Differentiated Strategy! Multi-Million Subsidies Boost Flow Batteries Across China

Classification:Industrial News

 - Author:ZH Energy

 - Release time:Jul-11-2025

【 Summary 】Amid a surge of policy support, flow batteries—critical breakthroughs for long-duration storage—have become the centerpiece of regional strategic planning.

Driven by the "Dual Carbon" goals, China's new energy storage industry is entering a golden period of development empowered by intensive policies. Flow batteries, as a crucial breakthrough direction for long-duration energy storage technology, have become a core focus area in policy layouts across multiple regions. From Shenzhen and Shanghai to Shandong and Guangdong, local governments are accelerating the construction of a new energy storage industry ecosystem and promoting the leap of flow batteries from demonstration applications to large-scale commercialization through differentiated subsidies, full-chain support, and incentives for technological breakthroughs.

On July 4th, the People's Government of Pingshan District, Shenzhen, released the *"Several Measures to Implement the 'Dual Carbon' Strategy and Further Promote the High-Quality Development of the New Energy Industry."* It explicitly encourages the construction of next-generation new energy storage demonstration projects, including sodium-ion batteries, flow batteries, and flywheel energy storage, to strengthen grid regulation capabilities. For grid-connected projects of this type, support will be provided at 200 yuan/kWh based on installed capacity, with a maximum of 1 million yuan per project. It also strongly supports high-quality projects in areas like new batteries and energy storage in obtaining equity financing from government funds and social funds. Furthermore, it encourages enterprises to accelerate overseas expansion, offering support equivalent to 10% of certification costs (with an annual cap of 1 million yuan) for products certified in key markets like the EU, US, Japan, and South Korea.

As a core engine of the Guangdong-Hong Kong-Macao Greater Bay Area, Shenzhen's policy layout in the flow battery field holds exemplary significance. Besides Pingshan District, Guangming District and Nanshan District have simultaneously introduced specialized support measures. In February 2025, Guangming District issued the *"Operational Procedures for the Support Plan to Accelerate the Development of the New Energy Storage Industry,"* focusing on technological weak points. It stipulates that for major projects in key areas like flow batteries, funding equivalent to 20% of the actual investment (up to 50 million yuan) will be granted, or alternatively, they can apply for government-guided fund equity investment not exceeding 30% of planned investment (up to 200 million yuan). In March 2024, Nanshan District also clarified in its special new energy policy that for new energy storage demonstration projects like sodium-ion batteries, flow batteries, and flywheel storage, subsidies of 200 yuan/kWh based on installed capacity would be provided, with a maximum of 1 million yuan per project. It also established significant investment incentives, offering a one-time settlement reward of up to 100 million yuan and a 6 million yuan placement subsidy for core talents for introduced key enterprises in areas like energy storage batteries and systems. Simultaneously, at the provincial level in Guangdong, the Department of Industry and Information Technology and the Department of Finance jointly issued provincial special fund management rules in December 2024, focusing on supporting the engineering R&D and industrialization of products like flow batteries, as well as key materials, components, and system integration technologies. Qualified industrialization costs (equipment, software, debugging, materials, etc.) will receive post-event rewards of up to 30%, with a maximum of 10 million yuan.

In the policy layouts of Shanghai, Shandong, and other regions, flow batteries, as representatives of long-duration storage technology, have also received multi-layered, differentiated subsidy support. In March 2025, Shanghai issued the *"Several Policies of Shanghai Municipality to Accelerate the High-Quality Development of the New Energy Storage Industry,"* giving key support to flow battery demonstration applications. The policy stipulates that for city-level demonstration projects of long-duration storage systems like all-vanadium flow batteries and iron-chromium flow batteries, subsidies of 0.5 yuan/kWh will be granted based on actual discharged energy, continuously for 3 years, with an annual subsidy cap of 5 million yuan per project. In November 2024, the Shandong Provincial Development and Reform Commission (NDRC) and the Energy Administration jointly issued the *"Shandong Province Action Plan for High-Quality Development of New Energy Storage,"* listing flow batteries as a key breakthrough technology route. The plan proposes that for flow battery industrialization projects with investments exceeding 30 million yuan, a one-time subsidy equivalent to 15% of equipment and software investment will be provided, with a maximum of 20 million yuan per project. It also plans to establish flow battery industry innovation centers in places like Jinan and Qingdao, offering 5 million yuan in startup funding to enterprises leading national-level R&D platforms.

Surveying policies across regions reveals distinctive characteristics: Support methods are highly diversified, ranging from capacity-based subsidies (Shenzhen Pingshan, Nanshan), per-kWh subsidies (Shanghai), investment proportion grants (Shenzhen Guangming, Shandong, Guangdong provincial), R&D rewards, government fund equity participation, to industrial park support. This forms a full-chain support system covering R&D, industrialization, demonstration application, park construction, capital support, and market expansion. The technological orientation is extremely clear, with flow batteries listed as "next-generation storage technology" or a "key breakthrough for weak links" in many places, forming a differentiated layout from lithium batteries and highlighting their strategic value. Regional competition is intensifying, with coastal economic powerhouses like Guangdong, Shandong, and Shanghai vying for industrial high ground through substantial capital investment and policy innovation, while districts within Shenzhen (Pingshan, Guangming, Nanshan) form a relay momentum. Overseas expansion is noticeably accelerating, with areas like Shenzhen Pingshan explicitly subsidizing international certifications, directly addressing the urgent need for the global expansion of China's new energy storage production capacity.

As the cost reduction process for flow batteries continues to accelerate and policy dividends are continuously released, flow battery projects characterized by long duration and high safety are expected to rise rapidly in the field of new energy storage demonstration applications, becoming a key supporting technology for building a new power system dominated by new energy.


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