Sungrow, Canadian Solar Energy Storage Conference Minutes: AIDCcollocated Energy Storage Becomes a New Highlight

According to EnergyTrend, Sungrow and Canadian Solar released their August investorrelation meeting minutes. Both leading solarstorage enterprises were confronted with challenges including fluctuating industry demand, rawmaterial costs and geopolitical policies in H1 2026, with energy storage and AIDCsupporting businesses emerging as key areas of focus.

Sungrow: Revenue Contracts; AIDC Business Enters TechnicalVerification Phase

On August 28, Sungrow disclosed its H1 2026 financial results, posting operating revenue of RMB 30.9 billion, a yearonyear drop of 29%, and net profit attributable to parent shareholders of RMB 5.26 billion, down 32% yearonyear.

Revenue decline stemmed mainly from contractions in domestic and MiddleEast markets. Domestically, dragged by slowing PV installations and the strategic withdrawal from lossmaking projects, domestic revenue fell from RMB 18.1 billion in the same period last year to RMB 8.2 billion, representing a 55% decrease. Due to the highbase effect of largescale Saudi projects in the prior year, MiddleEast revenue shrank from RMB 5.7 billion to RMB 1.1 billion, plunging by 91%.

Despite lower topline performance, Sungrow’s profitability improved quarteronquarter. Its Q2 gross margin rose to 38% and net profit margin climbed to 19%. The overall H1 gross margin stood at 35.9%, up 1.5 percentage points yearonyear. The margin improvement was driven by optimized business mix, with a reduced proportion of lowmargin newenergy investmentanddevelopment businesses and higher revenue contribution from highreturn markets such as Europe. Higher lithium carbonate prices, fierce competition in the energystorage sector and RMB appreciation exerted downward pressure on gross margins of the energystorage segment.

In terms of business performance, inverter shipments reached 66 GW in H1, down 10 GW yearonyear. The decline was primarily from the domestic market, while overseas shipments kept pace with market growth. Inverter revenue hit RMB 10.8 billion; boosted by a higher share of overseas sales and brand premium, the segment’s profitability strengthened.

Energystorage shipments totalled 25 GWh in H1, rising 28% yearonyear, generating revenue of RMB 15.4 billion. Lower powerstorage revenue, with MiddleEast revenue falling by RMB 5.2 billion yearonyear, weighed on overall energystorage turnover. Sungrow launched a fullscene energystorage conversion platform and its newgeneration “1+X” modular PCS, and secured a major 7.5 GWh powerstorage contract in the United Arab Emirates.

On market outlook, Sungrow expects inverter gross margins to remain generally stable. Energystorage gross margins are subject to multiple variables including regional revenue recognition mix, lithiumcarbonate prices and storage duration. Energystorage gross margin expanded quarteronquarter from 32% in Q1 to 35% in Q2; changes in relevant variables will need to be tracked quarterbyquarter for Q3 and Q4.

For the AIDC business, Sungrow has launched and supplied its EnerNeo series solidstate transformers (SST). Several SST units are scheduled for commissioning in Q4, enabling 800 V DCpowered computingpower scenarios. At present, Sungrow holds around 2 GWh of awarded orders for AIDCcollocated energy storage, with over 10 GWh of projects under followup.

SST orders are expected to be gradually fulfilled in Q4, with smallbatch deliveries in 2027 and massscale deliveries in 2028. R&D for the 35 kV SST is set to be completed in H1 2027. In addition, Sungrow maintains communications with leading overseas AI enterprises. It sees strong growth potential for the AIDC track and believes the business is poised for explosive expansion.

On overseas markets, Canadian Solar stated that it will moderately scale down its USoriented business to mitigate risks in the long run. Local manufacturing in the US is not under consideration for the time being. Instead, the company will channel efforts into other overseas markets and explore component and serviceoriented overseas partnerships.

The European energystorage market outperformed expectations in H1. The EU’s 2030 target of 200 GW energystorage capacity underpins market demand, stimulated by negative electricity prices, peakvalley price spreads and capacitymarket mechanisms. European energystorage growth is projected to stay above 50% in 2027.

Canadian Solar: LargeScale Overseas Energy Storage Rapidly Expands; AIDCcollocated Storage Still in Early Scaling Stage

On August 30, Canadian Solar released notes from its H1 investor communications. The company recorded operating revenue of RMB 12.784 billion and net profit attributable to parent shareholders of RMB 300 million for H1 2026.

Multiple factors weighed on performance: challenging overall industry conditions, rising upstream energystorage material costs alongside falling product prices, higher fixedcost amortization caused by proactive PVbusiness downsizing, and temporary disruptions from USbusiness restructuring.

Energy storage has become Canadian Solar’s core growth driver. Largescale energystorage system shipments reached 6.1 GWh in H1, surging more than 103.3% yearonyear. Energystorage system revenue amounted to RMB 5.659 billion, accounting for roughly 44% of total revenue. By the end of the reporting period, cumulative largescale energystorage deliveries exceeded 23 GWh, cementing its position as a leading overseas energystorage system integrator.

Regarding sliding energystorage gross margins, Canadian Solar attributed the trend to higher cellrawmaterial costs, lower product prices amid intense market competition, and adjustments to its USbusiness operations. The company anticipates upstream cost pressures will ease, which should support profitability in the energystorage segment.

Marketwise, overall energystorage demand remains on a fast growth trajectory. Highpriced European and American markets constitute Canadian Solar’s major order sources. Demand for commercialandindustrial energy storage is lifted by electricityprice volatility, with divergent pricing performance across regions and subsegments.

As for the AIDCcollocated energystorage track, Canadian Solar holds a positive view on market prospects yet notes the industry is still at the preliminary phase of largescale penetration. Behindthemeter largescale energy storage can adopt existing conventional products, while rackside millisecondresponse energystorage solutions require dedicated development. Relevant business models are being advanced with customers. US gridside energystorage installations are growing rapidly this year, and AIDCcollocated energy storage is likely to gradually become a standard configuration going forward.

Source：EnergyTrend