Navigating the Future of Distributed Solar and Energy Storage: Strategies for Success

2025 is set to be a significant year for the distributed solar and storage industry. At the beginning of the year, the introduction of the “New Distributed Management Policy” and Document No. 136 marked the end of the “fixed price” era, leading the development of distributed solar and storage into a new growth cycle and facilitating a profound restructuring of the industry landscape. To explore and promote the sustainable and healthy development of the distributed solar and storage sector, North Star Solar PV Network and North Star Energy Storage Network jointly held the “2025 Distributed Solar and Storage Innovation Forum (Jiangsu Station)” in Nanjing on April 22. Industry experts, leading enterprises, and dealer representatives gathered to discuss new opportunities in solar and storage under the new policies, technological iterations and innovations, investment and financing models, integrated wind-solar-storage-hydrogen development strategies, and the construction and application of zero-carbon parks.

At the start of the forum, Chen Chen, Chief Editor of North Star, delivered a welcome speech. She noted that as the deadline for the “New and Old Policy Transition” approaches, industry focus is shifting towards the viability and methodologies for distributed solar and storage after the “430” and “531” policies. The challenge now is how to transition projects that previously relied on fixed tariffs, subsidies, and guaranteed purchases into a competitive market environment. With the previous stable income model disrupted, the question arises: how can new quantifiable investment models be constructed?

Many valuable insights were shared during the keynote sessions. Liu Jin, Deputy Director of the Energy Department at the Jiangsu Provincial Engineering Consulting Center, provided an overview of the current development status and policy trends of distributed solar in Jiangsu. In 2024, Jiangsu is expected to lead the nation with an additional installed capacity of 17.97 million kilowatts, increasing its share in the power generation structure from 15% to 22%, thus becoming a crucial growth engine for renewable energy development in the province. Liu highlighted that the management measures for distributed solar development in Jiangsu have been publicly solicited for opinions, which are favorable for distributed projects. The specific implementation plan for Document No. 136 is still under drafting, but it will ensure a smooth market entry and healthy development for distributed solar by considering continuity with existing policies, market absorption capacity, trading prices, user electricity pricing acceptance, resource development potential, and costs.

Shandong Solar Industry Association’s Executive Vice President and Secretary-General Zhang Xiaobin detailed the market entry specifics and key points of Document No. 136, as well as new trends in distributed solar development. He emphasized that success will rely on effective channel strategies and load management, creating a closed loop among power generation, consumption, and sales. Zhang explained that this shift is primarily driven by changes in investment entities and corporate strategies, with local investment firms becoming a new force in distributed solar development. Future corporate strategies will pivot from cost-cutting in supply chain operations to focusing on strategic stability and refined management capabilities.

In light of current policy environments, market trends, and customer pain points, Qiu Dianbing, Product Marketing Manager at Xiamen New Energy Technology Co., Ltd., noted that the commercial energy storage market is not becoming increasingly competitive but is, in fact, a market with unmet real demand. He identified three primary areas of unmet demand: complex business models, stability risks in long-term operation of energy stations, and the urgent need for innovative dynamic revenue models. Qiu emphasized that simply pursuing the lowest initial investment is no longer sufficient for industry growth. Therefore, New Energy proposes a dual-core driven solution for commercial storage products that balances stability and adaptability, aiming to resolve industry dilemmas and ensure long-term returns for investors.

With the issuance of Document No. 136, distributed solar is on the brink of full marketization. In this evolving landscape, solar energy must not only fulfill its supply responsibilities but also contribute to grid stability. As market dynamics change, companies need to adapt. A representative from JA Solar Smart Energy highlighted that when policies shift, resulting in changes in owner and market demands, their products and services must also evolve accordingly. They aim to provide a comprehensive zero-carbon solution by integrating solar, storage, building, and energy efficiency.

In the wake of market reforms, the distributed market is undergoing unprecedented value reconstruction, focusing more on “value per kilowatt-hour” rather than merely “cost per kilowatt-hour.” This shift demands that component manufacturers innovate technologically and upgrade their products to maximize efficiency and returns. In discussing the future market potential for distributed solar, Sheng Xia, Product Director at LONGi Green Energy Technology Co., Ltd., explained that the key lies in maximizing the energy value derived from limited rooftop space through optimal system capacity and reliability.

