Canadian Solar (NASDAQ: CSIQ) saw its stock surge 5.06% in pre-market trading on Wednesday, following the announcement of a significant battery storage agreement in Ontario, Canada. The company's subsidiary, e-STORAGE, has signed deals with Aypa Power for two large-scale battery energy storage projects, showcasing Canadian Solar's growing presence in the energy storage market.

The agreement involves the Elora and Hedley projects, which will add a combined 420 MW / 2,122 MWh of storage capacity to Ontario's electricity grid. These projects will utilize e-STORAGE's SolBank technology and operate under 20-year long-term service agreements, including continuous monitoring, preventive maintenance, and performance guarantees. The delivery of the storage systems is expected to begin in the first quarter of 2026, with commercial operations scheduled for the first half of 2027.

This deal represents a significant step forward for Canadian Solar in the rapidly growing energy storage sector. As governments and utilities worldwide seek to increase grid reliability and meet rising energy demands, such large-scale battery storage projects are likely to become increasingly important. The long-term nature of the service agreements also provides Canadian Solar with a stable revenue stream, which may have contributed to investor enthusiasm and the subsequent stock price increase.