Canadian Solar Inc. (CSIQ): Business Model Canvas [Dec-2025 Updated]

You're digging into how a major global solar player actually makes its money, and honestly, Canadian Solar Inc. (CSIQ) isn't just one thing; it's a powerful dual-engine machine that demands a closer look. As someone who's spent two decades mapping these energy giants, I can tell you their 2025 story hinges on balancing massive manufacturing-expecting shipments between 25 GW and 27 GW-with their growing project development arm, which boasts a pipeline of 25 GWp solar and 81 GWh of battery storage as of Q3. This integrated approach, aiming for revenues between $5.6 billion and $6.3 billion this year, is what separates them, but it also creates complexity in their cost structure and capital deployment. Dive into the full Business Model Canvas below to see exactly how they line up their partnerships, resources, and revenue streams to manage this balancing act.

Canadian Solar Inc. (CSIQ) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Canadian Solar Inc. (CSIQ) relies on to build and finance its global solar and storage pipeline. These aren't just casual agreements; they are deep, capital-intensive ties that define execution capability.

Joint ventures with American shareholders for U.S. manufacturing and sales

Canadian Solar Inc. is actively reshaping its North American footprint by forming new joint ventures with American shareholders and its majority-owned subsidiary, CSI Solar Co., Ltd. This move is designed to bring manufacturing closer to home and secure the domestic supply chain. The new entity is named CS PowerTech. Canadian Solar will hold a controlling stake of 75.1% in this JV. CS PowerTech will manage the U.S.-based manufacturing and sales of solar modules, solar cells, and advanced energy storage systems. To facilitate this, Canadian Solar will acquire a 75.1% ownership of certain overseas facilities that support U.S. operations from CSI Solar, with a total consideration of approximately $50 million. This leverages the firm's stated 24 years of global manufacturing expertise.

• CS PowerTech controlling stake held by Canadian Solar Inc.: 75.1%
• Consideration for acquiring supporting overseas facilities: approximately $50 million
• Planned U.S. manufacturing includes facilities in Texas (module assembly), Indiana (PV cell), and Kentucky (lithium battery).
• Indiana solar cell factory Phase I production expected: March 2026
• Kentucky lithium battery factory Phase I production expected: December 2026

Strategic supply agreements with major developers like Sol Systems in the U.S.

The development arm, Recurrent Energy, a subsidiary of Canadian Solar Inc., secures major project agreements globally, which act as critical supply and offtake relationships. While Sol Systems isn't explicitly named in recent filings, the scale of Recurrent Energy's pipeline and specific deals show the nature of these developer partnerships. For instance, Recurrent Energy secured a Development Consent Order for the Tillbridge solar and battery storage project in the UK, which integrates 800 MW of solar PV with a 500 MW/1,000 MWh battery energy storage system. Furthermore, Recurrent Energy was contracted to provide turnkey EPC services for the 411 MW / 1,560 MWh Skyview 2 Energy Storage Project in Ontario, Canada.

As of September 30, 2025, Recurrent Energy's total global development pipeline stood at approximately 25 GWp for solar projects and 81 GWh for battery energy storage projects.

Financial institutions providing project-specific and corporate credit facilities

Securing capital from major financial institutions is essential for funding growth, especially for the independent power producer (IPP) strategy of Recurrent Energy. Canadian Solar Inc. itself was operating with a significant debt burden of $6.65 billion as of late 2025.

Here's a look at some recent financing milestones that illustrate these key financial partnerships:

Financing Type	Partnering Institution(s)	Amount/Capacity	Project/Purpose
Corporate Credit Facility	Banco Santander, Rabobank, Intesa Sanpaolo, Morgan Stanley	Up to $415 million	Recurrent Energy global IPP growth
Project Financing & Tax Equity	U.S. Bank (via U.S. Bancorp Impact Finance)	$260 million	Blue Moon Solar Project (94 MW) in Kentucky
Project Development Pipeline (Excluding China)	N/A (Internal Metric)	25 GWp Solar / Over 69 GWh Storage (as of March 31, 2025)	Recurrent Energy pipeline

EPC (Engineering, Procurement, and Construction) partners for project execution globally

Canadian Solar's subsidiary, e-STORAGE, often acts as the EPC provider for its own energy storage projects, demonstrating an integrated capability that reduces reliance on external partners for execution. For example, e-STORAGE was contracted to supply, commission, and oversee the long-term operation for a battery system where construction was set to begin in October of 2026. The company also provided turnkey EPC services for the 411 MW / 1,560 MWh Skyview 2 Energy Storage Project in Ontario. This internal capability is supported by its status as a recognized supplier.

