Sungrow Bets on Ready-To-Use Inverter, Storage Solutions

Q: What was the biggest challenge Sungrow faced and the biggest opportunity it capitalized on in 2021?

A: The biggest problem was one we all had to face: the pandemic, which caused supply chain issues and logistical problems. Sungrow had to learn how to adapt to continue delivering its services on schedule, all the while maintaining regional growth. The company’s focus is not just limited to Mexico. We look to Central America and the Caribbean as a whole. The pandemic allowed us to explore these markets further. While consolidating the company’s operations in Mexico, which remains one of its most reliable and profitable destinations for investment, Sungrow used the time to lay the groundwork for these new markets.

Q: How did supply chain issues influence Sungrow’s production and distribution of inverters and batteries?

A: Fortunately, we did not suffer supply chain issues with inverters but we were affected by logistical issues, much like everyone else was. The company manufactures in China, India and Taiwan but has a storage facility in Mexico. Sungrow has invested heavily into research and development, so it was prepared. For example, we do not have just one supplier but three or four reliable options. This allowed us to deliver our products on time despite the incredible increase in demand. However, sourcing batteries, especially lithium batteries, proved a more difficult task. The delivery time for battery cell manufacturers was delayed by one or two months. We sought to use the same diversified strategy but the global scope of the problem made this difficult to achieve.

Q: What sets Sungrow’s Mexican product portfolio apart from the competition?

A: We are one of the few manufacturers that offer both string and central inverters. Our core business worldwide has always been utility-scale projects, which have proven rather difficult in Mexico. As such, we had to reassess our strategy to tackle distributed generation (DG) and began evaluating energy storage projects in certain regions. We developed a line of products compatible with the Mexican grid and certifications, such as the all-important UL. In 2021, we began working on the CX series, adapted to Mexico’s specific conditions, particularly in the C&I environment. Sungrow launched three products: a 36KW inverter, a new line of 60KW inverters and an inverter tha is the biggest in the world at 250KW. We also offer central inverters that come in blocks of 3.4MW to 6.8MW, which we were able to continue designing even though large solar projects remain on hold. 

Sungrow aims to offer premium products at a competitive price that are easy to use. We wanted to get rid of the obstacle of having to send technical experts to solar panel sites to fix the inverters. Instead, all this can be done remotely from our offices, as we offer support in the same time zone and language. This grants a competitive advantage to the installer as well as providing security to our clients.

Q: What are the latest technological innovations that Sungrow has brought to the market?

A: Our latest innovation is the 250KW string inverter. We already had a 200KW model that can be easily transported and installed. Around five years ago, a 250KW product came out but it was rather unwieldy, so we adjusted the design to a more compact size. Most inverters in Mexico accommodate high-powered solar panels, which have been increasing in power at such rapid rates that some inverters have been rendered obsolete. To break this reliance on older technologies, we developed a design that considers this trend. We started selling this equipment in 2021 and it has already become the industry standard.

Q: What makes Sungrow’s batteries and storage solution different from similar products on the market?

A: Sungrow focuses on large-scale C&I markets. We offer integral, ready-to-use solutions as part of our quickly installable container designs that include power conversion systems, battery racks and our latest: a rather unique liquid cooling technology that ensures the batteries are more efficient and provides greater control over temperature.

Furthermore, we want to offer comprehensive solutions that incorporate both inverters and batteries. Sungrow also assists with maintenance to keep the project operating efficiently.

There is still a stigma that batteries are too expensive but if you look at the project and analyze CAPEX, it makes more sense, even for businesses that finance energy projects. We are taking the next step in solar energy with our battery storage systems, which will undoubtedly become more prominent in Mexico.

Q: How is the growing importance of lithium affecting these storage solutions?

A: Since late October 2021 to April 2022, lithium has grown in value by 30 percent. This affects the final cost of the battery. Different companies adopt various strategies to manage this cost. However, we have a capable engineering development department to ensure that Sungrow’s solutions are cost-efficient, minimizing the effect of such price hikes. Our plants have the capacity to produce up to 6GW of battery power annually, much of which is produced in-house. If Sungrow were to find other providers and put them in charge of manufacturing certain materials, the cost of our product would be far greater.

Q: What are Sungrow’s primary objectives for the Mexican market in 2022?

A: Our goal is to further strengthen our brand. Many are already familiar with us but there are still others who do not know the brand. However, there is a good reason why Sungrow has been able to keep its place in the market over the course of so many years: its quality and adaptability. We intend to launch new products focused on the Mexican market as well as expand our product lines with an upcoming residential inverter line and possibly battery energy storage. Sungrow will also promote its utility-scale C&I battery storage solutions, since this is precisely what a lot of Mexican businesses need. While it is true that there is a downturn in large-scale solar projects, they have mostly just been put on hold. The utility-scale market still has great potential, regardless. We expect it to recover in approximately two years. Knowing other markets in Central America and the Caribbean, Mexico is clearly not making the most of its immense potential compared to smaller countries where the sector receives more government backing, in addition to support from the private sector.

Sungrow is a leader in the global solar inverter industry, having installed over 224GW as of 2021 and enjoying the position of “most bankable inverter brand.”