GUELPH,ON,Aug. 22,2024 --Canadian Solar Inc.("Canadian Solar" or the "Company") (NASDAQ: CSIQ) today announced financial results for the second quarter ended June 30,2024.

Highlights

Solar module shipments of 8.2 GW,above guidance of 7.5 GW to 8.0 GW.

Net revenues of $1.6 billion,in line with guidance of $1.5 billion to $1.7 billion.

17.2% gross margin,in line with guidance of 16% to 18%.

e-STORAGE backlog grew to $2.6 billion,backed by a record 66 GWh of pipeline,as of June 30,2024.

Recurrent Energy expanded its total development pipeline to 27 GWp of solar and 63 GWh of battery energy storage,2024.

Achieved initial closing of BlackRock's investment in Recurrent Energy,representing the majority of the planned $500 million capital infusion.

Announced a $200 million private placement of secured convertible notes with PAG.

Published the 2023 Corporate Sustainability Report,featuring sustainability disclosures aligned with global standards,on May 31,2024.

Dr. Shawn Qu,Chairman and CEO,commented,"We achieved solid results in the second quarter of 2024,with shipments,revenue,and gross margin meeting or surpassing our previous guidance. Today,we have reached an optimal scale—large enough to maintain a highly competitive cost structure yet lean enough to adapt swiftly to changes in industry dynamics. In our module business,we continue to apply a disciplined approach to operations,from strategic capacity investments to stringent order management. At the same time,we are positioning ourselves for sustainable medium- and long-term growth through our energy storage business,e-STORAGE,and global project development platform,Recurrent Energy. Sustainable and ethical growth is key to our strategy,and we are proud to have published our latest Corporate Sustainability Report,featuring expanded disclosures and enhanced transparency."

Yan Zhuang,President of Canadian Solar's CSI Solar subsidiary,said,"Despite challenging market dynamics,CSI Solar achieved strong results in the first half. Amidst fierce industry competition,we maintained our focus on profitability while also increasing volume this quarter. As polysilicon prices further declined,the resulting price decreases across the upstream supply chain helped reduce manufacturing costs. Given the current industry landscape,we have decided to delay certain upstream investments to further prioritize profitability. In these situations,our partial vertical integration affords us strategic agility. Additionally,e-STORAGE not only delivered record volumes,but also grew its backlog to $2.6 billion,supported by a robust 66 GWh pipeline."

Ismael Guerrero,CEO of Canadian Solar's Recurrent Energy subsidiary,"We successfully completed the initial closing of BlackRock's $500 million investment and expect to finalize the transaction in the coming months. As we progress toward our operational targets,we continue to demonstrate our ability to secure competitive financing. Notably,we obtained a landmark multi-currency revolving credit facility valued at up to €1.3 billion,involving ten banks,to support the construction of renewable energy projects across several European countries."

Xinbo Zhu,Senior VP and CFO,added,"In the second quarter of 2024,we delivered $1.6 billionin revenue,a gross margin of 17.2%,and $4 million in net income. Going forward,CSI Solar and Recurrent Energy's leverage profiles will align with their respective strategic goals. This quarter,CSI Solar reduced its debt to better navigate the industry cycle. Meanwhile,Recurrent Energy will continue to increase leverage in the near-term to support its transition to a partial IPP model. The recently announced convertible notes will contribute to optimizing our capital structure,providing us with added financial flexibility."

Second Quarter 2024 Results

Total module shipments recognized as revenues in the second quarter of 2024 were 8.2 GW,up 30% quarter-over-quarter ("qoq") and remained consistent year-over-year ("yoy"). Of the total,135 MWwere shippedto the Company's own utility-scale solar power projects.

Net revenues in the secondquarterof 2024 increased 23% qoq and decreased 31% yoy to $1.6 billion. The sequential increase primarily reflects a higher solar module shipment volume,partially offset by a decline in module average selling price ("ASP"). The yoy decrease primarily reflects a decline in module ASPs and lower project sales,partially offset by higher battery energy storage solutions sales.

Gross profit in the secondquarter of 2024 was $282million,up 12% qoqand down 36%yoy. Gross margin in thesecond quarter of 2024 was 17.2%,compared to 19.0% in the first quarter of 2024 and 18.6% in the second quarter of 2023. The gross margin sequential decrease was primarily caused by lower module ASPs. The gross margin yoy decrease was primarily driven by lesser margin contribution from solar power and battery energy storage asset sales and lower module ASPs,partially offset by lower manufacturing costs.

Total operating expenses in the second quarter of 2024 were $234million,compared to$204 million in the first quarter of 2024 and $216 million in the second quarter of 2023. The sequential and yoy increases were primarily driven by higher shipping and handling expenses,with the yoy increase being partially offset by a decrease in share-based compensation expense.

Depreciation and amortization charges in the secondquarter of 2024 were $122million,compared to $110million in the first quarter of 2024 and $73 million in the second quarter of 2023. The sequential and yoy increases were primarily driven by the Company's continued investment in vertical integration and incremental capacity expansion.

Net interest expense in the second quarter of 2024 was $19 million,compared to less than $1 million in the first quarter of 2024 and $21 million in the second quarter of 2023. Net interest expense returned to a normalized level in the second quarter of 2024 with the absence of an interest benefit deriving from the interest income generated by anti-dumping and countervailing duty deposit refunds in the first quarter of 2024.

Net foreign exchange and derivative gain in the second quarter of 2024 was $13million,compared to a net loss of $4 million in thefirst quarter of 2024 and a net gain of $34 million in the second quarter of 2023.

