Canadian Solar Partners with Sol Systems to Ramp Up U.S. Module Manufacturing

Rhea-AI Summary

Canadian Solar Inc. partners with Sol Systems to scale solar module production in the U.S., providing high-efficiency N-Type TOPCon modules. The partnership aims to support Sol Systems' U.S. project pipeline between 2024 and 2025, creating new American manufacturing jobs.

Insights

Market Research Analyst

The partnership between Canadian Solar Inc. and Sol Systems signifies a strategic move to expand solar module production in the U.S., which is poised to have a considerable effect on the renewable energy sector. The collaboration leverages Canadian Solar's new Texas factory to meet Sol Systems' demand, potentially increasing Canadian Solar's market share and revenue in the U.S. This expansion aligns with the current administration's focus on boosting domestic manufacturing and renewable energy infrastructure.

From a market research perspective, the use of N-Type TOPCon solar modules is a game-changer. These modules offer higher efficiency and yield compared to traditional P-Type modules, which can lead to a reduction in the levelized cost of electricity (LCOE) for solar projects. This technological advantage may provide Canadian Solar with a competitive edge over other manufacturers, potentially influencing the company's stock valuation positively as the market responds to advanced product offerings and manufacturing capabilities within the U.S.

Financial Analyst

Examining the financial implications of the partnership, the framework agreement between Canadian Solar and Sol Systems could lead to a significant uptick in Canadian Solar's production volume and sales. The commitment to supply a substantial number of solar modules over the next two years suggests a stable revenue stream. Investors should note that Canadian Solar's ability to ramp up production in a new facility within a short timeframe could reflect strong operational execution, which is a positive indicator for the company's future performance.

However, it is crucial to monitor the capital expenditures associated with scaling up production and the impact on Canadian Solar's margins. While the deal is likely to be accretive to earnings, the initial costs and the company's ability to manage supply chain challenges in a new market environment will be critical factors in determining the long-term profitability of this venture.

Renewable Energy Expert

The significance of the partnership from a renewable energy standpoint cannot be overstated. The adoption of N-Type TOPCon technology represents a shift towards more efficient solar energy solutions. The TOPCon technology reduces recombination losses and enhances electron collection, leading to higher module efficiency. This is particularly important as the solar industry seeks to maximize energy production from limited spaces, especially in densely populated areas.

Moreover, the partnership is indicative of a broader trend towards localizing the solar supply chain in the U.S., reducing reliance on imported modules and enhancing energy security. The creation of American manufacturing jobs, as highlighted by Sol Systems, contributes to the socio-economic impact of renewable energy investments and aligns with broader sustainability goals.

GUELPH, ON, March 4, 2024 /PRNewswire/ -- Canadian Solar Inc. (the "Company" or "Canadian Solar") (NASDAQ: CSIQ) and Sol Systems, a leading renewable energy company based in Washington, D.C., announced today a partnership to scale new solar module production and procurement in the United States. Canadian Solar has secured a framework agreement to provide Sol Systems with a significant supply of modules from its newly ramped Texas module factory.

Under the partnership, Canadian Solar will supply its latest high efficiency N-Type TOPCon (Tunnel Oxide Passivated Contact) solar modules to support Sol Systems' project pipeline in the U.S. between 2024 and 2025.

Highlighting Canadian Solar's competitive advantage, Dan Diamond, Chief Construction Officer of Sol Systems, said, "We are thrilled to partner with Canadian Solar to scale the U.S. solar module manufacturing industry and create new American manufacturing jobs. Canadian Solar's TOPCon modules boost project economics through higher yields, smaller site footprint and lease costs, and lower balance of system costs. We were very impressed with the state-of-the-art facility during our visit to the Texas factory in December."

Thomas Koerner, Senior Vice President of Canadian Solar, commented, "Our cost-competitive TOPBiHiKu7 bifacial TOPCon module has received overwhelmingly positive market feedback, as it gives project developers the secure and long-term module supply they have been looking for. We are pleased to be the partner of choice for a key market leader like Sol Systems." He added, "We are proud to have ramped up our Texas facility in record time and started module production last December. We are encouraged by the significant interest in and demand for these locally made products."

About Sol Systems

Sol Systems is a leading national solar energy firm with an established reputation for integrity and reliability across its development, infrastructure, and environmental commodity businesses. Sol Systems is operating and building over 2 GW of solar projects valued at more than $2 billion for Fortune 100 companies, municipalities, counties, utilities, universities, and schools and provides environmental commodity portfolio management services to nearly 50,000 customers across the US. The company was founded in 2008, is based in Washington, D.C., and is led by its founder. Sol Systems works with institutional clients, corporate partners, and foundations to create a more sustainable future we can all believe in. For more information, visit https://www.solsystems.com/.

