Ujala Scheme

In 2015, the Government of India introduced the Ujala scheme, standing for Unnat Jyoti by Affordable LED for All. This initiative aimed to replace 77 million incandescent bulbs with energy-efficient LED bulbs across the country. The goal was to gradually distribute LEDs to households, ensuring that everyone could access affordable lighting solutions while saving on electricity bills.

What is Ujala Scheme?

Under the Ujala initiative, grid-connected users can purchase LED lights at approximately 40% off the market price through their electricity distribution company with a metered connection.
Recognizing the importance of saving energy in a densely populated country, the Government of India introduced the UJALA (Enhanced Life by Affordable LEDs and Appliances for All) scheme in 2015. The aim was to provide LED-powered appliances to every household, making them more affordable and efficient.
This strategy enabled a large base of price-sensitive customers in the country to purchase LEDs by making them affordable. Experts have nicknamed confidence in LED efficiency “light path,” indicating its significance as the guiding force for illumination.
CESL, a subsidiary of EESL, will provide bulbs at a discounted rate of $10 each, covering all expenses. It is also a part of the Azadi Ka Amrit Mahotsav celebrations.
CESL will provide 7W and 12W energy-saving LED bulbs with a three-year warranty for incandescent bulb replacements under the program.

Objective of Ujala Scheme

To create phased distribution of LEDs across the country.
To increase broader public knowledge about the need for energy efficiency.
To promote energy efficiency at household level across India.
To spread the message about how energy efficiency affects environmental protection in the long run.

Features of Ujala Scheme

The UJALA scheme, run by Energy Efficiency Services Limited (EESL), a government initiative, is known as the world’s largest home lighting project.
The initiative, initially named DELP (Domestic Efficient Lighting Programme), underwent a rebranding to become UJALA. Led by EESL within the Ministry of Power, the UJALA scheme uses a ‘demand aggregation-price crash model‘ to lower prices through economies of scale.
Through the UJALA scheme, the government provides two payment options for the acquisition of LED bulbs.
Users with metered connections through their individual electricity distribution companies can avail LED bulbs at approximately 40% of the market price under this scheme.
Electricity Distribution Companies and Energy Efficiency Services Limited (EESL), a governmental public sector organization in India, are working together to implement the initiative.

Importance of UJALA Scheme

The UJALA program spearheaded a transformative initiative in energy efficiency within the market.
By facilitating a switch from costly incandescent bulbs to LEDs, the program not only slashed household electricity bills by 15% but also enhanced home lighting standards.
Families benefited as the saved funds could be redirected towards discretionary spending and long-term investments, thereby enhancing their overall quality of life and fostering community prosperity.
The program’s success was evident in the domestic LED market, which surpassed expectations by selling over 1.15 billion LED units, exceeding the initial target of 700 million by 2020.
The government’s commitment to advancing lighting and energy efficiency is underscored by aggressive initiatives like the Street Lighting National Program (SLNP).
Under the SLNP, EESL aims to attract investments worth ₹8,000 crore (approximately US$1.09 billion) to illuminate rural India entirely with LEDs by 2024.
Installing and updating about 30 million LED street lights shows a big step forward in making the country more energy efficient.