Component suppliers for polysilicon, wafers, and battery cells

Canadian Solar Inc. maintains its position by ensuring its own manufacturing output meets high standards, evidenced by its supplier recognition. Canadian Solar was named a Tier 1 PV module supplier and a Tier 1 Battery Energy Storage System supplier in the inaugural 2025 Tier 1 Cleantech Companies list by S&P Global Commodity Insights. This recognition is based on factors including gigawatt-scale shipments and financial performance.

• CSI Solar Q3 2025 battery energy storage shipments: 2.7 GWh (record)
• CSI Solar e-STORAGE contracted backlog as of October 31, 2025: $3.1 billion
• Full Year 2025 module shipment outlook (CSI Solar): 30 GW to 35 GW
• Full Year 2025 battery storage shipment outlook (CSI Solar): 11 GWh to 13 GWh
• Total modules shipped globally as of September 30, 2025: nearly 170 GW

Finance: draft 13-week cash view by Friday.

Canadian Solar Inc. (CSIQ) - Canvas Business Model: Key Activities

You're looking at the core engine of Canadian Solar Inc. as of late 2025, which is a dual focus on high-volume, high-tech manufacturing and aggressive, high-value project development. This is where the rubber meets the road for their revenue and growth strategy.

Manufacturing high-efficiency N-Type TOPCon solar modules (CSI Solar)

The manufacturing arm, CSI Solar, is pushing advanced cell technology. They officially launched their new N-type high power TOPBiHiKu CS6.2 module series in May 2025, featuring the latest TOPCon cell technology, delivering a maximum power output up to 660 Wp and a conversion efficiency up to 24.4%. You should note that global deliveries for this new series started in August 2025.

For the third quarter of 2025, CSI Solar shipped 5.1 GW of solar modules recognized as revenue. Looking ahead, Canadian Solar expects total module shipments for the full year of 2025 to be in the range of 25 GW to 30 GW.

Here's a snapshot of their internal manufacturing capacity targets as of March 2025:

Capacity Metric	March 2025 (Actual)	December 2025 (Plan)
Ingot Production (GW)	33.0	33.0
Wafer Production (GW)	34.0	37.0

The operational module assembly facility in Mesquite, Texas, ramped up successfully and contributed meaningfully to both shipment volume and profitability in Q3 2025.

Developing and selling utility-scale solar and BESS projects (Recurrent Energy)

Recurrent Energy, the project development arm, is driving significant top-line growth, especially in energy storage. For the nine-month period ending September 30, 2025, Recurrent Energy generated revenue of $329.4 million, which was a year-over-year increase of 144%.

The pipeline metrics show the scale of future potential as of September 30, 2025:

• Total global solar project development pipeline: approximately 25 GWp.
• Total battery energy storage project development pipeline: approximately 80.6 GWh.

In Q3 2025 specifically, the e-STORAGE business achieved a record quarterly shipment of 2.7 GWh of battery energy storage systems. Furthermore, the contracted backlog for e-STORAGE increased to $3.1 billion as of October 31, 2025.

During Q3 2025, Recurrent Energy monetized over 500 MW of projects, including two high-margin sales: a battery storage project in Italy and a hybrid project in Australia.

Operating a growing portfolio of Independent Power Producer (IPP) assets

Canadian Solar Inc. is actively shifting toward a partial IPP model, meaning they are keeping more assets to generate stable, recurring revenue. As of September 30, 2025, the company has developed, built, and connected approximately 12 GWp of solar power projects and 6 GWh of battery energy storage projects globally.

The operational scale is substantial and growing:

• Over 14 GW of solar and battery storage projects are under Operations and Maintenance (O&M) contracts across 11 countries (as of September 30, 2025).
• The business model relies on electricity revenue from this operating portfolio, alongside asset sales and power services (O&M).

Ramping up U.S. manufacturing capacity in Indiana and Kentucky

This is a major capital deployment activity, aimed at securing the North American supply chain and qualifying for incentives. Canadian Solar is establishing a new 5 GW annual solar cell production facility in Jeffersonville, Indiana, representing a projected investment of more than $800 million and planning for approximately 1,200 jobs.

