Sinovoltaics finds widening financial gap among energy storage suppliers

A new financial ranking of 65 companies that make batteries, solar equipment, and energy storage systems shows a widening gap between financially strong and weak suppliers. The analysis uses a standard measure called the Altman Z-score, which combines a company's profits, debt, and cash position into one number to gauge financial health. Tesla, Delta Electronics, and Hyundai Electric ranked as the most financially stable companies. Thirty companies landed in the "safe zone," up from 26 when the tracking period began in September 2023. Another 18 fell into a middle "gray zone," and 17 scored low enough to signal elevated bankruptcy risk over the next two years, including six with negative scores pointing to serious financial trouble.

Diversified companies that sell more than one type of product, such as Tesla, ABB, Siemens Energy, and GE Vernova, scored strongest on average. Makers of inverters, which convert power for solar and battery systems, also did well. Battery cell and pack makers scored weaker, and solar module makers scored just above the risk threshold. Companies that focus only on storage systems fared worst overall, with Eos Energy Enterprises, Stem Inc., and ESS Tech all posting negative scores. ESS Tech's score dropped sharply, from -2.29 to -27.95.

For homeowners, this doesn't change any rebate or program rules, but it's a reminder that not all solar and battery equipment makers are on equally solid financial footing. A company's staying power can matter for warranty support and future service if you're weighing storage or solar equipment from a specific manufacturer.