阿特斯太陽能 (CSIQ) 2026 年第二季法說會：虧損 7,700 萬美元與美國 HJT 產能爬坡

重點摘要

• 阿特斯陽光電力 (CSIQ) 公布 2026 年第二季營收達 12 億美元，位於管理層財測高標，且毛利率為 13.9%。
• 該公司錄得 股東應佔淨虧損 7,700 萬美元，相當於每股虧損 1.40 美元，主因運費高漲以及傑佛遜維爾 (Jeffersonville) 太陽能電池廠的產能爬坡費用拖累了獲利能力。
• 太陽能模組營收認列達 3.1 GW。 儲能出貨總量為 3.7 GWh，其中認列營收為 3.3 GWh，受惠於北美交付提速，超出管理層的儲能財測。
• 阿特斯陽光電力已啟用其美國 HJT 太陽能電池廠，目前正將第一期產能提升至 2.1 GWp。第一期預計於 10 月 1 日全面量產，而第二期預計將總產能提升至 2027 年的 6.3 GWp。
• 已簽約在手訂單已超過 13 GWp，價值超過 45 億美元，涵蓋截至 2029 年在美國製造的 HJT 及 TOPCon 模組。e-STORAGE 的在手訂單金額達 35 億美元。
• 管理層預測 2026 年第三季營收介於 13 億至 15 億美元，毛利率介於 13.5%–15.5%，模組出貨量介於 3.5–3.8 GW，儲能交付量介於 3.4–3.8 GWh。

核心財務數據

業務與營運表現

太陽能製造

阿特斯太陽能 (Canadian Solar) 認列了 3.1 GW 的太陽能模組營收，受惠於美國市場的強勁出貨量。當季近一半的模組出貨量銷往北美。

製造部門錄得 4,900 萬美元的營業損失，反映出較高的單位運費以及與傑佛遜維爾 (Jeffersonville) 廠產能提升相關的費用。管理層預期隨著第一階段竣工與第二階段推進，這些成本將回歸正常，進而拉升模組毛利率。

傑佛遜維爾 HJT 電池廠正在將第一階段產能提升至 2.1 GWp，預計將於 10 月 1 日全面量產。第二階段的設備安裝預計將於年底前展開，使總銘牌產能達到 2027 年的 6.3 GWp。阿特斯太陽能亦正在擴建其位於德州梅斯基特 (Mesquite) 的模組廠。

該公司已簽約銷售超過 13 GWp 的美國製造 HJT 及 TOPCon N 型雙面模組，合約期至 2029 年。在手訂單超過 45 億美元，包含與美國公用事業公司、獨立發電業者、開發商及 EPC 公司簽訂的協議。

儲能

儲能出貨量達到 3.7 GWh，而認列營收的裝機量為 3.3 GWh（已扣除分配給內部專案的超過 400 MWh）。由於美國和加拿大的兩個專案進度快於預期，交付量超出財測指引。

e-STORAGE 在本季結束時，已簽約的在手訂單金額達 35 億美元，其中包括涵蓋 34 GWh 專案的長期服務協議。該公司還獲得了一份美國公用事業合約，用於一個 500 MW/2.5 GWh 直流儲能專案，旨在支援資料中心電網基礎設施與韌性。

阿特斯 (Canadian Solar) 目前正量產 SolBank 3.0，可在 20 呎貨櫃外殼內提供 5 MWh 的電量。管理層計劃於 2027 年開始出貨 SolBank 4.0，在相同占地面積下可提供 6.25 MWh 的電量。

Recurrent Energy

Recurrent Energy 第二季產生了 1.17 億美元 的營收。由於數個專案出售時間推遲至 2026 年下半年，營收較上一季下滑。該部門錄得 1,900 萬美元的營業損失，其中包括與即將出售的拉丁美洲專案相關的 2,400 萬美元減損損失。

營運里程碑包括西班牙一個 426 MW 太陽能資產投入商業營運，以及澳洲 150 MW Carwarp 專案併網，該專案獲得與微軟 (Microsoft) 簽訂的長期購電合約支持。

Recurrent Energy 還完成了 6.95 億美元的建設融資與股權方案，用於其位於加州的 330 MW Cobalt 太陽能設施。

截至 2026 年 6 月 30 日，扣除營運中的專案，Recurrent Energy 已取得約 6 GW 的太陽能 與 13 GWh 的儲能 電網併聯許可。其總開發管道達到近 22 GW 的太陽能 與 84 GWh 的儲能。

管理層指引

管理層預計下半年美國太陽能與儲能出貨量將加速成長，且剩餘各季度的出貨量將逐季提升。Recurrent Energy 也預計完成從第 2 季遞延的專案出售，為第 3 季更強勁的季增表現提供支撐。

隨著阿特斯太陽能 (Canadian Solar) 在傑佛遜維爾 (Jeffersonville) 安裝二期設備、將梅斯基特 (Mesquite) 模組廠的產能擴增一倍，並擴建其雪爾比維爾 (Shelbyville) 儲能廠，預計下半年的資本支出將增加。

