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Canadian Solar's Arm Wins Deal to Supply 98MW/312MWh DC BESS in Chile

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Canadian Solar Inc.’s (CSIQ - Free Report) subsidiary, CSI Solar Co., Ltd. (CSI Solar), through its e-STORAGE division, has recently secured a turnkey Engineering, Procurement and Construction contract to deliver a 98-megawatt (MW)/312 megawatt-hour (MWh) direct current (DC) Battery Energy Storage System (BESS) to the Huatacondo project in Chile.
 
e-STORAGE will supply and set up its advanced SolBank 3.0 energy storage system for the project. It will also manage all civil, mechanical and electrical infrastructure for this project.

CSIQ’s Prospects in the BESS Market

The BESS market has seen rapid growth in recent years, driven by rising investments in renewable energy infrastructure. As global electricity consumption continues to rise, BESS plays a crucial role in ensuring a reliable and continuous power supply. These systems store energy for use during peak demand periods and power outages, helping stabilize grids and supporting the growing shift toward renewable energy sources. With the increasing focus on clean energy, BESS is becoming an essential component in energy management worldwide.

This is likely to have prompted Mordor Intelligence to forecast a compound annual growth rate of 8.7% for the global BESS market during the 2024-2029 time period.

CSIQ is making significant progress in the BESS market with its e-STORAGE division, which is likely to help it capitalize on this market’s potential. Notably, its SolBank 3.0 system provides more than 5 MWh of energy storage in a standard 20-foot container, which helps save space and reduce costs. This system boasts up to a 45% increase in product-level capacity and up to a 40% decrease in commissioning time compared with its previous generation.

The SolBank 3.0 is built to handle tough conditions, with protection against wind and rain, making it reliable even in harsh climates. It can also work well in a wide range of temperatures, adding to its durability.
 
Such remarkable features of the SolBank 3.0 are likely to have been influencing customers in the BESS market to choose Canadian Solar’s energy storage product. The latest contract win is an example of that. Such contract wins are likely to substantially boost CSIQ’s future revenues.

Prospects for CSIQ’s Peers

Other solar companies that are likely to enjoy the perks of the expanding BESS market have been discussed below.

SolarEdge Technologies (SEDG - Free Report) : Its highly efficient DC-coupled batteries, when installed with its Backup Interface, provide reliable backup power during outages. SEDG’s battery products include SolarEdge Home Battery 400V and SolarEdge Home Battery 48V, which boast the capability to integrate with single-phase and three-phase inverters, respectively.
 
The company’s long-term (three to five years) earnings growth rate is 2.4%. The Zacks Consensus Estimate for SEDG’s 2025 sales indicates year-over-year growth of 72%.

Sunrun Inc. (RUN - Free Report) : Sunrun is one of the largest residential solar energy companies in the United States. Its Brightbox product is a solar battery storage service that manages home solar power, battery power and utility power to maximize savings, day and night, for its customers.

The Zacks Consensus Estimate for RUN’s 2025 sales indicates year-over-year growth of 18.9%. The consensus estimate for 2024 earnings per share indicates year-over-year growth of 97.8%.

Enphase Energy, Inc. (ENPH - Free Report) : Enphase specializes in solar microinverters and energy management technology, including battery storage systems. Its IQ Battery 5P includes multiple bidirectional microinverters to switch energy from DC to AC and back again for safe, reliable operation.
 
The company’s long-term earnings growth rate is 15.9%. The Zacks Consensus Estimate for ENPH’s 2025 sales indicates year-over-year growth of 47.2%.

CSIQ Stock’s Price Movement

Shares of CSIQ have gained 25.7% in the past month compared with the industry’s 1.4% growth.

Zacks Investment Research
Image Source: Zacks Investment Research

CSIQ’s Zacks Rank

CSIQ currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 


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