Overseas orders exceeded expectations, with stable prices and growing volumes across the energy storage industry chain.
Although the first quarter of 2025 is typically an off-season for the industry, the energy storage sector achieved relatively rapid growth in overall performance. As products gradually see increased volume and stabilized prices, the energy storage sector is expected to experience more significant growth. It is worth noting that since 2025, the scale of overseas energy storage orders from Chinese companies has shown several-fold growth. In the first quarter alone, the scale of overseas energy storage orders approached 100GWh, nearing the total overseas energy storage order volume of over 150GWh for the entire year of 2024.
After a prolonged period of stock price adjustments, the share prices of major listed companies in the lithium battery and energy storage industries have recently rebounded significantly. Eve Energy's share price hit a low of 29.79 yuan per share in 2024 but has since risen to 46.35 yuan, with its market capitalization now exceeding 90 billion yuan. Similarly, Sungrow Power's share price dropped to a low of 52.98 yuan per share in 2024 but has now climbed to 60.56 yuan, with a market capitalization of over 120 billion yuan.
This recovery is supported by solid performance. The latest financial reports show that major energy storage industry players, Sungrow Power and Eve Energy, delivered excellent results in the first quarter of 2025, both achieving rapid year-on-year growth. A breakdown of their business segments reveals that the energy storage divisions of both companies performed well in 2024, driving overall performance.
Despite the rapid growth in domestic energy storage installations, declining raw material prices and the phase-out of outdated production capacity in 2024 led to a corresponding drop in battery cell prices, putting significant pressure on the energy storage industry chain. However, since 2023, the slowdown in expansion efforts by major battery manufacturers has reduced the likelihood of further declines in energy storage product prices. The industry's performance began to recover in the fourth quarter of 2024, and although the first quarter of 2025 is typically an off-season, the sector still achieved rapid growth. As products gradually see increased volume and stabilized prices, the energy storage sector is poised for more significant growth. Notably, since 2025, the scale of overseas energy storage orders from Chinese companies has shown several-fold growth, reflecting strong overseas demand for energy storage.
Performance Turning Point Emerges
According to the latest financial reports, in 2024, Sungrow Power achieved revenue of 77.857 billion yuan, net profit of 11.036 billion yuan, and non-GAAP net profit of 10.693 billion yuan, representing year-on-year growth of 7.76%, 16.92%, and 16.03%, respectively. Eve Energy reported revenue of 48.615 billion yuan, net profit of 4.076 billion yuan, and non-GAAP net profit of 3.162 billion yuan, with year-on-year changes of -0.35%, 0.63%, and 14.76%, respectively. In the first quarter of 2025, Sungrow Power achieved revenue of 19.036 billion yuan, net profit of 3.826 billion yuan, and non-GAAP net profit of 3.676 billion yuan, representing year-on-year growth of 50.92%, 82.52%, and 76.46%, respectively. Eve Energy reported revenue of 12.796 billion yuan, net profit of 1.101 billion yuan, and non-GAAP net profit of 818 million yuan, with year-on-year growth of 37.34%, 3.32%, and 16.60%, respectively.
In terms of business segments, both companies saw strong performance in their energy storage divisions. In 2024, Sungrow Power's energy storage system business generated revenue of 24.959 billion yuan, a year-on-year increase of 40.21%. Eve Energy's energy storage battery business achieved revenue of 19.027 billion yuan, a year-on-year growth of 16.44%.
In 2024, both companies further expanded their energy storage business scale. Eve Energy's annual energy storage battery shipments reached 50.45GWh, a year-on-year increase of 91.90%. Sungrow Power's global energy storage system shipments reached 28GWh, a year-on-year growth of 166.67%.
From an industry-wide perspective, the global energy storage industry continued its rapid growth trend in 2024. According to Infolink, annual energy storage battery shipments exceeded 315GWh, with a year-on-year growth rate of over 60%. The market structure exhibited a dual-driven characteristic of "quality improvement in core markets and volume expansion in emerging regions."
