GoodWe: Betting on the Future Amidst Thorny Challenges
As the new year begins, GoodWe, which struggled in the market last year, seems determined 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 “An IGBT Module Wafer Temperature Testing System.” So far this year, the company has secured 20 new patent authorizations, representing a significant increase of 42.86% compared to the same period last year. According to the financial data for the first half of 2024, GoodWe invested 265 million yuan in research and development, marking a year-on-year increase of 23.79%. It is evident that GoodWe aims to harness the historic opportunity presented by the transformation of the energy structure by strategically positioning itself in the intelligent product matrix and developing all-encompassing solutions centered on user needs and driven by technological innovation.
Current Situation and Challenges: Declining Performance of Inverter Companies
Previously, GoodWe announced that its total operating revenue for 2024 is expected to be 6.738 billion yuan, reflecting a year-on-year decline of 8.36%; the net profit attributable to shareholders of the parent company is projected to be a loss of 63.15 million yuan, down 107.41%; and the net profit after excluding non-recurring gains and losses is anticipated to be -189 million yuan, a decline of 123.42% year-on-year. GoodWe attributed the drop in performance primarily to changes in sales structure, where the revenue from high-margin overseas inverter and battery sales decreased more than the increase in sales from lower-margin domestic residential photovoltaic systems. Additionally, the company faced pressure from increased R&D investments, declining scale effects, and rising financial costs.
Indeed, GoodWe’s performance in 2024 appears less promising compared to previous years, and it has completely lost its crown as the “King of Household Storage.” Despite significant investments in R&D, domestic market competition has intensified, leading to substantial shipments but limited profitability. Furthermore, the expansion into overseas markets has been sluggish, especially in emerging markets in Asia, Africa, and Latin America. GoodWe has yet to make significant breakthroughs in the commercial and large-scale project sectors. Some industry insiders suggest that GoodWe may be overly focused on the domestic market while overlooking lucrative opportunities abroad. For example, the gross margin for household energy storage in the European market can reach 45%-50%, while other regions in Asia, Africa, and Latin America typically see margins above 40%. In contrast, China’s market gross margin stands at only about 15%, which creates a situation where GoodWe, despite its considerable shipment volumes, struggles with profitability. This “high volume, low profit” scenario poses potential risks to the company’s long-term growth.
Transitioning from Photovoltaics to Energy Storage: GoodWe’s “Second Entrepreneurship”
GoodWe’s energy storage business began in 2013, during a tumultuous period for the photovoltaic market, marked by significant external pressures and intense price wars. At that time, the market cap had plummeted by over a trillion yuan. However, GoodWe adeptly identified the global trend of energy structure transformation and launched multiple products, including energy storage inverters (PCS), energy storage system integration, and photovoltaic-storage integrated solutions. With successful international expansion, GoodWe became the top global supplier of household energy storage inverters in 2019.
Despite this success, GoodWe’s journey in energy storage has not been without its challenges. The primary challenge is fierce market competition, as the rapid acceleration of global energy transformation has made the storage market an attractive new arena for many enterprises. Industry giants like CATL and BYD, with their strong foundations in battery technology, are increasingly penetrating the energy storage market, while established companies such as Sungrow and Kehua Data leverage their extensive experience and advanced technologies to secure their positions. In this competitive landscape, GoodWe must contend not only with technological pressures but also with brand influence and market channels against these industry leaders.
Additionally, the energy storage systems involve multiple complex disciplines, including electrochemistry, power electronics, and control technology, which create high technical barriers. This demands that companies possess deep technical expertise and robust R&D capabilities. However, GoodWe still lags behind leading firms in terms of technical accumulation and research strength. To address this gap, GoodWe has increased its technological R&D investment in 2024, aiming to attract and cultivate more technical talent to enhance its capabilities and innovation potential.
Technological Innovation and New Business Expansion: Photovoltaic Hydrogen Production and Air Energy
Despite facing numerous challenges, GoodWe has not halted its innovative efforts. In the investor communication during its 2024 mid-year report, GoodWe stated, “In the first half of 2024, the sales volume of energy storage inverters was approximately 22,600 units.” The company is not only focusing on core technologies like energy storage inverters but is also actively exploring cutting-edge areas such as energy storage system integration and photovoltaic-storage integrated solutions. GoodWe has made extensive investments in various R&D projects, covering areas such as balcony-level energy storage inverters, micro-inverters, home, commercial, and ground station inverters, energy storage batteries, comprehensive energy management platforms (virtual power plants), photovoltaic building materials, and distributed system services.