The Kentucky lithium battery energy storage factory is a nearly $712 million project, expected to employ 1,572 workers at full capacity. While earlier guidance suggested late 2025 production starts, the latest update points to Phase I production for both the Indiana cell factory and the Kentucky battery factory commencing in 2026.

Strategically, Canadian Solar will hold a 75.1% stake in the new U.S. manufacturing joint venture entity, CS PowerTech, which will operate these facilities.

Global sales and distribution of solar and energy storage products

This activity is reflected directly in the shipment numbers. For Q3 2025, the total module shipments were 5.1 GW, with 672 MW shipped to the Company's own utility-scale projects. The energy storage shipments hit a record 2.7 GWh in the same quarter.

The distribution footprint remains wide, with the top five markets for Q1 2025 module shipments being:

• China
• U.S.
• Pakistan
• Spain
• Brazil

The company is focusing on profitable markets; for instance, a sequentially higher share of module shipments went to the North American market in Q3 2025.

Canadian Solar Inc. (CSIQ) - Canvas Business Model: Key Resources

Canadian Solar Inc.'s Key Resources as of late 2025 are heavily weighted toward its massive manufacturing scale, its rapidly growing energy storage backlog, and its extensive global project development portfolio.

The company's manufacturing scale is a primary asset, underpinning its ability to serve global demand, especially in policy-driven markets like the United States.

Metric	Value as of Late 2025 Data Point	Date/Context
e-STORAGE Contracted Backlog	$3.1 billion	As of October 31, 2025
Solar Project Development Pipeline	25.1 GWp	As of September 30, 2025
BESS Project Development Pipeline	81 GWh	As of September 30, 2025
FY 2025 Solar Module Shipment Guidance (Lowered)	24.5 GW to 24.7 GW	Full Year 2025 Forecast
FY 2026 Solar Module Shipment Forecast	25 GW to 30 GW	Full Year 2026 Forecast

The project pipeline is geographically diversified, providing multiple avenues for revenue realization through asset sales or electricity revenue from an operating portfolio.

The company continues to invest heavily in proprietary technology to maintain a competitive edge in module efficiency and energy storage performance.

• Proprietary high-efficiency solar cell and module technology, including the TOPBiHiKu platform.

Significant capital is being deployed to onshore manufacturing capacity in North America to secure supply chain resilience and benefit from local content incentives.

• Module assembly facility in Mesquite, Texas, with 5 GW annual TOPCon module production capacity.
• Planned 5 GW solar cell production facility in Jeffersonville, Indiana, with production expected to start by March 2026.
• Planned integrated lithium battery cell, pack, and BESS factory in Kentucky, with production expected to commence in December 2026.

These U.S. facilities represent a cumulative investment of over $2 billion, aiming to create more than 4,000 jobs across manufacturing, engineering, and R&D.

Canadian Solar Inc. (CSIQ) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Canadian Solar Inc. (CSIQ) over the competition as of late 2025. It's about integrated offerings, leading technology, and de-risked supply chains.

Integrated solar and battery energy storage solutions (BESS) via e-STORAGE

Canadian Solar Inc. delivers combined solar and energy storage solutions through its e-STORAGE subsidiary, which is a key differentiator. You see this in their massive pipeline and recent delivery numbers. As of September 30, 2025, Canadian Solar Inc. had shipped over 16 GWh of battery energy storage solutions globally. The contracted backlog for e-STORAGE stood at $3.1 billion as of October 31, 2025. The residential energy storage business is specifically on track to become profitable in 2025.

The scale of their integrated pipeline is substantial:

• Global battery energy storage development pipeline: 81 GWh as of late 2025.
• Quarterly BESS shipments hit a record of 2.7 GWh in Q3 2025.
• Total connected battery energy storage projects globally since 2010: 6 GWh.

They back this up with long-term commitments, like securing 20-year Long-Term Service Agreements (LTSA) for major US projects totaling 1,804 MWh DC.

High-efficiency, cost-competitive N-Type TOPCon solar modules

Canadian Solar Inc. is pushing the envelope on module performance with its N-Type TOPCon technology. They launched the TOPBiHiKu CS6.2 module series in August 2025, which achieves a conversion efficiency of up to 24.4% and a maximum power output up to 660 Wp. This technology is designed to directly improve project economics for you.

