Do not let financial subsidies ruined the entire LED industry

A recent report by the National Audit Office, Anhui province energy investment limited power LED green lighting project through false reporting, defrauding the central government subsidies for energy-saving projects invested 9 million 900 thousand yuan. In addition, Guangdong snow Wright photoelectric Polytron Technologies Inc lied to compensate 3 million 455 thousand yuan, Guangdong Province, 100 percent Technology Co., Ltd. cheated to fill up to $232 thousand.

A Zhongshan LED enterprise sales responsible person said, "now if you want to get a government project, the enterprise must, The Eight Immortals Crossing the Sea gexianshentong". In Guangdong, for example, during 12th Five-Year, the provincial fiscal year invested 450 million yuan to set up special funds for the development of LED industry, no doubt to promote the development of LED industry. But in order to compete for this special funds, companies have not taken less than a variety of means". An unnamed source said, can get government subsidies or projects, both hard and soft power must have, but compared to the two, soft power is more important. "This is a critical time to test relationships and government resources". The person said.

LED need government subsidies to achieve energy saving?

LED really need such subsidies in order to achieve energy saving? The industry also has different views. Guangdong provincial radio and Television Corporation, said the division chief economist Xin Yu, under the same lighting intensity, LED street lamp is not more energy saving than high-pressure sodium lamp. Coupled with the current specifications of various manufacturers LED lamp is very different, once the replacement will encounter a lot of problems. Because it is not fully standardized as the high-pressure sodium lamp. Many industry insiders also believe that LED really energy, but not necessarily environmentally friendly. Because the overall production process of LED lamp may be quite energy consumption. If the production and recycling of waste in the process of energy consumption together with the calculation, but higher than the general bulb.

In July 31st, the Guangdong Provincial People's Congress seminar, a Guangdong Provincial People's Congress clearly opposed to the "serious implementation of the public lighting field to promote the use of LED lighting products" written into the provincial development and Reform Commission report, he said that if the government is to support, support R & D, and not to support the promotion of products. At the same time, to promote the LED to the market, so that the market to choose, if the government to promote a strong money, it is easy to make mistakes.

It is understood that China's LED industry is still in its infancy, the price system, product specifications, technical standards, industry standards, government policies and other aspects are not mature. If you rely solely on subsidies to swarm into the LED industry, it will make this industry irrational. Reporters learned that, Foshan, a well-known general manager of the LED company recently chose to resign, when a university teacher.

In fact, the LED industry, such as the unspoken rules and other issues, mainly companies too dependent on government financial subsidies, which is quite the same with the home appliance subsidies, but also with the local government's industrial policy guidance. As the LED industry, run in the BDO optoelectronics support of the local government, in 2011 net profit growth rate have exceeded 100%, the profit of government subsidies on BDO run contribution rate of 79%, net profit for the three optical contribution rate is as high as 90%. These companies have little market.

According to the National Audit Office recently published the "5044 energy conservation project audit results, comprehensive utilization of renewable energy and resources, the central government in 2011 and 2012 were arranged at the same level and the transfer payment to 18 provinces in energy conservation and utilization of renewable energy resources and comprehensive utilization of energy conservation and environmental protection in the three paragraph level on the subjects of funds 81 billion 883 million yuan. Among them, the promotion of efficient lighting products 1 billion 876 million yuan. Some industry insiders worry that if the government blindly subsidies to support the LED, will lead to the footsteps of this emerging industry pv. Photovoltaic is some people use the concept of new energy to defraud the government subsidies. "A learned photovoltaic enterprise internal staff said.

It is understood that China's LED core technology is mainly in foreign countries, once the core technology is blocked, will suffer. If such a situation occurs, the original government's generous financial subsidies to LED, it will cause a lot of excess capacity, vicious competition between the industry, and ultimately destroyed the entire LED industry.