China's appliance giants pivot to clean energy in search of a new growth engine

by MA Yueran

China's leading home appliance makers are accelerating their push into clean energy, as slowing growth in core appliance businesses drives a search for new revenue streams in distributed solar, energy storage and household energy management.

On Dec 31, 2025, Haier Energy Technology Co., Ltd. completed a pre-IPO regulatory filing, a step that could lead to a future listing. The move underscores how appliance groups are positioning clean energy as a long-term growth business rather than a side project.

"New energy could increasingly become part of the appliance industry," a senior appliance executive told Jiemian News, reflecting the growing overlap between energy management and household consumption.

Formerly known as Nahui New Energy, Haier Energy was rebranded in November 2024. JI Xiaojian, the unit's general manager, said that the group only authorizes use of the Haier brand after sustained operational and commercial validation, particularly in emerging sectors.

Haier entered the sector in May 2022, starting with distributed rooftop solar before expanding into energy storage and, more recently, inverters and power conversion systems, where supply chains overlap with appliance manufacturing. Ji said the company aims to operate clean-energy assets over their full lifecycle, focusing on stable electricity, carbon and power-trading income rather than one-off project development.

Haier's move mirrors a broader trend. Other appliance groups, including Midea Group and Skyworth, have also expanded clean-energy operations as global decarbonization gathers pace.

For Midea, 2025 marked a turning point. The group stepped up brand integration in its energy business, authorizing the use of the "Midea" name for listed units Shenzhen Clou Electronics Co., Ltd. and Hiconics Drive Technology. People familiar with the matter said energy-related businesses now account for about 10% of the group's total revenue, with the share expected to rise.

WEI Chang, Midea's vice president and chief technology officer, said that modern energy systems require real-time optimization, making efficiency a central challenge and clean energy a core part of the group's transformation.

Recent results point to early progress. In the first three quarters of 2025, Clou Electronics reported net profit attributable to shareholders of 232 million yuan, up 251% year on year, while Hiconics Drive posted 74 million yuan, a rise of 584%.

Midea's energy operations now span household energy, commercial and industrial solutions, green buildings and large-scale storage. Wei said residential energy systems are a priority, where appliance makers can move quickly because sales channels overlap with traditional products.

Industry executives say distribution remains a key advantage. "Brand and channel coverage are the primary strengths," MA Long, president of Skyworth PV, told Jiemian News. Skyworth has built and connected more than 700,000 household solar stations and is expanding overseas to diversify risk across Europe, Asia-Pacific, Latin America and the Middle East.

The push into clean energy is also shaped by a maturing appliance market. Growth has slowed, prompting manufacturers to seek adjacent industries, even as competition in clean energy intensifies.

"In the short term, more entrants will increase competition," Ma said, adding that over time this should encourage innovation and industry upgrading. Wei expressed a similar view, while Ji said intense competition is familiar territory for appliance executives. "Compared with appliances, competition in new energy is not that extreme," he said.

As appliance giants move further into clean energy, competition is shifting from hardware to brands and from individual products to broader ecosystems. While the strategy offers a new growth narrative, it also raises the prospect of consolidation, as only a limited number of cross-industry players are likely to achieve sustainable scale.