Here's how the new module technology translates to cost savings and performance:

Metric	Value/Range	Context
Maximum Efficiency	24.4%	For the TOPBiHiKu CS6.2 module series.
Bifaciality Rate	Up to 90%	Maximizes energy capture from the rear side.
LCOE Reduction	Up to 5%	Compared to today's standard TOPCon PV modules.
Temperature Coefficient	-0.28%/°C	Enables up to 2% lower Balance of System (BOS) costs.
Full Year 2025 Module Shipments Forecast	25 GW to 30 GW	Total module shipments expected for CSI Solar.

The TOPBiHiKu7 series specifically is noted to reduce Levelized Cost of Electricity (LCOE) by approximately 3.2% versus conventional modules. That's real money saved over the life of a project.

Bankable project development and long-term asset operation

You want to know that the projects Canadian Solar Inc. develops will secure financing, and their long history helps here. The company has been publicly listed on the NASDAQ since 2006, which adds a layer of transparency. Since starting project development in 2010, they have connected approximately 12 GWp of solar power projects globally. This track record supports their large pipeline, which for Recurrent Energy stood at 25.1 GWp of solar projects as of September 30, 2025.

Geographically diversified project pipeline mitigating regional policy risk

The pipeline is spread out, which helps manage the risk of any single country's policy changing suddenly. As of September 30, 2025, the total global solar project development pipeline was 25.1 GWp. The battery storage pipeline was 80.6 GWh at that time. The company is actively securing positions in key markets, having secured safe harbor for 1.5 GW of solar and 2.5 GWh of battery storage in the U.S. alone.

Secure, locally-made supply for U.S. customers via domestic production

For U.S. customers, the value proposition is a secure, localized supply chain, largely driven by the Inflation Reduction Act investments. Canadian Solar Inc. opened its 5 GW module assembly plant in Mesquite, Texas, in late 2024. They are also building a 5 GW solar cell factory in Jeffersonville, Indiana, with production expected to start by the end of 2025. This Indiana cell plant is a projected investment of over $800 million and is set to create about 1,200 jobs. The total investment across their U.S. manufacturing expansion is more than $1.2 billion. Furthermore, the company is restructuring to take direct control of these U.S. assets through a new joint venture, CS PowerTech, where Canadian Solar Inc. holds a controlling 75.1% stake.

Key domestic manufacturing milestones include:

• Texas module assembly capacity: 5 GW, operational since late 2024.
• Indiana cell factory investment: Over $800 million projected.
• U.S. storage factory (Kentucky) Phase I expected start: December 2026.
• Overseas facilities acquired to support U.S. operations: Approximately $50 million consideration.

Finance: draft 13-week cash view by Friday.

Canadian Solar Inc. (CSIQ) - Canvas Business Model: Customer Relationships

You're looking at how Canadian Solar Inc. (CSIQ) manages its relationships across its diverse customer base, which spans from massive utility developers to smaller, transactional distributors. It's a mix of deep partnership and high-volume sales, and the numbers show where the focus is shifting.

Dedicated Account Management for Utility-Scale Developers and IPPs

For the Independent Power Producer (IPP) segment, primarily served by the Recurrent Energy subsidiary, the relationship is about long-term commitment and project pipeline integration. This isn't just selling a component; it's securing a long-term customer for project development services or large-scale module supply. We see this commitment in the volume of modules Canadian Solar Inc. dedicates to its own projects.

For example, in the second quarter of 2025, Canadian Solar Inc. shipped 672 MW of modules to its own utility-scale solar power projects. This internal consumption is a direct indicator of the dedicated relationship management with its own development arm. To be fair, this number was lower in the first quarter of 2025, coming in at 413 MW shipped to its own utility-scale projects. Management has guided for approximately 1 GW of module shipments to its own projects for the full year of 2025.

The overall global solar project development pipeline for Recurrent Energy stood at approximately 25 GWp as of September 30, 2025. This pipeline size necessitates very close, dedicated account management for securing the necessary component supply contracts.

Long-Term Service Agreements (LTSAs) for BESS Projects

The relationship for Battery Energy Storage Systems (BESS) is heavily weighted toward multi-decade service commitments, which lock in recurring revenue streams for Canadian Solar Inc.'s e-STORAGE division. These Long-Term Service Agreements (LTSAs) are crucial for bankability and customer confidence.

