China's electric heater industry

In the past decade, the integration of China's electric heater industry and energy storage industry has shown an accelerating trend, completing the functional transition from 'single heating' to 'energy storage peak shaving' driven by the 'dual carbon' strategy. At the market level, the electric heater industry is expected to have a market size of approximately 4 billion yuan in 2024. Despite facing pressure from shrinking demand, energy storage electric heaters have become a new growth point, expanding both commercial and household scenarios simultaneously. The deep promotion of technological integration, the popularization of low-temperature heating technology for air source heat pumps, and the application of new heat conduction materials such as graphene and semiconductor thermoelectric materials enable electric heaters to operate stably in extreme low-temperature environments. The policy dividend continues to be released. In 2026, the country will provide capacity pricing support for independent new energy storage power stations on the grid side for the first time, forming a three yuan revenue structure of electricity market, auxiliary service market, and capacity pricing. The improvement of the carbon trading system will enable low emission heating technology to obtain 10% -15% additional revenue. Diversified application scenarios, solar thermal energy storage systems are widely used in regional heating, and the demand for household heating in the south is awakening. The penetration rate of winter heating in the Yangtze River Basin will increase to 35% within five years. Overall, the integration of electric heaters and energy storage industry has formed a clean and intelligent dual wheel drive pattern, providing important support for the construction of new power systems. It is expected that the depth of integration will be further enhanced during the 15th Five Year Plan period.