Probe: LED lighting 2 billion 200 million subsidy triggered butterfly effect

On May 16, 2012, Premier Wen Jiabao chaired a State Council executive meeting to discuss through the "national basic public service system planning", "12th Five-Year" of promoting the consumption of energy-saving appliances and other products of policy measures. The meeting decided to arrange 2 billion 200 million yuan of financial subsidies to support the promotion of energy-saving lamps and LED lights. 2 billion 200 million yuan subsidy may not be able to take into account all LED products, and even less than the annual income of a large enterprise, but the reasonable benefits of 2 billion 200 million can promote the popularity of LED lighting.

2 billion 200 million yuan subsidy will promote the use of LED lighting in the lighting industry, in the long run will be leveraging LED civilian lighting market. With the global energy crisis and the rise of global environmental protection, environmental protection, energy conservation has become the consensus of all mankind. With the popularization of "green lighting", it is urgent to popularize the LED lighting in the whole industry, so as to realize the protection of environment and energy conservation.

According to the relevant departments released last year, the elimination of incandescent road map, from October 1st this year, China will prohibit the sale and import of 100 watts and more general lighting incandescent lamp. With this approach, LED also began to occupy the field of public lighting and into the home lighting.

Now 2 billion 200 million of the lighting subsidies will fall, and effectively promote the popularity of LED. The author believes that 2 billion 200 million yuan lighting subsidies will be mainly from the following three aspects to promote the popularity of LED lighting.

Promote the development of LED Enterprises

Lighting subsidies can make LED companies directly benefit, so as to have more money to develop, while stimulating other companies to receive subsidies, the overall promotion of the development of LED enterprises.

KingSun chairman Li Xuliang said, the industry's high-quality large enterprises are more concentrated in Guangdong Province, the lighting subsidy scheme would have the advantage of developing leading enterprises in Guangdong, to get first mover advantage in the competition in the industry, access to the right to speak.

Li Xuliang believes that due to the subsidies will implement energy efficiency standards, the state energy efficiency standards in order to have qualification only with subsidies, and the implementation of energy efficiency leader system, making the industry of high-quality large enterprises occupy a dominant position. This is not only conducive to China's LED lighting companies, but also conducive to the development of LED enterprises in the future.

At the same time, LED lighting subsidies to enterprises have more opportunities to develop new technology, improve work efficiency and quality of the products, so as to promote the development of product technology of enterprise LED, enhanced LED enterprises in the domestic and international market competitiveness.

Prompted LED lamps prices fell

Lighting subsidies have not yet landed, LED lamps prices have begun to decline. Now LED lamp has exceeded the previous decline in the price of 15%-20% is expected, but with the subsidies, the price of LED lamps are still expected to continue to decline, to achieve the real people first price".

Rare earth prices led to the main raw material for energy saving fluorescent powder prices rose by more than 10 times, the cost of energy-saving lamps will also rise, while its competitors LED lamp recently due to the upstream chip prices continue to fall. From a number of lighting companies learned that nearly a year LED chip from 6 yuan fell to 2 yuan, driven by the LED light heavy into 3, the average price dropped to 30-100 yuan.

Two years ago, 1 watts LED chip price is about $3, but now

[1] [2] next page