As of October 31, 2025, e-STORAGE's contracted backlog reached $3.1 billion. The company has been securing significant, long-duration service contracts:

• Secured a 20-year LTSA for a 20.7 MW / 56 MWh DC energy storage project in Lower Saxony, Germany, developed by Kyon Energy.
• Secured Battery Supply Agreements and 20-year LTSAs for two major US projects with Aypa Power: one in California (160 MW AC / 806 MWh DC) and one in Texas (200 MW AC / 998 MWh DC).
• Signed a battery supply agreement and 20-year LTSA with Strata Clean Energy for a 100 MW/576 MWh DC system in Arizona.

By June 30, 2025, Canadian Solar Inc. had shipped over 13 GWh of battery energy storage solutions globally.

Transactional Sales for Solar Modules to Distributors and Installers

The bulk of Canadian Solar Inc.'s module revenue comes from transactional sales to distributors and installers in the merchant market. This is a volume-driven relationship where price competitiveness and supply reliability are key. The scale of these sales is substantial, though subject to market pricing fluctuations.

Here's a look at the module shipment volumes recognized as revenue, which largely represent these transactional sales, noting that the Q3 2025 number reflects a sequential drop after a strong Q2:

Reporting Period	Total Module Shipments (GW)	Shipments to Own Projects (MW)	Estimated Transactional/Distributor Volume (GW)
Q3 2025	5.1	Not explicitly stated, but total was 5.1 GW	Less than 5.1 (after subtracting own projects)
Q2 2025	7.9	672	Approximately 7.228
Q1 2025	6.9	413	Approximately 6.487

The company is actively managing this channel, expecting total module shipments for the full year 2026 to be in the range of 25 GW to 30 GW.

Strategic, Long-Term Supply Contracts with Key Customers

Canadian Solar Inc. solidifies relationships with major developers through strategic, long-term supply contracts, often tied to its own manufacturing capacity, like the new Texas facility. This provides the customer with supply security and Canadian Solar Inc. with committed volume.

The framework agreement with Sol Systems is a prime example. This strategic relationship involves Canadian Solar Inc. supplying Sol Systems with modules from its Mesquite, Texas factory to support Sol Systems' project pipeline in the US between 2024 and 2025. Sol Systems itself is a significant player, operating and building over 2 GW of solar projects valued at more than $2 billion for various US entities. This contract ensures Canadian Solar Inc. is the partner of choice for a key market leader.

The modules supplied under this agreement are the high-efficiency N-Type TOPCon TOPBiHiKu7 bifacial modules, with the Texas plant having a planned output of 5 GW of annual production capacity.

Finance: draft 13-week cash view by Friday.

Canadian Solar Inc. (CSIQ) - Canvas Business Model: Channels

You're looking at how Canadian Solar Inc. (CSIQ) gets its products and projects to market as of late 2025. It's a mix of direct selling for big deals and using partners for broader module distribution, plus a dedicated arm for project development.

Direct sales force to global utility-scale project developers and EPCs

The direct sales channel is heavily tied to the utility-scale segment managed by Recurrent Energy, but the CSI Solar manufacturing arm also supplies its own projects directly. In the second quarter of 2025, Canadian Solar Inc. shipped 672 MW of solar modules directly to its own utility-scale solar power projects. For the first quarter of 2025, this internal transfer was 413 MW. The company's overall contracted backlog for its e-STORAGE battery solutions stood at $3.1 billion as of October 31, 2025, which represents future direct or channel-facilitated revenue visibility.

Global network of distributors and installers for module sales in over 60 countries

CSI Solar uses a wide distribution network for its module sales. In the second quarter of 2025, CSI Solar shipped 7.9 GW of solar modules and system kits to more than 70 countries. The top five markets by shipment volume for Q2 2025 were the U.S., China, Pakistan, Spain, and Australia. For the full year of 2025, total module shipments are forecasted to be between 25 GW and 30 GW.

