The China government plans to set three levels of LED subsidies, according to a Digitimes article. The first subsidy is for the the central government to provide funding to LED firms to lower production costs. The second subsidy is for provinces and province-level municipalities will set up policies to subsidize customers. The third level of subsidies is for other regions to provide incentives according to local markets, according to the article.
The Digitimes article says that consumers have been reluctant to purchase LED lighting and firms have not been able to push down costs. Hence by having subsidies, the China government believes market mechanisms will be set and completed during the 12th Five-Year plan period.
The article also noted that China introduced policies to replace street lights with LED lamps in ten cities. The government is reportedly planning to add another ten cities in the second phase.