An absence of standards is hindering growth in the Chinese market for energy-saving LED lighting. Although the government is encouraging the sector's development, aiming for a market value of USD79.4 billion by 2015, the take-up of the technology has been sporadic.
Local government efforts to encourage LED use in commercial buildings, government offices and malls but have met with only limited success, according to a report in the China Securities Journal. When it comes to research and development, the picture is brighter with Guangdong Province leading the field, having fostered collaboration between universities, research institutes and local enterprises to create indices for LED quality and efficiency.
According to the report China faces two issues: a misunderstanding of the cost benefits and a lack of standards against which product performance can be measured. While the government's aim was to have up to 30 companies specializing in LED technologies, the country currently has an estimated 8,000 LED companies, many of them making poor-quality products which tarnish the sector's reputation.
Li Guoping, chairman of the Guangzhou Hongli Opto-Electronic, told the paper that prices for similar-looking LED products can vary from CNY20 (USD3.1) to CNY200 (USD31), which is confusing for customers.
He also pointed out that while companies in China are concerned about up-front costs of LED installation compared with traditional lighting, this can be off-set through energy saving in about 15 months if the lights are used 8-10 hours per day.