Net income attributable to Canadian Solar in the secondquarter of 2024 was $4 million,or $0.02 per diluted share,compared to a net income of $12 million,or $0.19 per diluted share,in the first quarter of 2024,and net income of $170 million,or $2.39 per diluted share,in the second quarter of 2023. Basic and diluted earnings per share ("EPS") includes Recurrent Energy redeemable preferred shares dividends payable in kind. As a result,an EPS effect of 3 cents was deducted in the second quarter of 2024 on a dilutive basis.

Net cash flow used in operating activities in the second quarter of 2024 was $429 million,compared to net cash flow used in operating activities of $291 million in the firstquarter of 2024 and net cash flow provided by operating activities of $290 million in the second quarter of 2023. The operating cash outflow primarily resulted from increased project assets and accounts receivable.

Total debt was $4.2billion as of June 30,2024,including $2.0billion,$2.0billion,and $0.2billion related to CSI Solar,Recurrent Energy,and convertible notes,respectively. Total debt decreased as compared to $4.3 billion as of March 31,mainly driven by optimization of CSI Solar's financial leverage to navigate the industry cycle,partially offset by new project development for Recurrent Energy.

Business Segments

The Company has two business segments: Recurrent Energy and CSI Solar. The two businesses operate as follows:

Recurrent Energy is one of the world's largest clean energy project development platforms with 15 years of experience,having delivered approximately 11 GWp of solar power projects and 3.7 GWh of battery energy storage projects. It is vertically integrated and has strong expertise in greenfield origination,development,financing,execution,operations and maintenance,and asset management.

CSI Solar consists of solar module and battery energy storage manufacturing,and delivery of total system solutions,including inverters,solar system kits,and EPC (engineering,procurement,and construction) services. CSI Solar's e-STORAGE branded battery energy storage business includes its utility-scale turnkey battery energy system solutions,as well as a small but growing residential battery energy storage business. These battery energy storage systems solutions are complemented with long-term service agreements,including future battery capacity augmentation services.

Recurrent Energy Segment

As of June 30,the Company held a leading position with a total global solar development pipeline of 27 GWp and a battery energy storage development pipeline of 63 GWh.

While Recurrent Energy's business model was historically predominantly develop-to-sell,the Company has been adjusting its strategy to create greater asset value and retain greater ownership of projects in select markets to increase revenues generated through recurring income,such as power sales,and asset management income.

The business model consists of three key drivers:

Electricity revenue from operating portfolio to drive stable,diversified cash flows in growth markets with stable currencies;

Asset sales (solar power and battery energy storage) in the rest of the world to drive cash-efficient growth model,as value from project sales will help fund growth in operating assets in stable currency markets; and

Power services (O&M) and asset management through long-term operations and maintenance ("O&M") contracts,currently with approximately 11 GW of contracted projects,to drive stable and long-term recurring earnings and synergies with the project development platform.

In January 2024,the Company announced a $500 million investment from BlackRock. The investment will provide Recurrent Energy with additional capital to grow its high value project development pipeline while executing its strategy to transition from a pure developer to a developer plus long-term owner and operator in select markets including theU.S.andEurope. This transition is expected to create a more diversified portfolio and provide more stable long-term revenue in low-risk currencies,and enables Recurrent Energy to create and retain greater value in its own project development pipeline. The perimeter of the transaction includes 30 countries,excluding China and Japan.

In June 2024,Recurrent Energy announced the initial closing of the $500 million investment. The initial closing presents the majority of the planned capital infusion at $300 million (before transaction costs). Once the transaction is fully complete,BlackRock's $500 millioninvestment will represent 20% of the outstanding fully diluted shares of Recurrent Energy on an as-converted basis.Canadian Solarwill continue to own the remaining majority shares of Recurrent Energy.

Project Development Pipeline – Solar

As of June 30,Recurrent Energy's total solar project development pipeline was 27.4 GWp,including 1.7 GWp under construction,4.8 GWp of backlog,and 20.9 GWp of projects in advanced and early-stage pipelines,defined as follows:

Backlog projects are late-stage projects that have passed their risk cliff date and are expected to start construction in the next 1-4 years. A project's risk cliff date is the date on which the project passes the last high-risk development stage and varies depending on the country where it is located. This is usually after the projects have received all the required environmental and regulatory approvals,and entered into interconnection agreements,feed-in tariff ("FIT") arrangements,and power purchase agreements ("PPAs"). A significant majority of backlog projects are contracted (i.e.,have secured a PPA or FIT),and the remaining have a reasonable assurance of securing PPAs.

Advanced pipeline projects are mid-stage projects that have secured or have more than 90% certainty of securing an interconnection agreement.

Early-stage pipeline projects are early-stage projects controlled by Recurrent Energy that are in the process of securing interconnection.

While the magnitude of the Company's project development pipeline is an important indicator of potential expanded power generation and battery energy storage capacity as well as potential future revenue growth,the development of projects in its pipeline is inherently uncertain. If the Company does not successfully complete the pipeline projects in a timely manner,it may not realize the anticipated benefits of the projects to the extent anticipated,which could adversely affect its business,financial condition,or results of operations. In addition,the Company's guidance and estimates for its future operating and financial results assume the completion of certain solar projects and battery energy storage projects that are in its pipeline. If the Company is unable to execute on its actionable pipeline,it may miss its guidance,which could adversely affect the market price of its common shares and its business,or results of operations.

The following table presents Recurrent Energy's total solar project development pipeline.

