Goodwe: Betting on the Future Amidst Thorny Challenges
As the new year begins, Goodwe, which had a lackluster performance in the market last year, appears to be gearing up to make a strong 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 Wafers.” This year, Goodwe has secured 20 new patents, 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%. It is evident that amidst the historic opportunity of energy structure transformation, Goodwe aims to create irreplaceable industrial value in the construction of new power systems by strategically developing intelligent product matrices, building comprehensive solutions centered around user needs, and utilizing technological innovation as a driving force.
Current Situation and Challenges: Declining Performance of Inverter Companies
Previously, Goodwe announced a total operating revenue of 6.738 billion yuan for 2024, representing an 8.36% decline year-on-year. The net profit attributable to the parent company experienced a loss of 63.15 million yuan, a decrease of 107.41% compared to the previous year. Furthermore, the net profit attributable to the parent company, excluding non-recurring gains and losses, was -189 million yuan, down 123.42% year-on-year. Goodwe attributed the decline in performance primarily to changes in sales structure, where the decrease in revenue from overseas sales of higher-margin inverters and batteries outweighed the increase in domestic sales of lower-margin residential photovoltaic systems. Additionally, factors like increased R&D investment, decreased scale effects, and rising financial expenses have also exerted pressure on performance. It is clear that Goodwe’s performance in 2024 has not been as encouraging as in the past, and it has lost its title of “King of Home Storage.” Despite substantial investments in R&D, increasing competition in the domestic market has hindered the company’s ability to enhance profitability, even with a considerable shipment volume. Moreover, the pace of expansion into overseas markets has also been sluggish, particularly in emerging markets in Africa, Asia, and Latin America, where Goodwe has not achieved significant breakthroughs in commercial and large-scale projects. Industry insiders have noted that Goodwe seems overly focused on the domestic market, overlooking lucrative opportunities abroad. For instance, the gross margin for residential energy storage in the European market is as high as 45%-50%, while similar margins in other regions like Africa and Asia also exceed 40%. In contrast, the gross margin in the Chinese market is only around 15%, which has led to a situation where Goodwe, despite substantial shipments, has limited profitability. This “volume over profit” scenario undoubtedly poses potential risks to the company’s long-term development.
From Photovoltaics to Energy Storage: Goodwe’s “Second Start”
Goodwe’s energy storage business began in 2013, during a time when the photovoltaic market faced significant challenges from both domestic and international pressures, including a resurgence of anti-dumping measures in Europe and the U.S., intensified domestic competition, and ongoing price wars. The secondary market also showed signs of distress, with the total market value dropping by over a trillion yuan from its previous peak. However, in the face of adversity, Goodwe astutely recognized the trend of global energy structure transformation and launched various products, including energy storage inverters (PCS), energy storage system integration, and integrated solar storage solutions. Thanks to its successful overseas market strategy, Goodwe topped the global shipment rankings for residential energy storage in 2019. Nevertheless, the “rapid expansion” path of Goodwe’s energy storage business has been fraught with challenges. The foremost challenge is the intense market competition. With the acceleration of global energy transformation, the energy storage market has rapidly emerged as a new track for many companies. Industry giants like CATL and BYD have begun to penetrate the energy storage market, leveraging their strong foundations in battery production, while established energy storage companies like Sungrow and Kehua Data utilize their extensive experience and advanced technology to maintain a foothold in the market. In this competitive landscape, Goodwe must contend not only with technological pressures but also with the need to compete against these industry giants in brand influence and market channels.
Furthermore, energy storage systems involve multiple complex disciplines, including electrochemistry, power electronics, and control technology, resulting in high technical barriers. This necessitates that companies possess not only profound technical foundations but also strong R&D capabilities. However, Goodwe still has a gap in technical accumulation and R&D strength compared to leading companies in the industry. To bridge this gap, Goodwe has increased its technological R&D investments in 2024, recruiting and training more technical talents to continuously enhance its technical strength and innovation capabilities.
