Why does energy storage continue to experience high growth? Why is commercial and industrial energy storage leading industry growth?

Currently, there is strong demand for electricity in commercial and industrial sectors, and some regions are facing tight power supply situations. Electricity policies are driving demand for backup power, making commercial and industrial energy storage the preferred choice for enterprises. As an important means of backup power, commercial and industrial energy storage systems have great potential under these circumstances. There are several factors behind the industry's growth:

Firstly, under the guidance of top-level policy designs, energy storage has entered a new stage of development towards scalability.

Secondly, the increasing installation of new energy sources, with mandatory energy storage for wind and solar power, brings about stable market growth.

Thirdly, with the relative stabilization of prices of lithium iron phosphate materials compared to the high levels at the end of last year, and amid a wave of battery manufacturers expanding production, intense competition has led to cost reductions in battery cells through process improvements, technological innovations, and standardized and large-scale production. This has significantly lowered the cost of energy storage systems, encouraging installation among users.

Fourthly, reforms in the electricity market have provided clearer guidance in the transmission and distribution sectors, and the commercial logic on the user side has been rationalized. Business models related to user-side energy storage and incremental grid upgrades have become smoother, clarifying the revenue streams in the energy storage sector.

With significant benefits from peak-to-off-peak electricity price differentials under such high electricity consumption, commercial and industrial users have a stronger willingness to install energy storage systems. High-tech enterprises are also willing to use energy storage as backup power. Although the current main profit model for commercial and industrial energy storage is still peak/off-peak arbitrage, as electricity market reforms progress, the revenue sources for commercial and industrial energy storage will diversify, accelerating market growth.

From a product perspective, high integration, high security, high flexibility, and intelligence have become the direction of development for commercial and industrial energy storage products. Meanwhile, for specific application areas such as solar energy storage, some companies have launched corresponding products to meet market demand.

More and more companies are paying attention to electricity costs and carbon emissions, promoting green transformation, reducing energy costs, and achieving energy independence and control. The combination of solar power and energy storage can further optimize system resource allocation and increase the proportion of clean energy use in enterprises, assisting them in their transformation and upgrading towards cost reduction and carbon reduction.