Wang Yingge, Vice President of Goodwe Technology Co., Ltd., recently shared insights in an interview with China Energy News regarding the current landscape of the photovoltaic (PV) industry. He highlighted that while there are numerous technological innovations emerging, truly revolutionary and disruptive innovations that can lead the entire industry remain scarce.
Recently, the PV sector has seen the introduction of new policies. The National Development and Reform Commission and National Energy Administration jointly released a notice aimed at deepening the reform of new energy grid pricing, promoting high-quality development in the sector. This notification has sparked significant interest within the industry.
According to Wang, “From the perspective of the new policy, although solar energy is not yet the mainstay in the power sector, it is moving in that direction. Currently, thermal power has not fully participated in market trading, yet solar power is being encouraged to enter the market. This indicates that photovoltaics will play a larger role. We need to think carefully about the future direction of the industry.”
Integration of Solar and Storage
With distributed solar PV systems participating in power trading, the combination of solar energy and storage has become essential. Wang noted, “Due to the nature of distributed solar PV, power generation is unstable and affected by sunlight. Energy storage can store electricity when sunlight is abundant and release it during low sunlight periods, ensuring stable power supply. Additionally, integrating distributed solar with storage enhances energy self-sufficiency, reduces dependence on the large grid, and increases reliability of electricity supply, even during grid failures.”
In the past, energy storage projects in commercial and industrial sectors operated independently, with solar and storage managed by different entities and revenue models, hindering effective collaboration. This often resulted in underutilization of excess electricity when prices were low. The new policy positions energy storage as a tool for price regulation, thereby enhancing the profitability of solar projects.
Moreover, the policy mandates that new energy grid connections must participate in trading, presenting new opportunities for virtual power plant technologies combined with distributed resources. “A virtual power plant aggregates different energy sources for trading. It is challenging for a single entity to guarantee profits, but the participation of new energy in market trading makes virtual power plants a reality,” Wang explained.
However, he acknowledged that challenges remain. “On one hand, the operational status of the load side directly impacts electricity consumption. During project implementation, we must ensure the load side can operate stably over the long term. On the other hand, aggregating different energy sources requires a comprehensive management model and a smart energy management platform, supported by complex algorithms.”
Goodwe has leveraged its expertise in grid technology, internet applications, and power electronics to develop multiple demonstration projects, while continuously enhancing its AI algorithms to strengthen its core competitiveness. Wang stated, “Goodwe does not directly engage in virtual power plant operations but provides services and solutions for them. We offer hardware support through inverters, storage, and heat pump products, and we also have the capability for comprehensive EPC solutions.”
Encouraging Competition
Wang believes that following the implementation of the new policy, the solar and storage industry must further reduce costs to ensure profitability. “With market-oriented trading in photovoltaics, a decline in electricity prices is a prevailing trend. Current spot trading prices are relatively low, even when considering medium to long-term pricing mechanisms. Identifying compressible areas in the supply chain, such as excessive channels and high development costs, will be crucial and will drive necessary transformations in the industry,” he remarked.
He added, “From the standpoint of inverters, while current efficiencies are relatively high, we continue to seek improvements. Long-term reliability of products must also be prioritized to significantly lower the cost per kilowatt-hour over the entire lifecycle of power plants. For example, Goodwe’s GT series 100-125kW commercial inverters are known for their efficient and reliable performance in high-safety-demand environments like nuclear power plants and gas stations.”
“However, grid-tied inverters have matured over the past decade, leaving limited cost reduction opportunities. The next focus for reducing costs may be in the energy storage sector,” Wang explained. “When combining solar and storage, it becomes clear that storage constitutes a significant portion of the system. Therefore, the core of cost reduction should lie in the development of storage technology and its associated costs, while ensuring the long-term reliability of equipment.”
“Currently, the basic warranty period for inverters is five years. Following trends in the home appliance industry, future requirements for warranties are expected to increase, necessitating more durable and reliable equipment. Safety assessments for storage products are more stringent, ensuring stable and safe operations, which imposes higher technical demands. Guaranteeing low failure rates and long-term reliability allows for increased actual utilization hours of equipment, which consequently lowers costs per kilowatt-hour. Conversely, frequent equipment failures lead to increased costs and maintenance needs,” Wang concluded.
Towards an Integrated Energy Future
Looking ahead, Wang envisions a development direction that combines “source, network, load, storage, and intelligence,” referred to as “Source-Network-Load-Storage-Intelligence.” Provinces like Shandong and Henan have already issued policies encouraging the synergistic development of storage with source-network-load systems.
Goodwe has long prepared for a one-stop solution in this area. Over the past decade, the company has maintained a leading position in distributed inverter shipments, exceeding 100GW. Goodwe’s products, known for their “China Red, Photovoltaic Core,” have reached countless households. The product line for storage extends from residential to commercial and large-scale applications, with expectations for leading market share in solar building materials this year. Goodwe’s subsidiary, Yude, is capable of delivering turnkey solutions in the residential and commercial solar sectors, while its air-source heat pump products are gaining popularity in Europe. Their smart energy management platform has enabled access for over 3GW of distributed energy, providing management tools for local energy investment companies.
Wang emphasized that while the PV industry is witnessing a flurry of technological innovations, genuine revolutionary and disruptive innovations that can lead the sector are still rare. “It appears that many are innovating, but originality is lacking. The industry needs to focus on deepening research in solar, storage, and smart energy technologies,” he articulated.
Wang believes that policies should focus on guiding technology, streamlining grid connection procedures, and reducing external costs. Establishing robust technical standards and encouraging enterprises to increase R&D investments will help them master core technologies and prevent the phenomenon of “bad money driving out good.”
