Canadian Solar Completes Sale of 56.3 MWp Solar Power Plant in Japan for JPY 22.3 Billion

PVTIME – Canadian Solar Inc. (the "Company", or "Canadian Solar") (NASDAQ: CSIQ), one of the world's largest solar power companies, announced today it completed the sale of Yamaguchi Shin Mine, a 56.3 MWp operational solar power plant in the Yamaguchi Prefecture in Japan.

Hana
Financial Investment, a subsidiary of Hana Financial Group, acquired the solar
power plant for an enterprise value of approximately JPY 22.3 billion (around
USD 205 million). Canadian Solar expects to recognize the revenue from the
transaction in the first quarter of 2020. This sale was originally planned to
close in the fourth quarter of 2019 but was delayed due to regulatory and
contractual obligations required to be met prior to closing the transaction.

Yamaguchi
Shin Mine reached commercial operation in May 2018 and is powered by Canadian
Solar high efficiency modules. The electricity generated is being purchased by
Chugoku Electric Power Company, Inc. at the rate of JPY 36.0 ($0.32) per kWh for
20 years.

Canadian
Solar will continue to provide asset management as well as operational and
maintenance services for the plant after the transaction. Additionally, a
5-year profit sharing agreement is in place, enabling Canadian Solar to secure
additional revenue after the sale should the power plant outperform agreed upon
metrics.

"Canadian
Solar is excited to announce the completion of the sale of our Shin Mine
project." said Dr. Shawn Qu, Chairman and Chief Executive Officer at
Canadian Solar. "This transaction structure ensures that we capture
stable, long-term revenue streams for our asset management and operations and
maintenance services. We expect to grow this business as we work to enhance and
retain greater share of the value creation throughout the life cycle of solar
power plants."

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