Canadian Solar Receives DNV Endorsement for Cutting-Edge TOPCon Modules: Enhancing Reliability and Lowering LCOE

Canadian Solar Inc. (the "Company" or "Canadian Solar") (NASDAQ: CSIQ), today announced it has recently received the "Canadian Solar TOPCon Technology Review Report" ("Report") from DNV, an esteemed independent third-party expert in product certification, risk management, and assurance. DNV was founded in Oslo, Norway in 1864.

In this comprehensive technology review, DNV evaluated Canadian Solar's TOPCon 210 mm and 182 mm cell-based TOPBiHiKu6 and TOPBiHiKu7 bifacial modules. These modules, boasting a front side power output of up to 700W, have been considered by DNV to demonstrate high durability and quality. Having reviewed the Canadian Solar Levelized Cost of Energy (LCOE) model, DNV concurs with the 3.2% reduction in LCOE, reinforcing the economic viability of Canadian Solar's advanced technology.

DNV's Report reviews module performance, reliability, mounting systems compatibility, field data, and an LCOE assessment. In this context:

• DNV commended Canadian Solar's exemplary component validation and service life modelling, ranking them at the forefront of the industry. DNV noted the Company's commitment to high reliability is evident through its rigorous re-testing program in which each module undergoes tests for every Bill of Materials (BOM) alteration, ensuring dependability across all configurations.
• DNV also noted the Canadian Solar TOPBiHiKu6 and TOPBiHiKu7 possess industry-leading module efficiencies, up to 22.6%, temperature coefficients as low as -0.29%/°C, and bifaciality of ~80%, which indicate that the expected field performance of these modules would be better than that of typical commercial modules. DNV notes that N-type cells are inherently less susceptible to light-induced degradation (LID) and light and elevated temperature-induced degradation (LeTID) which is borne out by VDE tests on these modules. The results of the VDE report indicate a median (P50) LID for all modules of -0.19% and a P90 of -0.34% after 60 kWh/m2 of exposure. DNV has also reviewed rigorous reliability tests, including extensive thermal cycling, damp heat exposure, and potential-induced degradation (PID) testing, which resulted in a minimal power loss of less than 2%, demonstrating the high durability of the modules.
• Canadian Solar's LCOE modelling, reviewed by DNV, underscores the competitive edge of the TOPBiHiKu6 and TOPBiHiKu7 modules, projecting reductions of 2.5% and 3.2% respectively compared to PERC modules employing 144 half-cut cells of 182 mm width. These modules stand as a testament to Canadian Solar's commitment to efficient and cost-effective energy solutions.
•  The report highlights DNV's thorough audit of Canadian Solar's TOPCon module production process, supplier quality management, Manufacturing Execution System (MES) and Statistical Process Control (SPC) utilization, and human resource management. DNV notes that Canadian Solar's quality systems, as observed in the audited factory, are leading in the PV industry, which DNV expects to result in minimal risk of module underperformance.

Dr. Shawn Qu, Chairman and CEO of Canadian Solar, expressed his satisfaction, stating, "The independent recognition of our TOPCon modules by DNV, spanning product performance, reliability, LCOE, and manufacturing quality, is a source of pride. These results underscore Canadian Solar's technological prowess and stringent quality controls. Our commitment to delivering peak performance products to our global customers is unwavering."

Canadian Solar started delivering TOPCon modules in the first quarter of 2023 and is expected to have an annual TOPCon cell manufacturing capacity of around 30 GW by the end of 2023.