In exercise of the powers conferred by clause a of section 14 of the Energy Conservation Act, 2001 52 of 2001, the Central Government, in consultation with the Bureau of Energy Efficiency, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Power

## Report on Amendment to Energy Conservation Act, 2001 related to Storage Type 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 amendment, effective from January 1, 2023, to December 31, 2025, introduces a new table (Table 3.4) specifying the maximum permissible standing losses (kWh/24 hours) for different star ratings and capacities (liters) of these water heaters. Additionally, the amendment discontinues the permission for displaying particulars on storage type electric water heaters up to a rated capacity of 200 liters with a 1-Star rating from January 1, 2023. The core purpose of this amendment is to upgrade the minimum energy performance level of such storage type electric water heaters, thereby promoting energy conservation. **2. Introduction:** This report provides an overview and analysis of the amendment to the Energy Conservation Act, 2001, as published in the Gazette of India on December 9, 2022. The analysis is based solely on the provided text and aims to inform stakeholders about the key changes and their potential implications regarding storage type electric water heaters. **3. Policy Overview:** * **Original Policy:** The amendment refers to the Energy Conservation Act, 2001, and specifically amends notification number S.O. 2902 E, dated the 7th September, 2016. * **Core Objective(s):** The core objective, as inferred from the text, is to promote energy conservation by upgrading the minimum energy performance level of storage type electric water heaters. **4. Background and Rationale:** The amendment suggests that the previous regulations regarding the energy efficiency of storage type electric water heaters were deemed insufficient. The decision to disallow 1-Star rating on products up to 200L suggests that the previous 1-Star standard was not conducive to significant energy savings. Therefore, this amendment aims to improve the energy efficiency of these appliances and encourage manufacturers to produce more energy-efficient models. **5. Key Provisions / Changes:** This section details the changes introduced by the provided amendment text: * **Specific Part of Original Policy Changed:** Paragraph 3, subparagraph 1, after Table 3.3 of notification S.O. 2902 E, dated the 7th September, 2016. Also, subparagraph 2 of paragraph 3 of the same notification is being substituted. * **New Rule/Provision:** * A new Table 3.4 is inserted, defining star ratings based on maximum permissible standing losses (kWh/24 hours) relative to the capacity (Liters) of the storage type electric water heater. This table is valid from January 1, 2023, to December 31, 2025. The standing losses are provided for various capacities (6L, 10L, 15L, 25L, 35L, 50L, 70L, 100L, 140L, and 200L) across different star ratings (1 star to 5 stars). * The permission for displaying particulars (i.e., the Star rating) on storage type electric water heaters up to a rated capacity of 200 liters with a 1-Star rating will not be permitted from January 1, 2023. * **Difference/Effect of Change:** * Table 3.4 introduces specific, quantifiable metrics for star ratings based on standing losses, providing clear benchmarks for manufacturers and consumers. * The removal of the 1-Star rating for water heaters up to 200 liters effectively raises the minimum energy performance standard for these appliances. Manufacturers will need to produce more efficient models to qualify for a higher star rating. Consumers will no longer have the option to purchase new 1-Star rated water heaters of this capacity. **6. Target Audience and Stakeholders:** Based on the text, the primary target audience and stakeholders are: * **Manufacturers of storage type electric water heaters:** They are directly affected by the new star rating criteria and the removal of the 1-Star rating for certain capacities. They need to adjust their production to meet the updated standards. * **Consumers:** They will have access to more energy-efficient water heaters and will likely see changes in the available models and their pricing. * **Bureau of Energy Efficiency (BEE):** The Central Government consulted with the BEE in making these amendments. * **Ministry of Power:** The notification is issued by the Ministry of Power. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Bureau of Energy Efficiency (BEE) is mentioned as being consulted in the process. The Ministry of Power is responsible for issuing the notification. * **Timelines:** The amendment is effective from January 1, 2023, to December 31, 2025, for the star rating plan validity. The discontinuation of the 1-Star rating also begins on January 1, 2023. * **Specific to Changes:** Manufacturers must comply with the new star rating criteria outlined in Table 3.4 and stop displaying the 1-Star rating on water heaters up to 200 liters from January 1, 2023. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of these changes are: * **Increased Energy Efficiency:** By raising the minimum energy performance standards, the amendment aims to reduce energy consumption by storage type electric water heaters. * **Market Shift towards More Efficient Models:** Manufacturers are incentivized to produce and consumers are encouraged to purchase higher-rated, more energy-efficient models. * **Reduced Standing Losses:** The specific limits on standing losses should lead to improvements in the insulation and design of water heaters. **9. Conclusion:** The amendment to the Energy Conservation Act, 2001, focuses on enhancing the energy efficiency of storage type electric water heaters through revised star rating criteria and the removal of the 1-Star rating for models up to 200 liters. These changes, effective from January 1, 2023, are expected to drive manufacturers to produce more energy-efficient appliances and reduce overall energy consumption in the sector. This amendment signifies a step towards promoting energy conservation and achieving broader sustainability goals.

Key Entities Referenced