CANADIAN SOLAR. November 2017 Canadian Solar EMEA. CSIQ NASDAQ Listed

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1 CANADIAN SOLAR November 2017 Canadian Solar EMEA CSIQ NASDAQ Listed

Global Overview Founded in Ontario, 2001 Listed on NASDAQ (CSIQ) in 2006 Over 9,700 employees globally Presence in 18 countries / territories > 22 GW of solar modules shipped cumulatively > 3.

2 Global Overview Founded in Ontario, 2001 Listed on NASDAQ (CSIQ) in 2006 Over 9,700 employees globally Presence in 18 countries / territories > 22 GW of solar modules shipped cumulatively > 3.2 GWp solar power plants built and connected (incl. Recurrent) No. 1 Solar Company 2016 according to IHS Sales office Global Footprint and Brand Manufacturing facility Total Solutions contracted / late stage projects Highlights Q Revenue: $692 million Q Shipment: 1.75 GW Q Shipment Guidance: 1.65 GW 1.70 GW 2017 Shipment Guidance: 6.0 GW 6.5 GW Solar Power Plants Built and Connected (MWp) 3, , , E 5

3 EMEA Overview EMEA HQ IN MUNICH 5 OFFICES, 6 WAREHOUSES IN EMEA NO. 1 MODULE SUPPLIER IN AFRICA NO. 2 MODULE SUPPLIER IN EUROPE NO. 1 PV MODULE BRAND IN 2016 (IHS) ONE TEAM SERVING ALL OFFICES, BRANCHES, AND REPRESENTATIVES ACROSS EMEA EXTENSIVE EXPERIENCE AND EXPERTISE ACROSS ALL FUNCTIONS

4 Integrated solar solution provider offering cradle to grave technology Silicon Ingots Wafers Cells 200 µm SiO 2 = sand 7

5 Energy Business: Globally Diversified Project Pipeline 9.6 GWp Total project development pipeline Priority Markets for Utility-Scale Project Development 7.4 GWp Early to mid-stage development pipeline (2) ~2.2 GWp Total contracted / late-stage project pipeline (1) ~1,156 MWp Solar power plants owned and operated, with an estimated total resale value of approximately $1.6 billion Mexico Short term Mid term Long term Monitoring USA Brazil Namibia 626 MWp 401 MWp 400 MWp 399 MWp 144 MWp Japan (1) U.S. (1) China (1) Brazil (1) India (1) 118 MWp Australia (1) India China 68 MWp Mexico (1) Australia Japan 6 MWp Africa (1) Source: Company information as of June 6, Note: (1) Late-stage project and EPC contract pipeline, nearly all projects have an energy off-take agreement and are expected to be built within the next 2-4 years. Some projects may not reach completion due to failure to secure permits or grid connection, among other risk factors. (2) Early to mid-stage of development: includes only those projects that have been approved by our internal Investment Committee or projects that are expected to be brought to the Investment Committee in the near term. 8

6 ENABLING EXCELLENCE WITH LCOE 9

7 How does Canadian Solar improve my offer? LCOE is the language of your customers (commercial) already today. If you do not give your clients the LCOE, they will have to calculate it. We will improve the LCOE in your offer! Deal maker! Decision among offers 10

8 LCOE. Why should I care? LCOE will be the motivator for your customer ($$$$$$$) LCOE improves the viability of your project proposal LCOE is the language of the INVESTOR 11

9 What is LCOE? ALL EXPENSES ALL ENERGY Upfront expenses Financial costs All utilized energy Maintenance Fees The numerical value LCOE is: LCOE = &'()*,-'./( '0 1'/23 452/( &'()*,-'./( '0 6/2783 9:2; LCOE is the kwh price if the PV system would invoice the end customer 12

10 Example Levelised Cost of Electricity US$ 22,430 LCOE = (US$/kWh) kwh 280,863 13

11 What affects LCOE? Cost of components Item Better with Worse with - Modules poly EU or US product - Inverter more kwp - Mounting system higher panel eff. complex roof - DC accessoires longer strings bad engineering - AC accessoires good engineering - Monitoring match with inverter 14

12 What affects LCOE? Cost of installation Item Better with Worse with - Transportation High efficiency non stackable pallets 72-cell panels - On-site Handling High efficiency non stackable pallets 72-cell panels - Installation M. System High efficiency complex site/roof - Installation Modules High efficiency complex site/roof 72-cell panels heavy solar panels - DC/AC Installation Good engineering - Monitoring Match with inverter 15

13 What affects LCOE? Cost of money and property Item Better with Worse with - Land / roof ownership High efficiency Who owns what? - Land / roof rental High efficiency Who owns what? - Land/roof preparation High efficiency Old roof coverings, Geological constraints - Financing debt Low system cost Currency instability Low interest rate Low credit scores - Taxes 16

14 What affects LCOE? During operation Item Better with Worse with - Yearly Performance High yield System problems Low degradation Resilient module design - Maintenance Costs High efficiency Difficult system topology Frameless High reliability - Repairs and Exchanges High reliability Unique technologies String inverter Non Tier-1 suppliers 17

15 But how will Canadian Solar improve my LCOE? 18

16 High performance 19

Leading Research & Development (1)Canadian Solar operates three state-of-the-art PV research centers for cells, modules and systems in Canada and China.

