GoodWe: Betting on the Future Amidst Thorny Challenges
As the new year begins, GoodWe, which struggled in the market last year, seems to be gathering momentum to stage a comeback in the first quarter. On March 18, data from the Tianyancha app revealed that GoodWe has recently obtained a utility model patent titled “A Temperature Testing System for IGBT Module Wafer.” Since the start of this year, GoodWe has secured 20 patent authorizations, marking a 42.86% increase compared to the same period last year. According to the company’s mid-year financial report for 2024, GoodWe invested 265 million yuan in research and development in the first half of the year, a year-on-year increase of 23.79%. This clearly indicates that, seizing the historic opportunity of energy structure transformation, GoodWe aims to create irreplaceable industrial value in the construction of new power systems by focusing on user needs and driving technological innovation through an early layout of intelligent product matrices and comprehensive solutions.
Current Situation and Challenges: Declining Performance of Inverter Manufacturers
Previously, GoodWe announced a total operating income of 6.738 billion yuan for 2024, representing an 8.36% decrease year-on-year; a net profit attributable to shareholders of the parent company was a loss of 63.15 million yuan, a staggering 107.41% drop compared to the previous year; and the net profit attributable to shareholders, excluding non-recurring gains and losses, was -189 million yuan, down 123.42% year-on-year. GoodWe attributed the performance decline primarily to changes in sales structure, where the revenue from overseas sales of higher-margin inverters and batteries decreased, overshadowing the increase in lower-margin domestic sales of household photovoltaic systems. Additionally, continuous increases in R&D investments, declining scale effects, and rising financial expenses have also put pressure on performance. Indeed, GoodWe’s performance in 2024 does not seem as promising as in previous years, resulting in the loss of its title as the “King of Household Storage.” Despite substantial investments in R&D, fierce competition in the domestic market has limited its profitability, even though shipment volumes remain high. Furthermore, the pace of expansion into overseas markets has been slow, particularly in emerging markets like Africa, Asia, and Latin America. In the commercial and large-scale project sectors, GoodWe has yet to achieve significant breakthroughs. Industry insiders suggest that GoodWe may be overly focused on the domestic market while overlooking higher-margin opportunities abroad. For instance, in the European market, the gross margin for household storage is as high as 45%-50%, and other regions like Africa and Latin America also see margins above 40%. In contrast, the gross margin in the Chinese market is only about 15%, creating a situation where GoodWe’s high shipment volumes do not translate into profitability. This “volume without profit” scenario undoubtedly poses a potential risk to the company’s long-term development. It can be said that GoodWe is currently navigating a challenging development phase.
From Photovoltaics to Energy Storage: GoodWe’s “Second Entrepreneurship”
GoodWe’s energy storage business commenced in 2013 during a time when the photovoltaic market was facing significant challenges, including the resurgence of anti-dumping measures in Europe and the U.S., intensified domestic competition, and price wars. The secondary market also faced a downturn, with market capitalization dropping by over a trillion yuan from its peak. Recognizing the global trend towards energy transition, GoodWe launched several products including energy storage inverters (PCS), energy storage system integration, and photovoltaic-storage integrated solutions. With successful overseas expansion, GoodWe topped the global shipment rankings in 2019 for its household energy storage inverters. However, the path of GoodWe’s energy storage business has not been smooth and is fraught with challenges. The primary challenge is intense market competition. As global energy transition accelerates, the energy storage market has rapidly emerged as a new arena for many companies to compete. Industry giants such as CATL and BYD are penetrating the energy storage market thanks to their deep expertise in battery technology, while established energy storage companies like Sungrow and Kehua Data leverage their rich experience and advanced technologies to secure a foothold in the market. In this competitive landscape, GoodWe must contend with not only technological pressures but also face off against these industry leaders in brand influence and market channels.
Furthermore, the energy storage systems involve multiple complex disciplines including electrochemistry, power electronics, and control technology, leading to high technical barriers. This demands that companies possess robust technical foundations and strong R&D capabilities. However, GoodWe still has a gap in technical accumulation and R&D strength compared to the leading firms in the industry. To bridge this gap, GoodWe has increased its technology R&D investments in 2024, recruiting and training more technical talent to enhance its technological capabilities and innovation potential.
Technological Innovation and New Business Expansion: Photovoltaic Hydrogen Production and Air Source Heat Pumps
Despite facing numerous challenges, GoodWe has not halted its innovation efforts. During an investor communication meeting for the mid-year report of 2024, GoodWe mentioned that “approximately 22,600 energy storage inverters were sold in the first half of 2024.” GoodWe is not only deeply focused on the core technology of energy storage inverters but is also actively exploring cutting-edge areas like energy storage system integration and photovoltaic-storage solutions. In R&D projects, GoodWe is investing broadly in various fields including balcony-level energy storage inverters, micro-inverters, household, commercial, ground station (planned), energy storage inverters, energy storage batteries, integrated energy management platforms (virtual power plants), photovoltaic construction materials, and distributed system services. Additionally, with the upcoming photovoltaic rush, GoodWe Smart Energy is introducing a new asset operation solution to adapt to new models and markets. The GoodWe Smart Energy WE platform, coupled with GoodWe’s self-developed photovoltaic construction materials, inverters, energy storage integration cabinets, charging piles, and heat pumps, aims to expand business scenarios, diversify asset returns, and continuously improve operational efficiency. The company has also made early preparations for new scene requirements such as grid connection for red lines, photovoltaic-storage collaboration, and electricity market trading.
