2026 Annual Strategy for PV & Energy Storage Industry: Short-Term Supply Stabilization, Long-Term Demand Expansion

Jan 7
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Resonance of Domestic & Overseas Energy Storage Drives High Prosperity; PV "Anti-Involution" Promotes Supply Transformation

Date: December 24, 2025

Energy Storage: Domestic Business Models Validated, Overseas Prosperity Booming

Domestic Market

Local governments have intensively issued energy storage capacity compensation policies, gradually improving the industry's business models. Energy storage installation demand continues to be released, with bidding scale hitting a record high. From January to September 2025, China's new installed capacity of new-type energy storage reached 81.96 GWh, a year-on-year (YoY) increase of 61.59%. In the first 10 months of 2025, the cumulative bidding scale for energy storage systems and EPC (Engineering, Procurement, Construction) projects reached 364.19 GWh, soaring by 161% YoY, of which standalone energy storage accounted for 58%.

Overseas Market

U.S.: AIDC (American Internet Data Centers) drives surging demand. With the sharp rise in power consumption of U.S. data centers, the compound annual growth rate (CAGR) of energy storage demand driven by AIDC is expected to reach 85% during 2025-2030.
Europe: Demand for utility-scale energy storage grows at a high speed. It is estimated that by 2029, Europe's new energy storage installed capacity will reach 118 GWh, with utility-scale storage accounting for 69%. Meanwhile, the commercial & industrial (C&I) energy storage market is expected to see volume growth, accounting for 17% by 2029 and becoming the second-largest segment.
Emerging Markets: Affected by power shortages and incomplete power structures, demand for energy storage in regions such as India, Southeast Asia, and Africa is growing increasingly. China's inverter exports to these regions have been rising year by year.

PV: "Anti-Involution" Improves Supply-Demand Dynamics; BC & Perovskite Lead Technological Innovation

Driven by "anti-involution" policies and price regulations requiring "sales not below cost price", prices of the main PV industrial chain have bottomed out and rebounded.

BC Batteries: Compared with TOPcon and HJT, BC (Back Contact) batteries boast the highest theoretical efficiency limit (29.10%). Currently, multiple leading enterprises have made substantial investments, and large-scale mass production is expected to be realized in 2026.
Perovskite Solar Cells: Technological breakthroughs continue to be made. LONGi Green Energy has set and maintained the world record for the efficiency of silicon-perovskite tandem cells at 34.85%. The industrialization is now in a critical transition period from "technology verification" to "initial mass production". As of 2025, the industry has built 3 GW-scale production lines, and cross-industry enterprises such as CATL are also preparing GW-scale lines. Manufacturers like Renshuo Solar are expected to follow suit in 2026.
Space-Based Solar Power (SBSP): With the accelerated deployment of space data centers, the prospect of SBSP is broad. Currently, gallium arsenide (GaAs) batteries are the mainstream technical solution, but their high cost (accounting for 15-20% of satellite manufacturing costs) and rigid substrates limit large-scale application. In the future, P-type HJT batteries and perovskite batteries are expected to become the mainstream solutions.

Core Conclusion

The resonance of domestic and overseas energy storage drives high industry prosperity, while the advancement of PV "anti-involution" is conducive to supply-side transformation.