風險與關注焦點

• 貨運與物流： 運費上漲影響了第 2 季的獲利能力。管理層預期隨著時間推移，美國在地化生產將降低對海外貨運的依賴。
• 製造執行力： 傑佛遜維爾廠區的產能提升帶來了近期成本，而多個美國擴產計畫需要在下半年進行巨額資本支出。
• 政策不確定性： 管理層表示，針對進口多晶矽及其衍生產品的新 232 條款框架整體而言具支持性，但具體執行細節以及公司是否符合製造抵減資格，仍有待與美國商務部進一步討論。
• 專案出售時程： Recurrent Energy 交易遞延導致第 2 季營收減少，而未來的資產變現對資本回收與降低槓桿依然至關重要。
• 資產負債表壓力： 隨著專案建設融資增加，總負債上升至 71 億美元。管理層預計資產變現將降低開發業務的槓桿率，而製造業務的負債則會因資助美國投資而上升。
• 外匯風險： 人民幣升值導致本季產生 900 萬美元的匯兌損失。

分析師問答亮點

232 條款 定價與合約調整

管理層表示，超過 45 億美元 的美國模組在手訂單，尚未包含與新 232 條款公告相關的調整。合約中包含法律變更與調整機制，管理層預計隨著客戶協議的修訂，在手訂單價值將會提升。

該公司並未量化潛在的價格漲幅，理由是政策剛公布且尚待進一步指引。儘管如此，管理層預期該框架將對 CSI Solar（阿特斯光能）帶來正面挹注，並預計在原訂 12 月 4 日實施日期前加速交付。

潛在關稅減免

管理層認為阿特斯太陽能應有資格獲得關稅減免，因為公司已在梅斯基特 (Mesquite) 模組廠、傑佛遜維爾 (Jeffersonville) 電池片廠以及雪爾比維爾 (Shelbyville) 儲能廠進行投資。公司計劃透過美國商務部程序提出申請，但未確認任何收益的具體金額或時間。

管理層補充指出，即使阿特斯太陽能未能獲得與其資本支出相關的全額退稅抵減，最低進口定價仍可能支撐美國模組價格。

研發支出與 智慧財產權

管理層表示，研發支出通常占 總營收的 1%–2%。公司正在提升美國的製造與製程研發能力，而加拿大仍是電力電子、逆變器、PCS（電力轉換系統）與儲能智慧財產權的重要基地。

HJT 策略與太空太陽能

管理層表示，選用 HJT 進行美國電池生產是基於阿特斯太陽能 (Canadian Solar) 現有的技術專業、該製程較低的人力需求，以及相較於 TOPCon 擁有相對單純的智慧財產權環境。

該公司正與未公開的航太與衛星合作夥伴合作，開發基於 HJT 技術的太空光電應用。管理層預計短期內不會形成顯著規模，目前計畫於 2029 年開始首批出貨。

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管理層陳述

Operator

Ladies and gentlemen, thank you for standing by and welcome to Canadian Solar's second quarter 2026 earnings conference call. My name is Melissa and I will be your operator for today. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes. I'd now like to turn the call over to Wina Wang, Head of Investor Relations at Canadian Solar. Please go ahead.

Wina Wang

Thank you, Operator, and welcome everyone to Canadian Solar's second quarter 2026 conference call. Please note that today's conference call is accompanied with slides which are available on Canadian Solar's Investor Relations website within the Events and Presentations section. Joining us today are Colin Parkin, CEO, [ Dylan Marks ], CEO of Canadian Solar subsidiary Recurrent Energy, [ Simbo Jules ], Senior VP and CFO, and Dr. [ Sean Hsu ], Executive Chairman and CTO. All company executives will participate in the Q&A session after management's formal remarks.

On this call, Colin will deliver key messages for the quarter, [ Dylan Marks ] will share updates for Recurrent Energy, [ Simbo Jules ] will go through the financial results, and [ Sean Hsu ] will discuss sustainability and technology highlights. Colin will conclude the prepared remarks with the business outlook, after which we will have time for questions.

Before we begin, I would like to remind listeners that management's prepared remarks today, as well as their answers to questions, will contain certain forward-looking statements that are subject to risks and uncertainties. The company claims protection under the Safe Harbor for Forward-Looking Statements that is contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ from management's current expectations. Any projections of the company's future performance represent management's estimates as of today. Canadian Solar assumes no obligation to update these projections in the future unless otherwise required by applicable law.

A more detailed discussion of risks and uncertainties can be found in the company's annual report on Form 20-F, filed with the Securities and Exchange Commission. Management's prepared remarks will be presented within the requirements of SEC Regulation G regarding generally accepted accounting principles or GAAP. Some financial information presented during the call will be provided on both a GAAP and non-GAAP basis. By disclosing certain non-GAAP information, management intends to provide investors with additional information to enable further analysis of the company's performance and underlying trends. Management uses non-GAAP measures to better assess operating performance and to establish operational goals. GAAP information should not be viewed by investors as a substitute for data provided in accordance with GAAP. And now I'd like to turn the call over to Canadian Solar's CEO, Colin Parkin. Colin, please go ahead.

