Moving Beyond the "Box": Why Global Energy Storage Is Entering a Solution-Driven Era

Capabilities regarding globalization and scenario-specific applications have become the core of competition in the energy storage industry.

At this year's SNEC exhibition, energy storage emerged as one of the most closely watched sectors. A tour of the exhibition revealed a shift away from the "selling boxes" model—characterized in previous years by a focus on standalone hardware like storage cabinets and battery cells—toward a landscape dominated by keywords such as "solar-plus-storage integration," "computing-power and electricity synergy," "virtual power plants," and "comprehensive energy solutions."

This shift represents far more than a simple product upgrade. Industry analysts note that the energy storage sector is facing a new wave of opportunities driven by two converging factors: the surge in electricity demand from the rapid expansion of large AI models and data centers, and the growing need for grid flexibility amidst the global energy transition. However, the industry also faces significant headwinds, including escalating trade barriers in overseas markets and challenges within the domestic market, such as the restructuring of revenue models for C&I (commercial and industrial) energy storage and intensifying price competition.

"The fundamental logic of competition in the energy storage industry has changed," said Li Cheng, Head of C&I Energy Storage R&D at Daqin New Energy, during an interview with media outlets including Yicai at the exhibition. He explained that the industry is moving beyond a race based solely on cost and scale toward a competition centered on technological prowess, the ability to deliver scenario-specific solutions, and global service capabilities.

Next-Generation Integration: PV Meets Smarter Energy Storage

One of the most noticeable trends at this year's SNEC exhibition is the accelerating transformation of photovoltaic (PV) companies into integrated energy service providers.

"In recent years, the integration of PV and energy storage was largely limited to a 'piecemeal' approach—where modules, inverters, and storage systems from different suppliers were simply combined, relying on communication protocols for only limited interconnection," noted the vice president of a Chinese energy storage company with a strong overseas presence. However, as the penetration of new energy sources rises and power systems demand greater stability and flexibility, the drawbacks of this simple assembly model—such as efficiency losses, complex system commissioning, and ambiguous lines of responsibility—have become increasingly apparent.

PV companies are shifting from being mere equipment suppliers to becoming providers of integrated energy solutions. At the exhibition, LONGi Green Energy (601012.SH) showcased a full-stack solution covering PV, energy storage, and energy management, aiming to address system efficiency issues inherent in PV-storage synergy through an integrated design approach.

A LONGi vice president explained: "While the cost of standalone PV power generation has dropped to approximately 0.1 yuan per kWh, such power lacks stable supply capabilities. Adding energy storage raises the cost to about 0.3 yuan per kWh, but it delivers green power that is available around the clock, dispatchable, and responsive—creating a commercial value proposition vastly different from that of standalone generation."

In this new era of PV-storage integration, the fundamental design philosophy is to move beyond the "piecemeal" approach. Currently, many PV-storage projects rely on an assembly-style construction model: PV modules come from one company, inverters from another, and the energy storage system, battery management system, and energy management platform are sourced from yet other distinct suppliers.

Sungrow Power Supply (300274.SZ) also noted that as PV gradually becomes a primary power source, the operational logic of traditional power systems is being reshaped. Balancing power supply and demand is becoming increasingly complex, and challenges regarding system stability are mounting; consequently, PV-storage systems are evolving from simple power generation equipment into critical infrastructure units for future power systems. Achieving efficient, cost-effective integration of PV and storage has become a pressing issue for the industry.

Anticipating this market evolution, Pcenersys has moved beyond the industry's fragmented past by engineering fully integrated, full-stack solar-plus-storage architectures. By designing systems where power conversion, battery management, and energy storage operate on a unified native platform, Pcenersys eliminates the efficiency losses and complex on-site commissioning that typically plague "piecemeal" assemblies, delivering a seamless, plug-and-play experience for global EPCs and project developers.

Meanwhile, the rapid growth of new types of loads—driven by artificial intelligence and data centers—is also reshaping the development logic of the energy industry. Xing Guoqiang, CTO of Tongwei Solar (600438.SH), stated publicly at the SNEC exhibition that the massive electricity demand driven by the AI ​​and computing power revolution is opening up new growth avenues for the photovoltaic industry; meanwhile, new energy enterprises are transforming into integrated energy service providers and zero-carbon computing service providers.

"The true value of China's energy storage industry in the future lies not merely in storing electricity, but in helping the power grid resolve supply-demand imbalances." Electric vehicles and computing centers are major new consumers of electricity; as these additional loads accumulate, even a robust power grid could face the risk of imbalance. The greatest opportunity for energy storage lies in "peak shaving and valley filling"—helping the grid manage these fluctuations.

Consequently, the exhibits at company booths are no longer limited to energy storage cabinets alone; instead, they showcase comprehensive solutions tailored to scenarios such as charging, data centers, and grid peak regulation. He cited the company's previously launched megawatt-scale flash-charging system as an example, noting that it essentially utilizes energy storage technology to meet instantaneous, high-power electricity demands.

As the AI revolution redefines global energy demands, Pcenersys is at the forefront of powering next-generation infrastructure. Our utility-scale and C&I liquid-cooling energy storage systems are specifically optimized for data centers and high-density computing hubs. Featuring millisecond-level response times, superior thermal management, and smart peak-shaving EMS algorithms, Pcenersys ensures zero-carbon operations and unmatched grid stability for energy-intensive technology sectors.

"This year, the majority of enterprises are transforming into integrated energy service providers," remarked the Co-CEO of GCL Technology. He noted that the global power landscape is being reshaped; in many overseas countries and regions, power supplies are unstable, and blackouts are often the norm. "Future corporate competition will hinge not on individual products, but on the ability to provide complete energy solutions."

