Canadian Solar Inc. ("Canadian Solar" or the "Company") (NASDAQ: CSIQ), today announced it signed an agreement with SPIC Brasil, a leading power generation company in Brazil, to sell 70% stake in the Company's 738 MWp solar projects, Marangatu and Panati-Sitia.

The Marangatu and Panati-Sitiá projects, 446 MWp and 292 MWp each in size, are located in Piauí and Ceará, the Northeastern states of Brazil, covering an area of 2,200 hectares. Both projects are at advanced stage of development and are expected to begin construction in late 2022 and reach commercial operation in late 2023.

Once in operation, Marangatu and Panati-Sitiá are expected to be two of the largest solar power plants in Brazil and the clean electricity generated will be equivalent to powering over 900,000 households in Brazil annually. Around 75% of Marangatu and Panati-Sitiá's assured energy is already committed through long-term PPAs (power purchase agreements), and the remaining will be sold in the free market.

Dr. Shawn Qu, Canadian Solar Chairman and CEO, commented, "We are pleased to partner with SPIC Brasil in this transaction for the Marangatu and Panati-Sitiá projects, which will meaningfully contribute towards Brazil's goal of obtaining 23% of its energy from non-hydro renewable energy sources by 2030. With the completion of this sale, Canadian Solar will have successfully monetized 2.3 GWp of utility-scale solar projects in Brazil. We will continue to execute and monetize our remaining backlog of 1.6 GWp of high-quality, contracted solar projects in Brazil. Canadian Solar is a leader in the Brazilian market, and we will expand our leadership across more Latin American markets, including Colombia and Chile".

Adriana Waltrick, CEO of SPIC Brasil, provided the following comment, "We know that solar energy is a fundamental source for the energy transition towards a low carbon economy. SPIC group already has an extensive experience in implementing solar projects, being one of the main competitors in the sector worldwide. This acquisition marks the company's first solar investment in Brazil and the partnership with Canadian Solar is strategic, given Canadian Solar's experience and pioneering spirit on solar projects implementation and manufacturing."

The closing of this transaction depends, among other precedent conditions customary for this kind of deal, on the approval of the competent anti-trust regulatory agencies.

About Canadian 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 storage solutions, and developer of utility-scale solar power and battery storage projects with a geographically diversified pipeline in various stages of development. Over the past 20 years, Canadian Solar has successfully delivered over 71 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 over 6.6 GWp in over 20 countries across the world. Currently, the Company has around 800 MWp of solar projects in operation, 5.3 GWp of projects under construction or in backlog (late-stage), and an additional 18.5 GWp of projects in pipeline (mid- to early- stage). 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 on LinkedIn or visit www.canadiansolar.com.

About SPIC Brasil

SPIC Brasil is a company that invests in safe energy generation with respect for the communities where it operates, enhancing energy throughout the country. It invests in innovation, generation and solutions focused on renewable sources and contribute to the energy transition, guided by a commitment to people and the environment. Globally, the Group has US$ 202.3 billion assets and a total installed capacity of 187 GW. With assets totaling more than 3 GW in Brazil, the company operates the São Simão Hydroelectric Power Plant, on the border between the states of Minas Gerais and Goiás; two wind farms in Paraíba – Millennium and Vale dos Ventos – and has a stake in the largest natural gas complex in Latin America, the GNA (Gás Natural Açu), in São João da Barra (RJ). It employs more than 235 professionals located in São Paulo (SP), Natal (RN), São Simão (GO) and Mataraca (PB). For more information, access the SPIC Brasil Annual Report available at www.spicbrasil.com.br.

Safe Harbor/Forward-Looking Statements

Certain statements in this press release 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 and battery storage market and industry; geopolitical tensions and conflicts, including impasses, sanctions and export controls; volatility, uncertainty, delays and disruptions related to the COVID-19 pandemic; supply chain disruptions; governmental support for the deployment of solar power; future available supplies of high-purity silicon; 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 Japan, the U.S., China, Brazil and India; 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; 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; uncertainties related to the CSI Solar carve-out listing; 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 28, 2022. 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.

Canadian Solar Inc. Investor Relations Contacts

Isabel Zhang
Investor Relations
Canadian Solar Inc.
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David Pasquale
Global IR Partners
Tel: +1-914-337-8801
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