The scale of module distribution channels can be seen in the quarterly shipment data:

Period Ended	Total Module Shipments (GW)	Shipments to Own Projects (MW)	Top 5 Markets
Q1 2025	6.9	413	Not specified
Q2 2025	7.9	672	U.S., China, Pakistan, Spain, Australia
Q3 2025	5.1	Not specified	U.S., China, Spain, Pakistan, South Africa

Recurrent Energy subsidiary for project development and asset sales

Recurrent Energy, Canadian Solar Inc.'s subsidiary, drives the project development and asset sales channel. As of March 31, 2025, Recurrent Energy held a global solar project development pipeline of approximately 27 GWp and a battery energy storage project development pipeline of 76 GWh. By June 30, 2025, the solar pipeline stood at approximately 27.3 GWp with a battery storage pipeline of 80.2 GWh. Since 2010, Recurrent Energy has developed, built, and connected over 12 GWp of solar power projects and 6 GWh of battery energy storage projects globally. In the second quarter of 2025 alone, Recurrent Energy monetized over 200 MW of projects in Europe through asset sales.

New U.S. joint ventures (e.g., CS PowerTech) for domestic sales and operations

Canadian Solar Inc. announced a strategic initiative on December 1, 2025, to resume direct oversight of U.S. operations by forming new joint ventures. The primary entity is CS PowerTech, in which Canadian Solar will hold a 75.1% controlling stake. This venture will operate U.S.-based manufacturing and sales for solar modules, cells, and advanced energy storage systems. The total consideration for the acquisition of 75.1% ownership in specific overseas facilities supporting U.S. operations within this structure is approximately $50 million. The company plans to launch additional joint ventures with American partners as part of this reshoring strategy.

The company's total debt, including financing liabilities, was $5.7 billion as of March 31, 2025.

Canadian Solar Inc. (CSIQ) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Canadian Solar Inc. (CSIQ) as of late 2025. The business model clearly splits between selling manufactured goods (CSI Solar) and developing/selling power assets (Recurrent Energy).

Utility-scale solar and BESS project developers and Independent Power Producers (IPPs)

This group is the primary focus of the Recurrent Energy segment. As of September 30, 2025, the total global solar project development pipeline stood at 25.1 GWp. Recurrent Energy is actively managing this pipeline, which includes 3.4 GWp in backlog-projects expected to start construction in the next 1-4 years. The battery energy storage project development pipeline was even larger, totaling 80.6 GWh as of that same date. The e-STORAGE division, which serves this segment, had a contracted backlog of $3.1 billion as of October 31, 2025, giving clear line of sight to future revenue. To be fair, only 33 MW of solar modules were shipped to Canadian Solar's own utility-scale projects in Q3 2025, showing that the majority of their project business is development and sale, not self-consumption.

Global distributors and installers of solar modules and system kits

This is the bread-and-butter for the CSI Solar manufacturing division. These customers buy the modules and system kits to deploy in smaller commercial, residential, or utility projects globally. In the third quarter of 2025, CSI Solar shipped 5.1 GW of solar modules and system kits. The top five markets for these shipments in Q3 2025 were the U.S., China, Spain, Pakistan, and South Africa. For the full year of 2025, the guidance for total module shipments recognized as revenue was between 25 GW and 30 GW. Honestly, the geographic mix is managed for profitability; they noted a sequentially higher share of shipments went to the profitable North American market in Q3 2025.

Commercial and industrial (C&I) customers for solar and storage solutions

While not broken out as a distinct revenue line, C&I is a key area for growth, especially when bundled with storage. The Chairman and CEO noted healthy traction in Q3 2025 from emerging segments like data center power, which falls under the C&I umbrella. The energy storage business, e-STORAGE, is a major component here, with forecasts suggesting total energy storage shipments for the full year 2025 were expected to be between 7 GWh and 9 GWh.

Governments and utilities purchasing long-term power (PPA buyers)

These buyers are the ultimate off-takers for the projects developed by Recurrent Energy. The projects in Recurrent Energy's backlog are typically contracted, meaning they have secured a Power Purchase Agreement (PPA) or Feed-in Tariff (FIT). As of March 31, 2025, a significant portion of the 4.5 GWp in backlog projects were contracted. Furthermore, the company has a history of connecting projects, having brought approximately 12 GWp of solar power projects and 6 GWh of battery energy storage projects globally since 2010.

Residential customers (emerging profitability driver via residential storage systems)

This is an area Canadian Solar Inc. is actively cultivating for future stable earnings. The company confirmed that its residential energy storage business is on track to become profitable in 2025. This segment is smaller than the utility-scale focus but represents a strategic move into distributed energy solutions.

