LED is expected to enjoy the subsidy market is not infinite?

The lack of standards and cores in the LED industry, high costs, and high prices are currently a problem. Financial subsidies have also attracted the attention of people in the industry and are affecting global nerves.

Event 1: Saving Electricity Landscape Lighting is Disabled

On May 9th, Changsha, a new Jiahou Jiatang store in Changsha, and Lidu Building in Wuyi Avenue illegally opened up landscape lighting. It was forcibly shut down by Changsha's orderly power special inspection personnel and ordered to be rectified. Changsha Municipal Power Supply Office issued a notice a few days ago that the street lights will be halved and landscape lighting lighting will be suspended.

On May 12, the General Office of the Municipal Government issued the “Emergency Notice on Strengthening the Use of Electricity to Protect People's Livelihood” (hereinafter referred to as the “Notice”), requiring that all landscape lighting and lighting projects be shut down, and only the need for safe lighting in public places should be guaranteed. At the same time, energy conservation is encouraged, and incidents of serious energy waste will be exposed in a timely manner.

On May 13, the National Development and Reform Commission held a meeting to discuss the issue of electricity prices in five provinces, such as Hunan and Anhui, to resolve the increasingly serious power shortage in these provinces.

Event Two: The Recall of "Ten City's Ten Thousand Miles"

"Street lights can be said that LED is not suitable for most applications." Xu Huai, executive vice chairman of China Illuminating Engineering Society, said recently. Hua Shuming, director of the Beijing Institute of Electro-optics, also said: "Ten cities are used to discover problems."

In most countries of the world, the indoor lighting market is booming because the indoor market is naturally larger than outdoor lighting. However, China is an exception. Industry insiders told reporters that the demonstration project of “Ten Cities and Ten Thousand People” started in 2009 gave birth to the outdoor lighting market in China.

At that time, there was a promising street market, but at this time many turned to question.

Event 3: Multiple policies to stimulate the development of the LED industry

It is reported that on May 12th at the Shanghai International New Light Sources and New Energy Lighting Forum, Deputy Director of the Department of Circumstances and Resources of the National Development and Reform Commission Xie said that the National Development and Reform Commission is working with relevant departments to consider the inclusion of LEDs in the “Green Lighting Project” and is expected to During the year, some LED products will be included first, which means that semiconductor lighting products will enjoy financial subsidies.

Wu Ling, Secretary General of the National Semiconductor Lighting Engineering R&D and Industry Alliance, also stated that semiconductor lighting, as a strategic emerging industry, is involved in energy conservation, environmental protection and new materials. The government’s support for the LED industry during the “12th Five-Year Plan” is expected to continue to increase. Big, "In addition to financial subsidies, there will be some issues related to the policy package from R&D to fiscal and taxation."

Question one: If the LED financial subsidies market is infinitely significant?

Since 2009, large-scale LED construction projects have been introduced in various regions and huge subsidies have been provided for major equipment such as MOCVD. This year, this trend will shift—government subsidies for equipment will gradually stop, and related subsidies are expected to fall into the hands of consumers.

Analysts believe that if LED products can be selected into the green lighting project and get financial subsidies, it will help open up the end market and fundamentally ease the pressure on chip overcapacity.

Wang Keyang, general manager of Veeco Greater China, pointed out that the government subsidizing MOCVD equipment is a huge potion at the beginning of industrial development, but in the next stage, more LED lighting applications should be developed to subsidize end users, and the price of LED products should be pulled to the common people’s acceptance. Degree to stimulate consumption. "It's not enough to be ten cities and ten thousand people. If every family can have one or two LED lights, this market will be infinitely impressive."

Aware of this trend, many lighting companies have already laid out in advance. For example, Sunshine Lighting announced on the 7th that 900 million yuan was raised for energy-saving lighting projects such as LED, and it reached a strategic cooperation with Taiwan Jingyuan Optoelectronics Co., Ltd. to ensure upstream chip supply. NVC Lighting, a Hong Kong-listed company on the Main Board, had previously reached similar strategic cooperation with Cree.

Then, if the subsidy acts as a "magic drug," will the LED industry expect to achieve a quadrupling target during the "12th Five-Year Plan" period and achieve rapid development? How long can LED lighting persist in various blowout booms?

Question two: City landscape lighting and conservation of environmental protection phase?

At present, power supply shortages have occurred to varying degrees in most areas of China, and the contradiction between supply and demand for electricity in some regions has been earlier in time, wider in scope, and has increased in gaps. From the beginning of last year, there have been successive incidents of saving electricity and shutting down landscape lighting. For example, Guangdong Qingyuan has turned off lights for energy conservation, shutting off public facilities and decorative landscape lighting; Hubei has encountered a tight coal-fired power situation and shut down landscape lighting; Chengdu China Center Urban elevator limit line, landscape lighting and so on. The role of landscape lighting is mainly to create elegant and comfortable nighttime environment for people, and to play a role in safety and alertness. Therefore, urban landscape lighting has its necessity. However, in addition to the large amount of electricity and energy consumed in the city lighting environment, light pollution is sometimes caused. In today's energy shortage, this seems to be contrary to the international social theme of energy conservation and environmental protection. Therefore, some people think that the urban lighting environment causes the waste of economy and energy. The reform of the lighting environment of the city square and the necessity of planning and design are questioned.