Technological Innovation and New Business Expansion: Photovoltaic Hydrogen Production and Air Source Heat Pumps
Despite facing numerous challenges, Goodwe has not halted its innovative endeavors. In the mid-year report for 2024, Goodwe indicated that “approximately 22,600 energy storage inverters were sold in the first half of 2024.” Goodwe is not only focused on mastering energy storage inverter technology but is also actively exploring cutting-edge areas such as energy storage system integration and integrated solar and storage solutions. In terms of R&D projects, Goodwe has made extensive investments across various fields, including balcony-level and storage inverters, micro-inverters, residential, commercial, and utility-scale inverters, energy storage batteries, integrated energy management platforms (virtual power plants), photovoltaic building materials, and distributed system services. Additionally, with the impending rush for photovoltaic installations, Goodwe Smart Energy has introduced a new asset operation solution tailored to new models and markets. The Goodwe Smart Energy WE platform, combined with Goodwe’s self-developed photovoltaic building materials, inverters, energy storage cabinets, charging piles, and heat pumps, enhances business scenario expansion, diversifies asset returns, and continuously improves operational efficiency. The company has also made preparatory arrangements for new scenario demands such as red line grid connection, solar-storage synergy, and electricity market trading.
Not limited to energy storage, Goodwe is also advancing in other areas of new energy development: on one hand, leveraging its strengths in power electronics technology, it has launched an innovative direct current coupled hydrogen production system, while on the other hand, it has established a super factory with an annual production capacity of 300,000 air source heat pumps, with expected annual revenue exceeding 3 billion yuan. By integrating channel layouts and technological capabilities, Goodwe plans to create a collaborative solution that combines photovoltaic hydrogen production, air source heating, and energy storage systems, with a focus on breaking into the European market and accelerating the expansion of clean energy applications across various scenarios, forming a three-dimensional strategic layout of “photovoltaics + heat pumps + energy storage.”
Future Prospects: Can Goodwe Reclaim the Crown of Home Storage?
Despite facing numerous challenges, Goodwe has made various strategic moves to explore new markets. However, looking back at its core strengths, 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 effect of new energy market entry regulations, it remains to be seen how Goodwe will seek new growth points amidst fierce market competition and consolidate its industry position through technological innovation and market layout by 2025. At a recent industry exhibition, Goodwe showcased a comprehensive product matrix covering residential, commercial, utility-scale solar, photovoltaic building materials, and smart energy management platforms, under the theme “Digital Intelligence Integration: Solar and Storage Symbiosis,” demonstrating its innovative capabilities and scene-based layout in the new energy sector. The exhibition highlighted Goodwe’s 261 kWh integrated energy storage unit, which features a high degree of integration and PACK-level precise fire extinguishing capabilities, with a cycle life exceeding 8,000 times, supporting multiple operational models such as peak-valley arbitrage, demand management, and emergency backup power, significantly reducing costs per kilowatt-hour.
It is clear that Goodwe’s path in energy storage is filled with challenges but also holds immense opportunities. As the global energy structure continues to transform, the prospects for the energy storage market remain vast. Whether Goodwe can reclaim the title of “King of Home Storage” through technological innovation and strategic market positioning will require time to assess. However, it is certain that this once-prominent industry giant is betting everything on the future.
Introduction to the 2025 CIES Energy Storage Conference
The 2025 CIES Energy Storage Conference is co-hosted 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 an opening ceremony and keynote reports from invited academicians and experts, as well as specialized sessions on topics such as intelligent distribution networks, new energy storage integration and innovation, and international energy storage, among others. A series of research outcomes, including the “2025 China New Energy Storage Industry Development White Paper,” will also be released during the event. The conference is expected to attract over 60,000 guests and more than 1,000 enterprises, including representatives from government agencies, research institutes, grid companies, power generation groups, EPC contractors, system integrators, energy service providers, project developers, investment institutions, and international buyers.
Since its establishment in 2011, the China International Energy Storage Conference and Exhibition (CIES) has served as a barometer for promoting high-quality development in the energy storage industry, facilitating over 500 billion yuan in domestic and international supply chain and channel cooperation, and assisting local governments in attracting investment projects exceeding 100 billion yuan. This year’s exhibition will feature “4+1+1” exhibition areas, showcasing products and branding from energy storage system integration, power generation groups, electrical equipment, temperature control equipment, control systems, energy storage batteries, testing and certification, fire safety, and more. The exhibition will focus on the latest global technologies and practices in the energy storage field, actively building communication channels between government and enterprises, exploring new paths for high-quality development in the energy storage industry, and helping exhibitors expand their brand influence and market share while accelerating the growth of China’s energy storage brand enterprises.
We welcome you to join the 2025 15th China International Energy Storage Conference and Exhibition.
