The China government has raised the bar for LED lighting standards used to measure eligibility for subsidy programs in 2012-2013. In addition, firms cannot bid on projects with prices below production costs. China's LED industry believes there may be more than 80 firms that can obtain the subsidies.
Industry sources indicated that the bidding process should be much faster this time around since the products that firms that have entered in the bidding do not need to be retested.
The government increased the spots for eligible indoor lighting firms from 20 in February to 50. As for outdoor lighting, the government may choose as much as 30 firms. Nevertheless, due to the fact that the same firm can be chosen for indoor and outdoor lighting, the industry believes there will be around 30-50 firms benefiting from the revised LED lighting subsidy program. Furthermore, the subsidy budget for 2012-2013 is likely to increase to CNY1 billion (US$156.5 million).
From past records of the subsidy program for energy-saving lighting, firms such as Foshan Lighting and Yankon Lighting have been picked most often. In addition, international firms such as Philips and Osram have been developing the China market and are likely competitors for Taiwan-based firms. Despite the small chance of being selected, the market believes Taiwan-based firms such as Delta, Everlight and Epistar are likely to benefit directly or indirectly from the subsidy program.
The government was scheduled to announce the first round of firms in the second half of March 2012 but the announcement was never made.
In addition, the LED products need to have a three-year or longer warranty and in particular, LED street lamps need to have a warranty of four years, according to industry sources.
China to expand LED lighting subsidy budget
