The China government said it would announce a list of firms selected for LED lighting subsidies in March. However, this announcement has been delayed. The government planned to introduce four LED subsidy programs in 2012, but with the delay, it is likely the subsidies will be lowered.
According to the LED subsidy program announced by the government, firms that are eligible for the subsidies can participate in LED lighting projects in local areas.
The first batch of LED lighting subsidies has been divided into indoor LED tube lights, reflective self-ballasted LED lights, and outdoor LED street lamps and tunnel lamps. There will be five firms selected for each of the four categories. Industry sources noted that there have been 110 firms participating and only 20 firms will be selected. In addition to domestic firms, international firms such as Osram, Panasonic, Toshiba and Philips are also participating in hopes of obtaining the subsidies.
The delay of the announcement has been causing concerns in the market. Industry sources indicated that there should be another announcement in second-half 2012.
In addition to LED lighting subsidy programs, China's State Council will likely announce details of the energy-saving and LED lightings subsidies listed in the 12th Five-Year Plan in July. The subsidy budget for energy-saving and LED lighting is CNY2.2 billion (US$345 million). In particular, LED lighting is expected to receive most of the subsidies. This is likely to decrease the price of lighting products by 20%, according to the market. Nevertheless, China-based LED firms noted that CNY2.2 billion is a relatively small budget for lighting products because there are more than 100 LED firms in China.
China government delays key announcement of LED lighting subsidies
