Canadian Solar's e-STORAGE Expands Partnership with Aypa Power through 2.1 GWh of Ontario Battery Storage Projects

Rhea-AI Summary

Canadian Solar (NASDAQ: CSIQ) has announced that its subsidiary e-STORAGE has secured significant Battery Storage Agreements and Long-Term Services Agreements with Aypa Power for two major projects in Ontario, Canada. The Elora and Hedley battery energy storage projects will provide 420 MW / 2,122 MWh of storage capacity, ranking among Ontario's largest energy storage facilities under development.

The projects will utilize e-STORAGE's SolBank product under 20-year LTSAs, with delivery starting in Q1 2026 and commercial operation expected in H1 2027. The agreements include continuous monitoring, preventive maintenance, and performance guarantees, ensuring high system availability and predictable service revenues.

Positive

• Secured major battery storage agreements for 420 MW / 2,122 MWh capacity in Ontario
• 20-year long-term service agreements providing predictable revenue streams
• Strategic expansion in the growing Canadian energy storage market
• Projects support Ontario's Long-Term Resource Adequacy framework

Negative

• None.

Insights

Energy Storage Infrastructure Specialist

Canadian Solar's e-STORAGE secures major contracts for 2.1 GWh Ontario battery projects, establishing long-term revenue visibility through 2047.

This partnership expansion between Canadian Solar's e-STORAGE and Aypa Power represents a significant commercial achievement for CSIQ, securing 420 MW / 2,122 MWh of new energy storage contracts in Ontario. The deal structure provides exceptional revenue visibility with 20-year Long-Term Services Agreements that include continuous monitoring, preventive maintenance, and performance guarantees—creating a stable, predictable income stream through 2047.

The scale of these projects is particularly noteworthy, as they rank among Ontario's largest storage facilities currently under development. These assets will serve Ontario's grid under the IESO's Long-Term 1 Resource Adequacy framework, addressing critical capacity needs in a growing market. For context, 2.1 GWh of storage capacity can power approximately 70,000 homes for a full day, highlighting the substantial infrastructure impact.

The delivery timeline is well-defined, with equipment shipments starting in Q1 2026 and commercial operations targeted for H1 2027. This contract reinforces Canadian Solar's position in the North American energy storage market while demonstrating continued commercial momentum for their SolBank product line. The long service agreements are particularly valuable as they generate higher-margin recurring revenue compared to one-time equipment sales, improving the company's long-term financial profile and reducing earnings volatility.

KITCHENER, ON, Oct. 1, 2025 /PRNewswire/ -- Canadian Solar Inc. (the "Company" or "Canadian Solar") (NASDAQ: CSIQ) today announced that e-STORAGE, part of the Company's majority-owned subsidiary CSI Solar Co., Ltd. ("CSI Solar"), has entered into Battery Storage Agreements (BSA) and Long-Term Services Agreements (LTSA) with Aypa Power for the Elora and Hedley battery energy storage projects in Ontario, Canada.

Together, the Elora and Hedley projects will provide 420 MW / 2,122 MWh of new storage capacity to Ontario's grid, making them among the largest energy storage facilities currently under development in the province. The investments underscore Ontario's growing role in large-scale storage deployment and highlight continued collaboration between e-STORAGE and Aypa Power to deliver critical energy infrastructure across North America.

Both projects will deploy e-STORAGE's SolBank product under 20-year LSTAs that include continuous monitoring, preventive maintenance, and performance guarantees. These contracts are structured to ensure high system availability and predictable service revenues over the life of the assets. Delivery is scheduled to commence in the first quarter of 2026, with commercial operation expected in the first half of 2027.

Moe Hajabed, CEO of Aypa Power, commented, "The Elora and Hedley projects represent critical investments in Ontario's energy system, providing the flexible capacity needed to meet rising demand and maintain a reliable grid. By working with trusted partners and applying the highest standards in performance and safety, we are building assets that deliver lasting value to Ontario's communities and economy."

