China Great Wall Securities Co.,Ltd. released a research report stating that while the solar and storage industry has experienced declining prosperity over the past year, 24-25 may represent the bottom period for industry profitability. Following the domestic May 31st installation rush, domestic manufacturers are shifting their shipment focus overseas. European inverter channels have returned to normal operations, downstream energy storage demand remains robust, with July export volumes reaching multi-month highs, while major Asian markets are adjusting after restocking. Key focus stocks include: Canadian Solar (688472.SH), JA Solar Technology (002459.SZ), DRINDA (002865.SZ, 02865), and Sungrow Power Supply (300274.SZ).
**Domestic Manufacturers Shift Shipment Focus Overseas**
In July 2025, China's combined solar cell and module exports totaled $2.223 billion, down 14% year-over-year but up 1.1% month-over-month. Based on Infolink average pricing calculations, this corresponds to combined export volume of 30.48GW, up 26.1% year-over-year and 1.5% month-over-month. Following the domestic May 31st installation rush, domestic manufacturers have shifted their shipment focus overseas. European market demand has returned to normal, combined with pre-vacation restocking, July domestic exports to Europe reached 9.37GW of solar cells and modules, up 13% year-over-year and 3.83% month-over-month, achieving positive year-over-year growth for the first time in six months. Asian markets are showing production recovery with stabilizing and improving demand.
**Inverter Export Values Reach Multi-Month Highs**
In July 2025, domestic inverter exports totaled $911 million, up 15.83% year-over-year but down 0.65% month-over-month. Monthly inverter export volume reached 4.6001 million units, down 12.23% year-over-year and 10.31% month-over-month. European inverter channels have returned to normal operations with strong downstream energy storage demand, with this month's export values reaching multi-month highs. Asian markets including India, Saudi Arabia, UAE, and Southeast Asia are adjusting after restocking, while South Africa, Nigeria, Congo, and Kenya show increasingly mature demand. Brazil in South America maintains stable performance.
Breaking down by major provinces, distribution channel peak season procurement continues, maintaining stability from last month's peak season restocking rhythm. Commercial and industrial solar-storage products with higher unit prices remain particularly strong. In July 2025, Zhejiang Province (Deye, GinLong, APsystems, Hoymiles, iGrow) exported 1.9072 million inverter units, down 3.9% month-over-month, achieving inverter export value of 1.543 billion yuan, up 8% month-over-month. Jiangsu (GoodWe, TBEA SuZhou Sunergy) exported 436,400 inverter units in July, up 2.3% month-over-month, achieving export value of 987 million yuan, down 6% month-over-month. Guangdong (Suntree New Energy) achieved exports of 2.441 billion yuan/1.5469 million units in July, up 1%/down 6.1% month-over-month. Anhui (Sungrow Power Supply) exported 72,200 inverter units in July, up 21.5% month-over-month, achieving export value of 834 million yuan, up 5.1% month-over-month.
**Investment Recommendations**
Over the past year, the solar-storage industry has experienced declining prosperity, with financial statements not showing true bottom performance anchors. Pricing and valuations have been revised down amid unpredictable expectations. However, considering production scheduling changes, price trends, and provisions for impairment, 24-25 may represent the bottom period for industry profitability. Each company's financial performance and differentiation signals are expected to strengthen conviction.
Grid parity and energy transition remain the fundamental demand drivers for global solar-storage installations. On the supply side, current solar industry chain competition has led to losses in old capacity and delays in new projects. Industry irrational competition and positive policy guidance are accelerating capacity clearance. Each round of demand-driven production increases serves as an important checkpoint for verifying cycle evolution. Inverters are leading the return to growth due to higher competitive barriers. New supply-demand balance points represent better industry structure and larger market space, representing the odds for excellent solar-storage companies.
Recommended focus: Canadian Solar, JA Solar Technology, DRINDA, Sungrow Power Supply, Foster, Deye, GinLong, Shenghong, Deco, Flat Glass.
**Risk Warnings**: Policy implementation below expectations; raw material price increase risks; downstream demand below expectations; intensifying industry competition; new technology development below expectations.