Over the past two years, China has delivered two seemingly contradictory messages on energy storage systems in solar projects, but the reality is that the policy has not backed down on storage subsidies, but has changed the mechanism for imposing them. After the abolition of the “mandatory storage” requirement by an administrative decision in 2025, storage today is back to become a key part of the requirements for technical grid connectivity, a shift that could revive dozens of gigawatts of stalled projects and give the storage sector a new boost.
Storage is back… but through the art portal.
In early 2025, China issued document 136, which ended the policy of imposing storage regulations on renewable energy projects as an administrative requirement for approvals or grid connections. The decision was seen as a major shift, reducing the cost of developing solar projects, and encouraging many investors to re-examine their projects without adding expensive batteries.
But on June 18, 2026, the new version of the Distributed Network Capability Assessment Manual (DL/T 2041-2025) went into effect, bringing storage back to the fore, this time from an engineering rather than a management perspective.
The new regulation does not provide for “compulsory storage,” but links the capacity allowed to be connected to the network to the presence of storage systems that can improve the stability of the network and increase its capacity.
How to change the rules of the game?
According to the new standards:
- Solar Projects Without storage. It should not exceed the load ratio of the local distribution network towards 80%.
- When adding a storage system with a capacity of not less than 15% of the capacity of the station for two hoursthe limit can be raised to 85-90%.
- With the use of storage in addition to smart control systems, the loading ratio can reach 95%.
Although the difference seems small on paper, in practice it allows for a significant increase in installed capacity and annual energy production, while projects without storage become limited in capacity or may not get binding approval in the first place.
So the storage went from being A government requirement. To Technically demanding. imposed by the nature of network operation.
Why are technical rules more effective?
Administrative decisions can be modified, deferred or granted exceptions, and technical linkage standards do not allow for such flexibility.
The network operator does not look at the policies, but verifies that the technical requirements are met. If the project does not meet the connection conditions, it will not receive the network connection permit, regardless of the investor’s or local authorities’ wishes.
That is why many Chinese provinces have begun to translate these standards into clearer executive instructions.
For example:
- In. Hidden. It has become customary to require storage systems that may reach 100% of project capacity for 2 hours In some areas with congested networks.
- And… Jiangsu Operating the storage system has become an element of project acceptance prior to linkage.
- And… Zhejiang It has begun to provide additional incentives for projects that combine solar power and storage, with priority given to green electricity trade.
More than 50 GW may come back to life
It is estimated that approximately 50 GW Some of the solar projects that have previously stalled due to limited grid capacity could return to implementation thanks to the new system.
But this return will not be free.
Assuming that the average amount of storage required is between 15 and 20%This means that the market needs to:
- 7.5 – 10 GW of storage systems.
- 15 – 20 GWh of batteries.
At current prices, the value of storage equipment alone may exceed 180 to 240 billion yuanWhile total investment may exceed across the value chain, 300 billion yuan.
Transmission Cost of Network Stability
This policy reflects an important shift in the philosophy of electrical grid management.
Previously, network companies had a responsibility to address the implications of integrating renewable energy, but today the developer is required to provide a technical solution that ensures the stability of the network, most notably storage.
Thus, the cost of ensuring the stability of the grid gradually passed from the electricity company to the developer of the project, which is known economically as “loading the product cost of the impact it causes.”
Direct impact on developers and storage companies
This shift will also change the nature of the storage market.
Solar project developers are required to understand the design of storage systems, energy management strategies (EMS), and calculate the appropriate capacities from the early stages of the project, not as an optional addition later.
In return, storage system manufacturers will find themselves in front of a new segment of customers, looking not only for the best economic return from batteries, but also for a solution that ensures they pass the requirements of network connectivity.
Integrated Green Energy System
The change was not limited to the electricity production aspect.
A few days after the introduction of the new interconnection standards, Chinese authorities issued new regulations requiring energy-intensive industrial sectors to increase their consumption of renewable energy, including the use of green electricity, green hydrogen, ammonia, methanol and sustainable aviation fuels.
China’s policy thus operates on two parallel axes:
- Facilitate the integration of renewable electricity into the grid through storage.
- Increased demand for renewable energy by industrial consumers.
Executive summary
Recent developments reveal that China has not backed away from supporting energy-storage systems, but has recast its role. Rather than imposing storage by administrative decision, its existence is tied to the actual ability to connect projects to the electrical grid.
This shift may open the door to a reboot. 50 GW At the same time, it creates a new multi-billion-yuan investment wave in the storage sector.
For the solar market, the question is no longer: Should I add a storage system? It became: How much storage is required to get the right to connect to the network? It is a change that reflects the shift of storage from an investment option to a core component of China’s renewable energy infrastructure.