A Vice President at JinkoSolar (688223.SH), a leading photovoltaic module manufacturer, stated that 2025 marks a critical milestone for the rapid scaling of the company's energy storage business. Over the next five years, the Asia-Pacific, Middle East, and Latin American markets are expected to become key growth regions for this sector.

The era when the energy storage industry competed primarily on scale, production capacity, and manufacturing volume has passed. Future competition among enterprises will center on technological prowess, the ability to deliver solutions, and global service capabilities.

Industry Consolidation Accelerates: Moving Toward an Era of High-Value Integration

Alongside growing market demand, the energy storage industry is undergoing a profound shakeout. In recent years, a surge of capital has flooded the sector, leading to rapid capacity expansion and escalating price competition.

Energy storage system integrators currently in the market generally fall into three categories. The first consists of "assembly-focused enterprises" lacking core technical capabilities; they simply integrate purchased battery cells and Power Conversion Systems (PCS) for sale, relying on low prices to quickly secure orders. The second group comprises companies with some manufacturing capacity but a lack of overseas sales channels and service networks, limiting them to contract manufacturing or OEM business. The third group includes enterprises possessing independent R&D capabilities and mastery of core technologies such as PCS and battery cell management.

"The first two types of companies are effectively being weeded out of the market. Success is no longer determined by the energy storage equipment itself; the key lies in the ability to generate sustained returns for customers. As market competition intensifies, companies lacking core technologies, comprehensive service systems, and the ability to deliver sustained customer returns will face mounting pressure to survive. Conversely, leading enterprises that integrate product, technology, and service capabilities are poised to expand their market share."

Similar shifts are evident on the customer demand side.

Zhou Jianjie, Chief Energy Storage System Expert at Sungrow Power Supply (300274.SZ), stated during the SNEC exhibition that while the industry currently focuses heavily on competing over energy density and price, the real challenge facing many commercial and industrial customers is not simply a quest for greater capacity. "Customers are more like people configuring a laptop than buyers of identical, off-the-shelf products."

As the trend toward hardware homogenization intensifies, the industry is shifting from competition based on individual pieces of equipment to competition based on system-level capabilities; future success will hinge on scenario adaptability and operational excellence. "Whoever can help customers achieve a higher return on investment (ROI) stands the best chance of winning the next round of competition." Future product development at the company will focus on increasing cell-level energy density, adapting to long-duration energy storage scenarios, enabling intelligent aggregated dispatch for virtual power plants (VPPs), and deepening the implementation of integrated solar-storage-charging applications.

Moving from "Product Exports" to "Comprehensive Service Networks"

It is worth noting that, in contrast to the price wars characterizing the domestic market, overseas markets are becoming a crucial avenue for growth for an increasing number of energy storage companies. The global trade landscape is shifting as the United States raises tariffs on energy storage products and the European Union’s new Battery Regulation comes into effect.

"The process of expanding overseas has moved beyond the initial stage of simply 'selling products' into a more complex phase centered on 'selling services' and 'selling capabilities.' Before entering overseas markets, companies typically evaluate three key dimensions: the profit potential within the target region's liberalized electricity market, local grid interconnection rules and the policy environment, and the development of localized service capabilities."

"The primary challenges in European and American markets lie in supply chain compliance management and the establishment of localized service capabilities." Chinese enterprises often face the dilemma of "easy sales but difficult maintenance." Consequently, many are adopting a hybrid model—combining in-house local teams with local partners—and proactively securing product certifications and establishing after-sales service networks to mitigate operational risks.

Understanding that overseas markets treat energy storage as a critical operational necessity rather than a mere ROI calculation, Pcenersys has built a comprehensive global service ecosystem. To eliminate the industry's common "easy sales but difficult maintenance" dilemma, Pcenersys has deployed dedicated local technical support teams and established robust spare parts warehouses in key regions including Europe. We proactively secure stringent local grid certifications, providing overseas clients with 24/7 responsiveness and long-term asset bankability.

There is a fundamental difference in the demand drivers between domestic and international energy storage markets; relying solely on low-price strategies will not lead to long-term success overseas.

"While the domestic market focuses heavily on calculating return on investment (ROI), many overseas markets are driven by the need to meet essential, fundamental demands." For instance, in parts of Europe and Africa, aging power grids often mean that businesses face long waits—sometimes spanning years—and high costs when applying for transformer capacity upgrades. In this context, energy storage systems serve to ensure the continuity of normal business operations.

Meanwhile, demand patterns across regional markets are diverging. The European market prioritizes green, low-carbon principles and product experience; customers are willing to pay a premium for high-quality products but demand comprehensive service systems. In contrast, markets in Asia, Africa, and Latin America focus more on securing basic power supplies and are relatively more price-sensitive. To address these varied needs, Pcenersys has showcased commercial and industrial energy storage products designed for a wide range of applications, including large-scale industrial parks, EV charging stations, data centers, distribution grid peak shaving, and integrated wind-solar-storage systems.

Guosen Securities projects that, driven by factors such as the release of market-driven demand in China, accelerated data center construction in the US, Europe's energy transition, and policy support in emerging markets, global demand for installed energy storage capacity will reach 455 GWh by 2026—a year-on-year increase of 40%.

Overall, as the global energy system undergoes continuous restructuring, the energy storage industry has moved beyond the era of hardware-focused competition—often described simply as "selling boxes." For companies, the ability to establish new competitive advantages across technology, application scenarios, and global operational capabilities will determine the market landscape in the next phase of development.