It is still undetermined whether or not the new household energy efficiency subsidy will have an influence on the second half of the years LED TV stock movement. The market predicts that with the ending of the energy efficiency subsidy, China might issue a new household energy subsidy this October. Industry insiders believe that unlike the last energy efficiency subsidy which used the generalized preferential system, the new subsidy might use a forerunner subsidy method. That is to say, only products which display high energy efficiency will receive the subsidy. With the previous subsidy, beneficiaries mainly included Chinese color television manufacturers such as Haier, TCL, Laseron, Konka, and Hisense. There were over 100 TV manufactures that received the subsidy. These manufactures have already begun cooperating with LED manufactures to produce direct lit TVs in order to increase their likelihood of receiving the new subsidy.
LED manufactures have been aggressively producing new direct lit LED TVs and have started the authentication process with color TV manufactures. This is in order to strategize in advance for the new subsidy. The industry believes that the new household energy efficiency subsidy will use the forerunner method; it will only provide subsidies to TVs which provide the highest energy efficiency, unlike the previous generalized preferential system. This in order to encourage manufactures who take the lead in energy efficiency production.
Industry insiders believe that the possible new energy subsidy will have higher demands for EEI (Energy Efficiency Index). The last subsidy EEI had a maximum of 1.7 and 1.9 whereas the new subsidy EEI demands will be increased. There was a substantial amount towards direct lit LED TV in subsidy for the last policy, and with color TV manufactures quickening their pace with developing TV sets that use a smaller amount of wafers, energy efficiency performance continues to increase for direct lit LED TVs.