Here's a quick look at the scale of the project development pipeline as of late 2025:

Asset Type	Pipeline Metric (as of Sep 30, 2025)	Under Construction/Backlog	Advanced/Early Stage
Solar Projects (GWp)	25.1 GWp	5.4 GWp (2.0 GWp const. + 3.4 GWp backlog)	19.7 GWp
Battery Storage (GWh)	80.6 GWh	6.5 GWh	74.1 GWh

The CSI Solar segment is expected to ship between 4.6 GW and 4.8 GW in Q4 2025, with total module shipments for the full year 2025 guided between 25 GW and 30 GW.

The key customer groups and their associated scale metrics are:

• Utility-scale developers: Pipeline of 25.1 GWp solar and 80.6 GWh BESS.
• Distributors/Installers: Shipped 5.1 GW in Q3 2025.
• Storage Backlog: e-STORAGE contracted backlog reached $3.1 billion as of October 31, 2025.
• Residential Storage: Targeted to achieve profitability in 2025.
• Total 9M 2025 Revenue: $4.38 billion.

Finance: draft 13-week cash view by Friday.

Canadian Solar Inc. (CSIQ) - Canvas Business Model: Cost Structure

You're looking at the major outflows that keep Canadian Solar Inc. running, especially as they navigate supply chain pressures and massive build-out plans. Honestly, the cost structure is dominated by manufacturing the physical product and funding the enormous pipeline of projects they are developing.

Cost of Goods Sold (COGS) for solar modules and BESS, facing rising input costs

The cost of making and delivering the solar modules and battery energy storage systems (BESS) is the single largest cost component. For the third quarter of 2025, Canadian Solar Inc. reported net revenues of $1.5 billion. With a Gross Profit of $256 million for that same period, the implied Cost of Goods Sold (COGS) was approximately $1.244 billion ($1,500 million Revenue - $256 million Gross Profit). This reflects the pressure you're seeing; the Q3 2025 Gross Margin was 17.2%, which was down sequentially from 29.8% in Q2 2025. Management noted that sequential lower margins reflect the impact of rising solar manufacturing costs, driven in part by supply chain price increases. The company is actively managing this by allocating module volumes toward higher-margin markets.

Significant capital expenditures (CapEx), approximately $1.2 billion for 2025, mainly for U.S. expansion

Canadian Solar Inc. has a firm plan for capital deployment this year, heavily weighted toward building out domestic manufacturing capacity, particularly in the U.S. The full-year 2025 CapEx outlook remains set at around $1.2 billion. This is a substantial commitment, showing where they are putting their money to secure future competitiveness. Here's a look at what they spent in the first half of the year:

• Q1 2025 Capital Expenditures: $256 million, primarily for U.S. manufacturing initiatives.
• Q2 2025 Capital Expenditures: $173,000,000, mainly reflecting payments for existing capacities.

The focus on U.S. facilities, like the module factory in Mesquite, Texas, and the Kentucky energy storage plant, is a key driver for this spending. Still, construction in progress on their balance sheet increased 52% year-to-date (in RMB) to 6.31 billion RMB, signaling continued aggressive investment.

Research and development (R&D) for next-generation solar and storage technology

Investing in R&D is crucial to stay ahead, but Canadian Solar Inc. has been trimming this area amid market softness. For the first nine months of 2025, R&D expenditure decreased by 22%, totaling 498 million RMB. Looking at the most recent quarterly data available in USD (in millions):

Period	R&D Expense (Millions USD)
Q3 2025	$19.999
Q2 2025	$24.719

Reducing R&D during a downturn risks falling behind on next-generation technology like N-type cells. You see the actual Q3 2025 spend was $19,999 (assuming the source data is in thousands of USD).

Project development costs (permitting, land acquisition, interconnection)

While specific dollar amounts for pure development costs aren't itemized in the latest reports, the size of the pipeline shows the scale of these ongoing expenditures. As of September 30, 2025, Canadian Solar Inc. held a global solar project development pipeline of approximately 25 GWp and a battery energy storage project development pipeline of 81 GWh. This pipeline includes 2.0 GWp under construction and 3.4 GWp in backlog. The debt structure reflects this, with $3.5 billion of the total debt attributed to Recurrent Energy, the development arm. The increase in total debt from June 30, 2025, to September 30, 2025, was mainly due to new borrowings for development of projects and operational assets.

