The Economics of Cooling
The Affordable Cooling Ladder
How households move up from basic fans to coolers and ACs, the costs and efficiency of each, and why efficient fans can make a big difference.
Most Indian households cool themselves with a ladder of options, depending on income and climate.
Step 1: Ceiling fans
- The most common cooling device in India.
- Cheap to buy and run.
- New BLDC (brushless DC) fans use much less electricity than conventional fans, often about half, though they cost more upfront.
Step 2: Air coolers
- Evaporative coolers use water to cool air.
- Work well in dry regions like Rajasthan and parts of North India.
- Use far less electricity than ACs.
- Less effective in humid coastal areas.
Step 3: Air conditioners
- Most effective cooling, especially in humid heat.
- Expensive to buy and run.
- Efficient inverter models reduce running costs.
Choosing wisely
- Climate: coolers suit dry heat; ACs suit humid heat.
- Room size and insulation.
- Electricity costs and reliability.
- Upfront budget.
Efficiency matters at scale
Because India has hundreds of millions of fans, switching to efficient fans could save enormous amounts of electricity. The government has promoted efficient fans through programmes and star labels.
Combining options
Using a fan with an AC set at a higher temperature can maintain comfort while saving energy.
A household replaces four old ceiling fans with BLDC fans. Its electricity bill drops noticeably, and the extra cost is recovered within about two years.
Efficient fans and coolers provide affordable cooling, especially in dry climates.
- Households move from fans to coolers to ACs as incomes rise.
- BLDC fans use about half the electricity of conventional fans.
- Coolers suit dry climates; ACs suit humid heat.
- Efficient fans at India's scale could save huge amounts of electricity.
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