Colin Parkin, President of e-STORAGE, added, "We are proud to expand our partnership with Aypa Power through the Elora and Hedley projects. These projects will provide reliable capacity through the IESO's Long-Term 1 ("LT1") Resource Adequacy framework and reaffirm our long-term commitment to the Canadian market."

About Canadian Solar Inc.

Canadian Solar is one of the world's largest solar technology and renewable energy companies. Founded in 2001 and headquartered in Kitchener, Ontario, the Company is a leading manufacturer of solar photovoltaic modules; provider of solar energy and battery energy storage solutions; and developer, owner, and operator of utility-scale solar power and battery energy storage projects. Over the past 24 years, Canadian Solar has successfully delivered nearly 165 GW of premium-quality, solar photovoltaic modules to customers across the world. Through its subsidiary e-STORAGE, Canadian Solar has shipped over 13 GWh of battery energy storage solutions to global markets as of June 30, 2025, boasting a $3 billion contracted backlog as of June 30, 2025. Since entering the project development business in 2010, Canadian Solar has developed, built, and connected approximately 12 GWp of solar power projects and 6 GWh of battery energy storage projects globally. Its geographically diversified project development pipeline includes 27 GWp of solar and 80 GWh of battery energy storage capacity in various stages of 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.

About e-STORAGE

e-STORAGE is a subsidiary of Canadian Solar and a leading company specializing in designing, manufacturing, and integrating battery energy storage systems for utility-scale applications. e-STORAGE offers proprietary battery energy storage solutions, comprehensive EPC services, and innovative solutions aimed at improving grid operations. Currently, e-STORAGE operates fully automated, state-of-the-art manufacturing facilities with an annual battery energy storage system capacity of 10 GWh and battery cell capacity of 3 GWh. For more info, please refer to the Media&PR section of www.csestorage.com and follow our LinkedIn page.

About Aypa Power

Aypa Power, a Blackstone portfolio company, develops, owns, and operates utility-scale energy storage and hybrid renewable energy projects across North America. With 30 projects currently in operation or under construction, and a development pipeline exceeding 22 gigawatts, Aypa delivers solutions that strengthen grid reliability, integrate renewable energy, and reduce dependence on fossil fuels. Aypa has been at the forefront of energy storage development since its first energy storage project came online in 2018. For more information, follow Aypa Power on LinkedIn or visit www.aypapower.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 power and battery energy storage market and industry; geopolitical tensions and conflicts, including impasses, sanctions and export controls; volatility, uncertainty, delays and disruptions related to global pandemics; supply chain disruptions; governmental support for the deployment of solar power and battery energy storage; future available supplies of silicon, solar wafers and lithium cells; 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 China, the U.S., Europe, Brazil and Japan; 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; the pipeline of projects and timelines related to them; the ability of the parties to optimize value of that pipeline; 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 30, 2025. 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.

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

e-STORAGE MEDIA CONTACT
marketing@csisolar.com 

AYPA POWER MEDIA CONTACT
communications@aypa.com

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SOURCE Canadian Solar Inc.

FAQ

What is the storage capacity of Canadian Solar's new Ontario battery projects?

The Elora and Hedley projects will provide 420 MW / 2,122 MWh of storage capacity, making them among the largest energy storage facilities under development in Ontario.

When will Canadian Solar's Ontario battery storage projects begin operations?

The projects are scheduled for delivery in Q1 2026, with commercial operation expected to begin in the first half of 2027.

What type of agreements did CSIQ secure for the Ontario battery projects?

Canadian Solar secured Battery Storage Agreements (BSA) and 20-year Long-Term Services Agreements (LTSA) with Aypa Power, including continuous monitoring, maintenance, and performance guarantees.

Which technology will be used in CSIQ's Ontario battery storage facilities?

The projects will deploy e-STORAGE's SolBank product, supported by continuous monitoring and preventive maintenance under the long-term service agreements.

How will these battery storage projects benefit Ontario's grid?

The projects will provide flexible capacity to meet rising demand, maintain grid reliability, and support Ontario's Long-Term Resource Adequacy framework.