The economic value of new energy storage in power supply security and consumption promotion has been validated, with domestic energy storage systems now widely deployed across mature power markets in Europe, the Americas, Middle East, and Asia-Pacific regions, while continuously expanding into emerging markets. Inverter companies have gained competitive advantages in the photovoltaic-storage sector by leveraging their globally accumulated channel sales networks and after-sales service systems.
Recently, leading photovoltaic inverter companies including Sungrow Power Supply Co.,Ltd. (300274.SZ), Ningbo Deye Technology Co.,Ltd. (605117.SH), and Sineng Electric Co.,Ltd. (300827.SZ) have successively released their semi-annual reports. While traditional businesses performed steadily, energy storage businesses experienced rapid growth. Taking Sungrow Power Supply Co.,Ltd. as an example, the company's energy storage system revenue exceeded photovoltaic inverter revenue for the first time.
In the first half of 2025, global residential energy storage demand continued to increase, driving rapid growth in energy storage products. Related companies actively expanded in global markets, advancing in synergy with energy storage inverter promotion. From residential energy storage to commercial and industrial applications, the energy storage market is becoming the second growth engine for new energy product companies.
Although commercial and industrial energy storage penetration remains relatively low, strong policy guidance, peak-valley price differentials, and backup power demand from commercial and industrial users form supporting logic, with the economics of commercial and industrial energy storage beginning to emerge. Leading photovoltaic inverter companies, holding significant market share, can fully benefit from the commercial and industrial storage market explosion, with overseas commercial and industrial storage expected to become the next growth driver for energy storage demand.
**High Profit Growth**
In the first half of 2025, Ningbo Deye Technology Co.,Ltd.'s inverters were primarily sold to Asia-Africa-Latin America and European markets. Due to policy promotion driving rapid global commercial and industrial storage demand growth, European commercial and industrial storage demand developed rapidly from zero under catalysts including subsidy support and FIT reduction. Pakistan, Myanmar, Nigeria, and Middle Eastern countries experienced strong commercial and industrial storage demand driven by rising electricity prices and frequent power outages.
Ningbo Deye Technology Co.,Ltd. sold a total of 763,800 inverters in the first half, including 272,700 residential energy storage inverters and 42,900 commercial and industrial storage units. Commercial and industrial storage products leveraged the company's channel and R&D advantages, with products adapted to overseas market demands showing significant volume growth.
During this period, the company's revenue and net profit attributable to parent company reached 5.535 billion yuan and 1.522 billion yuan respectively, increasing 16.58% and 23.18% year-over-year.
Sungrow Power Supply Co.,Ltd.'s energy storage industry revenue in the first half was 17.803 billion yuan, accounting for 40.89% of total revenue compared to 25.20% in the same period last year, a 127.78% year-over-year increase. Energy storage systems became the company's largest business segment for the first time.
The company launched the PowerStack 835CS commercial and industrial liquid cooling energy storage system for 10/20kV large industrial scenarios, which has been deployed in batches across steel, metallurgy, automotive, chemical, and other high-energy-consuming factories and parks, marking the comprehensive beginning of the commercial and industrial storage scenario customization era.
Sineng Electric Co.,Ltd.'s energy storage products include centralized and string energy storage converters, while also providing energy storage system integration and comprehensive energy storage power station solutions applicable to generation, transmission, distribution, microgrid, and other applications. In the first half, the company's revenue and net profit attributable to parent company were 2.184 billion yuan and 200 million yuan respectively, increasing 13.42% and 24.78% year-over-year.
In the first half of 2025, the gross profit margins of Ningbo Deye Technology Co.,Ltd., Sungrow Power Supply Co.,Ltd., and Sineng Electric Co.,Ltd. were 37.48%, 34.36%, and 24.15% respectively, increasing by 0.33, 1.94, and 1.17 percentage points compared to the same period last year. Changes in gross profit margins reflect product structure adjustments.
**Rising Overseas Demand**
As the proportion of global photovoltaic power generation systems continues to increase, the importance of energy storage technology in energy transition and power systems becomes increasingly prominent. It can effectively solve renewable energy waste problems, achieve peak shaving and valley filling, and energy storage, improving the stability of photovoltaic power generation systems.
Although the US 301 investigation's tariff coverage includes photovoltaic inverters, creating some adverse effects on domestic photovoltaic product exports to the US, since 2023, influenced by significant declines in battery-grade lithium iron phosphate prices and battery technology iterations, energy storage system prices have continued to decline. Accompanied by global interest rate reductions and lower financing costs, the economics of new energy storage investments have further improved.
Changjiang Securities believes that overseas commercial and industrial storage is expected to become the next growth driver for energy storage demand, with Europe, Asia-Africa-Latin America all expected to enter explosive growth periods.
Entering 2025, European market destocking is nearing completion, with market demand gradually recovering. Accompanied by policy support from Germany, UK, Austria, Spain and other countries, and declining residential inverter prices, European residential energy storage demand is expected to rebound.
Starting in 2025, Germany mandates electricity suppliers to provide dynamic pricing packages to all commercial, industrial, and residential users, expanding peak-valley arbitrage opportunities and providing greater peak-valley price differential arbitrage space for energy storage systems.