Interest expense on total debt of $6.4 billion as of September 30, 2025

The balance sheet carries significant leverage to fund growth and development. Total debt, including financing liabilities, stood at $6.4 billion as of September 30, 2025. This debt is allocated across the business units:

• CSI Solar related debt: $2.7 billion
• Recurrent Energy related debt: $3.5 billion
• Convertible notes: $0.2 billion

For Q3 2025, Canadian Solar Inc.'s EBIT was reported at $99.0M, resulting in an interest coverage ratio of 1x. This 1x coverage means that the earnings before interest and taxes barely cover the interest payments, which is definitely a near-term risk you need to watch. The Current Portion of Long-Term Debt was $2.4B USD as of that same date.

Canadian Solar Inc. (CSIQ) - Canvas Business Model: Revenue Streams

You're looking at how Canadian Solar Inc. actually brings in the money as we head into the end of 2025. It's a mix of selling hardware, selling completed assets, and keeping some assets to generate power. Honestly, the guidance has shifted, reflecting market realities.

Full-Year 2025 Revenue Expectation

The latest full-year 2025 revenue guidance has been adjusted. Canadian Solar Inc. now expects total revenue for the full year 2025 to be between $5.6 billion and $6.3 billion. This compares to an earlier projection of $7.3 billion to $8.3 billion. For context, the second quarter of 2025 saw net revenues of $1.7 billion, and third quarter 2025 net revenues landed at $1.5 billion.

Sales of Solar Modules and System Kits (CSI Solar Segment)

This is the core manufacturing and sales engine, CSI Solar. They ship modules globally, with the U.S., China, Pakistan, Spain, and Australia being top markets in Q2 2025. The company is managing volume carefully, prioritizing profitable markets. For the full year 2025, CSI Solar's total module shipments recognized as revenues are guided to be in the range of 25 GW to 27 GW, which includes approximately 1 GW shipped to the company's own projects. In Q2 2025, they shipped 7.9 GW of modules.

Sales of Battery Energy Storage Systems (BESS) and Solutions (e-STORAGE)

The e-STORAGE business is a major growth driver, even with margin normalization. Full-year 2025 storage shipment guidance remains firm at 7 GWh to 9 GWh, including about 1 GWh for internal projects. The third quarter of 2025 saw a record quarterly shipment of 2.7 GWh, exceeding the guidance range of 2.1 GWh to 2.3 GWh for that quarter. The contracted backlog for e-STORAGE stood at $3.1 billion as of October 31, 2025. That backlog was $3 billion as of June 30, 2025.

You can see the volume targets for the hardware segments here:

Metric	Full Year 2025 Guidance	Q2 2025 Actual	Q3 2025 Actual
Module Shipments (GW)	25 to 27 GW	7.9 GW	5.1 GW
BESS Shipments (GWh)	7 to 9 GWh	(Not explicitly stated for Q2)	2.7 GWh

Sale of Developed Solar and BESS Projects (Recurrent Energy Segment)

Recurrent Energy monetizes its development pipeline through project sales, which can cause revenue lumpiness. In the third quarter of 2025, this segment generated $12 million in revenue, and they monetized over 500 MW of projects, including two high-margin sales. The pipeline remains substantial, which is key for future sales. Here's what the development pipeline looked like as of June 30, 2025:

• Global solar project development pipeline: approximately 27.3 GW.
• Solar pipeline under construction: 2 GW.
• Solar pipeline in backlog: 4.2 GW.
• Global BESS project development pipeline: 80.2 GWh.

Electricity Revenue from the Operating IPP Portfolio (Stable, Diversified Cash Flows)

While the primary revenue from Recurrent Energy comes from project sales, the company also holds an Independent Power Producer (IPP) portfolio that generates stable electricity revenue. Specific figures for the full-year 2025 electricity revenue aren't explicitly broken out in the latest guidance summaries, but the business structure supports this stream. For instance, in 2024, Recurrent Energy brought a record 1.3 GWp of solar projects to commercial operation. This operational portfolio provides the steady, recurring cash flows you'd expect from a utility asset base. The company has developed, built, and connected approximately 12 GWp of solar power projects globally since 2010.

Finance: draft 13-week cash view by Friday.