Sungrow Says Existing Products Have Several Years of Viability, No US Plant Plans

Sungrow addressed the impact of US policies during an institutional conference call and investor relations activity on August 28. The company stated that the FCC policy currently targets future new products and models, and that the iteration of solar and storage products in the US market is relatively slow. As long as the policy remains unchanged, existing products will have a survival period of several years.

Regarding US Executive Order 14420, Sungrow noted that, on a literal reading, its coverage extends to transmission system equipment rated at 69kV and above, while local distribution equipment falls outside this scope. US distributed solar and storage projects connect at 13.8kV, and large-scale solar and storage projects connect at 34.5kV before being stepped up to 69kV or above. The specific constraint nodes remain unclear.

In the long term, against a backdrop of geopolitical volatility, Sungrow's US business volume will gradually shrink. The company said it will undergo transformation, strengthen innovation, and shift focus to other regional markets, while expanding its channel business. The US business will be appropriately scaled back to keep risks manageable.

Sungrow also stated that it currently has no plans to build a local manufacturing plant in the US. The reasons cited include an unfair competitive environment for Chinese companies, lingering consumer doubts even with local production, and the difficulty of achieving cost advantages in US manufacturing.

The company is seeking cooperation with overseas enterprises in components, services, and small-scale systems, and expects that its US business will not disappear abruptly.