Phasing Out Incandescent Bulbs Benefits Energy-Saving Lighting; Promoting LED May Be the Trend

In November this year, the National Development and Reform Commission issued the "Announcement on the Gradual Prohibition of the Import and Sale of Incandescent Lamps for General Lighting," publishing a roadmap for phasing out incandescent bulbs, which sparked heated discussions among lighting industry professionals about the "future prospects of energy-saving lamps." They believe that the gradual withdrawal of incandescent bulbs from the market is a major positive for energy-saving lamps. However, since LEDs are environmentally friendly, green, and low-carbon new light sources, vigorously promoting and using them will be the future trend. To this end, Daming Lighting plans to adjust its development strategy: while maintaining its dominant position in the T5 high-efficiency fluorescent lamp industry, it intends to invest heavily in LED new light sources, so that by the end of 12.5, it can similarly play an important role in the LED lighting field.

Against this backdrop, the reporter interviewed Ni Gongda, Chairman of Daming Lighting, and Wen Chunyang, Marketing Director.

Incandescent Bulbs Are No Longer in Vogue

"A Philips 8W energy-saving lamp that sells for 12 yuan each in the market was sold for only 2 yuan each on site; similarly, a Jingzhou Daming T5-14W bracket that sells for 24 yuan per set was sold for only 6 yuan on site." This was a scene that took place at the "Hubei Province 2011 High-Efficiency Lighting Products Winning Bidder – Daming Lighting Energy-Saving Lamp On-Site Promotion Sale" held in the Baibuting Community, Jiang'an District, Wuhan, before the incandescent lamp phase-out policy was announced.

"Although the incandescent lamp phase-out roadmap has only recently been released, in fact, incandescent lamps have long been gradually 'retiring'." said Wen Chunyang, Marketing Director of Daming Lighting. Now, whether for household or institutional use, the vast majority choose energy-saving lamps, and very few incandescent lamps are sold on the market. "In recent years, one of the most obvious changes is that the lighting in many public areas seems to have shifted all at once from the orange-yellow of the past to warm white. In fact, Daming Lighting has always been doing this—using T5 high-efficiency fluorescent lamps to replace T8 or incandescent lamps and other inefficient lighting products." Wen Chunyang said.

In response, the author visited the major lighting markets in Beijing and found that shelves are filled with a dazzling variety of energy-saving lamps, while incandescent lamps can only be found after careful searching, with brands such as Philips, NVC, and Opple occupying most of the shelves. Moreover, judging from the inventory of incandescent lamps at each market, it is evident that the "glory days" of incandescent lamps are over; energy-saving lamps and LED lamps have taken over the main lighting market.

Energy-Saving Lighting Holds Great Promise

After the release of the incandescent lamp phase-out roadmap, the energy-saving lamp sector once experienced a rapid rise. For example, as concept stocks in the energy-saving lamp sector, some lighting companies' share prices have risen continuously since October 24, with the maximum gain once exceeding 30%. Moreover, in addition to the recently announced incandescent lamp phase-out roadmap, various localities have frequently introduced local subsidy policies for energy-saving lighting.

In this regard, Ni Gongda, Chairman of Da Ming Lighting, stated that with the strong support of the government for energy-saving lighting, the promotion scope of Da Ming Lighting's T5 high-efficiency fluorescent lamps will expand from Hubei Province to Tianjin, Hebei, and Shanxi this year. Specifically, 800,000 sets in Tianjin, 800,000 sets in Hebei, 500,000 sets in Shanxi, and 600,000 sets in Hubei — totaling 2.7 million sets of "Da Ming" brand T5 high-efficiency fluorescent lamps — will enter thousands of households.

"Purchasing these fluorescent lamps according to this year's financial subsidy ratio, urban and rural residents can enjoy a 50% financial subsidy discount, and bulk users can obtain a 30% financial subsidy discount," said Ni Gongda. To seize the opportunities brought by the incandescent lamp phase-out for energy-saving lamps, Da Ming Lighting will further expand its production capacity. In the first two years of the 12.5 (12th Five-Year Plan) period, the company will add 10 new production lines. By then, the number of automated production lines is expected to reach 20, making the annual production capacity of T5 high-efficiency fluorescent lamps truly the world's largest.

LED Lighting May Be the Trend

The state's release of the incandescent lamp phase-out roadmap is highly significant, benefiting both the energy-saving lamp and LED lighting industries. As one of the most important substitutes after the phase-out of incandescent lamps, energy-saving lamps may soon usher in an industry-wide expansion. However, due to rising raw material prices, coupled with improper disposal of discarded energy-saving lamps, the mercury contained within may leak and cause harm to air, soil, and water sources. This leaves energy-saving lamps considerably "wounded." Nevertheless, this may provide room for the development of LED lamp companies.

Ni Gongda has unique insights on this issue. He said that current LED problems such as heat dissipation, color rendering, and light-source glare have not been satisfactorily resolved, so T5 high-efficiency fluorescent lamps will go hand in hand with LEDs for a considerable period, each leading in its own domain. However, as a new energy-saving, environmentally friendly, green, and low-carbon light source, LED conforms to the conditions for sustainable development in China and the world, and vigorously promoting and using new LED light sources will be the general trend. Therefore, according to his strategic plan, this year Da Ming Lighting will strive to complete the national energy-saving certification of its LED products, and next year Da Ming brand LED products will strive to participate in the bidding for the "2012 National High-Efficiency Lighting Product Promotion Project" of the Ministry of Finance and the National Development and Reform Commission. At the same time, Ni Gongda revealed his grand vision for the LED project: during the 12.5 (12th Five-Year Plan) period, Da Ming Lighting will focus on investing in the LED application field, bringing the production capacity of traditional T5 new light sources and new LEDs to a scale of 5 billion.