Italy launched a 320 million euro SME energy program in December 2024, with 30% specifically allocated to support commercial and industrial energy storage projects through differentiated subsidy mechanisms to promote commercial and industrial storage market development.
Poland introduced a 4 billion zloty energy storage subsidy program in March 2025, focusing on projects above 2MW/4MWh medium and high voltage levels, with preferential policies for SMEs.
Beyond traditional application scenarios such as grid peak regulation and frequency modulation, wind and solar power station storage allocation, commercial and industrial peak shaving and valley filling, backup power and black start capabilities, new energy storage also helps in extreme environments such as islands and high-altitude areas, extreme weather power supply, assisting war-torn countries in achieving energy independence, and providing emergency power for data centers.
Meanwhile, new markets are beginning to emerge. The Egyptian government is accelerating energy transition, planning a 40% renewable energy target by 2040. Australia recently raised baseline electricity prices while providing subsidies for households installing battery systems, with subsidies ending in 2030. The Middle East region, trapped in power crisis due to geopolitical factors, is gradually increasing policy support for commercial and industrial storage.
Changjiang Securities points out that overseas commercial and industrial storage competitiveness lies in products and channels. Due to similar customers, commercial and industrial storage channels are relatively close to commercial and industrial photovoltaic channels, with significant overlap with residential storage channels, particularly in small commercial and industrial sectors.
Leading photovoltaic inverter companies, holding high market share, can fully benefit from commercial and industrial storage market explosions, bringing performance increments.
Sineng Electric Co.,Ltd.'s energy storage products have overseas shipments covering India, Saudi Arabia, UAE, US, Brazil, Spain, Germany, Greece, South Africa, Algeria, South Korea, Philippines and other regions, with extensive successful project operation experience.
Sungrow Power Supply Co.,Ltd.'s "AC-DC integrated" 10MWh full liquid cooling energy storage system PowerTitan 2.0 is widely applied globally, supporting stable operation of Taizhou Hailing independent energy storage station, Kunshan Longteng Special Steel user-side energy storage station, Wuhu Chery's first automotive industry energy storage station, Shandong Taiyang grid-side energy storage station, and Uzbekistan's largest energy storage station in Central Asia.
CITIC Securities Construction Investment points out that Ningbo Deye Technology Co.,Ltd.'s residential storage products, relying on low-voltage routing, off-grid capabilities, and diesel generator compatibility, have high compatibility with emerging market customer needs, successively achieving high market share in South Africa, Pakistan, Ukraine, Southeast Asia and other markets. Current global emerging market power shortage problems remain prominent, with residential storage expected to maintain high prosperity.
**Synergistic Development with Traditional Business**
From January to July 2025, China's cumulative inverter export value was 36.971 billion yuan, increasing 8.63% year-over-year. Some countries have weak power infrastructure, while photovoltaic power generation costs decline and conversion efficiency improves, with the photovoltaic inverter market showing steady progress development trends.
The global inverter market size in 2025 will reach 66.3 billion yuan, with shipment volume expected to grow to 570GW. In inverter product cost composition, direct materials account for over 80%, making it a key cost control link. Increasing self-manufacturing rates for key materials can effectively control costs, ensure supply, and flexibly respond to product iterations. This not only tests related companies' manufacturing levels but also requires R&D investment to maintain product competitiveness.
In the first half of 2025, Ningbo Deye Technology Co.,Ltd.'s inverter products achieved operating revenue of 2.644 billion yuan, accounting for 47.93% of main business revenue, increasing 13.90% year-over-year. Energy storage battery products achieved operating revenue of 1.422 billion yuan, accounting for 25.78% of main business revenue, increasing 85.80% year-over-year.
With increasing global residential storage demand, the company advances energy storage battery and energy storage inverter promotion synergistically, building a global sales network. Simultaneously, leveraging cost control experience accumulated in the competitive home appliance industry, the supply chain end integrates supplier resources, centralized procurement improves bargaining power, signing bulk purchase agreements to reduce raw material and component unit prices.
Sungrow Power Supply Co.,Ltd.'s overseas photovoltaic inverter capacity has reached 50GW, with products shipped in batches to over 100 countries and regions globally. The company will continue deepening global markets, orderly advancing global layout of inverter, energy storage, charging, power station, floating photovoltaic, and hydrogen energy businesses.
In the first half of 2025, Sungrow Power Supply Co.,Ltd.'s photovoltaic inverters and other power electronic conversion equipment achieved revenue of 15.327 billion yuan, increasing 17.06% year-over-year, with the proportion of main business revenue declining from 42.21% in the same period last year to 35.21%.
In the first half, Sineng Electric Co.,Ltd.'s inverter revenue was 1.577 billion yuan, increasing 14.01% year-over-year. Domestic customers primarily include central enterprise groups, provincial large state-owned enterprises, large private enterprises, and foreign large photovoltaic and energy storage system developers and general contractors.
To improve industry competitiveness, the company emphasizes R&D investment, with R&D expenses accounting for 4.03%, 5.56%, and 6.03% of operating revenue in 2023, 2024, and the first half of 2025 respectively.
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