Interpretation:

The tension in electricity supply is not the full responsibility of landscape lighting, but why do major cities need to turn off landscape lighting? In short, the reason for this is that landscape lighting consumes a lot of electricity and, in addition to some designs, there is light pollution, and it is a frustrating move to prevent residents from seriously restricting their electricity use. However, to solve this problem, in the implementation of urban environment art lighting design and urban lighting environment engineering, energy conservation and environmental protection must be designated as the theme. In the comprehensive application of various energy sources and equipment and coordination, a large number of energy-saving light sources must be used.

LED has been widely used in landscape lighting in China's large and medium-sized cities due to its features such as energy saving and environmental protection, long life, high reliability, rich colors, and easy control (responsiveness is quick, it is convenient for non-standard design, and long span control). However, the effects of “Ten Cities and Ten Thousand People” and the large amount of light pollution have caused citizens to doubt the effectiveness of LED lighting in energy conservation and environmental protection.

Actually, it is not unreasonable. There are indeed some corporate units and even some governments and individuals that have built up their own billboards and advertising towers in a city without planning and design. The final result of the combination is that it unconsciously lost the image of the city, polluted the night environment of the city square, and caused great harm to the citizens.

Ten cities, how tempting big cake. Many companies flocked to the area. We encountered the original owners of shoes, real estate, and green projects. They all started to try LED street lights. Do LED street lights surely make money? According to our visit to the company, the answer is no. Some companies do not have enough practical experience. They have failed to pass the street lights and have not sold out. They have paid a large amount of tuition fees. Some company lights have been made, but the market is poor, there is no government relationship, and the result is still not sold. At the beginning of the year, many organizations shouted that they will release 1 million LED street lamps this year. However, only 222,000 baht was actually installed this year, and the market size was overestimated.

The replacement of incandescent lamps with fluorescent tubes is due to the energy saving of fluorescent tubes, white light, and linear light sources. Why do LED lamps need to replace high pressure sodium lamps? LED street light advocates said that because of LED street lamp energy saving, high color rendering, good light color and low maintenance cost. However, we also heard the voices of some citizens. “The LED lights look too dark”, “LED lights make people feel cold”, “Can you really install this kind of expensive lighting to recover the cost?”.

The LED projects in the United States, South Korea, Japan, Europe and other countries all drive the market through R&D and technological advancement. China's "Ten Cities and Ten Thousand Cities" project just reversed, hoping to boost R&D and technological advancement by expanding the market, and eventually achieve the purpose of driving industrial development. As mentioned in the previous article, “Ten Cities and Ten Thousand Peoples are used to discover problems”. It's a big move, a big move, and a labor and material expense to prove that “a street light is the most unsuitable application for LED”. I think this question is worthy of consideration by relevant parties.

There is no doubt that the "ten cities and ten thousand people" to a certain extent promote the development of China's LED industry, the main problem is how much the driving force. The government project is limited, and the long-term development of the industry ultimately depends on the civilian market.

Up to now, policy developments such as the “Ten Cities, Ten Thousand Cities” program and the “20 Cities, Thousand Cities Project” initiated by China have not been as expected because of cost and technical difficulties. LED lighting has not yet entered the average home, and outdoor lighting is far from universal. Once the lighting market evolves less than expected, the LED industry will face the attack of saturation of backlight applications and the inability of the new market to open up, and the industry must imply huge risks.

As Wu Chunhai, director of Planning and Design Office of the Shenzhen Lighting Environment Management Center, said: “At present, people seem to have overlooked the nature of LED street lighting when promoting and promoting LED street lamps and other lighting products, over-promoting the benefits of energy saving and environmental protection. Under the premise of certain lighting quality, the energy-saving effect of LED street lamps will make sense."

Conclusion:

Over time, if electricity continues to be tense and major cities shut down landscape lighting, it can be imagined that the lighting industry's market will shrink. Of course, lights will be needed as long as there is night, but how to use the long-lived, energy-saving and environmentally-friendly LED light sources that have been discovered to overcome technical difficulties and ensure quality is the best application in all areas including landscape lighting, and is every industry People need to think deeply, not just follow the trend.

The author's concern is that this kind of result will not only end up with huge human, material, resources, waste of land, and a divorced outcome, but the winners who will eventually be killed from the bloodshed will be lighter. Relaxed by international lighting giants or international capital, it is not known whether the LED industry is in the end to marry someone else. However, since people in the industry have reached a consensus on the vitality and prospects of this industry, if the LED lighting products enjoy financial subsidies, it is hoped that the relevant winning companies can assess the situation and take advantage of this opportunity to truly promote the development of the LED industry.

Facing the status quo of the LED lighting industry, how to make it healthy, orderly, and rapid development is a serious problem facing the government, enterprises, and other related parties.