2025 Energy Storage Stocks Investment Guide: From Industry Chain to Individual Stock Layout

Energy storage is no longer just a supporting role in the energy transition. As the global net-zero carbon emissions timeline approaches, the electric vehicle market explodes, and AI data centers’ electricity consumption soars, the energy storage industry is becoming the hottest investment theme in the capital markets. Whether in the US or Taiwan stocks, a group of growth-potential energy storage stocks are worth paying attention to.

Why is the energy storage industry booming?

According to the latest forecasts from BloombergNEF and DNV, global energy storage installed capacity will surpass the terawatt-hour mark before 2030. This is not just talk— the United Nations Climate Change Conference has explicitly called for halving global carbon emissions by 2030 and achieving net-zero by 2050.

The UK example is particularly convincing. In the first half of 2023, wind power contributed 32.4% of the UK’s electricity, significantly alleviating the natural gas crisis. However, wind output is unstable, with negative electricity prices even occurring at dawn. At this point, energy storage facilities become essential—used to balance supply and demand fluctuations, ensuring stable green energy grid integration.

The AI wave further fuels this trend. Tech giants are rapidly expanding data center capacity, with an unprecedented demand for electricity, further boosting energy storage needs.

US energy storage stocks: who is leading?

Enphase Energy (ENPH): The challenge of the microinverter leader

Enphase Energy is a key supplier of solar microinverters and energy storage systems. In 2024, revenue is projected at $1.46 billion, with a divergence forecast for 2025—conservative estimates hold steady at $1.48 billion, while optimistic ones could break $2 billion. The latest quarter’s revenue of $363 million exceeded expectations, but next quarter’s guidance of only $330-370 million reveals demand softness.

The stock has fallen sharply from its high to $36.98, with a P/S ratio of about 3.2-3.7x. However, US residential solar subsidies may end by year’s end, which is a potential variable. Institutions like TD Cowen have downgraded to Hold with a target price of $45-55. Most are short-term observations; aggressive entries should be cautious.

NextEra Energy (NEE): The green energy giant benefiting from AI

NextEra Energy is the world’s largest utility company, with a market cap of $149.61 billion. Its subsidiary, NextEra Energy Resources, focuses on wind, solar, and energy storage, with 2024 revenue of $24.75 billion and a generation capacity of 73 GW.

In Q2 2025, adjusted EPS was $1.05, up 9% year-over-year, surpassing expectations. More critically, the company added 3.2 GW of renewable and energy storage projects, over 1 GW of which is dedicated to data centers, with a total capacity exceeding 10.5 GW. This indicates the company’s active pursuit of AI energy demand opportunities. The average analyst target price is $84-86, and at the current price of $72.65, there is still 15-20% upside potential.

Fluence Energy (FLNC): The growth pains of a global energy storage equipment provider

Fluence, jointly launched by Siemens and AES in 2018, operates in 47 markets. In Q3 2025, although EPS again beat expectations ($0.01), revenue was only $603 million, far below the expected $770 million, causing the stock to plunge over 13%. Gross margin compressed to 15.4%, mainly due to delayed US capacity expansion and supply chain challenges.

However, management maintains the full-year revenue target of $2.7 billion for 2025, expecting existing orders to convert into actual revenue in 2026. This is a short-term pain point; the long-term logic remains intact.

EnerSys (ENS): Industrial energy storage solutions provider

EnerSys is a global industrial energy storage solutions supplier, operating in over 100 countries. Q1 2025 performance was impressive—adjusted EPS of $2.08 exceeded expectations, with revenue of $893 million also surpassing estimates. Market cap is $3.86 billion, with a P/E ratio of only 11.8x, and nearly 1% dividend yield, making it a stable candidate for cautious investors.

Generac Holdings (GNRC): Backup power equipment manufacturer

Generac is a well-known manufacturer of residential and industrial backup power equipment in the US. In Q2 2025, adjusted EPS was $1.65, far exceeding expectations, up 22% quarter-over-quarter; revenue was $1.06 billion, slightly above estimates. The full-year EPS forecast is $7.54, with an average target price of $206.67. At the current price of $179.5, there is about 15% upside potential.

Taiwan stocks energy storage concept stocks: where are the local opportunities?

Delta Electronics (2308): The power management leader with soaring gross margins

Delta Electronics was founded in 1971 and is a global leader in switching power supplies. In Q2 2025, consolidated revenue reached NT$124.035 billion, up 20% year-over-year, setting a quarterly record; net profit after tax was NT$13.948 billion, up 40%, with EPS of NT$5.37, also a record high. Gross margin reached 35.5%, operating margin 15.1%, far better than the same period last year.

In the second half of the year, the company will strengthen R&D investment and expand capacity in the US. Its competitiveness in battery management and thermal solutions continues to solidify, making it one of the most fundamentally supported energy storage stocks.

TECO Electric & Machinery (1504): Traditional motor manufacturer transforming into an AI energy opportunity

TECO Electric & Machinery was established in 1956, starting with electric motors. Now, it covers motor systems, smart energy, and smart living. In Q2 2025, revenue was NT$15.6 billion, up 7.4% year-over-year, but due to costs and exchange losses, EPS was only NT$0.69, down about 8% year-over-year; for the first half, EPS was NT$1.23, down about 8%.

In the first half, it paid a cash dividend of NT$2.2, with a yield of about 4.2%. More importantly, TECO actively seeks growth by acquiring NCL Energy and strategizing with Hon Hai, targeting AI data centers and smart energy markets, with high growth potential.

Other Taiwan energy storage concept stocks include:

From the industry chain perspective, Taiwan energy storage stocks also include:

Battery manufacturing: New Power (4931), Chang Yuan Technology (8038)
System integration: Huacheng (1519), Yali (1514), Zhongxing Electric (1513)
Power equipment: Zhongxing Electric (1513), Huacheng (1519), Yali (1514)
Material supply: Formosa Plastics (6505, investing in electrolytes)

Why is now the right time to deploy?

Policy-driven is the primary logic. Countries worldwide will intensively introduce energy storage incentives before 2030, with continuous funding expected.

Technological breakthroughs are the second layer. Wind and solar power, which previously had high costs and low efficiency, have become economically viable, and energy storage systems have become essential for large-scale deployment.

Demand explosion is the third layer. The proliferation of electric vehicles and expansion of AI data centers are driving a dual demand for clean energy.

Risks of investing in energy storage stocks

Not all participants will succeed. Startups with weaker foundations may struggle to reach breakeven or even see revenue decline, putting immense pressure on stock prices. Policy changes (such as the termination of US solar subsidies) can also impact certain stocks.

Stock selection requires caution; holding positions should be based on monitoring fundamental and technical reversal signals. Discipline and risk control are the keys to navigating cycles.

Summary

The investment logic of energy storage stocks is clear—policy-led, demand-driven, and technology-matured—forming a relatively transparent investment outlook. Whether it’s US stocks like NextEra, Enphase, Fluence, or Taiwan stocks like Delta and TECO, each occupies a key position in the industry chain. When policies are announced, the market may trigger a wave of hype. But remember, no matter how good the concept, fundamentals still speak the loudest.