Solar Project Development Pipeline (as of June 30,2024) – MWp*

Region

In

Construction

Backlog

Advanced

Pipeline

Early-Stage

Pipeline

Total

North America

261

224

1,244

4,374

6,103

Europe,the Middle East,and Africa

("EMEA")

783**

2,465

1,578

5,539

10,365

Latin America

450**

486

83

4,540

5,559

Asia Pacific excluding China and Japan

-

173

708

1,413

2,294

China

100

1,320**

-

1,390

2,810

Japan

59

131

-

49

239

Total

1,653

4,799

3,613

17,305

27,370

*All numbers are gross MWp.

**Including 74 MWp in construction and 551 MWp in backlog that are owned by or already sold to third parties.

Project Development Pipeline – Battery Energy Storage

As of June 30,Recurrent Energy's total battery energy storage project development pipeline was 62.8 GWh,including 8.5 GWh under construction and in backlog,and 54.3 GWh of projects in advanced and early-stage pipelines.

The table below sets forth Recurrent Energy's total battery energy storage project development pipeline.

Battery Energy StorageProject Development Pipeline(as of June 30,2024) – MWh

Region

In

Construction

Backlog

Advanced

Pipeline

Early-Stage

Pipeline

Total

North America

1,400

600

1,580

15,444

19,024

EMEA

-

1,580

4,627

26,612

32,819

Latin America

-

1,765

-

-

1,765

Asia Pacific excluding China and Japan

444

-

400

1,240

2,084

China

2,000

-

-

2,600

4,600

Japan

-

727

449

1,350

2,526

Total

3,844

4,672

7,056

47,246

62,818

Projects in Operation – Solar Power and Battery Energy Storage Power Plants (Including Unconsolidated Projects)

As of June 30,the solar power and battery energy storage plants in operation totaled around 1.6 GWp and 1.0 GWh respectively,with a combined estimated net resale value of approximately$1.2 billion. The estimated net resale value is based on selling prices that Recurrent Energy is currently negotiating or comparable asset sales.

Power Plants in Operation*

North

America

EMEA

Latin

America

Asia Pacific

ex. China and

Japan

China

Japan

Total

Solar (MWp)

163

58

970

6

310

62

1,569

Battery Energy

Storage (MWh)

280

-

-

24

700

-

1,004

*All numbers are netMWporMWhowned by Recurrent Energy; total grossMWpof solar projects is 2,621MWpand total gross battery

energy storage projects is 2,124MWh,including volume that is already sold to third parties.

Operating Results

The following table presents select unaudited results of operations data of the Recurrent Energy segment for the periods indicated.

Recurrent Energy Segment Financial Results

(In Thousands of U.S. Dollars,Except Percentages)

Three Months Ended

Six Months Ended

June 30,

2024

March 31,

2024

June 30,

2023

June 30,

2023

Net revenues

50,525

39,433

360,045

89,958

380,097

Cost of revenues

26,564

26,381

201,981

52,945

214,824

Gross profit

23,961

13,052

158,064

37,013

165,273

Operating expenses

32,877

33,573

35,874

66,450

58,288

Income (loss) from

operations*

(8,916)

(20,521)

122,190

(29,437)

106,985

Gross margin

47.4%

33.1%

43.9%

41.1%

43.5%

Operating margin

-17.6%

-52.0%

33.9%

-32.7%

28.1%

* Income (loss) from operations reflects management's allocation and estimate as some services are shared by the Company's two business segments.

CSI Solar Segment

Solar Modules and Solar System Kits

CSI Solar shipped 8.2 GW of solar modules and solar system kits to more than 70 countries in the second quarter of 2024. For the secondquarter of 2024,the top five markets ranked by shipments were China,the U.S.,Pakistan,Germany,and Brazil.

CSI Solar's revised manufacturing capacity expansion targets are set forth below.

Solar Manufacturing Capacity,GW*

June 2024

Actual

September 2024

Plan

December 2024

Plan

Ingot

20.4

25.0

25.0

Wafer

28.0

31.0

31.0

Cell

48.4

48.4

48.4

Module

60.0

61.0

61.0

*Nameplate annualized capacities at said point in time. Capacity expansion plans are subject to change without notice

based on market conditions and capital allocation plans.

e-STORAGE: Battery Energy Storage Solutions

e-STORAGE is CSI Solar's utility-scale battery energy storage platform. e-STORAGE provides customers with competitive turnkey,integrated,utility-scale battery energy storage solutions,including bankable,end-to-end,utility-scale,turnkey battery energy storage system solutions across various applications. System performance is complemented with long-term service agreements,which include future battery capacity augmentation services and bring in long-term,stable income.

As of June 30,e-STORAGE had a total project turnkey pipeline of around 66 GWh,which includes both contracted and in-construction projects,as well as projects at different stages of the negotiation process. In addition,e-STORAGE had approximately 3.1 GWh of operating battery energy storage projects contracted under long-term service agreements,all of which were battery energy storage projects previously executed by e-STORAGE.

As of June 30,the contracted backlog,including contracted long-term service agreements,was $2.6 billion. These are signed orders with contractual obligations to customers,providing significant earnings visibility over a multi-year period.

The table below sets forth e-STORAGE's manufacturing capacity expansion targets.

Battery Energy Storage Manufacturing

Capacity,GWh*

June 2024

Actual

December 2025

Plan

SolBank

20.0

30.0

*Nameplate annualized capacities at said point in time. Capacity expansion plans are subject to change without notice

based on market conditions and capital allocation plans.

