Power Equipment & New Energy Industry - May Inverter Export Tracking: Solid Demand Support

Power Equipment & New Energy Industry - May Inverter Export Tracking: Solid Demand Support

In May 2025, China's inverter exports reached RMB 5.97 billion, up 2.7% MoM; export volume reached 5.899 million units, up 30.3% MoM. Exports to Europe declined slightly MoM due to shipment schedules, while Southeast Asia maintained robust demand. In the long term, regional power outages, rising electricity prices, and rapid growth in wind-PV installations remain core demand drivers. We believe inverter demand will remain resilient in the long run, with grid parity for solar+storage expected to further expand demand potential.

Europe: MoM decline in May; post-Russia energy ban electricity price hikes may boost solar+storage demand

May exports to Europe reached RMB 2.404 billion, down 9.1% MoM but flat YoY, mainly due to shipment timing. Exports to Germany totaled RMB 606 million, down 9.0% MoM, sustaining strong demand since March. European electricity prices remained stable MoM in June. The EU's planned ban on Russian oil and gas imports effective June 17 may drive electricity prices higher, boosting solar+storage demand. Additionally, the UK's mandate for new homes to install PV systems will further support demand.

Asia: Southeast Asia's strong demand continues; Pakistan's solar panel sales tax partially curbs demand

Southeast Asia: Exports to 11 Southeast Asian countries reached RMB 538 million, up 5.2% MoM. On June 16, geopolitical tensions led Cambodia to cut electricity imports from Thailand, causing frequent power fluctuations and outages. On May 10, Vietnam Electricity Group announced a 4.8% retail electricity price hike. Power shortages across Southeast Asia, coupled with peak summer demand, are expected to drive solar+storage adoption.

India: Exports reached RMB 316 million, up 15.7% MoM. From January to May 2025, India announced new PV manufacturing capacity exceeding 31GW cells and 18GW modules. Clear energy transition trends and India-Pakistan tensions causing power instability are stimulating demand.

Pakistan: Exports totaled RMB 287 million, down 19.9% MoM. Pakistan's proposed 18% sales tax on solar panel imports has somewhat dampened solar+storage demand. However, hydropower supply constraints due to high temperatures and Indian flow restrictions continue to support future demand.

Emerging markets: Middle East posts strong MoM growth; Australia launches AUD 2.3 billion residential storage incentive policy

Middle East: Exports to Saudi Arabia reached RMB 195 million, up 1,553% MoM; exports to UAE totaled RMB 239 million, up 43.8% MoM, mainly due to project shipment schedules. The Iran-Israel conflict has driven global oil prices higher, potentially improving Middle Eastern fiscal conditions and facilitating large-scale project development.

Australia: Exports reached RMB 124 million, down 3.0% MoM. In June, Australia announced simplified energy project tender processes, regional electricity price increases, and various energy storage subsidy policies, providing solid future demand support.

Chile: Exports totaled RMB 59 million, up 258.5% MoM. The phased shipments of the 11GWh Atacama project indicate promising future demand.