The price war in the energy storage market is getting more intense

At present, the market for large-scale energy storage is a little flat, mainly because the rush for installation orders in June and July has just ended, and China’s domestic market is a bit flat; the overseas (North American) market is not as good as expected due to several major reasons:

1. The project registration time is long, the procedures are complicated, and a large number of project delays
2. The production of transformers and other power equipment cannot keep up with the growth of energy storage equipment production, and there is a shortage of power equipment.
3. Policy details are unclear (I.R.A)
4. Labor shortage

It is expected that the price war will be the most intense in 2023 H2, cuz at this moment only the demand in Chia is increasing as fast as expected. However, the owners in Chinese market have a strong voice and strong ability to lower prices, so the price war competition will be very fierce. Everyone is now exchanging profits for market share. It is expected that some bad coins will gradually withdraw from the market in the first half of next year. The profit margins of each company will still return to normal levels, but after the market share has been seized, each company's position will basically be determined.

The overall situation of the residential storage market is not optimistic either.

Inventory in Europe was at a high level at the end of last year. However, there were continuous imports to Europe early in 2023 due to some late orders. In addition, the European market entered the off-season for residential storage sales, and with the decline in energy storage policies. Together they have led to Europe’s serious overcrowding.

The future opportunities for the residential energy market may in Africa, mainly in South Africa, because not only household power cuts have led to a strong demand but also the subsidies there.

For more infromation, please feel free to drop an email to cathycai@smm.cn