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    Does ERCOT Battery Deal and 10-Year Service Pact Reshape the Bull Case For Canadian Solar (CSIQ)?

    Simply Wall St·02/07/2026 02:06:23
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    • Canadian Solar Inc. announced that its e-STORAGE business and Sunraycer have agreed to supply and service two standalone battery energy storage projects totaling 503 MWh DC in Franklin County, Texas, with construction phases scheduled between the third quarter of 2026 and the first quarter of 2027.
    • An important aspect of these Lupinus projects is e-STORAGE’s SolBank 3.0 system and 10-year service commitment, which leverage Canadian Solar’s global manufacturing network to support grid stability in the ERCOT market.
    • We will now examine how this expansion of Canadian Solar’s energy storage footprint in ERCOT shapes the company’s broader investment narrative.

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    What Is Canadian Solar's Investment Narrative?

    To own Canadian Solar today, you have to believe the company can convert its broad solar and storage platform into more durable, higher‑quality earnings, despite current margin pressure and a soft 2025 profit outlook. The Lupinus storage deals in ERCOT fit that story by reinforcing e‑STORAGE as a core growth driver, adding long‑term service revenue and showcasing the SolBank 3.0 platform, but they are unlikely to move the needle on near‑term results given construction sits out in 2026–2027. Short‑term, the key catalysts remain any signs of improving pricing, better coverage of interest costs, and evidence that the new North America‑focused leadership team can execute on reshoring and higher‑margin storage projects. The biggest risks are still thin profit margins, high earnings volatility and a share price that has swung sharply over the past year.

    However, there is one financial pressure point here that investors should not ignore. Canadian Solar's shares have been on the rise but are still potentially undervalued. Find out how large the opportunity might be.

    Exploring Other Perspectives

    CSIQ 1-Year Stock Price Chart
    CSIQ 1-Year Stock Price Chart
    Six Simply Wall St Community members place Canadian Solar’s fair value between US$7 and US$38, underscoring very different expectations, while recent guidance for weaker 2025 profits keeps execution risk front and center for the company’s path forward.

    Explore 6 other fair value estimates on Canadian Solar - why the stock might be worth as much as 91% more than the current price!

    Build Your Own Canadian Solar Narrative

    Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.