In 2025, the global energy transition is entering a critical phase. On one hand, the price war in the domestic commercial and industrial energy storage sector is intensifying. Recently, Hongzheng Energy announced a tiered pricing of 0.486 CNY/Wh, while Kelun Electronics introduced a subsidy program of 100 million CNY for 2,500 units. The competition in this field is expected to escalate further. Alongside these pricing battles, new commercial and industrial energy storage products with a capacity of around 500 kWh are being rapidly developed, and the application of AI in this sector is opening up new opportunities.
On the other hand, favorable policies for commercial and industrial energy storage are beginning to emerge. Sichuan province has lifted capacity restrictions, creating new possibilities for the domestic market. Internationally, markets in Europe, America, and Australia are showing significant promise for commercial and industrial energy storage. Based on policy signals at the start of 2025, both domestic and international market demands are expected to improve. GGII has predicted an annual growth rate of over 100% for overseas commercial and industrial storage.
At this crucial juncture, commercial and industrial energy storage, as a key support for the new power system, is anticipated to undergo four significant transformations by 2025: 1) New regulations in Sichuan breaking capacity limits; 2) Overseas markets experiencing an annual growth rate exceeding 100%, initiating a second growth curve; 3) The full-scale implementation of zero-carbon parks, reshaping energy supply and demand models; 4) Potential breakthroughs in product development.
The year 2025 for commercial and industrial energy storage represents a survival competition characterized by “building solid fortifications and engaging in persistent battles.” Only by solidifying technological barriers, innovating business models, and deeply exploring regional and overseas markets can companies maintain an edge in an increasingly competitive industry.
Beyond pricing, service offerings may become a significant variable. Recently, Kelun Electronics announced a new 522 kWh large-capacity energy storage product and a subsidy program of 100 million CNY for 2,500 units (with approximately 40,000 CNY subsidy per unit), aiming to reduce EPC costs by 30% through benefits at both the equipment and installation levels. Similarly, Hongzheng Energy launched the D-Cube 2.0 (215 kW/418 kWh) energy storage cabinet in March 2025, offering a promotional price of 0.486 CNY/Wh for orders over 100 units, reflecting a 65.2% reduction compared to leading company prices in 2023.
Concerns regarding the quality and safety of energy storage plants due to low prices are rising. This is not unfounded; last April, a fire occurred in a commercial energy storage project in Wenzhou due to inadequate fire safety measures, resulting in significant damage. Following this incident, Wenzhou initiated stringent fire safety reforms for energy storage projects.
In addition to pricing, improvements in service and products are expected to be focal points for the next steps in commercial and industrial energy storage. The sector is quickly transitioning into a “large-capacity era” due to its advantages in cost reduction and efficiency. Major manufacturers are expected to focus on developing larger capacity products. For instance, in September 2024, Sungrow launched the PowerStack 800CS commercial liquid-cooled energy storage system with a capacity of 836 kWh, setting a new industry record. Five months later, Penghui Energy introduced the “Qingtian 520” energy storage cabinet with a capacity of 520 kWh, followed by Sungrow’s release of the PowerStack 255CS with 514 kWh capacity. Kelun Electronics is set to release a 522 kWh product that combines two 261 kWh storage cabinets with a combiner cabinet, reducing the footprint by 30% and shortening the construction period by 50%.
Compared to traditional outdoor cabinets with capacities generally between 200-300 kWh, the new products are achieving a twofold increase in capacity. Additionally, Kelun Electronics has indicated that the upcoming products will feature advantages such as intelligent operation and maintenance, customized services, and localized teams, enabling real-time monitoring and AI-driven maintenance to significantly enhance overall performance and reduce operational costs.
GGII forecasts that 2025 will be a significant year for the application of AI in commercial and industrial energy storage. In 2024, industry insiders indicated that “most companies’ commercial energy storage intelligent cloud systems are primarily for show, with little actual value realized in projects.” However, with 80% of commercial energy storage projects not generating profit, many investors have withdrawn. At this critical moment in 2025, the ability to generate profits from commercial energy storage projects has become a matter of survival. Industry leader Sungrow has already highlighted issues of performance exaggeration in commercial energy storage products. Achieving project profitability will demand higher standards for product quality and service capabilities. The ability to provide optimal solutions across the triangle of price, performance, and service may become key to the competitive landscape for commercial energy storage in 2025.
Using Sichuan as a reference, there is still significant potential for domestic commercial energy storage. Since 2024, due to fluctuations in peak and valley arbitrage policies, investors have struggled to keep pace with changes in the commercial energy storage market. Coupled with poor equipment performance and safety standards, this has contributed to 80% of commercial energy storage projects operating at a loss, leading to a “cooling period” in the second half of 2024. At the start of 2025, the sector has already received a boost from favorable policies. Sichuan province has released a notice on further refining the pricing mechanism for new energy storage, allowing user-side storage projects that commence operation by the end of 2026 to benefit from a reduction in initial investment costs by 15%-20% through provincial coordination on additional capacity fees.