Operating Results

The following table presents select unaudited results of operations data of the CSI Solar segment for the periods indicated.

CSI Solar Segment Financial Results*

(In Thousands of U.S. Dollars,

2024

March 31,

2024

June 30,

2023

Net revenues

1,731,470

1,342,153

2,013,993

3,073,623

3,723,723

Cost of revenues

1,441,897

1,094,568

1,726,154

2,536,465

3,120,275

Gross profit

289,573

247,585

287,839

537,158

603,448

Operating expenses

196,255

165,113

168,455

361,368

314,606

Income from operations

93,318

82,472

119,384

175,790

288,842

Gross margin

16.7%

18.4%

14.3%

17.5%

16.2%

Operating margin

5.4%

6.1%

5.9%

5.7%

7.8%

*Include effects of both sales to third-party customers and to the Company's Recurrent Energy segment.Please refer to the

attached financial tables for intercompany transaction elimination information. Income from operations reflects

management's allocation and estimate as some services are shared by the Company's two business segments.

The table below provides the geographic distribution of the net revenues ofCSI Solar:

CSI Solar Net Revenues Geographic Distribution* (In Millions of U.S. Dollars,Except Percentages)

Q2 2024

% of Net

Revenues

Q1 2024

% of Net

Revenues

Q2 2023

% of Net

Revenues

Americas

892

56

676

53

722

36

Asia

455

29

417

32

716

36

Europe and others

238

15

197

15

566

28

Total

1,585

100

1,290

100

2,004

100

*Excludes sales fromCSISolar to Recurrent Energy.

Business Outlook

The Company's business outlook is based on management's current views and estimates given factors such as existing market conditions,order book,production capacity,input material prices,foreign exchange fluctuations,the anticipated timing of project sales,and the global economic environment. This outlook is subject to uncertainty with respect to,among other things,customer demand,project construction and sale schedules,product sales prices and costs,supply chain constraints,and geopolitical conflicts. Management's views and estimates are subject to change without notice.

For the third quarterof 2024,the Company expects total revenue to be in the range of $1.6 billion to $1.8 billion. Gross margin is expected to be between 14% and 16%. Total module shipments recognized as revenues by CSI Solar are expected to be in the range of 9.0 GW to 9.5 GW,including approximately 100 MW to the Company's own projects. Total battery energy storage shipments by CSI Solar in the third quarter of 2024 are expected to be between 1.4GWh to 1.7 GWh,including about 1.2 GWh to the Company's own projects.

For the full year of 2024,the Company expects total module shipments to be in the range of 32 GW to 36 GW and CSI Solar's total battery energy storage shipments in the range of 6.5 GWh to 7.0 GWh,including approximately 1 GW and 2.5 GWh respectively to the Company's own projects. The Company's total revenue is expected to be in the range of $6.5 billion to $7.5 billion.

Dr. Shawn Qu,Chairman and CEO,commented,"While we continue to navigate challenging market conditions,our focus remains on sustainable,profitable growth. We are beginning to see signs of market rationalization,as module pricing and input costs reach record lows. In line with our commitment to strategic future planning,we are adjusting certain capacity investments to ensure a resilient financial profile. We anticipate stabilization in the second half of the year. Although global economic and political uncertainties will likely persist in the coming months,we have consistently managed risk effectively for our shareholders,partners,and customers in the past—and we remain committed to doing so going forward."

Recent Developments

Canadian Solar

On August 19,Canadian Solar announced it had entered into a definitive agreement with PAG,pursuant to which PAG will subscribe for US$200 million in aggregate principal of convertible notes due 2029. The transaction is expected to close in the fourth quarter of 2024,subject to closing conditions. The Company will retain certain flexibility on drawdowns,using the net proceeds to optimize its capital structure.

On May 31,Canadian Solar announced it had published its 2023 Corporate Sustainability Report that showcases the Company's ongoing progress and achievements in its environmental,social,and governance (ESG) initiatives. The sustainability disclosures in this report are aligned with global standards set by the SASB (theSustainability Accounting Standards Board) and theGlobal Reporting Initiative(GRI),with reference to the IFRS (the International Financial Reporting Standards) set by ISSB (International Sustainability Standards Board).

CSI Solar

On August 8,Canadian Solar announced it had signed a turnkey EPC contract for 100 MW / 200 MWh energy storage solutions with Fotowatio Renewable Ventures (FRV) Australia for FRV's Terang energy storage project in Victoria,Australia. FRV Australia,part of Jameel Energy and the Canadian infrastructure fund OMERS,is a leading developer of sustainable energy solutions. An energy storage supply agreement and a long-term service agreement had been signed between the companies. Construction of the project is scheduled to commence in August 2024.

On July 18,Canadian Solar announced it had signed a contract with Root-Power Ltd.,part of YLEM Group,to supply 11 MW AC / 22 MWh AC energy storage solutions for Root-Power's Coryton Energy Park project located in Corringham,Essex,England.Construction of the project started in lateMay 2024. An energy storage supply agreement and long-term service agreement had been signed between the companies.

On July 9,Canadian Solar announced it had secured a contract with Aypa Power to deliver a 498 MWh DC standalone battery energy storage system for Aypa's Bypass Project in Texas. The project is scheduled for completion in the third quarter of 2025. After integrating and commissioning the project to commercial operation,e-STORAGE will provide ongoing operational support for the project under a long-term service agreement.

