Canadian Solar Announces Operation of First FIP Projects in Japan and PPA Signing with Toyota Tsusho

Canadian Solar Inc. (the "Company", or "Canadian Solar") (NASDAQ: CSIQ) announced today that its first portfolio of Japan's feed-in premium (FIP) PV projects began commercial operation on June 1, 2024.

The projects that have reached commercial operation include a 1.2 MWp project in Tsukuba City, Ibaraki Prefecture and a 1.9 MWp project in Daisen Town, Tottori Prefecture. Both projects are powered by CS7N-660W bifacial modules. Initially awarded a feed-in tariff (FIT) through auctions held in 2020, the Company decided to switch the projects from FIT to FIP in response to the rising demand for renewable energy. FIP-awarded projects will generate additional revenue through Non-Fossil Certificates (NFCs).

By entering into a 20-year Power Purchase Agreement (PPA) with the Company, Toyota Tsusho Corporation ("Toyota Tsusho") secures 100% of the PV power, together with the NFCs, generated by the project. These NFCs will be transferred to Toyota Tsusho, a member of the Toyota Group and an electricity retailer, who will then provide the power and NFCs to its corporate customers.  

Ryota Yamada, General Manager of Canadian Solar's Japan Energy Group, commented, "Since launching our Japan PV development business in 2012, we have focused on FIT, as many of our investors preferred the stable cash flows backed by government programs. Today, enterprises are increasingly demanding clean energy to power their businesses. As of March 31, 2024, our project development business in Japan totaled 240 MWp and 1.675 GWh for solar and energy storage, respectively. We are honored to sign our first private PPA with Toyota Tsusho, a key member of the Toyota Group. This PPA marks the beginning of our commitment to support Japanese corporations in meeting their clean energy needs for operations both in Japan and globally."