In 2020, Jiaogu Group began to layout the household energy storage segment, and we have independently developed hybrid inverters and lithium iron phosphate batteries.

Household energy storage, also known as household energy storage, is an important component of distributed energy (DER). Household energy storage can achieve cost savings in transmission and distribution, lower costs, and improve power quality and energy efficiency. For household users, energy expenditure can be reduced by increasing the proportion of spontaneous self use: household self generation and storage can significantly reduce grid electricity consumption. Avoiding peak electricity prices: Energy storage batteries can store electricity during low peak periods and discharge during peak periods. Realize independent electricity consumption: Families will store solar power generation during the day and use it at night. At the same time, in case of sudden power outages, it can also serve as a backup power source. At the same time, when facing major disasters and other factors that cause power outages in the power grid, it serves as an emergency backup power source to improve the reliability of household power supply; For the power grid, the rapid increase in the proportion of volatile renewable energy (VRE) will further widen the difference between the generation curve and the electricity consumption curve. Configuring energy storage can transfer electricity over time to assist the grid in balancing generation capacity and electricity demand.

There are significant differences in the average electricity consumption of residents across countries. For example, the average daily electricity consumption of German households is about 10KWh, while the average daily electricity consumption of American households is as high as 25-30KWh. Currently, Jiaogu Group provides various models and capacities of household energy storage batteries, ranging from as low as 5KWh to as high as 15KWh+. Regarding pricing strategies, Jiaogu Group has formulated different prices based on the consumer needs of different regions and countries. Taking the Australian market as an example, the unit price of battery models with a capacity of 10-15KWh is calculated, and the product price is positioned at the level of AUD 700-1000/KWh.

Household energy storage has developed rapidly in the markets of Europe, the United States, and Japan in recent years, with an annualized growth rate of over 100% in user volume. The sales data of the International Trade Department of Jiaogu Group can intuitively reflect this phenomenon. Among them, the newly added household energy storage capacity in Europe is expected to exceed 4GWh, making it the largest household energy storage market; Although there was a rush to install in the United States in Q4 of 2021, 334MWh of new household energy storage capacity was recorded in Q1 of 2021, representing a quarter on quarter increase of 25%; In addition, due to factors such as insufficient reliability of the power grid, high dependence on external energy, and disaster prevention, the demand for household energy storage in countries and regions such as Japan, Australia, South Africa, Brazil, and Southeast Asia will continue to increase rapidly. In terms of cost, the price reduction of upstream materials and the significant reduction in installation costs after large-scale application. In 2021, the cost of household energy storage per kilowatt hour was nearly $600 per kilowatt hour, with battery packs and inverters accounting for about 1/3 of the total cost. In 2022, due to the rise in prices of upstream raw materials such as lithium carbonate, the price of lithium batteries has increased, and it is expected to gradually decline this year. It is expected that the installation cost of household storage will decrease to about $500 per kilowatt hour by 2026, a decrease of 22% compared to 2021, and its economic efficiency is expected to further improve. So, household energy storage will be the trend.

The JDSOLAR household energy storage system consists of battery cells, BMS, EMS (Energy Management System), bidirectional energy storage converters, and other supporting systems, with the battery being the most core component. At present, the main export to foreign countries is the combination of photovoltaic and energy storage systems. Due to the fact that household energy storage is mainly aimed at end users, channel providers, distributors, and installers have significant local advantages. Household energy storage products are electrical products, and there are certain professional and safety protection requirements for installation and debugging. They need to interface with local governments, power departments, and customers to complete access, installation, and customized power trading strategies and other service needs. Jiaogu Group's overseas business mainly focuses on agency, and in addition to organizing installation teams in Shanghai to design, install, and supply on-site, other regions are also mainly represented by agents.

JDSOLAR household energy storage systems are divided into grid connected home optical storage systems and off grid home optical storage systems. The Jiaotong University Optics Valley grid connected home optical storage system can be powered by the power grid to the household load or transmitted by the home optical storage system to the power grid. The Jiaotong University Optics Valley off grid home energy storage system has no electrical connection to the power grid, and is suitable for areas with abnormal power supply, such as pastoral areas, remote rural areas, and isolated islands.

JDSOLAE household energy storage inverter is a key component product of household energy storage systems. I won't go into detail about its functional features and advantages today. Interested friends can refer to our product introduction.

Jiaogu Group has served hundreds of household users in the Yangtze River Delta region of China, and generally uses JDSOLAR AC coupling products for this stock market (target households have installed photovoltaic systems and added energy storage systems). Simply install batteries and energy storage converters without affecting the original photovoltaic system, and the design principle of the energy storage system is not directly related to the photovoltaic system, which can be determined according to demand. The advantage of JDSOLAR AC coupling lies in its high safety: in the AC coupling mode, energy is gathered at the AC end, which can be directly provided to the load or sent to the power grid, or directly charged to the battery through a bidirectional converter. Low voltage PV and low-voltage batteries can be selected to eliminate the risk of DC high voltage in the energy storage system.

Jiaogu Group has launched separate household energy storage systems and integrated household energy storage systems for rural self built housing users and high-end urban villa customers. Jiaogu Group defines household energy storage system equipment as consumer goods. Consumers have high requirements for product aesthetics when purchasing, and product design includes product appearance and capacity size. High end customers not only focus on the functionality of the product, but also on its appearance. We recommend using an integrated household energy storage system. We recommend using JDSOLAR DC coupling products for villa household users who consume over 1000 kilowatt hours of electricity per month. The DC coupled energy storage system includes a battery system and a hybrid inverter, which combines the functions of a photovoltaic grid connected inverter and an energy storage converter. The advantage of DC coupling is that both photovoltaic and energy storage batteries are converted through hybrid inverters, eliminating the need for additional installation of photovoltaic grid connected inverters. The system integration is higher, and installation and after-sales service are more convenient. At the same time, it is convenient for intelligent monitoring and control.

R&D investment and service capabilities ensure the product and brand value of Jiaogu Company. The core of energy storage systems lies in safety, long lifespan, and low cost. The higher the charging capacity of the energy storage system, the more complex the system, and the greater the difficulty of integration. Therefore, Jiaogu Company has high research and development investment, strong technical reserves, and efficient, convenient, rich, and reliable product delivery capabilities in the household energy storage market. In addition, Jiaogu Company provides a 10-year warranty for our products. Our good product quality performance, low repair rate, and high safety evaluation are important factors that affect consumer choices. We are confident that this segment will form an industry brand barrier.