Government in China Subsidizes Production of Energy-Saving Lamps

The Chinese government is to implement a subsidy program to promote the production of energy-saving bulbs. Such move not only is in tune to the global green movement, but is also foresighted, practical as China is the world's largest bulb producer, commanding a 70% share of the global market.

The Ministry of Finance (MOF) and the National Development and Reform Commission (NDRC) recently jointly publicized that the Chinese government has decided to initially subsidize 13 domestic and foreign-invested bulb manufacturers to turn out 50 million energy-saving bulbs, the first step to gradually phase out traditional fluorescent and incandescent bulbs.

Replacing in stages infamously inefficient incandescent bulbs with more energy-efficient counterparts in the world's most populous nation would clearly save astronomical amounts of power. The MOF: "Entire replacement of existing incandescent bulbs with high-efficiency lighting products in China can save over 60 billion KW/hours of power yearly, which would require over 22 million metric tons of coal to generate, hence cutting CO2 emission by 60 million metric tons and SO2 emission by 590,000 metric tons."

Four-step Program

The proposed program will consist of four steps. First, makers to be subsidized will be chosen via public bidding, with the subsidy sums set according to their output of energy-saving bulbs. Second, makers will deduct from product prices the subsidy to directly benefit consumers. Third, official agencies will prioritize procuring such high-efficiency bulbs. Forth, subsidy sums will be a maximum of 30% of product prices for volume-buyers and 50% for household buyers, which would assure the popularization of such energy-saving bulbs throughout the residential, private segments.

The MOF points out: "This is the first time the Chinese government is resorting to subsidization to promote the use of energy-saving consumer products."

Profiles of Major Energy-saving Bulb Makers in China:

Shenzhen Juhan Light-Tech Co., Ltd.

Specializing in producing high-end LED lighting fixtures and sources and offering lighting engineering services, this supplier also turns out hundreds of LED lighting fixtures in four major categories: flood light, commercial lighting, residential lighting, and lighting-source appliances.

Founded in 2000, the company is a pioneering LED lighting maker in Shenzhen that boasts a sizable output of LED fence lighting. Supplying products featuring advanced technology and artistic designs, the lighting maker is mostly local-market focused-with 80-90% of its output sold in China, annual shipment reaching 20 million units, and bulbs rated as much as 100-200 watts.

TCL

A major information-communications technology and consumer-electronics manufacturer in China, TCL also manufactures office lighting, LED lighting, and fluorescent lamps, all of which are officially-certified for energy-saving performance standards. Backed by a national-level laboratory, the company boasts cutting-edge technologies, as well as shipping most of its output within China, with overseas outlets in the Middle East and Southeast Asia.

Rise Lighting Co., Ltd.

Founded 20 years ago and operating a plant in Zhejiang Province, the company effectively taps its considerable technological expertise to not only specialize in commercial-lighting, but also focus on the high-end segment in China. Having established a firm foothold in China by offering engineering services, Rise Lighting sees its major client list include the Nanjing Hilton Hotel and Oriental Plaza in Beijing. The company also ships products to Europe, mainly Germany and Italy.

CR: Core Lighting

An affiliate of L&C Lighting Technology Group, Core Lighting produces a line of smart lighting products-75% of which are energy saving types-via using advanced dimming technology. Being a veteran exporter, the company is looking to diversify by evaluating the domestic market, for which it is looking for regional agents. Core Lighting also focuses on the high-end segment, such as lighting for special applications as those installed in concert halls.

Besides turning out products featuring innovative design, appearance, and mechanical structure, the company has two notable items in its lineup: T5 and newly-developed landscape lights. Core Lighting follows a strategy that is often reported: manufacture in China factories but engage in R&D at its laboratory in Taiwan.

Scatter Lighting Co., Ltd.

Dedicated to the production of energy-saving lamps, commercial lighting, and ceiling lights featuring unique designs and reliability, Scatter Lighting turns out products with various quality certifications, including 3C, CQC, and CE.

Backed by a seasoned R&D team and automated production equipment, either purchased domestically or abroad, the company turns out 10 million items annually, which are distributed in China or exported. Some 70% of its output is shipped within China, with the remainder exported mainly to Southeast Asia and Africa, with Europe also absorbing a modest proportion of its exports.

Adopting advanced foreign technology to produce energy-saving lamps, Scatter Lighting turns out 300,000-400,000 lamps monthly that mostly feature in-house designs. Semi-spiral lamps account for the largest portion of energy-saving models, of which the brightest are rated 115W and life-cycle topping 8,000 hours.