Sou Hu Cai Jing·2025-11-14 12:26Core Viewpoint - The renewable energy sector has entered a new growth cycle driven by policy support, rising demand, and technological advancements, particularly in solar, lithium battery, and energy storage segments [1][3][18]. Policy Support - The "anti-involution" policy is being reinforced, which is expected to improve the supply-demand structure in the solar industry and curb excessive competition [6][10]. - The "14th Five-Year Plan" has shifted focus from rapid growth to high-quality development, emphasizing the importance of renewable energy in meeting future electricity demands [11][12]. Demand Dynamics - The demand for renewable energy is primarily driven by two sectors: the electric vehicle market and energy storage. The electric vehicle market is seeing strong sales due to new model releases and upgraded subsidy policies [4][7]. - Energy storage is transitioning from policy-driven demand to economic-driven demand, with significant cost reductions in storage systems and increasing profitability due to market price fluctuations [4][7]. Technological Advancements - Solid-state batteries are expected to achieve small-scale production by 2027 and enter the mid-to-high-end power battery market by 2030, driven by technological breakthroughs [1][17]. - Perovskite solar cells are anticipated to be commercialized around 2030, potentially enhancing efficiency and reducing costs in the solar sector [16][17]. Market Performance - The renewable energy sector has rebounded significantly after a prolonged adjustment period, with various sub-sectors experiencing substantial price increases [3][19]. - The sector's valuation remains relatively low compared to historical levels, presenting an attractive investment opportunity for those seeking growth with a margin of safety [19][20]. Investment Opportunities - Investors interested in lithium battery demand and solid-state battery breakthroughs can consider the CSI New Energy Vehicle Index, which covers the entire lithium battery supply chain [2][25]. - For those focused on the "anti-involution" concept, the CSI Photovoltaic Industry Index is recommended, while the ChiNext New Energy Index offers comprehensive coverage of lithium, storage, solar, and wind energy sectors [2][25].