Astronergy’s Lu Chuan: localization, energy storage and survival
The global solar industry is entering a period in which manufacturing scale alone is no longer enough. Trade barriers are becoming more complex, pure PV project returns are weakening in many markets, energy storage is becoming more critical to project economics, and customers are asking for solutions that work in real projects rather than in paperwork.
That was the message delivered by Lu Chuan, Chairman and CEO of Astronergy, during a group interview with Chinese media at SNEC 2026 in Shanghai. Although Astronergy is well known as a PV module manufacturer, Lu’s comments ranged across the broader CHINT ecosystem, including inverters, PCS, energy storage, power distribution, virtual power plants, project development and AI-based operations.
One of Lu’s clearest points was that overseas market risk is no longer only about tariffs or factory location. For Chinese solar and storage companies, the more sensitive issue is increasingly integrated functions like control, communication, software and data. Conventional products without control or communication functions face fewer restrictions, he said. Products having more challenges are those PCS, EMS and other devices that are connected to energy dispatch, system operation or grid interaction.
This creates a new localization challenge. In Europe, the United States and parts of Asia, local-content requirements and scrutiny of control systems are rising. For products involving software, communication and dispatch capability, Lu said Chinese companies may need to work through local partners, technology licensing, joint ventures or local manufacturing.
That makes globalization more complicated. CHINT is building a factory in Türkiye and is also looking for opportunities in markets such as Türkiye and Thailand. Lu said such facilities may not be limited to cells and modules, but could potentially cover PCS, storage packs or system integration. The aim is partly to meet local demand, but also to prepare for future policy changes.
The second major theme was the shift from PV-only projects toward PV-plus-storage and independent storage. Lu said, except for some specific cases, pure grid-connected PV projects in overseas markets are becoming less common. In many regions, project returns are increasingly driven by the combination of PV and Energy storage, or by standalone storage assets.
In parts of Eastern Europe, such as Bulgaria and Romania, adding storage can significantly improve project economics. In Japan, some independent storage projects may recover investment in a relatively short period, although returns will depend on market rules and certification requirements. Lu said Japan is attractive because prices and margins are higher, but local certification remains an important issue.
This market shift is also affecting product strategy. Solar module shipments are now being treated more cautiously because low prices and long payment terms can create real financial risk. Energy storage, by contrast, still offers better returns in some markets and is becoming a higher priority. Lu said large-scale energy storage remains competitive, but commercial and industrial storage may grow faster because it still depends more on channels, customer relationships and information advantages.
Data centers could become another source of demand. In the United States, Lu said some new data centers may need to build their own power supply rather than rely entirely on the grid. Retrofitted data centers could also replace traditional UPS systems with outdoor large-scale energy storage systems for peak regulation and power distribution. He was careful not to overstate the “AIDC” theme, noting that listed companies must be more prudent over emerging concepts, but he still sees real opportunities in energy storage and power equipment in data center upgrades.
In China, Lu observed a different type of transition. The old residential distributed PV business model — one household, one grid connection — is under pressure from grid constraints, red and yellow zones, and market-based electricity pricing. One possible direction is “whole-village aggregation plus green power direct connection.” In this model, rooftop PV resources across a village are aggregated, connected through higher-voltage equipment, and supplied directly to nearby factories or industrial parks through dedicated lines.
Lu sees this as more practical than trying to develop large centralized green power projects in resource-constrained eastern provinces such as Zhejiang and Jiangsu. For zero-carbon parks and export-oriented manufacturers, the need for verifiable green electricity may become a real driver, even if the electricity price is not always lower. The value lies in carbon compliance, supply-chain certification and access to low-carbon markets.
VPP (Virtual Power Plants) is another part of this logic. Lu said CHINT has been investing actively in VPP capabilities because it controls or aggregates a large volume of distributed green electricity and customer resources. Without aggregation, fragmented rooftop projects and small commercial users cannot easily participate in power trading. While empowered by platforms, real customer interfaces and operational data, distributed resources can be connected to trading and dispatch systems.
This is also where AI becomes useful — but Lu’s view of AI is relatively practical. He said the company is not focused on building a large model for its own sake. Instead, it is applying smaller models to specific business processes. In power trading, models based on historical data can help optimize strategies and improve returns. In operations and maintenance, AI can compare generation efficiency across systems within a similar climate zone. If any PV string underperforms substantially, the platform can identify a likely fault and send a work order. The work order won’t be closed before the performance returns to normal.
For Lu, this is the real meaning of digitalization: not a slogan, but an operating tool linked to revenue and efficiency.
His final point was about differentiation. Many companies talk about integrated solutions, but Lu argued that most of them are yet in the phase of assembling equipment from different suppliers. An integrated solution requires design-level integration, cost reduction, feedback from real projects and continuous iteration. Without actual project experience, companies will not know what the markets need.
That philosophy also shapes his view of technology routes such as BC and TOPCon. Lu said Astronergy relies on historical data rather than marketing slogans. The company compares different solar module routes at field-testing bases in Haining and Jiaxing. Customers will ultimately have their judgement. Given the sunken costs in existing fixed assets and the capital cost of retrofitting lines, Lu does not expect BC penetration to change dramatically in the short term.
His message was sober and clear. Solar industry’s next round is not going to be about lower PV module prices or fancy technology concepts. It will be decided by companies that can navigate localization rules, offer better project returns, aggregate green power, apply AI to real operations, and prove their solutions in projects that actually work.