The State invests 2.2 billion to promote LED lighting and trigger the butterfly effect

On May 16, 2012, Premier Wen Jiabao of the State Council presided over the State Council Executive Meeting to discuss and adopt the “Twelfth Five-Year Plan” of the National Basic Public Service System, and studied and determined policies and measures to promote the consumption of energy-saving home appliances and other products. The meeting decided to arrange financial subsidies of 2.2 billion yuan to support the promotion of energy-saving lamps and LED lights. The 2.2 billion yuan subsidy may not be able to take into account all LED products, and even less than the annual revenue of a large enterprise, but a reasonable profit of 2.2 billion can promote the popularity of LED lighting.

The 2.2 billion yuan subsidy will promote the promotion and utilization of LED lamps and lanterns in the lighting industry. In the long run, it will also instigate LED civil lighting market. With the rise of the global energy crisis and the wave of global environmental protection, protecting the environment and saving energy have become the consensus of all mankind. With the promotion and popularization of "green lighting", the popularity of LED lighting in the entire industry has no time to delay, so as to truly achieve environmental protection and energy conservation.

According to the phase-out incandescent light map issued by the relevant departments last year, from October 1 this year, China will ban the sale and import of incandescent lamps for general lighting of 100 watts or more. As this time approaches, LEDs have also begun to dominate the public lighting sector and have stepped into home lighting.

Now 2.2 billion lighting subsidies are about to land, and effectively promote the popularity of LED. The author believes that 2.2 billion yuan in lighting subsidies will mainly promote the popularity of LED lighting from the following three aspects.

Promote the development of LED companies

Lighting subsidies can make LED companies directly benefit, so that they can have more funds to develop, while stimulating other companies to obtain subsidies to promote the development of LED companies as a whole.

According to Li Xuliang, chairman of Qinshang Optoelectronics, many high-quality large-scale enterprises in the industry are concentrated in Guangdong Province, and the lighting subsidy program will be conducive to cultivating leading enterprises in Guangdong, allowing them to obtain first-mover advantage in the industry competition and gain the right to speak.

Li Xuliang believes that since this subsidy will implement energy efficiency standards, only the relevant energy efficiency standards that meet the national regulations will qualify for subsidy, and the implementation of the energy efficiency “leader” system will allow the industry's large and high-quality companies to take a dominant position. This is not only beneficial to China's LED lighting companies, but also conducive to the future development of LED companies.

At the same time, the lighting subsidies allow LED companies to have more opportunities to develop new technologies and improve the efficiency and quality of their products. This will promote the development of LED product technology and enhance the competitiveness of LED companies in the domestic and international markets.

Drive LED lamp prices down

Lighting subsidies have not yet landed, LED lighting prices have already begun to decline. Now the decline of LED lamps has exceeded the previous price reductions of 15% -20% of the expected, and with the subsidy led, LED lighting prices are expected to continue to decline to achieve a true "close to the people."

The soaring price of rare earth products has led to a steep increase in the price of fluorescent powder, the main raw material for energy-saving lamps, by more than 10 times, and the cost of energy-saving lamps has also risen. However, its competitors' LED lamps have been declining in recent days due to lower price of upstream chips. From a number of lighting companies have learned that LED chips fell from 6 yuan to 2 yuan in the past year, led LED lights down by 30%, the average price dropped to 30-100 yuan.

"Two-year-old 1 watt LED chips cost about 3 US dollars, but now they have fallen to less than 1 US dollar. Some Taiwanese and mainland-made chips are even cheaper, and even 3 yuan a piece." Chairman of Foshan Lighting Association Wu Yulin said. Xu Ruiguang, who started production of LED chips in May, was introduced by the relevant person in charge. "In the past year or so, the price of chips has dropped from six to more than two yuan."

The huge market potential of LED home lighting gradually highlights, originally LED civilian market share of less than 5%, now is increasing at a rate of 200% per year, on the one hand subsidies make the price of LED products drop, on the other hand many manufacturers in order to grab The market cuts prices in advance.

Inciting LED market development

Lighting subsidies attracted the attention of many LED companies before they were issued. As the beneficiary group of lighting subsidies is a competitive enterprise, in order to obtain financial subsidies, LED lighting companies are striving to develop their own products, enhance the quality of products, and strengthen the company through mergers, research and development of new technologies, and design of new products. Competitiveness. The current lighting subsidies have not yet been issued in place, it has triggered the collapse of some companies or restructuring, 2.2 billion lighting subsidies will also be able to promote further changes in the industrial environment.

The average daily use of home lighting is far less than that of the commercial and public sectors. For over ten years, the long lifespan is not attractive to consumers. Therefore, the current LED lighting is mainly used in public lighting in first-tier cities and second-tier cities, but the lighting subsidies are used to LED's advantages and make up for its deficiencies, can promote the LED lighting market in the third-tier cities and strongly promote the development of the home lighting market.

Renmin University of China professor Liu Junhai said that in addition to the government procurement market, the LED industry should pay more attention to the commercial market. “Although the government is a big buyer, the nature of government procurement determines the limited nature of government procurement budgets.” At the same time, Liu Junhai reminded that government procurement is a lever but only a lever.

Breaking the bottleneck into the home

The author believes that the lighting subsidies can break through the bottleneck of LED lighting through the promotion of the above three aspects. There are three bottlenecks in the popularity of LED lighting. First, people's acceptance is not high. Second, LED photoelectric conversion efficiency still needs to be improved. Third, higher prices are more difficult for ordinary consumers to accept. The subsidy of lighting on the one hand can prompt manufacturers to increase the efficiency and quality of LED lamps, while reducing the price of LED lighting products. As a result, consumers will also be happy to purchase and use LED lighting products. .

The responsible person of BDO Runda also pointed out that although the “Twelfth Five-Year” special plan for the development of semiconductor lighting technology previously issued by the Ministry of Science and Technology (Draft for Soliciting Opinions) is also expected to reduce the price of terminal products through localization of chips, it is actually still Far from enough. “At present, there are subsidies and incentives for the use of terminal LED lighting products by the public in Japan, the United States, and the United States, and they are very effective. There is no specific timetable for this country.” The author believes that LED subsidies can learn successful experience abroad. However, it should not blindly imitate the methods of other countries, but also should combine the actual situation of China's LED market, so as to better promote the progress of LED products and industries.

Of course, the 2.2 billion yuan in lighting subsidies can be said to be a good idea. The popularization of LED also requires the joint efforts of local governments, enterprises, and users. It is believed that the implementation of lighting subsidies will surely promote the popularization of LED lighting from multiple perspectives, allowing green energy-saving and environmentally friendly lighting to enter the home of ordinary users as soon as possible.