CSI Energy Storage, a subsidiary of Canadian solar company CSIQ, recently signed a supply agreement with Cero Generation and Enso Energy to supply a 49.5 megawatt (MW)/99 megawatt hour (MWh) turnkey battery energy storage plan. SolBank’s product will be part of Cero’s collaboration with Enso on battery energy storage systems.
In addition to SolBank, CSI Energy Storage is responsible for comprehensive project commissioning and integration services, as well as long-term operation and maintenance, warranty and performance guarantees.
The deal will help the company expand its energy storage presence across Europe. This also opens up opportunities for CSIQ to enter the European battery market and expand the customer base of its new products.
To expand the global battery market, Canadian Solar is investing heavily in its battery product development, technology and manufacturing.
Canadian Solar launched SolBank in 2022 with up to 2.8 MWh of net energy capacity aimed at utilities. SolBank’s total annual battery production capacity as of March 31, 2023 was 2.5 gigawatt-hours (GWh). CSIQ aims to increase total annual production capacity to 10.0 GWh by December 2023.
The company also launched the EP Cube household battery storage product in the US, European and Japanese markets. Such advanced products and capacity expansion plans allow Canadian Solar to gain greater share of the battery market and expand its revenue prospects.
Increasing market penetration of solar energy is fueling the growth of the battery storage market. The battery market is likely to gain momentum at the same time, driven by increased investment in solar power projects in various countries. In this case, in addition to CSIQ, the following solar energy companies are expected to benefit:
Enphase Energy ENPH has a valuable position in the solar energy market by producing fully integrated solar and energy storage solutions. The company expects battery shipments to be between 80 and 100 MWh in the second quarter. The company also plans to launch batteries in several European markets.
Enphase’s long-term earnings growth rate is 26%. ENPH shares are up 16.8% over the past month.
SEDG’s SolarEdge energy storage division offers high-efficiency DC batteries that store excess solar energy to power homes when electricity prices are high or at night. In January 2023, the division began shipping new batteries designed for energy storage, which are produced at the company’s new Sella 2 battery plant in South Korea.
SolarEdge’s long-term (three to five years) earnings growth rate is 33.4%. The Zacks Consensus Estimate for SEDG’s 2023 earnings has been revised upward by 13.7% over the past 60 days.
SunPower’s SunVault SPWR offers advanced battery technology that stores solar energy for maximum efficiency and allows for more charge cycles than traditional storage systems. In September 2022, SunPower expanded its product portfolio with the launch of the 19.5 kilowatt-hour (kWh) and 39 kWh SunVault battery storage products.
SunPower’s long-term earnings growth rate is 26.3%. The Zacks Consensus Estimate for SPWR’s 2023 sales is calling for growth of 19.6% from the prior year’s reported numbers.
Canadian Artis currently has a Zacks Rank of #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Post time: Sep-12-2023