Sungrow eyeing Brazil’s battery market

Sungrow, a supplier of photovoltaic inverters and energy storage systems, announced the milestone of 20GW in equipment sold in Latin America. 

In Brazil, the company recorded 32% growth in sales in the first half of the year, compared to the same period 2023. 

Sungrow's country manager, Rafael Ribeiro, told BNamericas that one of the focuses will now be the battery market.

BNamericas: What are the main projects under development by Sungrow in Brazil? 

Ribeiro: In 2024, we managed to grow in all segments. In distribution, we grew by more than 120%, especially in the sale of single-phase inverters. We were able to get even closer to our distributors and launch new products, such as microinverters, and increase the range of three-phase 220V inverters.

In the distributed mini-generation market, we managed to grow by more than 60%, mainly in new customer conversions and with the launch of the new 250kW inverter exclusively for the Brazilian market.

In the centralized generation segment, despite a reduction in negotiated projects in 2024, we managed to maintain our leadership with large contracts signed, along with the backlog we achieved in the last two quarters of 2023.

In 2024 we should reach the mark of 4.5GW of inverters delivered to the Brazilian market.

BNamericas: How much does the company aim to grow in the coming years? 

Ribeiro: Since Sungrow entered Brazil in 2017, we’ve grown year-on-year. Even in 2023, when we had our worst year in terms of sales, we still grew. 

In terms of structure, I believe we’re close to our peak number of employees, focusing on improving processes and aftersales. For the solar photovoltaic segment, I believe we’re in a mature market that will continue to grow, but not at the same speed as in the past.

We’ve been looking more closely at the battery market. We believe that, with this new market, we’ll continue to grow in Brazil, while remaining leaders in Latin America.  

BNamericas: What are the main challenges to growth in Brazil? 

Ribeiro: The lack of clear, long-term regulatory policies, tax changes, tax incentives, etc. affect foreign companies that are not used to this reality. All this combined with high interest rates, extremely low prices and the entry of new players of dubious quality.

Despite these difficulties, the company is focused on the country, which is an important and strategic region for Sungrow to remain a global leader.

Today, we have around 120 employees, three warehouses, five branches and more than 13GW installed in Brazil.

BNamericas: Is the situation of excess energy available, with the strong growth of renewables in the country, hindering new investments in solar generation?

Ribeiro: The market is much more mature and competitive, and we have customers with greater knowledge of technologies and solutions. At the same time, the demand for low prices to make projects viable has reduced the quality of the products sold. In the case of an inverter, for example, whose warranty ranges from five to 25 years, it's important to choose a robust company with a local structure that will serve you throughout the product's useful life. 

BNamericas: What are the prospects for the BESS market in the country?

Ribeiro: The expectations for the BESS market are enormous, but Brazil is lagging behind. Other Latin American countries are already well ahead of us with regulatory and rate policies that have helped develop this market. Finally, our turn is coming, with the government signaling an auction with batteries and a regulation that is in the process of being finalized.

We’re ready, with a local and experienced technical team and a robust portfolio with AC and DC [alternating and direct current] coupling solutions for the centralized segment, as well as C&I [commercial and industrial] and residential solutions.