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— P.P. Joshy, Founder,
Promptec Renewable Energy Solutions
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.
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