As the photovoltaic installation rush approaches, GoodWe has introduced new asset operation solutions to adapt to new models and markets. The GoodWe Smart Energy WE platform, along with its self-developed photovoltaic building materials, inverters, energy storage integrated cabinets, charging piles, and heat pumps, aims to expand business scenarios, diversify asset revenues, and continuously improve operational efficiency. The company has also made proactive arrangements for new scenario demands such as red line grid connection, photovoltaic-storage synergy, and power market transactions.
In addition to energy storage, GoodWe is advancing in other fields of new energy with a dual-driven approach: leveraging its strengths in power electronics technology to launch an innovative direct current coupling hydrogen production system, enhancing green hydrogen preparation stability through patented technologies; simultaneously, it is constructing a super factory with an annual production capacity of 300,000 air energy heat pumps, projected to generate over 3 billion yuan in annual revenue. GoodWe plans to integrate photovoltaic hydrogen production, air energy heating, and energy storage systems into collaborative solutions, emphasizing breakthroughs in the European market and accelerating the expansion of clean energy applications across various scenarios, forming a comprehensive strategy of “photovoltaics + heat pumps + energy storage.”
Future Outlook: Can GoodWe Reclaim its Crown as the King of Household Storage?
Despite facing numerous challenges, GoodWe is actively seeking new market opportunities and expanding its reach. However, it is essential to recognize that the company 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, how GoodWe will identify new growth points amid fierce market competition and solidify its industry position through technological innovation and market expansion remains to be seen.
At a recent industry exhibition, GoodWe showcased its comprehensive product matrix covering residential, commercial, ground, photovoltaic building materials, and smart energy management platforms under the theme “Digital Intelligence Integration, Symbiosis of Photovoltaics and Storage.” The company highlighted its innovative strength and scenario-based layout. A notable demonstration was the GoodWe 261kWh integrated energy storage cabinet, which features high integration with PACK-level precision firefighting, a cycle life exceeding 8,000 cycles, and supports multi-mode operations for peak-valley arbitrage, demand management, and emergency backup, showcasing significant reductions in cost per kilowatt-hour.
It is clear that GoodWe’s path in energy storage is filled with challenges, yet it also harbors immense opportunities. As the global energy structure transformation accelerates, the prospects for the energy storage market remain bright. Whether GoodWe can reclaim its title as the “King of Household Storage” through technological innovation and strategic market positioning will require time to unfold. However, it is certain that this former industry giant is betting everything on its future.
2025 CIES Energy Storage Conference Introduction
The CIES 2025 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 sessions on various topics, including the integration of smart distribution networks and new energy storage innovations, the coordination of new energy storage with large-scale renewable energy bases, international energy storage, power auxiliary services, spot trading and capacity markets, industrial green microgrids, national energy storage standards, and more.
During the conference, series of research outcomes 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,” and “2025 Report on Bidding and Price Analysis of New Energy Storage Industry Projects.” The event expects to welcome over 60,000 guests from government agencies, research institutions, power grid companies, generation groups, EPC contractors, system integrators, energy storage device manufacturers, energy service providers, project developers, investment institutions, and international buyers.
Since its inception in 2011, the China International Energy Storage Conference and Exhibition (CIES) has consistently focused on high-end, quality, and international characteristics, facilitating domestic and international supply chain and channel cooperation exceeding 500 billion yuan, assisting local governments in attracting investment cooperatives exceeding 100 billion yuan, and supporting various capital cooperations reaching 300 billion yuan. This year’s exhibition will feature “4+1+1” exhibition areas, including energy storage system integration, power generation groups, electrical equipment, temperature control equipment, control systems, energy storage batteries, testing and certification, and fire safety.
The exhibition will focus on cutting-edge global technologies and practices in the energy storage field, actively building communication channels between government and enterprises, exploring new pathways for high-quality development in the energy storage industry, and promoting deep integration of “specialized, refined, characteristic, and innovative” technologies, capital, and services, while showcasing new products, technologies, equipment, and services from home and abroad.
We welcome you to participate in the 2025 15th China International Energy Storage Conference and Exhibition.