On July 8,Canadian Solar announced it had secured a contract from Nova Scotia Power to develop flagship energy storage projects across three locations inNova Scotia,Canada:Bridgewater,Waverley,andWhite Rock. The projects total 150 MW / 705 MWh DC. Construction will be completed by the end of 2026,and the first site is expected to be operational in 2025.e-STORAGE will provide comprehensive EPC services along with long-term service agreements.

On June 20,Canadian Solar announced it had entered into a partnership agreement with leading renewable energy supplierLifestyle Solar Inc.to provide solar and energy storage solutions to homebuilders inCalifornia.Canadian Solar will offer its new N-type modules from its factory inMesquite,TX,and the innovative stackable EP Cube home battery,enabling Lifestyle Solar's clients to achieve energy resilience and lower electricity costs.

On June 13,Canadian Solar announced it had entered into an agreement withU.S.homebuilder D.R. Horton to offer its solar and energy storage products across communities inCalifornia. In its commitment to excellence,D.R. Horton has chosen Canadian Solar's solar panels and batteries,a testament to the superior quality of Canadian Solar's products.

Recurrent Energy

On August 6,Canadian Solar announced it had completed the sale of an 83 MWp project in the Dominican Republic to Grupo País and Acciona Energía. The Pedro Corto solar project,located in San Juan de la Maguana,is in the late stage of development.

On July 24,Canadian Solar announced it had achieved the financial close on a €50 million loan from theEuropean Investment Bank. The facility will support the development and construction of a solar energy portfolio inItaly.

On July 10,Canadian Solar announced it had signed a 10-year power purchase agreement withGKN Automotive,a global leader in drive systems,for the annual production of approximately 200 GWh of renewable electricity produced by Recurrent Energy's 115 MWp Rey I Project located in Seville,Andalucia,Spain. Currently under construction,Rey I is expected to be fully operational by the first half of 2026. Recurrent Energy will own and operate the project upon completion.

On June 27,Canadian Solar announced it had signed a $103 million tax credit facilitation agreement with Bank of America for itsNorth Fork Solar Project. The 160 MW solar project,located southwest ofOklahoma City,is now operational.

On June 20,Canadian Solar announced it had secured $513 million in project financing for its landmark Papago Storage project located in Maricopa County,Arizona. Construction of the 1,200 MWh Papago Storage is slated to commence in the third quarter of 2024,with commercial operations expected to begin in the second quarter of 2025. This project holds a 20-year tolling agreement with Arizona Public Service,and Recurrent Energy will own and operate the project after construction.

On June 17,Canadian Solar announced it had achieved commercial operation on its first portfolio ofJapan'sfeed-in premium (FIP) PV projects onJune 1,2024. Toyota Tsusho Corporation entered into a 20-year power purchase agreement with the Company,securing 100% of the PV power,together with the Non-Fossil Certificates (NFCs) generated by the project.

On June 10,Canadian Solar announced the inauguration of the 446 MWp / 360 MWac Marangatu Solar ComplexinBrasileira,Brazil. SPIC owns 70% of the project,while Recurrent Energy owns the remaining 30%.Developed by Recurrent Energy,Marangatu Solar Complexwas fully energized inApril 2024. 75% of the energy generated is secured through long-term power purchase agreements (PPAs).

On June 3,Canadian Solar announced it had achieved the initial closing and funding of an investment in Recurrent Energy's platform by BlackRock through a fund managed by its climate infrastructure business. The initial closing of the transaction,first announced inJanuary 2024,was contingent on requisite regulatory approvals and other conditions,which have now been met.

On May 23,Canadian Solar announced it had secured a landmark multi-currency revolving credit facility valued at up to €1.3 billion with ten banks for the construction of solar and battery energy storage projects in several European countries,including Spain,Italy,the UK,the Netherland,France and Germany. Initially,the facility will support the near-term construction of close to 1 GW of solar capacity,with the vast majority allocated toSpainand the remainder to theUK.

Conference Call Information

The Company will hold a conference call on Thursday,August 22,at 8:00 a.m. U.S. Eastern Time (8:00 p.m.,Thursday,in Hong Kong) to discuss its second quarter2024 results and business outlook. The dial-in phone number for the live audio call is +1-877-704-4453 (toll-free from theU.S.),+852 800 965 561 (fromHong Kong),+86 400 120 2840 (local dial-in from Mainland China) or +1-201-389-0920 from international locations. The conference ID is 13747972. A live webcast of the conference call will also be available on the investor relations section ofCanadian Solar'swebsite.

A replay of the call will be available after the conclusion of the call until11:00 p.m.U.S.Eastern Time onThursday,September 5,2024(11:00 a.m.September 6,inHong Kong) and can be accessed by dialing +1-844-512-2921 (toll-free from theU.S.) or +1-412-317-6671 from international locations. The replay pin number is 13747972. A webcast replay will also be available on the investor relations section ofCanadian Solar'satwww.canadiansolar.com.

AboutCanadian Solar Inc.

Canadian Solar was founded in 2001 in Canada and is one of the world's largest solar technology and renewable energy companies. It is a leading manufacturer of solar photovoltaic modules,provider of solar energy and battery energy storage solutions,and developer of utility-scale solar power and battery energy storage projects with a geographically diversified pipeline in various stages of development. Over the past 23 years,Canadian Solar has successfully delivered over 133 GW of premium-quality,solar photovoltaic modules to customers across the world. Likewise,since entering the project development business in 2010,Canadian Solar has developed,built,and connected approximately 11 GWp of solar power projects and 3.7 GWh of battery energy storage projects across the world. Currently,the Company has approximately 1.6 GWp of solar power projects in operation,6.5 GWp of projects under construction or in backlog (late-stage),and an additional 20.9 GWp of projects in advanced and early-stage pipeline. In addition,the Company has 1 GWh of battery energy storage projects in operation and a total battery energy storage project development pipeline of around 63 GWh,including approximately 8.5 GWh under construction or in backlog,and an additional 54.3 GWh at advanced and early-stage development. Canadian Solar is one of the most bankable companies in the solar and renewable energy industry,having been publicly listed on the NASDAQ since 2006.For additional information about the Company,follow Canadian Solar onLinkedInor visitwww.canadiansolar.com.