As the world's largest market, China's energy storage installation growth consistently exceeded expectations. In 2024, China's new installed capacity of advanced energy storage reached 43.7GW in power and 109.8GWh in capacity, representing year-on-year growth of 103% and 136%, respectively, surpassing expectations. From January to March 2025, China's energy storage bidding power/capacity reached 19.8GW and 102.7GWh, respectively, with year-on-year growth of 194% and 399%. As a forward-looking indicator, the bidding data suggests sustained growth in China's energy storage market. The United States added 10.07GW of new advanced energy storage installations in 2024, a year-on-year increase of 63%, maintaining a relatively rapid growth rate. Germany added 4.54GWh of new installations in 2024, a year-on-year growth of 2.7%. Europe's current installations are primarily residential energy storage, and demand for residential storage is highly correlated with electricity and natural gas prices. In 2024, European natural gas prices remained relatively stable, leading to steady demand for residential energy storage.
In 2024, the expansion of the total output value of the energy storage industry was not particularly pronounced due to increased volume but decreased prices. Although domestic installation growth was rapid, unit prices fell significantly due to declining lithium carbonate prices and intense competition. From the end of 2022 to the present, lithium carbonate prices have generally trended downward, with the price at the end of 2024 reaching 76,000 yuan per ton, a 23.7% decrease compared to the beginning of the year. As raw material prices fell and outdated production capacity was phased out, battery cell prices correspondingly declined. By the end of 2024, the average price of lithium iron phosphate square energy storage cells had dropped to 0.34 yuan/Wh, a 22.7% decrease from the beginning of the year. According to bidding data, the lowest quoted price for domestic 2-hour energy storage systems in 2024 had fallen below 0.6 yuan/Wh. Considering the costs of other components such as PCS, EMS, BMS, fire protection, and thermal management, current energy storage system quotes are nearing the cost line, placing significant pressure on the industry chain.
However, as major battery manufacturers slow their expansion pace, the likelihood of further declines in energy storage product prices is reduced. According to Guohai Securities, measuring by the cash outflow for the purchase and construction of fixed assets, intangible assets, and other long-term assets by leading battery companies, it can be observed that since 2023, the expansion of battery companies has generally slowed at the margin. For example, cash outflows for such purchases and constructions peaked at approximately 22 billion yuan in the fourth quarter of 2022 and have since declined, dropping to a low of around 10 billion yuan. In the first quarter of 2025, it fell to the level of the second quarter of 2021, approximately 14 billion yuan. Considering the time lag between asset purchase/construction and commissioning, it is evident that current capacity growth is generally controllable, and supply-side expansion is becoming more rational.
Starting from the fourth quarter of 2024, the industry's performance showed signs of recovery: in 2024, the overall energy storage sector (including cells, PCS, thermal management, fire protection, and EPC) achieved revenue of 683.31 billion yuan, a year-on-year decrease of 5.1%, and net profit attributable to shareholders of 75.06 billion yuan, a year-on-year increase of 6.5%. In the fourth quarter of 2024, the sector achieved revenue of 200.06 billion yuan, a year-on-year increase of 1.2%, and net profit attributable to shareholders of 19.28 billion yuan, a year-on-year increase of 16.2%. The first quarter of 2025 is typically an off-season for the industry, but the sector achieved revenue of 157.34 billion yuan, a year-on-year increase of 11.3%, and net profit attributable to shareholders of 20.48 billion yuan, a year-on-year increase of 29.3%, demonstrating excellent performance.
In 2025, as product volumes increase and prices stabilize, the energy storage sector is expected to experience more significant growth.
Profitability of Energy Storage Stations Drives Growth Momentum
Within the energy storage industry, three strategic markets—China, North America, and Europe—contribute 75% of global new installed capacity. For the Chinese market, demand in 2024 and earlier was primarily driven by policy-mandated allocations. In the medium term, it may be affected by policies, but in the long term, as policies continuously improve the profit mechanisms for energy storage stations, the construction of energy storage stations is expected to maintain a relatively high growth rate.
