How Should New Energy Companies Choose Target Markets for Overseas Promotion?

When selecting overseas markets for promotion, renewable energy companies should look beyond local renewable energy capacity and the level of policy support. They should also assess whether target customers have clear purchasing needs, whether products can enter the market in compliance with local requirements, and whether delivery costs after winning orders can be kept under control. A market with strong demand may not be suitable for an initial investment if it has high certification barriers, closed sales channels, or long distances to after-sales service.

A more practical approach is to first identify the products and customer types to target, then compare market access policies, reachable demand, the competitive landscape, and customer acquisition costs side by side. Market size sets the upper limit of the opportunity, while a company’s existing qualifications, channels, and service capabilities determine how much of that opportunity can be converted into actual orders.

Identify your customers before comparing countries and regions

The term “renewable energy market” covers solar, energy storage, charging infrastructure, and related components, and purchasing decisions vary significantly across products. Demand for residential energy storage in a country does not necessarily mean that local utility-scale storage projects are suitable for a new market entrant. Potential buyers of charging equipment may include operators, engineering contractors, or equipment integrators, each with different procurement cycles and priorities.

For evaluation purposes, it is helpful to define each target market by “country or region + product + customer type + application scenario.” For example, an energy storage inverter company could evaluate local installers, energy storage system integrators, and equipment distributors separately, rather than making a broad judgment about whether the country prioritizes energy storage. Installers are more concerned with supply, compatibility, and technical support; integrators may also require stable pricing, inventory availability, and channel protection.

Demand should not be assessed based on search volume alone. Search data can show which products and issues customers are looking for, but it cannot directly confirm their purchasing budgets or willingness to buy. Combine it with project tenders, industry association information, lists of potential customers, distributor product catalogs, and public procurement requirements to determine whether demand comes from end-user purchasing, solution research, or general information searches.

Turn policy support into orders you can actually win

Renewable energy projects are often affected by subsidies, taxes, grid-connection rules, and public procurement conditions. When assessing policies, the key is not to increase the promotion budget as soon as a support measure is identified, but to confirm who it applies to, the application deadline, and local implementation conditions: Is the incentive for end users, project developers, or equipment manufacturers? Does a customer need to use equipment from a specific source or meet local content requirements to qualify for support?

Market access requirements should also be assessed by product model and sales scenario. Energy storage equipment may be subject to battery safety, transport, recycling, and installation requirements; grid-connected equipment needs to meet local grid and technical standards; and charging equipment must be checked for interface, communication, and installation requirements. Even if a product has obtained an international certification, this does not automatically mean that it meets all requirements in the target market.

For each requirement, identify the responsible party and associated costs: Will the manufacturer conduct the testing, or will it be handled by a local importer or installer? Is a local representative, liability insurance, or ongoing after-sales service required? If key qualifications are not yet in place, include the certification timeline and estimated fees in market-entry costs. Before committing to a formal investment, verify current requirements with local authorities, certification bodies, or specialist service providers.

When comparing competitors, focus on why customers would switch suppliers

The number of competitors indicates market activity, but not how difficult it is to enter. In some markets, there are many suppliers, yet customers still have limited options for certain power ratings, delivery times, or technical support. In others, product prices may appear to leave room for competition, but procurement is effectively locked up by established channels, project qualifications, and after-sales networks.

Select products that compete directly in the local market and compare their publicly available pricing approaches, warranty terms, delivery times, certification documents, types of case studies, and service scope. For project-based products without public pricing, contact distributors or request quotes to understand procurement conditions, but do not treat a single quote as the market average.

Bring the findings back to your own capabilities: If your only advantage is a lower ex-factory price, while competitors can offer local spare parts, installation training, and rapid response, a low price may not be enough to win project orders. Conversely, if your company already has models compatible with local grid requirements, complete English technical documentation, or existing customers who can introduce local partners, the market may be a better choice for initial validation even if it is not the largest.

Assess promotion costs across the entire customer acquisition journey

Overseas promotion costs are not limited to advertising clicks. Purchase values and technical requirements vary considerably for renewable energy equipment, and the journey from a customer’s search and website visit to a submitted inquiry, technical confirmation, quotation, and sale may involve multiple rounds of communication. Comparing only click costs across markets can lead companies to choose regions with inexpensive traffic but few qualified inquiries.

At a minimum, budget estimates should cover localized websites and technical materials, content production, advertising or channel development, lead follow-up, samples, and necessary technical support. For products that require on-site assessment, also account for travel, partner coordination, and after-sales preparations. Markets can be compared using the following measures:

• Cost per qualified inquiry: Market promotion and lead follow-up costs ÷ number of inquiries that meet the target customer criteria.
• Estimated customer acquisition cost: Promotion and sales-related investment ÷ number of customers attributed to closed deals during the same period; when there is insufficient data during the validation phase, distinguish actual results from forecasts.
• Contribution per customer: Expected order gross profit minus related costs such as dedicated certification, logistics, channel commissions, and after-sales service.

Define a qualified inquiry in advance and apply the same criteria consistently. For example, the customer must be in a target country, the product they want to purchase must match the company’s supply capabilities, and they must provide project or purchasing information that can be followed up. Otherwise, cost data from different markets cannot be compared if different screening standards are used. When project cycles are long, also track the number of leads that enter technical evaluation, request a quotation, or pass customer qualification reviews, to avoid rejecting test results based on closed sales too early.

Use small-scale validation to set priorities

After the initial screening, markets can be grouped into three categories: prioritize for validation, enter after addressing outstanding requirements, and defer investment. Markets with clear access barriers or after-sales responsibilities the company cannot meet should be excluded first, rather than having high scores in other areas offset those issues. Rank the remaining markets based on demand, competition, customer acquisition costs, and delivery costs.

For example, two locations may both have demand for commercial and industrial energy storage. Location A has more projects, but the company lacks the required certification and has no installation service partner. Location B has fewer potential projects, but the company’s existing models meet the technical requirements already raised by customers, and a partner distributor can provide support. With a limited budget, the company could validate demand in Location B first, while making certification verification and establishing a service channel prerequisites for entering Location A. This is an example of a judgment based on market-entry conditions and does not represent the performance of any specific country’s market.

During the validation phase, set consistent test periods, budget ranges, and exit criteria for each market, and reach potential customers through targeted product pages, search promotion, or industry channels. In addition to recording inquiry volumes, analyze customer identities, application scenarios, purchasing timelines, main objections, and reasons a quotation could not be provided. If leads consistently point to missing certification or inadequate local service, simply increasing the promotion budget is unlikely to solve the problem.

Expand language content, channel partnerships, and promotion investment once a market produces target customers who can be followed up consistently and the expected order contribution can cover customer acquisition and delivery costs. Market priorities should also be adjusted as certification progresses, customer feedback comes in, and policy conditions change, rather than treating a one-time country ranking as a permanent conclusion about where to expand overseas.