In the context of the continuous expansion of LED lighting applications, the promotion model is becoming more and more important. The EMC model is also mentioned more and continues to appear within the policy scope. However, there are both supportive and questioning voices regarding EMC.
Third-party organization
Li Gang, technical manager of Lichuang (Zhongshan) Testing Technology Service Co., Ltd.: From a personal perspective, I support the EMC model. Nowadays, the quality of LED products varies from good to bad. EMC companies can continuously recycle them, which also reduces the use risks of application manufacturers.
EMC is currently mainly concentrated in some municipal and outdoor road lighting projects and commercial lighting projects, most of which are engineering renovations. There are fewer public places such as stadiums and hospitals, and the EMC commercial lighting market is still lacking. There will also be problems with the high-power LED lamps used, and the quality stability needs to be improved. Obtaining EMC projects is generally announced by local governments or street lighting companies when they have EMC projects. However, there is market protectionism in many places, and openness needs to be improved. Transparency in project bidding is also insufficient, and there will still be black-box operations. Therefore, human resources are critical in the process of building an EMC model.
The shortcoming of EMC is that its own follow-up service pressure is relatively high, because the project time is generally very long. Then, third-party institutions can serve as a central intermediary platform that can provide financial support and solve service problems.
Advantages and disadvantages may not be complementary
An insider from 100% Lighting said that merchants doing EMC have the following advantages: First, zero risk. Energy-using units do not need to bear the financial and technical risks of implementing energy-saving projects, and while reducing energy costs through project implementation, they will receive benefits from energy-saving implementation and equipment provided by EMC. Second, high efficiency. Since energy-saving benefits are bound to the energy-saving rate, promoting the energy-saving enthusiasm of energy-saving service companies and energy-consuming units can maximize the energy-saving rate. Third, no investment is required. By relying on EMC to implement energy-saving services, customers can improve their cash flow and invest limited funds in other more advantageous investment areas. Fourth, it is more scientific. By implementing energy-saving services through EMC projects, you can obtain energy-saving equipment, professional information and energy management experience, improve the quality of management personnel, and promote internal scientific management. Fifth, specialization. Merchants have certain experience in EMC and can provide more professional and systematic energy-saving technologies. Sixth, there are advantages and guarantees. After the customer implemented energy-saving improvements, it reduced energy costs and improved product competitiveness. At the same time, it also saved energy, improved environmental quality, and established a green corporate image.
But EMC is also a double-edged sword. In the face of huge advantages, it also contains some disadvantages. An industry insider said that although businesses doing EMC can form a win-win situation for projects, it will also bring certain risks. These risks include reducing corporate energy-saving risks, technical risks, financial risks, operational management risks, energy-saving effect risks, etc. At the same time, in EMC projects, merchants have to bear the risk of advance capital, and the capital recovery is slow, usually about one year. Projects with small quantities and low power consumption are not suitable for EMC, so many merchants are now very cautious when doing EMC.
Sharp comments from experts
Xu Qinghui, design director of Guangzhou Kebo Lighting Design Company: EMC is more suitable for energy-saving replacement, high product price and low user acceptance. As the replacement market becomes increasingly saturated, product prices drop rapidly, and user acceptance increases, EMC becomes less and less important. In the general engineering model, if the product quality is not good, most of the 30% balance payment will not be received. In this EMC model, I am afraid that all the money will be lost.
Dong Pei, Chairman of Feitai Technology: For small businesses, EMC is a stumbling block to market access; for listed companies and state-owned enterprises, it is a good model for excluding dissidents; for governments and competent authorities, it is a good tool for rent-seeking; for the industry, its contribution is less than its destructive power. As far as I know, there are not many large companies that make money using the EMC model. The main reason is that their products are not as good as they imagined! The EMC model sounds beautiful, but it is not beautiful in practice. It is more reliable to let the market have the final say.
Zhang Guoan: EMC has found a good way to replace and penetrate traditional lamps in the engineering field. However, EMC is inaccessible to many companies that lack lighting solutions. It plays a great role in establishing the status of LED companies. Some EMC projects have evolved into a way to export substandard products to the market and have also become a way to transfer unfair interests. Ultimately, it damages the reputation of the industry and the interests of purchasers.
Zou Chenyang, executive president of the Liaoning Lighting Electrical Appliances Association: There is no problem with EMC itself. The main problems are: first, problems with payment; second, it is easy to deal with when the main leader is promoted, but it is troublesome if there is double regulation; third, the after-sales service of lamps and the service life of the driving power supply; fourth, the transformation of lamps mainly requires their own light distribution, and cannot be completely replaced according to the original sodium lamp. Although the problem is easy to solve, there are still practical problems of light spots and low uniformity in specific applications.
Ge Jinxing, general manager of Shenzhen Huaqiyuan Intelligent Lighting Co., Ltd.: Generally speaking, Guangdong’s EMC model is ahead of the country and is relatively mature. The Department of Science and Technology has been promoting it, and now other regions across the country are also beginning to promote it. In addition, the trend of the future application of the EMC model in the lighting industry is: when the cost of LED lighting drops to a certain level, when the quality can be guaranteed and the price is similar to that of energy-saving lamps, the EMC model will truly face transformation. There are still great business opportunities. The premise is that for an EMC team Product quality identification ability, technical solution control ability, guidance and business negotiation ability, relationship maintenance and adaptability, project operation ability, financing channel construction ability, team integration ability, other resource integration ability, risk identification and control ability, learning and innovation ability have very high requirements and are also great challenges.
Observation: EMC does not just do whatever it wants to do
It is understood that there are currently at least 3,210 energy-saving companies registered with the National Development and Reform Commission and the Ministry of Finance, of which at least a quarter of the energy-saving service companies can engage in LED lighting contract energy management projects. However, energy-saving service companies must have certain access qualifications for EMC projects, including corporate qualifications, financial strength, financial management, risk resistance, and post-management capabilities. For example, Shanghai Xinxin Energy Saving and Environmental Protection Co., Ltd. has a registered capital of 150 million yuan and has obtained the registration qualifications for energy-saving companies recognized by the National Development and Reform Commission and the Ministry of Finance. It has also obtained the registration qualifications for Shanghai energy-saving service organizations. The reporter learned that Xinjiang Energy Saving completed sales of 370 million yuan in energy-saving products and energy-saving projects in 2013, and plans to have sales of energy-saving and environmental protection services exceed 3 billion yuan in 2015. It is also a subsidiary of the State Grid NARI Group, with high visibility and high credibility.
At present, people in the EMC model industry hold different opinions, with some favorable and some negative; but it is undeniable that the EMC model has greatly promoted the development of LED and promoted the popularization of LED. However, the EMC operating procedures are very complicated, and there are still manufacturers or merchants who do not understand what the EMC model is.
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