In February 2025, the National Development and Reform Commission and the National Energy Administration issued the landmark "Document No. 136," explicitly stating that energy storage allocation must not be a prerequisite for the approval, grid connection, or online operation of new renewable energy projects. This marks the official cancellation of "mandatory energy storage allocation." Institutions predict that the impact of this change may be delayed until 2026.
However, in the long term, regions with significant grid integration pressures will still require mandatory allocations. As power market reforms continue to advance, it is明确 that full coverage of the spot power market will be basically achieved by the end of 2025. Meanwhile, improvements in the operational efficiency of energy storage projects, such as the 14-percentage-point increase in the average utilization index of domestic electrochemical energy storage to 41% in 2024, will contribute to profitability and provide long-term growth momentum for the domestic energy storage market.
Donghai Securities points out that with the introduction of the national "Document No. 136," electricity generated by new renewable energy projects will, in principle, fully enter the power market, and feed-in tariffs will be formed through market transactions. Transaction prices will fully reflect the supply and demand of renewable energy, making the configuration of energy storage for photovoltaic projects to enhance profitability more urgent.
In terms of implementing measures to improve the profitability of energy storage stations, Shandong serves as an example. According to a press conference held by the Shandong Provincial Government on May 15 on "introducing Shandong's in-depth implementation of the 'Eight Major Actions' to promote high-level integration of new energy," it was stated that Shandong will create an external environment conducive to high-quality development of energy storage by widening the price difference between charging and discharging, broadening profit channels for energy storage, reducing operational costs of independent energy storage, and stabilizing capacity leasing income for existing energy storage.
Specifically, in reducing operational costs, Shandong supports exempting the corresponding charging electricity volume of energy storage stations from transmission and distribution tariffs and government funds and surcharges, which helps enhance station profitability. In stabilizing the rate of return for existing energy storage stations, Shandong requires existing renewable energy stations to continue implementing policies related to energy storage allocation, ensuring a smooth transition in profit methods for both old and new energy storage stations. Previously, in April, the Shandong Energy Administration proposed improving the market trading mechanism for energy storage, appropriately lifting price limits in the spot market, and widening the price difference between charging and discharging.
Recently, provinces and autonomous regions such as Hainan, Inner Mongolia, and Jiangxi have introduced similar policies, opening new policy space for improving the profitability of energy storage stations.
Overseas Orders Multiply in Growth
The overseas expansion of energy storage continues to maintain a strong momentum. Currently, energy storage bidding and installation volumes have increased significantly in regions such as Europe, the Middle East, and Asia-Pacific. As the country with the highest global energy storage battery shipments, China accounted for over 90% of global shipments in 2024. According to statistics, China’s overseas orders for energy storage lithium batteries exceeded 120 GWh for the year, with shipments growing by more than 60% year-on-year. Among these, power storage, residential storage, and commercial & industrial storage increased by 70%, 25%, and 40% year-on-year, respectively. The orders primarily originated from the United States, Europe, Southeast Asia, and the Middle East, with European and American customers accounting for 73% of the demand. According to LeadLeo Research Institute, this is mainly due to the strong market acceptance of the 314Ah battery cell and 5MWh products developed and led by Chinese manufacturers, whose penetration rates have far exceeded expectations. For example, the penetration rate of the 314Ah battery cell reached 40% in 2024. Moreover, driven by the strong performance of Chinese companies, the concentration of the global energy storage lithium battery market has further increased, with the top ten companies accounting for 93% of the market share, up from 88% in 2023, all of which are Chinese enterprises.
The performance in 2025 has been even more impressive. According to incomplete statistics from CNESA, in the first quarter of 2025, overseas energy storage orders from Chinese companies approached 100 GWh, a year-on-year increase of 756.72%, nearing the total overseas orders of over 150 GWh for the entire year of 2024. Since May, weekly overseas orders have exceeded 10 GWh, targeting markets including Turkey, Australia, the United Kingdom, the United States, Germany, India, and other European countries. Given the strong overseas demand for energy storage, the prospects for international expansion remain promising.