Safe Harbor/Forward-Looking Statements

Certain statements in this press release,including those regarding the Company's expected future shipment volumes,revenues,gross margins,and project sales are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially. These statements are made under the "Safe Harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases,you can identify forward-looking statements by such terms as "believes," "expects," "anticipates," "intends," "estimates," the negative of these terms,or other comparable terminology. Factors that could cause actual results to differ include general business,regulatory and economic conditions and the state of the solar power and battery energy storage market and industry; geopolitical tensions and conflicts,including impasses,sanctions and export controls; volatility,uncertainty,delays and disruptions related to global pandemics; supply chain disruptions; governmental support for the deployment of solar power and battery energy storage; future available supplies of silicon,solar wafers and lithium cells; demand for end-use products by consumers and inventory levels of such products in the supply chain; changes in demand from significant customers; changes in demand from major markets such as China,Europe,Brazil and Japan; changes in effective tax rates; changes in customer order patterns; changes in product mix; changes in corporate responsibility,especially environmental,social and governance ("ESG") requirements; capacity utilization; level of competition; pricing pressure and declines in or failure to timely adjust average selling prices; delays in new product introduction; delays in utility-scale project approval process; delays in utility-scale project construction; delays in the completion of project sales; the pipeline of projects and timelines related to them; the ability of the parties to optimize value of that pipeline; continued success in technological innovations and delivery of products with the features that customers demand; shortage in supply of materials or capacity requirements; availability of financing; exchange and inflation rate fluctuations; litigation and other risks as described in the Company's filings with the Securities and Exchange Commission,including its annual report on Form 20-F filed on April 26,2024. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable,it cannot guarantee future results,level of activity,performance,or achievements. Investors should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today's date,unless otherwise stated,and Canadian Solar undertakes no duty to update such information,except as required under applicable law.

Investor Relations Contact:

Wina Huang

Investor Relations

Canadian Solar Inc.

investor@canadiansolar.com

FINANCIAL TABLES FOLLOW

The following tables provide unaudited select financial data for the Company's CSI Solar and Recurrent Energy businesses.

Select Financial Data – CSI Solar and Recurrent Energy

Three Months Ended and As of June 30,2024

(In Thousands of U.S. Dollars,Except Percentages)

CSI Solar

Recurrent

Energy

Elimination

and

unallocated

items (1)

Total

Net revenues

$1,470

$50,525

$(146,562)

$1,635,433

Cost of revenues

1,897

26,564

(115,122)

1,353,339

Gross profit

289,573

23,961

(31,440)

282,094

Gross margin

16.7%

47.4%

—

17.2%

Income (loss) from

operations (2)

$ 93,318

$(8,916)

$(36,752)

$47,650

Supplementary

Information:

Interest expense (3)

$(15,924)

$(15,289)

$(1,809)

$(33,022)

Interest income (3)

11,037

3,075

10

14,122

Cash and cash equivalents

$1,379,591

$234,023

$6,223

$1,619,837

Restricted cash – current and

571,546

858

—

572,404

noncurrent

Non-recourse borrowings

—

781,634

—

781,634

Other short-term and long-

1,778,326

1,099,669

—

2,877,995

term borrowings

Green bonds and convertible

—

146,998

228,165

375,163

notes

Select Financial Data – CSI Solar and Recurrent Energy

Six Months Ended June 30,Except Percentages)

CSI Solar

Recurrent

Energy

Elimination

and

unallocated

items (1)

Total

Net revenues

$3,623

$89,958

$(199,037)

$2,964,544

Cost of revenues

2,465

52,945

(159,713)

2,429,697

Gross profit

537,158

37,013

(39,324)

534,847

Gross margin

17.5%

41.1%

—

18.0%

Income (loss) from

$175,790

$(29,437)

$(49,631)

$96,722

operations (2)

Supplementary

Information:

Interest expense (3)

$(31,633)

$(29,578)

$(6,678)

$(67,889)

Interest income (3)

42,906

5,479

39

48,424

Select Financial Data – CSI Solar and Recurrent Energy

Three Months Ended June 30,2023

(In Thousands of U.S. Dollars,Except Percentages)

CSI Solar

Recurrent

Energy

Elimination

and

unallocated

items (1)

Total

Net revenues

$2,993

$360,045

$(10,015)

$2,364,023Cost of revenues

1,154

201,981

(4,686)

1,923,449Gross profit

287,839

158,064

(5,329)

440,574Gross margin

14.3%

43.9%

—

18.6%Income from operations (2)

$119,384

$122,190

$(17,451)

$224,123

Supplementary

Information:

Interest expense (3)

$(15,833)

$(12,824)

$(1,798)

$(30,455)Interest income (3)

7,550

1,905

1

9,456

Select Financial Data – CSI Solar and Recurrent Energy

Six Months Ended June 30,2023

(In Thousands of U.S. Dollars,Except Percentages)

CSI Solar

RecurrentEnergy

Eliminationandunallocated items (1)

Total

Net revenues

$3,723

$380,097

$(38,516)

$4,065,304Cost of revenues

3,275

214,824

(28,370)

3,306,729Gross profit

603,448

165,273

(10,146)

758,575Gross margin

16.2%

43.5%

—

18.7%Income from operations (2)

$288,842

$106,985

$(26,100)

$369,727

Supplementary

Information:

Interest expense (3)

$(29,421)

$(17,889)

$(3,593)

$(50,903)Interest income (3)

14,027

3,357

28

17,412

(1) Includes inter-segment elimination,and unallocated corporate items not considered part of management's evaluation of business segment operating performance.

