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Canadian Solar (CSIQ) Set to Launch EP Cube Storage Solution

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Canadian Solar Inc. (CSIQ - Free Report) recently announced that its subsidiary, CSI Solar, is set to introduce its new storage solution, EP Cube, on Sep 19, 2022 at the RE+ trade show. EP Cube is a lightweight and sleek energy storage solution that seeks to provide an all-in-one storage solution for homeowners, thus eliminating the need to pick and choose what to power.

The official launch of EP Cube is scheduled to be held on Sep 21, 2022. The product launch will expand CSIQ’s footprint in the residential energy storage market amid the rising demand for a storage solution.

Features of EP Cube

Canadian Solar’s EP Cube’s sleek design makes it fully compatible with indoor or outdoor installation. Moreover, the product can be stacked for 9.9 kilowatt-hours (kWh) to 19.9 kWh capacities and can deliver up to 119.9 kWh of storage and 45.6-kilowatt (kW) output. Such generation capacity makes it capable enough to fully power the average home with high-surge-current appliances and AC units.

EP Cube weighs less than 70 pounds compared to more than 300 pounds of other storage devices. This makes EP Cube cost-effective for homeowners in terms of transport and eases the overall installation process.

Moreover, homeowners will be provided with an app for easy management and monitoring of the energy produced and used. Meanwhile, installers can use the app for setting up the system and troubleshoot when required.

Considering the rapidly growing clean energy space, such an impressive product will surely strengthen CSIQ’s position in the energy storage market. This should bolster its revenue generation prospects from the storage solution arena.

Looking Ahead

The Inflation Reduction Act (“IRA”), enacted by the U.S. Government in August 2022, should act as a catalyst for the further expansion of the U.S. renewable energy market. The IRA emphasizes the tax incentive and rebates for homeowners on different aspects of the clean energy space, mainly to accelerate the pace of transition.

The energy storage division also gets a boost under the current IRA by including the Investment Tax Credit of 30% for standalone storage projects. This should propel the demand for storage projects in the days ahead.

In this scenario, Canadian Solar, with its recent addition of a product in the battery storage arena, may fetch a handful of returns amid probable strong demand. Canadian Solar apart, other solar stocks that can expand in the rising demand environment are as follows:

Enphase Energy (ENPH - Free Report) : It enjoys a valuable position in the solar market by manufacturing fully integrated solar-plus-storage solutions. The company plans to introduce the IQ Battery 5P later in 2022. This battery will deliver twice the power of the current battery at a lower manufacturing cost, enabling homeowners to start heavier loads.

Enphase boasts a long-term earnings growth rate of 47.1%. ENPH has rallied 92.7% in the past year.

SunPower (SPWR - Free Report) : Its battery storage system, SunVault Storage, provides whole-home backup. It offers double the energy as previous iterations with 26 kWh and 52 kWh configurations. Its features include maximum energy savings with powerful charge and discharge during peak rate times, larger battery capacity and battery stability for maximum safety and efficiency.

The Zacks Consensus Estimate for SPWR’s 2022 earnings suggests a growth rate of a solid 300% from the prior-year reported figure. SunPower has returned 24.5% to its investors in the past year.

SolarEdge (SEDG - Free Report) : It is a provider of lithium-ion batteries and integrated energy storage solutions. In May 2022, SEDG announced the opening of Sella 2, which is a two-gigawatt-hour battery cell manufacturing facility. Sella 2 is expected to ramp up production during the second half of 2022.

SolarEdge’s long-term earnings growth rate is pegged at 29.1%. SEDG shares have rallied 15% in the past year.

Price Movement

In the past year, shares of Canadian Solar have surged 13.7%, on par with the industry’s growth.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank

Canadian Solar currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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