In the United States, energy storage is a rigid demand due to its aging transmission and distribution grid. Over 70% of U.S. transmission lines and power transformers are more than 25 years old, and power outages are estimated to cause economic losses of $28 billion to $169 billion annually. According to the EIA, large power plants face severe equipment depreciation, and newly built power plants in recent years are smaller and more distributed. The outdated grid has low reliability, significant power quality fluctuations, and high peak load pressure. However, the cost of grid upgrades is prohibitively high, making energy storage equipment essential to ensure power supply and balance peak and off-peak differences.
The rapid growth of wind and solar installations has also driven increased demand for energy storage in the U.S. By the end of 2024, U.S. wind and solar photovoltaic installed capacity reached 154.3 GW and 235.7 GW, representing year-on-year growth of 2.5% and 34.9%, respectively. The difficulty of cross-regional power transmission has spurred demand for grid-side energy storage, making large-scale storage the dominant segment in the U.S. market. In 2024, U.S. energy storage新增装机 reached 12.3 GW, a year-on-year increase of 32.8%. Additionally, in early April 2025, the U.S. announced a 125% tariff on Chinese goods, which was later negotiated down to 10% within the initial 90 days. This tariff reversal has created urgent short-term demand for accelerated installations.
The European energy storage market initially relied on high electricity prices and subsidies, with residential storage as the primary application. In the short term, the growth rate of residential storage installations has slowed, but the large-scale storage market is expected to experience significant growth. Data shows that in 2024, Europe’s for energy storage reached 21.9 GWh, a year-on-year increase of 15.3%, with user-side and grid-side large-scale storage accounting for 58.0% and 41.2% of the total, respectively. The share of user-side installations declined compared to 2023. As subsidies for energy storage gradually phase out and electricity prices stabilize across European countries, residential storage demand may decline in the short term.
Donghai Securities believes that future growth in the European market will likely come from three sources: the need to balance the grid amid the transition to renewable energy; increased economic viability of energy storage projects due to frequent negative electricity prices and lower eurozone interest rates, boosting installation willingness; and the upcoming launch of multiple large-scale energy storage projects across several European countries.
Specifically, the EU’s RED III Act has raised the 2030 renewable energy target from 40% to 42.5%-45%, with explicit goals of 600 GW for solar PV and 500 GW for wind power by 2030. By the end of 2024, Europe’s cumulative installed capacity for solar PV and wind power stood at 323.2 GW and 287.4 GW, respectively. Additionally, Germany experienced 468 hours of negative electricity prices in 2024, a 60% year-on-year increase, while Spain saw 247 hours of negative electricity prices, doubling from the previous year. Furthermore, multiple large-scale energy storage projects are planned to launch after 2028 in countries such as the UK, Italy, Germany, and Poland, indicating significant potential for the large-scale storage market in Europe.
According to Sungrow Power’s annual report, the company’s orders for large-scale energy storage products in Europe have consistently increased since 2019. As reported on Sungrow’s official website, in 2019, the company secured a large-scale project in the UK involving 34.7 MW of solar PV and 27 MW/30 MWh of energy storage, which was the largest integrated solar and storage project in the UK that year. In 2023, Sungrow signed an agreement with UK-based Constantine to supply an 825 MWh liquid-cooled energy storage system, one of the largest energy storage projects in Europe.
In November 2024, Sungrow signed a 4.4 GWh energy storage cooperation agreement with UK-based Fidra Energy. The project will be connected to the UK’s highest-voltage grid and participate in local ancillary services and electricity market trading. As the largest energy storage power station in Europe, the project will deploy 880 sets of Sungrow’s PowerTitan 2.0 liquid-cooled energy storage systems. Construction is set to begin in 2025, and upon completion, the project will supply electricity to 1.1 million UK households.
In addition to the 4.4 GWh agreement in the UK, Sungrow has also signed a 7.8 GWh landmark energy storage project in the Middle East with Algihaz, an 880 MWh project for Latin America’s largest standalone energy storage power station with Atlas, and a 1.5 GWh battery energy storage agreement in the Philippines with CREC. Currently, Sungrow’s energy storage systems are widely used in mature power markets across Europe, the Americas, the Middle East, and Asia-Pacific, continuously strengthening the deep integration of wind, solar, and storage.
