Canadian Solar Q2 module shipments fall 60%
Canadian Solar shipped 3.1GW of modules in Q2 2026, down 60% year-on-year. It forecasts a rebound to 3.5-3.8GW in Q3 and is expanding its US manufacturing.
Canadian Solar shipped 3.1 gigawatts of solar modules in the second quarter of 2026. This represents a 60% year-on-year decline, according to the company's latest financial results.
The Q2 2026 shipment volume is the company's lowest for any second quarter since 2020, when it shipped 2.9GW. Sequentially, shipments increased by 25% from the first quarter. The company anticipates module shipments will rise to between 3.5GW and 3.8GW in the third quarter of 2026. This expected increase would still leave volumes below the 7.9GW recorded in the second quarter of 2025.
US manufacturing expansion
Canadian Solar is simultaneously expanding its US manufacturing footprint. Its module assembly plant in Texas is being expanded from 5GWp to 10GWp, with completion expected in the second half of 2026. The company's heterojunction (HJT) solar cell facility in Jeffersonville, Indiana, is being expanded to a total nameplate capacity of 6.3GWp.
Phase I of the Indiana cell facility has a nameplate capacity of 2.1GWp and is described as the first commercial-scale HJT solar cell facility in the United States. Phase II is expected to begin trial production in the first quarter of 2027, adding 4.2GWp of annual nameplate capacity.
CEO Colin Parkin stated the company is executing a multidimensional solar technology roadmap. "This will position CS PowerTech as the largest crystalline silicon cell manufacturer in North America," Parkin said. "When combined with our 10GWp module facility in Texas, CS PowerTech solidifies its position as one of North America’s premier integrated PV manufacturers."
Parkin added that nearly half of the quarter's 3.1GW module shipments went to North America. The company also achieved 3.7 gigawatt-hours of energy storage shipments to projects under execution.
During the quarter, Canadian Solar launched its TOPCon 3.0 high-power-density module, with a power output of up to 670Wp and a conversion efficiency of 24.8%. Shipments are scheduled to begin in August 2026.
Financial and project pipeline update
Net revenue for Q2 2026 was US$1.2 billion, a 12% sequential increase but a 29% year-on-year decline. The company reported a gross profit of US$168 million, down from US$271 million in the previous quarter. Operating expenses rose to US$240 million from US$198 million sequentially, which the company attributed to higher ramp-up and logistics costs.
Canadian Solar's Recurrent Energy business held a total solar project development pipeline of 21.7GWp as of June 30, 2026. The pipeline's regional breakdown is presented in the table below.
| Region | Pipeline Capacity (MWp) |
|---|---|
| North America | 5,650 |
| Europe, Middle East, and Africa (EMEA) | 6,293 |
| Latin America | 6,746 |
| Asia Pacific | 2,978 |
The pipeline includes 1.7GWp under construction, 2.2GWp of backlog, and 17.7GWp in advanced and early-stage development. Recurrent Energy's operations and maintenance platform currently has 15GW of contracted projects.
Storage shipments surge
Battery energy storage was a significant growth area. Total battery energy storage shipments recognized as revenue reached 3.7GWh, marking an 82% increase from the previous quarter and a 73% increase year-on-year. Of this total, 471MWh was shipped to internal projects, with associated revenue to be recognized later.
The company's e-STORAGE business reported a contracted backlog, including long-term service agreements, of US$3.5 billion as of June 30, 2026. Canadian Solar also reported an 84.1GWh battery energy storage project development pipeline at the quarter's end.
The company reiterated its full-year 2026 US guidance for solar modules and battery energy storage solutions.