17 Leading Research & Development (1)Canadian Solar operates three state-of-the-art PV research centers for cells, modules and systems in Canada and China. (2)More than 400 scientists, engineers and technicians conduct research to continuously improve our solar cell and solar module technologies (3)With R&D investments of over 600 million USD, 217 global patents and strategic R&D partnerships with NREL, ECN and DuPont, Canadian Solar is a globally recognized innovator of the solar industry 20

Competitive Pipeline of Homegrown Technologies Poly Gen3

baseline; cell efficiency to reach over 19% in mass

in-house multi cell production (~4GW) using this

(PERC) GEN 4 PERC enhances back side passivation and

18 Competitive Pipeline of Homegrown Technologies Poly Gen3 0.4% cell efficiency and 4 watts module power gain over baseline; cell efficiency to reach over 19% in mass production Over 4 years in-house R&D, self-owned IPs 100% in-house multi cell production (~4GW) using this technology by the end of 2017 Pleasing aesthetics GEN4 (PERC) GEN 4 PERC enhances back side passivation and increases cell efficiency to 21% Low Light Induced Degradation (LID). Premium product: 60-cell module power to reach over 300 Watt 100% cell production to be upgraded to PERC by the end of

19 How do we reach high efficiency? We have our own poly-wafer texturing technology, which improves the cell light-trapping characteristics à Gen3 (MCCE - Metal Catalyzed Chemical Etching) This is the key to the Gen3 module series. 22

20 Cell Efficiency Roadmap Cell Efficiency Source: Company information as of June 6,

21 KuModule: the efficiency leader 60 cells KuPower Mono PERC KuPower Poly Super high efficiency Mono PERC KuPower Poly high efficiency Mono K Poly K standard W 24

22 KuModule: the efficiency leader 72 cells KuMax Mono PERC KuMax Poly super high efficiency Mono PERC (competition) KuMax Poly high efficiency Std. Mono U Poly U/X standard W 25

23 KuModule High Efficiency Portfolio KuPower KuMax KuDymond (Double Glass) CS3K (1675x992mm) Poly: W Mono PERC: W CS3U (2000x992mm) Poly: W Mono PERC: W CS3U-FG (2000x992mm) Poly: W Mono PERC W 26

24 KuModule: the best against shading 27

25 How do we avoid the issue? Cell current will be cut to ½ (internally) Heat dissipation in shaded areas will be reduced to half 4.75 A 4.75 A 9.5 A 28

26 KuModules Cell interconnection The current is separated in top and bottom semipanels Current flow Current flow 29

27 Better shading performance (soiling/bird droppings) Soiling reduces typically 5-15% of the incoming irradiation to the bottom half of the solar panel. P out = 100% P out = 90% Power +5% P out = 95% P out = 90% 30

28 Better shading performance (soiling/bird droppings) Soiling reduces typically 5-15% of the incoming irradiation to the bottom half of the solar panel. P out = 100% P out Loss = 10% = 90% P out Loss = 5% = 95% Improvement 50% P out = 90% 31

29 Better shading performance (cross shading) When obstacles shade a panel, performance can go down dramatically P out = 100% P out = 30% Power +116% P out = 65% 30% diffused light P out = 30% 32

30 Better shading performance (cross shading) When obstacles shade a panel, performance can go down dramatically P out = 100% P out Loss = 70% = 30% P out Loss = 35% = 65% Improvement 50% 30% diffused light P out = 30% 33

31 Better shading performance (optimizers) The same applies to EACH panel while using optimizers P out = 100% P out = 30% Power +116% P out = 65% 30% diffused light P out = 30% 34

32 KuModule shading: we expect ~50% lower shading loss (vs. standard) 35

33 KuModule: Low temperature, lower losses 36

34 2. Higher Yield: Increases Output Power by Module Power Output (W) NMOT reduced by [ ] C* due to lower heat generation Temperature Coeff. reduced by 0.02% due to lower series resistance Ku: 0.39% Std: 0.41% Module Temperature NMOT: Nominal Module Operating Temperature * Test results Fraunhofer ISE testing, available under NDA 37

35 2. Higher Yield: Ideal for Hot and Sunny Regions Stephanie Malik et al, Fraunhofer CSP, 29 th EUPVSEC: The advantage of KuModules of a relatively lower operating temperature is over-proportionally bigger in a hot and sunny environment. 38

36 Why do we operate at lower temperatures? Cell current will be cut to ½ (internally) Ohmic losses are reduced 75% 4.75 A 4.75 A 9.5 A 39