(2) Income (loss) from operations reflects management's allocation and estimate as some services are shared by the Company's two business segments.

(3) Represents interest expenses payable to and interest income earned from third parties.

Select Financial Data - CSI Solar and Recurrent Energy

Three Months Ended June 30,2024

Three Months Ended March 31,2024

Three Months Ended June 30,2023

(In Thousands of U.S. Dollars)CSI Solar Revenues:

Solar modules

$ 1,207,816

$ 912,150

$ 1,722,687Solar system kits

114,869

99,247

216,867Battery energy storage solutions

225,805

251,473

14,889EPC and others

36,418

26,808

49,535Subtotal

1,584,908

1,289,678

2,003,978Recurrent Energy Revenues:

Solar power and battery energy storage asset

sales

12,752

6,044

338,487Power services (O&M) and asset

management

18,644

15,868

13,408Electricity revenue from operating portfolio

and others

19,129

17,521

8,150Subtotal

50,525

39,433

360,045Total net revenues

$ 1,433

$ 1,329,111

$ 2,023

Select Financial Data - CSI Solar and Recurrent Energy

Six Months Ended June 30,2024

Six Months Ended June 30,2023

(In Thousands of U.S. Dollars)CSI Solar Revenues:

Solar modules$ 2,119,966

$ 3,177,563Solar system kits214,116

350,454Battery energy storage solutions477,278

29,699EPC and others63,226

127,491Subtotal2,874,586

3,685,207Recurrent Energy Revenues:

Solar PV and battery energy storage asset

sales18,796

343,108Power services (O&M) and asset

management34,512

22,095Electricity revenue from operating portfolio

and others36,650

14,894Subtotal89,958

380,097Total net revenues$ 2,544

$ 4,304

Canadian Solar Inc.

Unaudited Condensed Consolidated Statements of Operations

(In Thousands of U.S. Dollars,Except Share and Per Share Data)

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

2024

2024

2023

2024

2023

Net revenues$ 1,023

$ 2,304Cost of revenues1,339

1,076,358

1,449

2,697

3,729

Gross profit282,094

252,753

440,574

534,847

758,575

Operating expenses:

Selling and distribution

expenses131,692

88,412

87,686

220,104

176,057

General and

administrativeexpenses100,911

94,693

139,571

195,604

218,219

Research and

developmentexpenses25,578

34,279

23,137

59,857

40,444

Other operating income,

net(23,737)

(13,703)

(33,943)

(37,440)

(45,872)Total operating expenses234,444

203,681

216,451

438,125

388,848

Income from operations47,650

49,072

224,123

96,722

369,727Other income (expenses):

Interest expense(33,022)

(34,867)

(30,455)

(67,889)

(50,903)

Interest income14,122

34,302

9,456

48,424

17,412

Gain (loss) on change in

fair value of derivatives,

net81

(16,694)

(23,775)

(16,613)

(16,174)

Foreign exchange gain,

net12,486

12,913

57,532

25,399

36,672

Investment income (loss),

net(835)

169

1,955

(666)

10,335Total other income

(expenses)(7,168)

(4,177)

14,713

(11,345)

(2,658)

Income before income taxes

and equity in earnings of

affiliates40,482

44,895

238,836

85,377

367,069Income tax expense(5,283)

(9,677)

(46,019)

(14,960)

(74,734)Equity in earnings (losses) of affiliates(7,775)

1,005

4,719

(6,770)

12,030Net income 27,424

36,223

197,536

63,647

304,365

Less: Net income

attributable to non-

controlling interests and

redeemable non-

controlling interest23,602

23,871

27,566

47,473

50,683

Net income attributable to

Canadian Solar Inc.$ 3,822

$ 12,352

$ 169,970

$ 16,174

$ 253,682

Earnings per share - basic$ 0.02

$ 0.19

$ 2.62

$ 0.21

$ 3.92Shares used in computation -

basic66,413,750

66,164,560

64,912,928

66,155

64,716,522Earnings per share -

diluted$ 0.02

$ 0.19

$ 2.39

$ 0.21

$ 3.58Shares used in computation -

diluted66,984,783

66,642,725

71,689,925

66,813,754

71,571,041Canadian Solar Inc.Unaudited Condensed Consolidated Statement of Comprehensive Income (Loss)(In Thousands ofU.S. Dollars)

Three Months Ended

Six Months Ended

June 30,

March 31,

2024

2024

2023

2024

2023Net Income$ 27,424

$ 36,223

$ 197,536

$ 63,647

$ 304,365Other comprehensive income (loss):

Foreign currency translation

adjustment(59,897)

(53,813)

(68,507)

(113,710)

(45,257)Gain (loss) on changes in fair

value of available-for-sale debt

securities,net of tax769

880

(1,050)

1,649

(711)Gain (loss) on interest rate

swap,net of tax(481)

965

(67)

484

(172)Share of gain (loss) on changes

in fair value of derivatives of

affiliate,net of tax(159)

1,134

503

975

(107)Comprehensive income (loss)(32,344)

(14,611)

128,415

(46,955)

258,118Less: comprehensive income

attributable to non-controlling

interests and redeemable non-

controlling interest15,637

20,337

3,690

35,974

28,852Comprehensive income (loss)

attributable to Canadian Solar

Inc.$ (47,981)

$ (34,948)

$124,725

$ (82,929)

$229,266

Canadian Solar Inc.

