Canadian Solar to Deliver 315 MWh DC of Battery Energy Storage Solutions and up to 2 GWp of Solar Modules to Sunraycer Projects in Texas

Rhea-AI Summary

Canadian Solar Inc. (NASDAQ: CSIQ) has announced three significant agreements with Sunraycer Renewables to supply and commission battery energy storage solutions and up to 2 GWp of high-efficiency solar modules for various projects in Texas. The agreements include delivering 188 MWh DC to the Gaia project in Navarro County and 127 MWh DC to the Midpoint project in Hill County, scheduled for commissioning in Q3 2025. These projects will use over 60 SolBank 3.0 battery containers featuring high-density lithium-iron-phosphate cells and advanced battery management systems.

Additionally, Sunraycer will deploy up to 2 GWp of Canadian Solar's latest high-efficiency solar modules, offering up to 85% bifaciality and 23.3% module efficiency. This collaboration aims to enhance grid stability and support Texas's clean energy transition.

Sunraycer's CEO, David Lillefloren, and e-STORAGE President, Colin Parkin, highlighted the importance of these projects for providing sustainable, clean, and affordable electricity to the grid.

Positive

• Canadian Solar secured agreements to supply 315 MWh DC of battery energy storage solutions and up to 2 GWp of solar modules.
• The projects will enhance grid stability and support Texas's clean energy transition.
• The Gaia and Midpoint projects will use the latest SolBank 3.0 battery containers, ensuring high performance and reliability.

Negative

• None.

Insights

Energy Storage Analyst

This major energy storage deal significantly strengthens Canadian Solar's position in the important Texas market. The 315 MWh DC combined storage capacity across two projects will provide critical grid stability services in a region prone to extreme weather events. The deployment of 60+ SolBank 3.0 containers demonstrates strong commercial validation of their latest storage technology, featuring advanced thermal management important for Texas's challenging climate.

The strategic importance of these projects extends beyond their immediate scope - they expand e-STORAGE's U.S. portfolio to over 6 GWh, establishing a robust track record in one of the world's largest energy storage markets. The timing for Q3 2025 commissioning aligns well with Texas's growing need for grid reliability solutions.

Solar Industry Analyst

The up to 2 GWp module supply agreement represents a substantial commercial win for Canadian Solar's high-efficiency panel business. The 725 Wp modules with 23.3% efficiency and 85% bifaciality are at the leading edge of current commercial technology, offering compelling LCOE advantages. This multi-year partnership with Sunraycer provides valuable revenue visibility and strengthens Canadian Solar's position in the competitive U.S. utility-scale solar market.

The integrated nature of this deal - combining both solar and storage - showcases Canadian Solar's strategic advantage as a full-solution provider, which should help secure similar large-scale contracts in the future.

KITCHENER, ON, Dec. 12, 2024 /PRNewswire/ -- Canadian Solar Inc. (the "Company" or "Canadian Solar") (NASDAQ: CSIQ) today announced that it has executed three significant agreements with Sunraycer Renewables LLC ("Sunraycer"), an Annapolis, Maryland-based renewable energy platform. These include battery energy storage supply and commissioning agreements for two projects in Texas, as well as the purchase of up to 2 GWp of high-efficiency solar modules for various Sunraycer projects.

Under the agreements, e-STORAGE, Canadian Solar's subsidiary specializing in the design, manufacturing, and integration of battery energy storage systems, will deliver 188 MWh DC to the Gaia project, located in Navarro County, and the 127 MWh DC Midpoint project in Hill County. Commissioning is scheduled for the third quarter of 2025 for both projects.

Collectively, the two Texas energy storage projects will leverage over 60 SolBank 3.0 battery containers. SolBank 3.0 is e-STORAGE's latest proprietary energy storage solution, featuring high-density lithium-iron-phosphate cells, advanced battery management systems, and innovative liquid cooling thermal management systems. The design of the durable Solbank solution ensures the reliability and security required for large-scale projects in the demanding Texas environment.

Sunraycer's various upcoming projects will deploy up to 2 GWp of Canadian Solar's latest high-efficiency solar modules, with power outputs of up to 725 Wp. These modules offer up to 85% bifaciality and 23.3% module efficiency, along with low power degradation and high energy yield, effectively reducing the levelized cost of energy (LCOE) and system cost.

