Can you provide an overview of Canadian Solar and its evolution since its inception?
Canadian Solar is one of the largest solar and energy storage companies in the world, founded in 2001. I am the founder, chairman, and CEO. With undergraduate and master's degrees in physics, I completed my Ph.D. in materials science at the University of Toronto. This led to my role as a research scientist at Ontario Hydro, Canada's largest power utility, in 1996. By the time I founded Canadian Solar, the solar industry was relatively small. However, over the years, we've grown significantly. Last year, we generated $7.6 billion in revenue, and by the end of Q1 this year, we've shipped over 125 gigawatts of solar modules to more than 165 countries, capturing about 8% of global market share.
Our manufacturing facilities are located across North America, including the US and Canada, and Asia. Additionally, we are a prominent solar and energy storage project developer through our subsidiary, Recurrent Energy, headquartered in Austin, Texas. Another subsidiary, e-STORAGE, based in Ontario, Canada, is a leading energy storage technology company. This diversified approach allows us to contribute significantly to the global solar and energy storage markets.
How has the vision of solar energy changed for you and the industry over the years?
The vision for solar energy has evolved dramatically since I founded Canadian Solar in 2001. Initially, my goal was modest: to work in an industry beneficial to humanity while providing for my family. I never imagined solar energy would grow so significantly.
Today, solar is the largest technology for new electricity generation installations annually. While fossil fuels still account for around 60% of total electricity production, solar has been the leading new installation technology for the past eight to nine years.
In regions like California, solar already provides more than 20% of electricity, and globally, it's around 4-5%.
The International Energy Agency forecasts that by 2050, solar will contribute at least 30% of global electricity, representing a tenfold growth from now. This growth is driven by solar becoming the lowest-cost technology for electricity generation, even without carbon neutrality policies. Advances in energy storage, particularly lithium-ion technology, have further boosted solar's viability, allowing for a 24/7 renewable energy supply. Innovations like self-grid-forming systems, which combine solar, wind, and energy storage, can now provide continuous and controllable electricity, comparable in cost to fossil fuels, even without considering carbon credits.
How is Canadian Solar preparing for the expected scale-up in solar energy production?
We focus on three main areas: technology, strategic manufacturing expansion, and flexibility. First, on the technology front, we emphasize high efficiency and long durability in solar cells and modules. Space is a constraint for solar installations, so improving efficiency is crucial. We lead in this area with our TOPCon solar cell technology, which offers one of the highest commercially available efficiencies.
Second, we approach manufacturing expansion strategically. This year, our key focus is on the US market, with our previously announced new facilities in Dallas, Texas, and Jeffersonville, Indiana. We are also exploring manufacturing opportunities in Europe. While European politicians have expressed support for similar incentives as in the US and China, we await more concrete policy rollouts.
Third, we maintain flexibility by balancing self-production with partnerships. This approach ensures we can adapt to market demands effectively. Additionally, our project development arm focuses on integrated solutions, such as combining solar with wind and energy storage, to meet the growing power demands of technologies like generative AI, which significantly increases electricity consumption. These solutions offer faster implementation compared to traditional fossil fuel power plants, making them ideal for meeting the rising energy needs swiftly and sustainably.
How advanced is the collaboration between solar energy production and battery storage?
Canadian Solar is a leader in both solar and energy storage, making us uniquely positioned to address this collaboration. We've delivered several projects in California which co-locate solar and energy storage, such as Mustang and Crimson, one of the world’s largest battery energy storage projects at 1.4 GWh. We also retrofit older solar installations with energy storage to enhance their economic viability. Energy storage allows us to shift solar power generation from peak sunlight hours to times of higher demand, improving market prices for the energy produced.
Our ability to deliver both co-located and standalone solar and energy storage projects enables us to provide a continuous, controllable green energy supply. This combination is essential for maximizing the efficiency and reliability of renewable energy systems. By integrating these technologies, we can offer solutions that not only meet current energy demands, but also anticipate future needs, particularly as energy consumption grows with advancements in technology.
What motivates you to continue advancing in the solar industry?
My journey has been personally challenging. Five years ago, I had an accident that left me in a wheelchair. Despite this, I remain driven to make my life meaningful and impactful through my work in the solar industry. I am passionate about solar energy and have dedicated my career to it, from my academic studies to founding Canadian Solar. I believe my role in building this company was part of a larger purpose, allowing me to continue contributing to the field despite my physical limitations.
This drive to make a difference keeps me motivated. The solar industry has immense potential to address global energy needs sustainably. By continuing to innovate and develop new solutions, I can help fulfill my dream of making a significant impact on the world. The opportunity to lead Canadian Solar and advance the adoption of renewable energy is a gift, and I am committed to leveraging it to create a better future for all.