As technology progresses, new application scenarios are emerging. Dong Xiaoqing, Director of the New Energy Research Institute at China Coal Tianjin Design Engineering Co., Ltd., remarked that as the installation fervor triggered by the “430” and “531” policies subsides, equipment prices are expected to adjust downward. With decreasing green hydrogen costs and continued advancements in hydrogen technology, the integration of renewable energy with hydrogen and energy storage will become a development trend. Several years ago, some provinces mandated energy storage for new energy projects, leading to many hydrogen generation initiatives. However, most of these projects were merely to secure new energy quotas without practical applications. Currently, with the development of hydrogen downstream industries, wind-solar hydrogen generation is poised to become a significant application scenario in the new energy sector.

The afternoon session, led by Ma Xianli, Secretary-General of the Hebei Solar New Energy Chamber of Commerce, featured discussions on green electricity supply practices, investment in distributed solar and storage, advanced technology applications, and safety risk prevention. Li Qionghui, a senior expert from the State Grid Energy Research Institute, emphasized the importance of green electricity supply in enhancing China’s international competitiveness in the low-carbon sector and providing excellent opportunities for exploring new business models in distributed solar.

Despite the promising prospects for the commercial energy storage market, challenges remain. Ma Liangjun, General Manager of Xi’an Singularity Energy’s commercial user-side storage in Jiangsu, pointed out that while commercial storage products have become visually homogeneous, significant disparities exist in core areas such as battery management systems and energy management systems. The industry also faces technical challenges in resonance control, capacity optimization, and electricity trading adaptation. He stressed the importance of selecting high-quality products, especially as Xi’an Singularity has successfully delivered over 1,000 projects across 101 cities, achieving a remarkable safety record with an average conversion efficiency of 90%.

Meanwhile, solar companies are seizing market opportunities through technological innovation and business model expansion. Pan Xusheng, Marketing Director at Zhejiang Runma Solar Energy Group, elaborated on advancements in commercial solar, including their N-type components and commitments on power generation, quality, and investment support for clients. Runma operates three bases in Zhejiang, Shandong, and Jiangsu, with projects spanning over 30 countries globally.

In the face of these developments, the distributed solar and storage industry is continuously innovating in technology and models. Che Majun, Vice President of Nanjing Iron and Steel Co., Ltd., highlighted the profound transformation the steel industry is undergoing due to international green trade barriers and domestic policy shifts aimed at carbon reduction. Nanjing Steel is committed to a dual strategy of full-process decarbonization and developing a “green steel” brand to meet market demands.

Under the new policies, financing models for the distributed solar sector are also undergoing significant changes. Xu Guodong from Ping An Leasing introduced their direct leasing and sale-leaseback models, focusing on high consumption areas like Jiangsu, Zhejiang, and Guangdong. They aim to facilitate market participation through innovative financial tools.

Distributed energy aggregation trading models are being explored to create economies of scale and solve challenges faced by individual distributed generation units in market participation. Wu Jingwen from Baobi New Energy Technology Co., Ltd. explained the differences between two aggregation trading models, emphasizing the potential benefits for end-user enterprises, such as enhancing local energy consumption, increasing green electricity supply, and improving market competitiveness.

Heat generation from batteries during storage system operations presents a significant challenge. Song Guangheng, Deputy Director of the New Energy Safety Research Center at the China Academy of Building Research, noted that as container storage systems become more prevalent, effective thermal management is crucial for performance and safety. Four main thermal management technologies were discussed, with submersion cooling technology expected to gain traction as energy demands increase.

Notably, the forum coincided with the launch of a vocational skills competition for solar power station operators in Jiangsu, which provides an excellent platform for talent development and skill enhancement in the distributed solar and storage sector. As the sector approaches critical policy execution points and market entry phases, this forum serves as a timely venue for in-depth exchange and innovative practices to guide the industry during this transitional period.