Unaudited Condensed Consolidated Balance Sheets(In Thousands of U.S.Dollars)

June 30,

December31,

2024

2023

ASSETS

Current assets:

Cash and cash equivalents

$ 1,837

$ 1,938,689

Restricted cash

562,427

999,933

Accounts receivable trade,net

1,019,370

904,943

Accounts receivable,unbilled

164,226

101,435

Amounts due from related parties

35,215

40,582

Inventories

1,204,986

1,179,641

Value added tax recoverable

171,859

162,737

Advances to suppliers,net

172,408

193,818

Derivative assets

5,613

9,282

Project assets

555,555

280,793

Prepaid expenses and other current assets

268,433

283,600

Total current assets

5,779,929

6,095,453

Restricted cash

9,977

7,810

Property,plant and equipment,net

3,079,646

3,088,442

Solar power systems,266,529

951,513

Deferred tax assets,net

314,200

263,458

Advances to suppliers,net

231,298

132,218

Investments in affiliates

227,703

236,928

Intangible assets,net

33,923

19,727

Project assets

688,648

576,793

Right-of-use assets

226,517

237,007

Amounts due from related parties

38,668

32,313

Other non-current assets

239,899

254,098

TOTAL ASSETS

$ 12,136,937

$ 11,895,760

Canadian Solar Inc.

Unaudited Condensed Consolidated Balance Sheets (Continued)

(In Thousands of U.S.Dollars)

June 30,

December 31,

2024

2023

LIABILITIES,REDEEMABLE NON-

CONTROLLING INTEREST AND EQUITY

Current liabilities:

Short-term borrowings$ 2,036,003

$ 1,805,198

Accounts payable842,105

813,677

Short-term notes payable765,511

878,285

Amounts due to related parties3,629

511

Other payables1,390

1,359,679

Advances from customers274,051

392,308

Derivative liabilities1,387

6,702

Operating lease liabilities18,006

20,204

Other current liabilities458,808

587,827

Total current liabilities5,578,890

5,864,391

Long-term borrowings1,623,626

1,265,965

Green bonds and convertible notes375,163

389,033

Liability for uncertain tax positions5,847

5,701

Deferred tax liabilities88,624

82,828

Operating lease liabilities113,331

116,846

Other non-current liabilities491,554

465,752

TOTAL LIABILITIES8,277,035

8,190,516

Redeemable non-controlling interest$ 72,785

$ —

Equity:

Common shares835,543

835,543

Additional paid-in capital470,628

292,737

Retained earnings1,565,881

1,549,707

Accumulated other comprehensive loss(215,620)

(118,744)

Total Canadian Solar Inc. shareholders'

equity2,656,432

2,559,243

Non-controlling interests1,130,685

1,146,001

TOTAL EQUITY3,787,117

3,705,244

TOTAL LIABILITIES,REDEEMABLE NON-

CONTROLLING INTEREST AND EQUITY$ 12,760

Canadian Solar Inc.Unaudited Condensed Statements of Cash Flows(In Thousands ofU.S. Dollars)

Three Months Ended

Six Months Ended

June 30,

2024

2024

2023

2024

2023Operating Activities:

Net income$ 27,424

$ 36,223

$ 197,536

$ 63,647

$ 304,365Adjustments to reconcile net

income to net cash provided by

operating activities174,201

158,350

190,634

332,551

258,372Changes in operating assets

and liabilities(630,963)

(486,060)

(98,611)

(1,117,023)

(226,006)Net cash provided by (used in)

operating activities(429,338)

(291,487)

289,559

(720,825)

336,731

Investing Activities:

Purchase of property,plant and

equipment(390,248)

(266,462)

(283,065)

(656,710)

(516,097)Purchase of solar power

systems(10,936)

(173,341)

(36,329)

(184,277)

(146,195)Other investing activities2,515

6,832

(17,927)

9,347

(29,010)Net cash used in investing

activities(398,669)

(432,971)

(337,321)

(831,640)

(691,302)

Financing Activities:

Net proceeds from sale of

subsidiary's redeemable

preferred shares297,000

—

—

297,000

—Payments for repurchase of

subsidiary's ordinary shares(70,624)

—

—

(70,624)

—Net proceeds from subsidiary's

public offering of ordinary shares—

—

803,645

—

803,645Other financing activities(38,778)

723,412

547,492

684,634

927,241Net cash provided by financing

activities187,598

723,412

1,351,137

911,010

1,730,886Effect of exchange rate changes(61,483)

(51,253)

(128,769)

(112,736)

(95,679)Net increase (decrease) in cash,

cash equivalents and restricted cash(701,892)

(52,299)

1,174,606

(754,191)

1,280,636Cash,cash equivalents and

restricted cash at the beginning

of the period$ 2,894,133

$ 2,946,432

$ 2,075,533

$ 2,432

$ 1,969,503Cash,cash equivalents and

restricted cash at the end of the

period$ 2,192,241

$ 2,133

$ 3,250,139

$ 2,241

$ 3,139