Draft Amendment to MoP notification SO 2902 (E) for Stationary type Storage Electric Water Heater

## Policy Analysis Report: Amendment to Energy Conservation Act, 2001 related to Electric Water Heaters **1. Executive Summary:** This report analyzes an amendment to the Energy Conservation Act, 2001, specifically concerning the star rating plan for storage-type electric water heaters. The core purpose of this amendment, as inferred from the text, is to upgrade the minimum energy performance standards for these appliances. The key finding is that the amendment introduces a new table (Table 3.4) defining star rating criteria for the period January 1, 2023, to December 31, 2025, and prohibits the display of 1-star ratings on water heaters up to 200 liters from January 1, 2023. This aims to improve energy efficiency by removing the least efficient models from the market. **2. Introduction:** This report provides an informative analysis of a recent amendment to the Energy Conservation Act, 2001, based on the provided official notification. The focus is on understanding the specific changes related to the energy efficiency star ratings of storage-type electric water heaters. **3. Policy Overview:** * This document is an amendment to the Energy Conservation Act, 2001. * **Core Objective(s):** To enhance energy efficiency standards for storage-type electric water heaters, as inferred by the introduction of stricter rating criteria and removal of the lowest performing (1-star) models. **4. Background and Rationale:** This amendment likely stems from a desire to further improve energy conservation across household appliances. The initial energy conservation act established a framework for labeling and setting standards. This specific amendment appears to address a perceived need to increase the minimum energy performance level of electric water heaters. By eliminating 1-star rated water heaters up to 200 liters, the amendment pushes manufacturers and consumers towards more energy-efficient options. **5. Key Provisions / Changes:** The key changes introduced by this amendment are: * **Specific Part of Original Policy Changed:** Paragraph 3, subparagraph 1(a) of the original notification S.O. 2902 E, dated the 7th of September, 2016 is being amended by inserting Table 3.4. Subparagraph 2 is being substituted. * **New Rule/Provision:** * A new Table 3.4 is inserted, defining the Standing Losses (kWh/24 hour/45°C) criteria for achieving 1-star to 5-star ratings for electric water heaters based on their rated capacity (liters). This table applies from January 1, 2023, to December 31, 2025. * The permission to display a 1-star rating on storage type electric water heaters up to 200 liters is prohibited from January 1, 2023. * **Difference/Effect of Change:** * Table 3.4 establishes updated benchmarks for energy efficiency ratings. * The prohibition of 1-star ratings effectively removes the least efficient water heaters (up to 200 liters) from being marketed with a star rating, forcing them to either improve their energy efficiency or be sold without the label, potentially impacting their marketability. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders are: * Manufacturers of storage-type electric water heaters (especially those producing models up to 200 liters). They are directly affected by the new rating criteria and the ban on 1-star labeling. * Consumers of storage-type electric water heaters. They will see a change in the availability of rated appliances, with the lowest efficiency models (1-star) no longer available with the star rating label in smaller sizes. * Bureau of Energy Efficiency (BEE), as they are responsible for implementing and monitoring the star rating program. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Central Government (Ministry of Power) and the Bureau of Energy Efficiency (BEE) are responsible for implementing and enforcing these amendments, in consultation with each other. * **Timelines/Procedures:** The new regulations are effective from January 1, 2023, and the star rating plan validity extends to December 31, 2025. Manufacturers would need to adjust their designs and testing procedures to comply with the new energy efficiency standards outlined in Table 3.4, if they intend to label their products with a star rating. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of these amendments are: * Increased average energy efficiency of storage-type electric water heaters sold in the market. * Reduced overall energy consumption by households using electric water heaters. * Stimulation of innovation in water heater technology to achieve higher star ratings. * Potentially increased cost of lower-capacity water heaters, as manufacturers may need to invest in more efficient components. **9. Conclusion:** The amendment to the Energy Conservation Act, 2001, represents a tightening of energy efficiency standards for storage-type electric water heaters. By introducing updated star rating criteria and eliminating the 1-star rating for smaller capacity models, the government aims to drive increased energy savings and promote more efficient appliance technology. This is significant for manufacturers who must adapt to the new requirements and for consumers who will have access to a more energy-efficient range of water heaters.

Key Entities Referenced