Interview

CESC Outlines Shift to Value-Added Solutions and Local Supply Chains for European PV Market

Julia Pohl, Director Research Operations at EUPD Group, interviews Eric Chang, Managing Director of CESC, at The smarter E Europe. They discuss CESC's strategic pivot towards value-added solar and storage solutions and localized supply chains in the dynamic European market, with a particular focus on Germany.

Interviewer · EUPD Group
Julia Pohl
Director Research Operations · EUPD Group
Guest · CESC
Eric Chang
Managing Director · CESC
Filmed ·Munich·Runtime 04:02Interview ·
Interview
The smarter E Europe 2025 · Munich
04:02
Filmed on site · No editorial direction beyond question set · Captions auto-generated, reviewed by EUPD Group

Key takeaways

4 points · 04:02 video
  1. European Market Dynamics
    Eric Chang, Managing Director at CESC, characterizes the European solar market as highly dynamic, with increasing innovation and a growing demand for locally tailored solutions across countries like Spain, Germany, and Italy. This evolution is anticipated to deepen in the coming years.
  2. Strategic Shift to Value-Added
    CESC is moving beyond a sole focus on production and pricing. The company is strategically re-positioning itself to offer value-added solutions that benefit local communities and installers directly.
  3. Localization of Supply Chains
    CESC is actively building a local European supply chain, shifting component sourcing from China to countries like Poland, the Czech Republic, and even Ukraine. This aims to enhance resilience and local integration.
  4. German Market Focus
    Germany is a key strategic market for CESC, despite its complexity. The company is developing and promoting specific solutions, such as integrated solar carport systems, designed to align with German policy requirements and support local installers.

Navigating a Dynamic European Solar Market

Eric Chang, Managing Director at CESC, describes the European solar energy market as "very dynamic," marked by deeper innovation and a demand for solutions tailored to individual countries. He notes a shift from the previous year, with markets like Spain, Germany, and Italy each requiring distinct approaches. This evolution is expected to continue in coming years, influencing strategic decisions for market participants. CESC faces challenges including supply chain issues, pricing pressure from customers, and the complexities of manufacturing both large and small batteries. According to Chang, the company views this period as an opportunity to move beyond a production-only focus. Instead, CESC is prioritizing the development of solutions that bring tangible value to communities and local installers.

"The market is very dynamic and some people say it's good, some people say it's bad, but it's going into some deeper level of innovation and also more suitable solution for the individual and also for the different market." Chang · 00:35

CESC's Pivot to Value-Added Solutions

To address market dynamics and competitive pressures, CESC has strategically pivoted towards value-added solutions rather than focusing solely on production volume and pricing. Eric Chang emphasizes the importance of understanding what fits local needs and "brings more value to the community, to the installer, and to the local people." This approach is central to CESC's market positioning. As part of this shift, CESC is incorporating more local suppliers and actively seeking local support. Chang states that this strategy allows CESC and its partners to "benefit from our business." This involves a comprehensive re-evaluation of how CESC delivers its products and services within the European context.

"We changed into a bit more value added, uh, uh, solutions and we added more local suppliers to, did a lot of, um, steps and also we also got more of the local support." Chang · 02:04

Focusing on Germany and Localized Supply Chains

Germany is a primary focus for CESC's next steps in the European market. Eric Chang, Managing Director at CESC, identifies it as a "very difficult market" but also a "very good market" for learning, especially for a foreign company. This strategic emphasis includes building strong local teams to navigate the specific demands of the German regulatory and commercial landscape. A key initiative for CESC is the establishment of a localized supply chain within Europe. Chang explains that parts are being sourced from countries like Poland, the Czech Republic, and Ukraine, reducing reliance on distant supply routes. This localization supports the company's objective to promote solutions like solar carports that are specifically tailored to German policy requirements and benefit local installers.

"We have the supply chain moved, uh, from China parts, uh, to, to Poland, to Czech Republic, even to Ukraine. So then we are trying to build our own local, uh, supply chain." Chang · 02:52

Chapters

Chapters · click to jump
00:08
Intro and European Market Overview
Julia Pohl introduces Eric Chang, who discusses the dynamic, evolving, and localized nature of the European solar market.
01:05
CESC's Strategic Positioning
Eric Chang details CESC's shift from production-focused sales to providing value-added solutions for installers and local communities amidst market challenges.
02:25
Future Steps and Local Market Focus
Chang outlines CESC's focus on the German market, the development of a local European supply chain, and the promotion of tailored solutions like solar carports.