About Canadian Solar Inc.

Canadian Solar was founded in 2001 in Canada and is one of the world's largest solar technology and renewable energy companies. It is a leading manufacturer of solar photovoltaic modules, provider of solar energy and battery storage solutions, and developer of utility-scale solar power and battery storage projects with a geographically diversified pipeline in various stages of development. Over the past 22 years, Canadian Solar has successfully delivered over 110 GW of premium-quality, solar photovoltaic modules to customers across the world. Likewise, since entering the project development business in 2010, Canadian Solar has developed, built and connected around 9.3 GWp of solar power projects and over 3 GWh of battery storage projects across the world. Currently, the Company has around 850 MWp of solar projects in operation, nearly 7.8 GWp of projects under construction or in backlog (late-stage), and an additional 18.7 GWp of projects in advanced and early-stage pipeline. In addition, the Company has a total battery storage project development pipeline of approximately 55 GWh, including approximately 5 GWh under construction or in backlog, and an additional 50 GWh at advanced and early-stage development. Canadian Solar is one of the most bankable companies in the solar and renewable energy industry, having been publicly listed on the NASDAQ since 2006. For additional information about the Company, follow Canadian Solar on LinkedIn or visit www.canadiansolar.com

Safe Harbor/Forward-Looking Statements

Certain statements in this press release are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially. These statements are made under the "Safe Harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by such terms as "believes," "expects," "anticipates," "intends," "estimates," the negative of these terms, or other comparable terminology. Factors that could cause actual results to differ include general business, regulatory and economic conditions and the state of the solar and battery storage market and industry; geopolitical tensions and conflicts, including impasses, sanctions and export controls; volatility, uncertainty, delays and disruptions related to the COVID-19 pandemic; supply chain disruptions; governmental support for the deployment of solar power; future available supplies of high-purity silicon; demand for end-use products by consumers and inventory levels of such products in the supply chain; changes in demand from significant customers; changes in demand from major markets, such as Japan, the U.S., China, Brazil and Europe; changes in effective tax rates; changes in customer order patterns; changes in product mix; changes in corporate responsibility, especially environmental, social and governance ("ESG") requirements; capacity utilization; level of competition; pricing pressure and declines in or failure to timely adjust average selling prices; delays in new product introduction; delays in utility-scale project approval process; delays in utility-scale project construction; delays in the completion of project sales; continued success in technological innovations and delivery of products with the features that customers demand; shortage in supply of materials or capacity requirements; availability of financing; exchange and inflation rate fluctuations; litigation and other risks as described in the Company's filings with the Securities and Exchange Commission, including its annual report on Form 20-F filed on April 18, 2023. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. Investors should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today's date, unless otherwise stated, and Canadian Solar undertakes no duty to update such information, except as required under applicable law.

Sol Systems Media Contact
Jacqueline Mayan
jacqueline.mayan@solsystems.com
202-349-2085

CANADIAN SOLAR INC. INVESTOR RELATIONS CONTACT
Wina Huang
Investor Relations
Canadian Solar Inc.
investor@canadiansolar.com

View original content:https://www.prnewswire.com/news-releases/canadian-solar-partners-with-sol-systems-to-ramp-up-us-module-manufacturing-302077971.html

SOURCE Canadian Solar Inc.

FAQ

What partnership was announced by Canadian Solar Inc. in the press release?

Canadian Solar Inc. announced a partnership with Sol Systems to scale new solar module production and procurement in the United States.

What type of solar modules will Canadian Solar supply to Sol Systems under the partnership?

Canadian Solar will supply its latest high efficiency N-Type TOPCon (Tunnel Oxide Passivated Contact) solar modules to support Sol Systems' project pipeline in the U.S. between 2024 and 2025.

Who is the Chief Construction Officer of Sol Systems mentioned in the press release?

Dan Diamond is the Chief Construction Officer of Sol Systems mentioned in the press release.

What benefits do Canadian Solar's TOPCon modules offer according to Dan Diamond?

Dan Diamond mentioned that Canadian Solar's TOPCon modules boost project economics through higher yields, smaller site footprint and lease costs, and lower balance of system costs.

Which specific module by Canadian Solar received positive market feedback according to Thomas Koerner?

Thomas Koerner mentioned that Canadian Solar's TOPBiHiKu7 bifacial TOPCon module has received overwhelmingly positive market feedback.

When did Canadian Solar start module production at its Texas facility?

Canadian Solar started module production at its Texas facility in December.

What is the timeframe for the partnership between Canadian Solar and Sol Systems?

The partnership between Canadian Solar and Sol Systems aims to support Sol Systems' project pipeline in the U.S. between 2024 and 2025.