China's Solar BESS Policy Shift... Independent Systems Account for 85% of New Installations

Analysis indicates China's battery energy storage system (BESS) market is shifting from mandatory installations at renewable energy plants to independent systems participating directly in power markets. Ember reports that independent BESS systems in China completed an average of 299 full charge-discharge cycles annually in 2025, doubling from 2022 levels. Both standalone and co-located BESS systems saw increased cycle counts during the period. Independent systems, which can charge and discharge based on power prices and grid conditions, offer greater market participation compared to co-located systems. China's 2025 policy shift removed mandatory storage requirements for new solar/wind projects and introduced a system allowing local governments to pay for qualified independent storage. By early 2026, 84.7% of newly installed utility-scale BESS in China were independent, with co-located systems accounting for just 8.4%. China's total new storage capacity reached 136 gigawatts by year-end 2025, with lithium-ion batteries comprising 96.1% of installations.