Interview transcript

Auto-generated · reviewed · ~3 min read
Hi, and welcome everybody. My name is Celia Poland. I'm the Director of research operations at the EOPD group. We're here today in Munich at the first day of the Smarter E Europe, and I'm very happy to introduce you to Eric Chan, who's the managing director of CESC. Hi Eric. Thank you very much. Thank you. It's very, uh, glad to be here. Yeah. Happy to have you here. So in the first step, I would like to talk to you a little bit about the European solar energy market. Mm-hmm. What's your opinion of it? How do you think things are going? I think the market is very dynamic and some people say it's good, some people say it's bad, but it's, uh, going into some deeper level of innovation and also more, uh, suitable solution for the individual and also, uh, for the different market. For Spain, for Germany, for Italy, everyone want something different and fitting the local market. So that is the change, uh, from the last year to this year, and also have a deepening, um, evolving in the next years. Mm-hmm. Interesting. So in terms of the dynamics, how is CSE positioning itself in such a dynamic market? How are you strategically adding value to it? Yeah, I think it's a good question for us, for the management, for our sales team, and also for our product team. Mm-hmm. So for CSE, we're facing also a very big challenge. Okay. Like other companies, we are facing also the, uh, we are the main managed manufacturing of the big batteries, small batteries we are facing also the challenge of the supply chain. Also the pushing back from the customer side pricing. But for us, we also have a different view on this business. So only focusing on the production. Selling pricing is not a good way for us. It's not too healthy. So we move a little bit backward. So we look into the solution, what fits people, what is, what brings more value to the, to the community. Mm-hmm. Uh, to the installer and to the local people. So that is what we are thinking. So that is how we, uh, positioned ourself, uh, in this, uh, market. So we changed into a bit more value added, uh, uh, solutions and we added more local suppliers to, did a lot of, um, steps and also we also got more of the local support. So that is how we would like to be more involved and also to let, uh, people, our partners to benefit from our business as well. Yeah, I think those are all very relevant key items to make sure that you have a strategic positioning in today's market. So you already mentioned you took a step back and now you're looking forward. So what are CSCs next steps in the European market? And our idea is first we are based in Germany and it's a very, very difficult market, but it's very good market as well. We learned a lot. It's a foreign company and we have also a lot of local people help us to understand the local market. We have the supply chain moved, uh, from China parts, uh, to, to Poland, to Czech Republic, even to Ukraine. So then we are trying to build our own local, uh, supply chain. So that is somehow we said, uh, I said that we have half a step back and then when we look at our own, uh, position in the market, we would like to, uh, uh, promote the solution fitting the German, uh, let's say what the policy wants or to promote, let's say solar carport. And not only a solar carport, but a system, but something we can help the, uh, hand er and also the installer to also benefit from this business. That is where we come. We have, uh, some interesting environment, inquiries, orders, and also we build this community together with those people. I think that sounds like a very promising future and we're excited to watch the next steps growing. Yeah, thanks very much. And to being executed. So thank you so much for your time and all the best of luck for the next couple of days. Yeah, thank You very much. Thank you.
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Frequently asked questions

Eric Chang, Managing Director at CESC, describes the European solar market as very dynamic, marked by deeper innovation and a growing demand for locally tailored solutions across different countries. He anticipates this evolution will continue to deepen in the coming years.

CESC is strategically moving beyond a focus on production and pricing. According to Chang, the company is pivoting to offer value-added solutions that fit local needs and bring more benefits to communities and installers, rather than competing solely on cost.

CESC is prioritizing integrated, value-added solutions tailored to local markets. Eric Chang specifically mentions promoting systems like solar carports in Germany, designed to align with local policies and support installers.

Germany is a key market for CESC, identified by Eric Chang as both challenging and a valuable learning environment. The company is investing in local support and developing solutions specifically for the German market.

CESC is actively building a local European supply chain. Eric Chang states that the company is shifting component sourcing from China to closer regions like Poland, the Czech Republic, and even Ukraine, to support its European operations.