Large-Scale Commercial Energy Storage Competition: “1 Billion Yuan Subsidy for 2,500 Units” – Unveiling Kelu Electronics’ New 522kWh Product
Source: Gaogong Energy Storage Date: March 19, 2025
The trend toward larger energy storage capacities has become a significant development in the industry. In both large-scale and commercial energy storage sectors, larger storage cabinets are transforming traditional usage scenarios. Since 2024, high-capacity commercial energy storage products, represented by those over 500kWh, have been frequently launched, marking the industry’s transition into a new phase of scale, efficiency, and intelligence.
In this competitive landscape, Kelu Electronics, a subsidiary of Midea Group, is set to release its 522kWh product, which combines two 261kWh storage cabinets and one combiner box. This product supports parallel operation of multiple 522kWh units, officially kicking off the competition in the 500kWh+ market.
Last September, Kelu Electronics introduced its “0.598 yuan/Wh commercial storage cabinet” with a low-price strategy aimed at attracting attention. This move signaled Kelu Electronics’ entry into the commercial energy storage arena. As of March 2025, the company has signed contracts for nearly 1,000 commercial storage cabinets and launched over 300 projects across key areas such as the Yangtze River Delta and the Pearl River Delta.
According to Qian Zhan, Senior Product Manager at Kelu Electronics, the company’s rapid success in the commercial storage market can be attributed to two main factors: first, the effective draw of its low-price strategy, and second, the solid capabilities of Kelu Electronics in product development, channels, and supply chain management, which have created a competitive edge.
Reports indicate that Kelu Electronics’ pricing strategy differs from competitors by avoiding minimum order quantities and other restrictive payment conditions. Their approach represents a genuine price reduction aimed at establishing a foothold in this niche market. Qian highlighted that the best-selling product last year was not the low-priced one but rather a product with superior overall performance.
With its commitment to product and technological innovation, Kelu Electronics has emerged as a diligent player in the commercial energy storage sector. Over the past year, Midea Group has empowered Kelu Electronics through financial support, R&D platforms, supply chains, and sales channels, enabling the rollout of various commercial energy storage products, including the upcoming 522kWh unit, along with models like 233kWh, 372kWh, and 418kWh.
“1 Billion Yuan Subsidy for 2,500 Units” – Four Key Insights into Kelu Electronics’ 522kWh Product
The newly launched 522kWh product essentially integrates two 261kWh storage cabinets and one combiner box, enhancing safety, performance, and intelligent operation. During the Beijing Zhongguancun Energy Storage Exhibition, Kelu Electronics announced significant promotional policies for this product: from April 10 to April 30, they will provide a 1 billion yuan subsidy for 2,500 units.
Qian stated that this product occupies 30% less space, requires no on-site assembly, does not need a combiner box, and is plug-and-play, significantly shortening construction times. The product upgrade supports a wide range of strategies for various scenarios, including traditional industrial and commercial applications, off-grid backup power, and integration with renewable energy sources and virtual power plants.
Kelu’s Aqua E series boasts a battery capacity of 522kWh and a power output of 250kW. It employs an extreme integration design that combines the battery, battery management system (BMS), energy management system (EMS), modular inverter, liquid cooling system, and fire protection system into one unit. This design allows for active protection through software settings for safety thresholds in BMS and PCS.
The modular design of the Aqua E series allows for flexible expansion and is suitable for various applications, including industrial parks, commercial buildings, charging stations, hospitals, data centers, and virtual power plants. It offers features such as reverse current protection, overload prevention, peak shaving, demand control, and backup power capabilities, helping businesses reduce energy costs and ensure stable system operation.
In summary, this product has several advantages:
- Outstanding Safety: It employs a three-layer fire safety strategy involving warnings, explosion-proof designs, and fire suppression systems, minimizing safety failure losses. It also features a multi-level protection system to ensure the safety of adjacent properties.
- Exceptional Performance: The dual-loop cooling system with ultra-low flow resistance and temperature management maintains system temperature differences within 2.5°C, while AI-based thermal control optimizes energy management strategies.