37 Reliability: Our main concern 40

38 Back in Under consideration MAXPOWER Mono PERC Mono Poly SUPERPOWER STANDARD Poly Mono PERC Mono 365W 330W 350W 295W 280W 270W 41

39 IEC V3 Testing standards Higher Safety Higher Reliability New IEC & (2016) IEC (PID) Old IEC IEC (connector) IEC (J-box) IEC (salt mist) IEC (ammonia) Certified according to the new IEC 61215/61730 (2016) Stringent certification standards (VDE & CSA) Built-up from years of field experience. 42

They accurately show the effect of localized shading on

40 IEC 61215:2016 Hot Spots [v3] Under consideration The new IEC has improved tests (v3) for hot-spots. They accurately show the effect of localized shading on the panel. Mono PERC Realistic shading Test IEC (v3) 365W 43

41 High power + classic panel = high risk of hot spots Module Failure! Hotspot temperature test according to latest IEC 61215: 2016 standard 44

This is what happened in the lab Realistic shading 170 Test IEC 61215 (v3)

(V3), just 30 minutes shading endurance caused back sheet and J-box failure : J-box

42 This is what happened in the lab Realistic shading 170 Test IEC (v3) CSI-PERC+KPF: Back sheet deformation 169 Due to partial shading according to IEC (V3), just 30 minutes shading endurance caused back sheet and J-box failure : J-box delaminated Back sheet deformation Back sheet delaminated Taiwan PERC+KPF: Back sheet delaminated 45

43 Hotspot How it happens and how it looks in real life Dust accumulation Shading Droppings J-box detachment Cell burn mark Backsheet burn mark 46

44 Our solution? Cell current will be cut to ½ (internally) Ohmic losses are reduced 75% 4.75 A 4.75 A 9.5 A 47

45 KuModule: back to safe hot-spot temperatures Hotspot temp. reduced by ~30 C Hotspot temperature test according to latest IEC 61215: 2016 standard 48

46 Other reliability aspects Lower risk of microcrack propagation: cell damage impact area reduced by 50% Soldering joint stress lowered by 50% Diode temperature reduced by 10 C 49

47 Higher Reliability: 50% Lower Micro-crack Risk Cell crack propagation stopped by cell edge or metallization of busbars. Dual-cell damage impact area potentially reduced by up to 50%. Crack propagation orientations Principal crack Secondary crack Standard Cell Dual-Cell 50

Higher Reliability: 50% Reduction of Soldering Joint Stress The thermo-mechanical stress on interconnects and cell soldering joints decreases by 50% due to shorter cell and interconnect lengths.

48 Higher Reliability: 50% Reduction of Soldering Joint Stress The thermo-mechanical stress on interconnects and cell soldering joints decreases by 50% due to shorter cell and interconnect lengths. As a result micro-crack and soldering joint issues during module operation are greatly reduced. schematic diagram δ= (a g C-a c D)*ΔT Parameter Unit Standard Ku ΔT 85 a g 1/C 3.3e-6 a c 1/C 2.56e-6 C mm D mm Expansion mm (-47%) ΔT: temperature variation a g : expansion coefficient of glass a c : expansion coefficient of cell 51

49 Higher Reliability: 10 O C Lower Diode Temperature The diode temperature is reduced by 10 O C thanks to the better heat dissipation of the split J-box. 52

50 But is this our true focus? Why did we spend so much effort? 53

51 It is in our own best interest CSI Energy Group CSI MSS CSI Energy Group Developer/Investor Component Supplier O&M We want We give WARRANTIES We are LOW LCOE RESPONSIBLE for yield results Our product cycle is 25+ years. Our profitabilty depends on it 54

52 KuModule: Focus on LCOE The improvements in KuModule were made looking at LCOE improvements: Minimize the system cost - High efficiency - Easy/Sturdy installation Maximize the yield - Dual Cell - Temperature - Shading Reduce downtime and maintenance cost - Dual Cell against hot-spots - KuDymond for higher reliability - Individual diode boxes - Dedicated after sales department 55

53 SERVICE 56

54 We are close to you! Offices in Cape Town and Johannesburg with >10 employees Dedicated team of 5 aftersales engineers in Munich - Response time 24h - and telephone hotlines - Onsite visits Warehousing in South Africa Network of distributors Additional services and products - MV Station - Inverters (2018) - O&M - EPC wrapping 57

55 THANK YOU! CSIQ NASDAQ Listed

56 CANADIAN SOLAR Thanks! October 2017 CSIQ NASDAQ Listed

CANADIAN SOLAR KuModule

CANADIAN SOLAR KuModule May 2017 CSIQ NASDAQ Listed Outline 1. Dual-cell technology 2. Product Benefits 3. Portfolio 4. Introduction schedule 2 1 DUAL-CELL TECHNOLOGY Dual-cell - Highlights Lower losses