Not only in energy storage, but GoodWe is also driving dual development in other areas of new energy: leveraging its advantages in power electronics technology to launch innovative direct current coupling hydrogen production systems and enhancing the stability of green hydrogen production through patented technology; at the same time, it is building a super factory with an annual production capacity of 300,000 air source heat pumps, expecting annual revenues exceeding 3 billion yuan. With its channel layout and technological integration capabilities, GoodWe plans to create a collaborative solution combining photovoltaic hydrogen production, air source heating, and energy storage systems, with a focus on the European market to accelerate the expansion of clean energy applications and forming a “photovoltaic + heat pump + energy storage” strategic layout.
Future Outlook: Can They Reclaim the Household Storage Crown?
Despite numerous challenges, GoodWe has made various arrangements to expand into new markets. However, returning to its roots, GoodWe still holds certain advantages in the energy storage sector. With the implementation of the national “14th Five-Year” renewable energy quota system and the formal establishment of new energy market rules, it remains to be seen how GoodWe will identify new growth points amid fierce market competition in 2025 and how it will solidify its industry position through technological innovation and market layouts.
At a recent industry exhibition, GoodWe showcased its comprehensive product matrix covering household, commercial, ground, photovoltaic construction materials, and smart energy management platforms under the theme “Digital Intelligence Integration: Coexisting Photovoltaics and Storage,” vividly demonstrating its innovative strength in the new energy field. It highlighted the excellent performance of its 261kWh commercial energy storage integrated cabinet, which supports peak-valley arbitrage, demand management, and emergency backup power modes, with a cycle life exceeding 8,000 times and significant reductions in cost per kilowatt-hour. It is evident that GoodWe’s path in energy storage is filled with challenges but also brims with opportunities. As global energy structure transitions accelerate, the prospects for the energy storage market remain vast. Whether GoodWe can regain its title as the “King of Household Storage” through technological innovation and strategic market layouts will take time to evaluate. Nonetheless, it is certain that this once-industry giant is betting everything on its future.
2025 CIES Energy Storage Conference Overview
The CIES 2025 Energy Storage Conference is jointly organized by the Energy Storage Application Branch of the China Chemical and Physical Power Industry Association, China Energy Storage Network, and Digital Energy Storage Network, with academic support from the Expert Committee of the Energy Storage Application Branch. The conference will feature:
- Opening ceremony and invited academic expert reports
- Intelligent distribution networks and innovative integration of new energy storage
- New power systems and grid dispatch
- Collaboration between new energy storage and large-scale renewable energy bases
- International energy storage, auxiliary power services, spot trading, and capacity markets
- Industrial green microgrids
- National energy storage standards dissemination
- Intelligent new energy storage system integration solutions
- Energy storage fire safety, security, and certification
- New energy storage capital and investment opportunities
- Flow batteries, compressed air storage, and long-duration storage technologies
- Hybrid energy storage, globalization opportunities and challenges in the new energy storage supply chain
- Intelligent commercial energy storage solutions and business cases
- Virtual power plants and vehicle-grid interaction
- Grid-type energy storage systems and project construction
- Energy storage-specific batteries ESG
- New product launches
During the conference, a series of research findings will be released, including the “2025 White Paper on the Development of China’s New Energy Storage Industry,” “2025 White Paper on the Development of Industrial Green Microgrids,” “2025 Analysis Report on Bidding and Pricing in China’s New Energy Storage Industry,” and “2025 Analysis Report on Typical Applications and Development Trends in New Energy Storage.” Over 60,000 guests and more than 1,000 companies from government agencies, research institutes, power grid companies, power generation groups, EPC contractors, system integrators, energy storage equipment manufacturers, energy service providers, project developers, investment and financing institutions, and international buyers are expected to attend the conference.
As a benchmark for promoting high-quality development in the energy storage industry, the China International Energy Storage Conference and Exhibition (CIES) has adhered to high-end, quality, and international characteristics since its inception in 2011. It has facilitated over 500 billion yuan in domestic and international supply chain and channel cooperation, assisted local governments in exceeding 100 billion yuan in investment attraction projects, and supported various capital cooperation reaching 300 billion yuan. This year’s exhibition will feature a “4+1+1” exhibition area, including energy storage system integration, power generation groups, electrical equipment, temperature control equipment, control systems, energy storage batteries, testing and certification, fire safety, and product displays. The exhibition will focus on cutting-edge technologies and practices in the energy storage field, actively build communication channels between government and enterprises, explore new paths for high-quality development in the energy storage industry, and promote deep integration of high-end innovative elements such as specialized, sophisticated, and new technologies, capital, and services, showcasing new products, technologies, equipment, and services from both domestic and international entities. This will help exhibitors expand their brand influence and visibility, actively explore domestic and international market channel resources, enhance the competitiveness and market share of self-controlled products, and accelerate the rapid growth of China’s energy storage brand enterprises, contributing “energy storage wisdom” and “energy storage solutions” to building a green, efficient, flexible, intelligent, and sustainable modern energy system. We welcome you to attend the 15th China International Energy Storage Conference and Exhibition in 2025.
