Transforming Commercial Energy Storage: From Low-Cost Solutions to High-Value Investments

Xiamen Xinneng’an’s Qiu Dianbing: How Commercial and Industrial Energy Storage Moves from Low “Price” to High “Value”

According to Qiu Dianbing, Product Marketing Manager of Xiamen Xinneng’an Technology Co., Ltd., the current commercial and industrial energy storage market is not becoming increasingly competitive; rather, it is a market where real demand remains unmet.

On April 22, 2025, the 2025 Distributed Solar Storage Innovation Forum was officially held in Nanjing, Jiangsu Province, co-hosted by Polar Star Solar Photovoltaic Network and Polar Star Energy Storage Network. During the forum, Qiu Dianbing provided an in-depth analysis on the direction of energy storage investment and the long-term value it drives.

He pointed out that the energy storage sector is currently facing numerous changes and challenges. The issuance of Document No. 136 has shifted energy storage from a passive compliance model to an active competitive strategy. This change imposes higher demands on the operation of the electricity spot market and energy storage management, moving beyond simple peak and valley arbitrage models.

In this context, customers are experiencing several core pain points:

• Firstly, many financial models utilized by customers are based on a 15-year forecast, but energy storage devices often require recharging by the eighth year. This recharging process brings uncertainties regarding battery cell compatibility, the matching of BPS and recharging systems, as well as construction conditions and costs, leading customers to perceive recharging as equivalent to system replacement.
• Secondly, following the release of Document No. 136, the trend toward integrated source, grid, load, and storage is evident. Simple peak and valley arbitrage no longer guarantees reliable returns, and customers expect energy storage stations to offer additional functionalities such as energy management, demand response, and virtual power plant integration.
• Lastly, under the current integrated scenario, energy storage stations may unreasonably increase storage levels for customers during discharge periods.

Qiu Dianbing believes that the commercial and industrial energy storage market is not becoming increasingly competitive, but rather is a market where genuine demand remains unfulfilled. This unmet demand manifests in three main areas:

• The complexity of business models. The energy storage industry’s value chain involves multiple stakeholders, including owners, equipment suppliers, and operators. The profit distribution mechanism across these segments is still immature, raising challenges in building a fair, reasonable, and sustainable business model that satisfies diverse needs.
• The risks associated with long-term stable operation of energy stations. The industry commonly adopts a 15-year financial assessment model. However, equipment often faces recharging needs around the eighth year, which introduces uncertainties related to battery specification compatibility, system adaptability, and construction costs that can jeopardize the stability of investment returns.
• The urgent need for innovation in dynamic revenue models. Traditional peak and valley arbitrage models can no longer satisfy investment return requirements. The market demands energy storage solutions that incorporate multifaceted functions such as peak and valley price regulation, demand management, and virtual power plant capabilities to diversify and maximize revenue sources.

Therefore, solely pursuing the lowest static initial investment is not a reasonable approach; the market requires higher-quality solutions to ensure long-term returns for investors over a 15-year lifecycle.

Xinneng’an proposes that the development of energy storage solutions should achieve a balance between stable and dynamic states. The stable state refers to hardware systems that ensure long-term operational stability for over 15 years, while the dynamic state emphasizes that systems—specifically the Energy Management System (EMS) along with virtual power plants and the integrated source, grid, load, and storage platform—must support flexible peak and valley regulation.

Practical cases demonstrate that combining peak and valley arbitrage with virtual station management can significantly enhance revenue. In terms of hardware, Xinneng’an has leveraged its battery cell research and development capabilities to launch the Kunlun 302Ah battery cell, which boasts over 15,000 cycles and a State of Health (SOH) of ≥70%. For commercial applications, it offers two solutions: a centralized box with a medium-voltage 690V connection and an all-in-one machine with a low-voltage 400V connection, ensuring that the energy storage system requires no recharging over its 15-year lifecycle. From a financial modeling perspective, this can significantly enhance returns, with the net present value of total financial investment improving by 24% when recharging is not needed.

Additionally, in terms of safety design, Xinneng’an has upgraded the materials for anodes, cathodes, and separators, balancing the content of positive and negative lithium ions to ensure battery cell stability.

On the software side, Xinneng’an has introduced two software products. Tianji is an intelligent decision support system for commercial energy storage, capable of predicting system lifespan and formulating capacity strategies based on product type and environmental conditions. It optimizes storage capacity configuration, reduces investment risks, and considers virtual electricity charges to enhance peak and valley arbitrage returns while prolonging the effective service life of battery systems. Tianshu, the Xinneng’an EMS system, utilizes AI models and big data for minute-level load forecasting with an accuracy rate exceeding 93%. It not only optimizes peak and valley arbitrage but also integrates virtual quantity management and virtual power plant functionalities, optimizing charging and discharging strategies through proactive load forecasting to achieve intelligent virtual quantity management and photovoltaic collaboration, maximizing operational returns on the integrated source, grid, load, and storage platform.

Xinneng’an also provides a comprehensive lifecycle solution that covers four stages: development, construction, operation, and recycling. During the development phase, Xinneng’an establishes a long-term system for 15 years, collaborating with battery recycling organizations and virtual power plant platforms to offer comprehensive service support to clients; it covers various business scenarios and partners with industry associations to select optimal scenarios for investors, having signed strategic agreements with over 30 investors to integrate internal and external resources for project development.

In terms of financial services, Xinneng’an offers zero down payment site construction services to commercial owners, providing a one-stop solution for construction. If project returns exceed expectations, owners can buy out at any time for higher returns; conversely, if returns fall short, they can exit without worries. For investors, Xinneng’an offers low-cost financing solutions that can reduce financing rates by over 3%, while also ensuring project sales through various business models and collaborating with operational partners to help investors achieve excess returns.

In the delivery phase, Xinneng’an leverages standardized processes, digital tools, and local supply chains to ensure rapid and professional project delivery. Furthermore, to guarantee the operational reliability of energy stations over a 15-year lifecycle, it provides comprehensive commercial liability insurance, offering users significant compensation protection. Additionally, in collaboration with third-party organizations, it has launched a capacity degradation insurance policy based on Xinneng’an’s long-cycle energy storage system, safeguarding against capacity degradation for energy stations.

In after-sales service, Xinneng’an has established 570 after-sales service points nationwide, creating a robust after-sales support network. It commits to a response time of one hour, arrival on-site within twelve hours, and problem resolution within twenty-four hours, providing a total of eight service items covering pre-sale, sale, and after-sale stages.

During the recycling phase, Xinneng’an collaborates with professional recycling organizations to implement scientifically sound recycling plans, maximizing project residual value and ensuring efficient use and recycling of resources.