Canadian Solar Solutions, an operational wing of Canadian Solar Inc. ( CSIQ - Analyst Report ) , extended its business contract with Penn Energy Renewables Ltd. for the delivery of a supplemental 10 megawatt (MW) ("AC") turnkey engineering, procurement and construction ("EPC") service for the development of a solar power plant. The agreement also entails operational and maintenance ("OM") services among the entities.

The construction activities of the Ontario solar plant is set to commence in the ongoing quarter itself and the facility is expected to come online from the third quarter 2013. With this fresh deal, the total engineering, procurement and construction as well as operational and maintenance between the two parties comes to 28.7 MW (AC). The constructions of the previously announced solar projects are moving at a faster pace and operations are expected to initiate by the summer of 2013.

The renewable-utility program by Canadian Solar includes the installation of 46,000 CS6P high-quality modules in the solar plant. The new large-scale project is expected to reduce roughly 234,440 metric tons of carbon dioxide emissions for a period of 20 years and will also bring clean power services to 1,462 homes.

We believe this project will provide the dual benefit of boosting the use of solar energy on a massive scale by residential and commercial customers in the coming years as well as expand employment opportunities in the Canadian economy.

Canadian Solar was recently engaged in a partnership venture with US based private contractor, PetersenDean, for the development of a new roofing program for a residential solar project in California. We anticipate these multiple growth-related projects will be a money-spinner for Canadian Solar in the near term and also enable the company to accrue favorable returns.

For the third quarter 2012, the company expects export volumes to be in the range of 390 MW to 420 MW and expects gross margin to be between 2% and 5%. Canadian Solar’s export shipments for 2012 are estimated in the range of roughly 1,800 MW to 2,000 MW of solar products.

The Zacks Consensus Estimates for the third quarter and full year 2012 are currently pegged at a loss of 63 cents per share and a loss of $1.90 per share, respectively.

Based in Guelph, Canada, Canadian Solar, along with its subsidiaries, engages in the design, development, manufacture, and sale of solar power products in Canada and internationally. The company has a Zacks #3 Rank (Hold rating). Over the long term we have a Neutral recommendation on the company. The company competes with ReneSola Ltd. ( SOL - Analyst Report ) and Ascent Solar Technologies, Inc. ( ASTI - Snapshot Report )