David Lillefloren, CEO of Sunraycer, commented, "As Sunraycer continues to grow and evolve its portfolio and pipeline, we are thrilled to be working with Canadian Solar as its preferred solar panel supplier for Sunraycer's entire current portfolio and with e-STORAGE on Sunraycer's initial tranche of energy storage projects. Canadian Solar is a proven market leader in renewable energy, and their equipment will help ensure Sunraycer is executing on its mission of delivering solar and battery projects that meet or exceed their performance goals while providing sustainable, clean, and affordable electricity to the grid."

Colin Parkin, President of e-STORAGE, stated, "We are excited to strengthen our presence in Texas with the Gaia and Midpoint projects. These two battery energy storage installations represent a significant contribution to Texas's growing renewable energy infrastructure, enhancing grid stability and supporting the state's clean energy transition. With over 6 GWh of energy storage solutions implemented or under construction across the U.S., e-STORAGE remains dedicated to delivering innovative, high-performance energy storage systems that drive the integration of renewables and ensure long-term grid reliability."

Thomas Koerner, Corporate Senior Vice President of Canadian Solar, added, "We are proud to work with Sunraycer on this up to 2 GWp multi-year partnership. This agreement is a testament to our mutual commitment to delivering and building high-quality solar and energy storage capacity in Texas and underscores Canadian Solar's ability to provide end-to-end solar generation and energy storage system solutions. It is a privilege to work with partners like Sunraycer, and we are grateful for the trust they have placed in Canadian Solar."

About Sunraycer Renewables LLC

Sunraycer is a rapidly growing, Annapolis, Maryland-based renewable energy platform that has a development and construction stage pipeline of approximately 2 GW of solar and 2 GW of BESS utility-scale power plants. Sunraycer provides pre-NTP and acquisition capital to developers involved in all types of renewable energy endeavors. Its goal is to streamline the complexities of development and eliminate financing challenges for the developer community. Sunraycer leverages enterprise-scale partnerships and relationships with proven industry leaders, as well as an experienced and driven in-house team of renewable energy experts, to accelerate the deployment of development-stage projects. For more information, please visit Sunraycer's website at https://sunraycer.com/ or follow Sunraycer on LinkedIn for the latest company news and events.

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 23 years, Canadian Solar has successfully delivered around 142 GW of premium-quality, solar photovoltaic modules to customers across the world. Through its subsidiary e-STORAGE, Canadian Solar has shipped around 9 GWh of battery energy storage solutions to global markets as of September 30, 2024, boasting a US$3.2 billion contracted backlog as of November 30, 2024. Since entering the project development business in 2010, Canadian Solar has developed, built, and connected approximately 11 GWp of solar power projects and 3.7 GWh of battery energy storage projects globally. Its geographically diversified project development pipeline includes 26 GWp of solar and 66 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 two fully automated, state-of-the-art manufacturing facilities with an annual battery production capacity of 20 GWh. For more info, please refer to the Media&PR section of www.csestorage.com and follow our LinkedIn page.

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 26, 2024. 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.

SUNRAYCER MEDIA INQUIRIES
Josh Clarkson
Prosek Partners
jclarkson@prosek.com 

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

e-STORAGE MEDIA INQUIRIES
Simona Marginean
e-STORAGE Marketing Manager
simona.marginean@csestorage.com

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SOURCE Canadian Solar Inc.

FAQ

What projects will Canadian Solar supply under the agreements with Sunraycer?

Canadian Solar will supply battery energy storage solutions for the Gaia project in Navarro County and the Midpoint project in Hill County, along with up to 2 GWp of high-efficiency solar modules for various Sunraycer projects in Texas.

What is the capacity of the battery energy storage solutions Canadian Solar will provide?

Canadian Solar will provide 188 MWh DC for the Gaia project and 127 MWh DC for the Midpoint project.

When are the Gaia and Midpoint projects scheduled for commissioning?

The Gaia and Midpoint projects are scheduled for commissioning in the third quarter of 2025.

What is the efficiency of the solar modules Canadian Solar will supply to Sunraycer?

The solar modules have a power output of up to 725 Wp, up to 85% bifaciality, and 23.3% module efficiency.

What benefits do the SolBank 3.0 battery containers offer?

SolBank 3.0 battery containers feature high-density lithium-iron-phosphate cells, advanced battery management systems, and innovative liquid cooling thermal management systems, ensuring high performance and reliability.

How will the projects impact Texas's energy infrastructure?

The projects will enhance grid stability and support Texas's clean energy transition, contributing to the state's growing renewable energy infrastructure.

What is the significance of the agreement between Canadian Solar and Sunraycer?

The agreement underscores a mutual commitment to delivering high-quality solar and energy storage capacity in Texas, enhancing the state's renewable energy infrastructure.