Brazil's distributed solar capacity surged to 40GW (2025) from <1GW (2018), making it the nation's fastest-growing energy source (67.1GW cumulative PV in 2025). A 2025 grid fee policy spurred pre-2023 installations, but grid curtailment (21% in NE Brazil) and new costs challenge growth. Its 2030 storage target (25GW, $8.46B investment) includes 2025's first storage auctions, with Chinese firms (Trina, CATL) leading local layout. Poland, a European PV-storage hub, expects 5GW new PV (2025, 26GW cumulative) and 543MW/1013MWh storage (27.85% CAGR 2026-2030). Chinese inverters/PCS dominate (75%/90% market share), aided by cost cuts (21.42% for residential all-in-ones) and product adaptability. A 5kW+5kWh project yields 15.71% IRR (4-7yr payback with subsidies), while 2025's $510M "My Electricity 6.0" fund boosts storage adoption, and Northland Power's 300MW storage deal signals large-scale commercialization.

1. Brazil: Surge in Distributed PV Drives Energy Storage Demand

(1) Market Scale & Growth
As of June 2025, Brazil's distributed solar capacity has soared from less than 1 GW in 2018 to 40 GW, accounting for 43% of total new power capacity additions in the period, making it the fastest-growing energy source in Brazil. Brazil's cumulative PV capacity is expected to reach 67.1 GW in 2025, with distributed PV contributing over 60%, concentrated in southeastern states like São Paulo (5.8 GW) and Minas Gerais (4.9 GW).

(2) Policies & Market Challenges
Starting in 2025, Brazil implemented a new policy (Resolution No. 1074 of 2023) to charge distribution grid usage fees based on installed capacity for distributed PV, but projects connected before January 2023 are exempt until 2045. This policy window drove an installation boom in 2024-2025. However, the new fees may reduce small users' investment willingness. Meanwhile, Brazil's power grid faces peaking pressure as PV's share rises (22.2% in 2024), with curtailment rates reaching 21% in the northeast region in 2024.

(3) Energy Storage Potential
Brazil's Energy Storage Association (ABSAE) predicts that the country's energy storage capacity will reach 25 GW by 2030, attracting $8.46 billion in investment. In 2025, Brazil included energy storage in energy auctions for the first time, with the first auction in H2 expected to release over 2 GW of demand. Currently, off-grid systems dominate Brazil's energy storage (70%), while C&I storage accounts for only 10%, but demand for PV-storage replacing diesel generators is rising rapidly in remote areas (e.g., Pará State with electricity prices up to 2.177 CNY/kWh).

(4) Enterprise Layout
Chinese companies have deeply participated in the Brazilian market: Trina Solar has shipped 9 GW of modules in Brazil and built a 2.5 GW 支架 production base; Shuangdeng launched PV-storage-diesel integrated cabinets to adapt to Brazil's structural power shortage; CATL, KSTAR, etc., expanded energy storage business through The Smarter E South America 2025.

2. Poland: High-Economy PV & Storage Market Led by Chinese Enterprises
(1) Market Structure
Poland is a core PV & storage market in Europe: new PV installations are expected to reach 5 GW in 2025 (+25% YoY), with cumulative capacity exceeding 26 GW; energy storage installations are projected to reach 543 MW/1013 MWh (+102%/131% YoY), and the 2026-2030 CAGR of energy storage will reach 27.85%.

(2) Dominance of Chinese Enterprises
In the inventory of Poland's top distributors, Chinese inverter brands account for 75% (Huawei, Solis, etc. leading), and energy storage PCS account for up to 90%. The core competitiveness of Chinese enterprises includes:

Product Adaptability: Full coverage of mainstream residential power segments (6-10 kW), and C&I storage mainly focuses on 10-15 kWh small-capacity distributed systems;

Cost Advantage: Residential PV-storage all-in-one prices dropped by 21.42% in 2024, accelerating market penetration.

(3) Project Economics & Subsidies
For Poland's residential 5kW+5kWh PV-storage project, the 25-year lifecycle IRR is about 15.71%, with a payback period of only 4-7 years after subsidies (5-8 years without subsidies). In 2025, Poland's "My Electricity 6.0" subsidy program budget increased to 1.85 billion PLN (≈$510 million), with over 50% allocated to energy storage, and storage accounted for 60% of applications (a significant increase from previous rounds).

(4) Large-Scale Storage Project Dynamics
In November 2025, Northland Power acquired two 300 MW/1.2 GWh storage projects in Poland for €200 million, using 4-hour duration systems. The projects generate revenue through capacity auction contracts + arbitrage, marking the commercialization of large-scale storage in Poland. #Ktech Energy #Candlon