- High Stability: With over a decade of experience in the energy storage industry, Kelu’s technology is well-established, and the company has deployed over 300 sites globally, earning widespread customer recognition.
- Intelligent Operation and Maintenance: The product supports easy deployment, eliminating on-site assembly and combiner boxes, and reduces construction time by 50%. It also includes cloud monitoring and AI optimization algorithms to increase operational efficiency.
Who Will Lead in the 500kWh+ Commercial Energy Storage Battle?
The cost of electricity storage (LCOE) is calculated as follows: LCOE = (storage system equipment cost + construction cost + operational cost) / total electricity generated over its lifecycle. To further reduce LCOE, products over 500kWh have become a key trend in the next generation of commercial energy storage. The driving force behind this trend is the leap in battery capacity and advancements in cooling technologies.
In 2024, energy storage battery capacities are expected to evolve from the mainstream 280Ah to 314Ah and even 500Ah+, significantly enhancing energy density and cycle life. Starting in Q1 2024, companies such as CATL and EVE Energy are set to mass-produce 314Ah cells, pushing commercial energy storage systems to exceed 500kWh.
Additionally, liquid cooling technology is becoming mainstream due to its efficient heat dissipation and safety advantages, replacing traditional air cooling solutions. This technological iteration not only boosts individual cabinet capacities but also optimizes lifecycle costs, laying the groundwork for large-scale deployment.
The Kelu Electronics 522kWh product, compared to traditional 215kWh models, reduces construction workload by 50% and operational costs by 30%, while achieving a system cycle efficiency of over 90% and a 10% reduction in LCOE.
Kelu Electronics has discovered that in actual project scenarios, over 60% of installations require 2-4 units operating in parallel. Traditional solutions often necessitate a combiner or grid connection cabinet for multiple storage cabinets, complicating interconnections and increasing installation costs. The Aqua E series effectively addresses this by integrating two 261kWh units with one combiner box, reducing space requirements by 35%, providing pre-commissioning in the facility, and enabling plug-and-play functionality, thereby shortening construction time by 50%.
In terms of operational costs, Kelu Electronics has initiated a turnkey project approach that includes optional EPC services, reducing EPC costs by 30% and capital expenditures by 10%. Cloud-based monitoring, online configuration, fault analysis, and remote upgrades further lower the operational burden.
In this competitive 500kWh+ commercial energy storage market, Kelu Electronics aims to establish its own protective moat through technological innovation and comprehensive ecosystem services.
As the industry faces the harsh reality of “80% of commercial projects not being profitable,” Kelu Electronics is tackling this challenge head-on. Qian attributes the profitability issues to several factors, including fluctuating price differences between peak and off-peak periods and the rapid escalation of commercial energy storage, which has impacted product reliability and efficiency.
To navigate these challenges, Kelu Electronics is focusing on establishing a competitive edge in core technologies related to battery management, thermal management, and system integration. Their AquaC series products incorporate active balancing technology that enhances system lifecycle and reduces LCOE, a technology certified by the international authority TÜV Rheinland. They are also leveraging Midea Group’s expertise in air conditioning technology to develop intelligent temperature control systems, reducing energy consumption by 20% and improving stability in extreme environments.
In 2024, Kelu Electronics aims to target the more rigid and higher-margin overseas markets, expecting to secure over 1.7GWh in international orders, including projects in North America and Chile. Leveraging Midea’s global sales and operational networks, Kelu is transitioning from a mere equipment supplier to a full lifecycle service provider, achieving higher premiums through complete project delivery.
With its technological investments and strategic positioning, Kelu Electronics is experiencing rapid growth in both energy storage and commercial sectors. Their self-developed interactive system for “source-network-load-storage-charging” has already been approved by the Shenzhen Municipal Science and Technology Innovation Bureau, facilitating commercial users’ participation in the electricity spot market and increasing their returns.
With the support of Midea’s resources, Kelu Electronics aims to build a unique competitive advantage in the fiercely competitive commercial energy storage market.
