Sungrow Delivers Strong Sales Growth Fueled by Energy Storage System Demand

Sungrow Power Supply is one of the largest suppliers of solar inverters with more than 20% market share by shipments in 2023. The firm has established a stronghold in supplying inverters for utility-scale solar, and is trying to expand its presence in distributed solar. Distributed solar is a more fragmented market than utility-scale solar and we expect Sungrow to face more competition on this front. While Sungrow has benefited from the rapid growth in global solar installations in recent years, we expect a deceleration in inverter shipment growth as the pace of new installations moderates. We expect only a 8% compound annual growth rate in solar inverter revenue over the next five years.