Traditionally, commercial and industrial energy storage has been limited by transformer capacity, often reducing installed capacity to less than 20% of actual demand. The new policy in Sichuan allows for flexible capacity expansion, enabling installed capacity to increase up to fivefold under equivalent conditions, such as from 200 kW to 1 MW. For example, increasing capacity by 500 kVA can save 360,000 CNY in electricity costs over two years, in addition to benefiting from peak and valley price arbitrage (with a price difference of 0.6-0.8 CNY/kWh in Sichuan), reducing the payback period from 6-8 years to 4-5 years.
Buoyed by new policies, on March 20, Sichuan’s largest commercial user-side energy storage project, a 60 MW/120 MWh storage project, was officially launched in Yibin. The demonstration effect of Sichuan’s policies may accelerate the development of commercial energy storage in China. In 2024, Zhejiang, Jiangsu, and Guangdong accounted for over 80% of installed capacity, with Zhejiang alone holding a 44% market share. After 2025, more provinces may release favorable policies to drive high-energy-consuming enterprises towards carbon reduction transformation.
Internationally, commercial and industrial energy storage is expected to grow at a rate exceeding 100%. GGII forecasts that overseas commercial energy storage will experience rapid growth, with more diverse application scenarios than in China. There remains significant opportunity for small and medium-sized enterprises to expand internationally, particularly in the commercial energy storage markets of Europe, America, and Australia. Europe is promoting “self-sufficient power plants” through time-of-use pricing mechanisms and subsidy policies, enabling economic viability through peak and valley arbitrage and grid frequency regulation.
Recently, Yingke Shuneng has established strategic partnerships with leading companies in Italy and Romania, with a total signing scale exceeding 1.1 GWh and expected order amounts exceeding 1 billion CNY, covering multiple fields including commercial energy storage. Major markets such as the United States and Australia are accelerating project implementations through large-scale tenders. Furthermore, the global aging power grid is increasing the demand for energy storage, making it a critical tool for alleviating regional electrical pressures. Australia has already seen GWh-level commercial energy storage orders in 2024. Last year, Sungrow announced a 1.7 GWh commercial energy storage distribution agreement in Australia with Raystech Group and SolarJuice Group.
GGII’s statistics show that the overseas market is vast, with significant regional differences in commercial energy storage applications. However, some typical scenarios are emerging. The first is off-grid applications for emergency backup power, replacing traditional diesel generators, primarily in regions with weak grid structures in Asia, Africa, and Latin America, such as Lebanon, Ukraine, Myanmar, Pakistan, India, Vietnam, and the Philippines, which require fast charging and slow discharging. The second scenario involves photovoltaic-storage microgrids that increase the use of green electricity, particularly in rural areas, islands, resorts, and mining sites in Northern and Eastern Europe, where seamless switching between grid and off-grid operation is critical to avoid significant economic losses due to power outages. The third scenario includes coupling with DC charging stations, enhancing distribution network upgrades in regions like the UK and Germany.
Beyond diverse scenarios, the main battleground—zero-carbon parks—opens new opportunities. Within domestic commercial energy storage, typical scenarios include zero-carbon parks, charging stations with energy storage, and transitions for high-energy-consuming enterprises. By 2025, commercial energy storage products are expected to diversify further. The “main battleground” zero-carbon parks may transition from “demonstration projects” to “scaled replication” in 2025. This year, the government work report explicitly stated the establishment of “a batch of zero-carbon parks and factories,” further promoting their construction.
In December 2024, the Central Economic Work Conference first incorporated “zero-carbon parks” into national strategy, followed by a series of policies from various ministries. In January 2025, the National Development and Reform Commission clarified funding support policies for the construction of zero-carbon parks. In February 2025, the National Energy Administration listed zero-carbon parks as a key task for energy transformation. In March 2025, the government work report again emphasized the large-scale development of zero-carbon parks. The urgency of emissions reduction in industrial parks—accounting for over 50% of total industrial emissions—makes zero-carbon transformation imperative.
Regions are also responding quickly to the construction of zero-carbon parks. Changzhou has offered a maximum subsidy of 500,000 CNY for pilot parks, with an additional reward of 500,000 CNY after inspection. Shenzhen has introduced a zero-carbon park evaluation system that simplifies the criteria for phased transformations, while Sichuan has released a pilot scheme for zero-carbon industrial parks, proposing innovative models like “direct supply of green electricity” and “wall-to-wall electricity sales,” aiming to establish benchmark parks by 2027. As of early 2025, 77 national-level economic development zones have initiated the creation of zero-carbon parks, with over 300 new projects expected within the year.
Currently, companies like Envision and Ronghe Yuanchu are launching integrated energy products for zero-carbon parks, combining energy storage, green electricity trading, and carbon footprint management, with benchmark projects already implemented. The Ordos zero-carbon industrial park receives 80% of its energy from direct wind and solar storage, achieving an 85% green electricity utilization rate and a 65% reduction in carbon emissions. The growing rigidity of demand for zero-carbon parks is also leading to stricter requirements for commercial energy storage equipment.
The significant transformation in commercial and industrial energy storage by 2025 marks a crucial shift from “policy support” to “market-driven growth.” As a leader in the industry stated, “The price war will eventually end, but the value war will never cease.” In the future, technological advancements, globalization, and the integration of zero-carbon ecosystems will give rise to a new generation of energy super platforms. Only companies that combine technological innovation with commercial insight will thrive in this trillion-dollar competition.
