that costs of LED lighting are coming down, possibly due to technology and economies of scale?
Costs of LED Lights have significantly come down and it will keep reducing over the next two years. This is mainly due to reduction in costs of LED, increased economies of scale in LED and also associated material such as light casing, PCB etc. Competition coming from an increase in the number of market players in all areas of LED manufacturing has also contributed. As these costs are reducing, the market adoption is faster and wider.
We understand that India is dependent on imports for crucial components used in LED drivers. What is your view?
Yes, India is significantly dependent on the import of LED semiconductor chips. Any fluctuation in foreign currency rates also affects our market.
We perceive that government accounts for over one-fifth of the total electricity consumed by lighting. Do you therefore feel that government should aggressively take to the cause of energy efficient lighting?
Yes, government utilities and offices amount to significant portion of usage. We have seen progressive policies by the government to utilize energy efficient systems. However, due to non-partial and transparent processes government departments adopt, buying the LED solution might take little longer. We are happy to see most of the government departments are very eager to adapt to LED.
Tell us about Promptec's products in the field of solar power.
One of Promptec's main focus areas is in solar lighting. However, lighting is on the consumption side and hence it can be used with energy generated from solar, wind and biomass applications. Promptec has developed solar charge controllers, battery chargers to integrate with renewable energy generators. This helps to store the energy in the battery. Some of the key products we manufacture in this area include solar street lights of various capacities, solar home lights, solar lanterns and solar charge controllers.
India is beginning to see a sharp growth in grid-connected solar power capacity under the JNNSM. What is your outlook for solar energy in India?
Yes, there is significant adoption of solar power packs as an alternate source of energy. Thanks to the JNNSM scheme and also the "productized" approach of companies, adoption is becoming easier. It is very important to cut the demand by using energy-efficient products such as LED while implementing the solar power solution. As LED lights save more than 60 per cent energy, the cost of implementation of solar power solutions can significantly come down with adoption of LED.
Tell us the role played by off-grid solar solutions like solar-based LED lanterns etc in rural electrification. What are Promptec's product offerings in this field?
Solar-based lighting products are very useful and can operate without grid connectivity, especially in rural areas where there are huge power cuts and also absence of grid connectivity. However, this is a cost-sensitive market. We have developed an innovative lantern product which reduces cost burden on customer and provides best of the quality. The light output, duration of light and reliability of product are unmatched. We have sold more than a million lanterns over the last five years and we intend to sell at least a million lanterns over next 2 years.
Please summarize your view on the increasing role played by renewable energy solutions-both as upstream power generators and downstream power consuming devices-in India's quest for meeting growing energy demands and mitigating carbon footprint.
Renewable energy, especially solar, not only forms a green and clean solution but also due to the gradual reduction in panel prices, it is becoming affordable, fast and easy to implement.A 1-mw thermal power station may take about a year to install while solar would take less than four months. Thanks to the government push, adoption has significantly increased. In a couple of years, you will notice that solar power will be a common scene in households as well.
Similarly, with power cuts and increase in power tariffs, energy efficient devices such as LED lights reduce significant burden on consumers.
