Shoals Technologies Group (SHLS) Status Update summary

Market overview and growth opportunity

• Battery energy storage systems (BESS) are critical for grid reliability and are expected to grow from 24 GW in 2023 to over 200 GW by 2034, with a projected market value exceeding $100 billion.

• The BESS market is driven by rising global energy demand, especially from AI and data centers, and is forecasted to grow at nearly 30% annually over the next decade.

• Global energy storage market is expanding by 55% in 2024, with U.S. market valued in the billions and global power demand rising by 55% by 2034.

• Over 250 utility storage projects are expected to become operational in the U.S., and 1,400 globally from 2026 to 2029.

• Lithium-ion and lithium iron phosphate batteries dominate, but long-duration storage technologies are expected to gain share.

Product offerings and applications

• Solutions include combiners, recombiners, multi-load break disconnects, custom skidded solutions, and wiring harnesses for both AC and DC applications.

• Products are integral to solar-plus-storage and standalone storage, supporting DC-coupled applications for higher efficiency and simplified installation.

• Offerings are highly engineered, high-value systems, not commodity products, designed for performance, safety, and longevity.

• Solutions are valued for factory-assembled, plug-and-play EBOS, modularity, and high reliability.

• Products are also suited for microgrids, data centers, and other renewable applications requiring DC power distribution.

Customer base and go-to-market strategy

• Customers include EPCs, integrators, OEMs, technology partners, and data centers, with products applicable to any battery technology or renewable source.

• Go-to-market involves direct sales to EPCs, contractors, integrators, and battery OEMs, with some volume contracts.

• Strategy is to cast a wide net, provide ongoing education, and leverage EPCs with data center divisions to expand customer reach.

• Solutions are valued for modularity, reliability, and factory-assembled, plug-and-play EBOS.