Recently, the photovoltaic (PV) industry has seen the introduction of new policies. According to a joint announcement from the National Development and Reform Commission and the National Energy Administration regarding the “Notice on Deepening the Market-oriented Reform of New Energy Grid-connected Electricity Prices to Promote High-quality Development of New Energy” (Document No. 136 [2025]), there is a push to allow new energy grid-connected electricity to participate in market transactions. This policy aims to establish a “sustainable price settlement mechanism for new energy development”, which has garnered significant attention within the industry.
Wang Yingge, Vice President of GoodWe Technology Co., Ltd., stated in an interview with China Energy News that, “While photovoltaic energy may not yet be the dominant force in the power sector, it is evolving in that direction. Currently, thermal power has not fully engaged in market transactions, yet new energy electricity is set to start trading, indicating a larger role for photovoltaics in the future.”
Integration of Solar and Storage Technologies
The integration of solar PV and energy storage is becoming a trend, especially as distributed PV starts participating in power trading. “Due to its dependence on sunlight, distributed PV generation is inherently unstable. Energy storage can store electricity during sunny periods and release it when sunlight is insufficient, ensuring a stable supply of electricity,” Wang explained. Additionally, combining distributed PV with energy storage can increase energy self-sufficiency, reduce dependence on large power grids, and enhance reliability of electricity supply, even in the event of grid failures.
Previously, energy storage projects in commercial and industrial settings were mostly independent, with PV and storage operating under different management and revenue models. This lack of effective coordination made it difficult to utilize surplus electricity when grid prices were low. With the new policy, energy storage will serve as a regulatory tool to adjust electricity prices and enhance the profitability of PV projects, according to Wang.
Moreover, the requirement for part of new energy grid connections to engage in market transactions presents new opportunities for virtual power plant technology combined with distributed energy. Wang noted, “Virtual power plants need to aggregate various energy sources for trading. It’s challenging for a single entity to ensure profitability, but new energy’s participation in market trading facilitates the realization of virtual power plants.”
However, challenges remain. “On one hand, the operational status of electricity demand will directly affect consumption. Therefore, during project implementation, we need to focus on whether the demand side can maintain stable operations in the long term,” Wang added. “On the other hand, aggregating various energy sources relies on a comprehensive management model and smart energy management platform, supported by complex algorithms.” GoodWe has established multiple demonstration projects leveraging its expertise in grid technology, the internet, and power electronic hardware and software, while also enhancing AI algorithms to build core competitiveness in the smart energy sector.
Cost Reduction in the Solar and Storage Industry
Wang believes that post-policy, the solar and storage industry must further reduce costs to ensure profitability. “As the market for PV electricity becomes more competitive, it is inevitable that electricity revenues will decline. With spot market prices hovering around just over a dime, and even with medium- to long-term price guarantees, they are unlikely to rise significantly.” He emphasized that addressing industry pain points, such as excessive channels and high development costs, will be crucial. “This will compel channel reform and potentially lead to the emergence of high-quality enterprises, while less competitive firms may exit the residential market.”
From the inverter perspective, even though efficiency has improved significantly, continuous enhancements are still necessary. Wang stated, “We must also focus on the long-term reliability of products, which can significantly lower levelized costs over the entire lifecycle of a power plant. GoodWe’s GT series 100-125 kW commercial inverters are widely used in high-safety-demand scenarios such as nuclear power plants and gas stations.”
Looking ahead, Wang envisions a development direction that focuses on integrating “source, network, load, storage, and intelligence,” collectively termed as “source-network-load-storage-intelligence”. Provinces like Shandong and Henan have already issued policies encouraging the synergistic development of energy storage and these components. GoodWe has been proactive in developing comprehensive solutions for integrated energy systems.
Over the past decade, GoodWe has maintained a leading position in distributed inverter shipments, exceeding 100 GW, and its products have entered countless households. The company’s diverse product lines range from residential to commercial and large-scale energy storage, with prospects for leading market shares in photovoltaic building materials this year. Additionally, its subsidiary, Yude, can deliver turnkey projects in residential and commercial PV sectors, while GoodWe’s air-source heat pumps have gained significant popularity in Europe.
Wang pointed out that while there are numerous technological innovations in the photovoltaic industry, truly revolutionary and disruptive innovations that can lead the entire sector are rare. “Although it appears that everyone is innovating, there is a lack of original technological breakthroughs. The industry needs to focus on in-depth development in PV, energy storage, and smart energy technologies.” He believes that policies should focus on guiding technology, streamlining grid connection processes, and reducing external costs while establishing technical standards to encourage enterprises to increase R&D investments and master core technologies, preventing the “bad money driving out good” phenomenon.