Colin Parkin

Thank you, Wina, and thank you all for joining our second quarter earnings call. Beginning on slide 3, we recognized on 3.1 gigawatts of solar modules within guidance. We exceeded our storage guidance, shipping 3.7 gigawatt-hours and recognizing revenue on 3.3 gigawatt-hours within the quarter. Revenue totaled $1.2 billion at the high end of guidance. Gross margin was in line with guidance at 13.9%. Profitability was impacted by elevated freight costs from ongoing geopolitical uncertainties. We also faced near-term ramp-up costs for our solar cell manufacturing facility in Jeffersonville. These factors led to a net loss attributable to shareholders of $77 million or $1.40 per share.

Turning now to slide 4. Our manufacturing segment remains the key driver of our financial performance today, also where our strategic priorities lie. In our solar business, we continue to prioritize high-margin regions. We shipped nearly half of our quarterly module volumes to our North America home base. In our energy storage business, we are scaling rapidly and executing well globally. In a single quarter, we delivered to utility-scale projects across North America, EMEA, Asia Pacific, and Latin America. We outperformed guidance due to accelerated deliveries for 2 projects in the U.S. and Canada. Higher unit shipping costs and ramp-up expenses led to an operating loss of $49 million. As we finish ramping Phase 1 of our solar cell facility and expand through Phase 2, these costs will normalize. We expect overall module margins to improve as a result.

Now turning to slide 5. A major highlight this quarter was the official opening of our state-of-the-art HJT solar cell facility. This marks a historic milestone. Canadian Solar is now the first commercially operational HJT manufacturer in the United States. We are also proud of the facility's meaningful impact and contribution to the local economy and community. We are currently ramping up Phase 1 capacity to 2.1 gigawatt-peak. Phase 1 is set to enter full-scale production on October 1st. Before the end of the year, we will begin installing equipment for Phase 2, which will bring our Jeffersonville total nameplate cell capacity to 6.3 gigawatt-peak in 2027. This facility will be the largest crystalline silicon cell manufacturing plant in North America.

Paired with our 10 gigawatt-peak module facility in Texas, [ CSI Solar ] solidifies its place as one of North America's largest and premier integrated photovoltaic manufacturers. These expansions are backed up by strong customer demand for our high-performance U.S. solar products, which offer valuable domestic content benefits. Turning please to slide 6. [ CSI Solar ] has secured over 13 gigawatt-peak in contracted backlog for our domestically manufactured HJT and TOPCon N-type bifacial modules. Deliveries are scheduled through 2029. This backlog includes multiple long-term master service agreements with leading U.S. utilities, IPPs, developers, and EPCs. These commitments continue to grow daily and already represent north of $4.5 billion in value.

On the policy front, President Trump released a new Section 232 announcement this month, which is focused on imported polysilicon and its derivative products. We view this new policy structure as supportive of our long-term investment in domestic manufacturing. Key details include minimum import pricing, tariff provisions, and potential manufacturing offsets for companies investing in domestic manufacturing capacity. The Department of Commerce will work to approve U.S. investment plans. We will continue to be in active, constructive, ongoing dialogue with the Department of Commerce, and will continue to participate throughout the 120-day implementation period. Our current evaluation indicates that these measures will reinforce U.S. solar pricing, and we are actively working with our customers to navigate this period of uncertainty. Overall, we view this policy direction as net positive for Canadian Solar, and we welcome the administration's support for American industrial growth.

Now turning to slide 7. For e-STORAGE, we shipped 3.7 gigawatt-hours of energy storage solutions this quarter and recognized revenue on 3.3 gigawatt-hours after accounting for the more than 400 megawatt-hours to internal projects under execution. At the end of this quarter, our contracted backlog stood at $3.5 billion. This includes long-term service agreements covering 34 gigawatt-hours of contracted projects. We see demand from data centers transitioning from conversations to contracted opportunities. Earlier this year, e-STORAGE secured a contract with a major U.S. utility for a 500-megawatt, 2.5-gigawatt-hour DC project designed to support data center grid infrastructure and resiliency.

Energy-intensive data centers and their stakeholders face 2 primary hurdles: securing power and maintaining grid stability. Interconnection approvals and transmission builds require years to complete. Battery energy storage unlocks the higher throughput from existing infrastructure, responds dynamically to load swings, fortifies grid resilience, and protects mission-critical computing hardware from power disruption. For on-site behind-the-meter facilities, energy storage integrates seamlessly with other generation technology, including natural gas and renewable power generation. We are actively engaging with data center hyperscalers, developers, and utility customers to deliver solutions that help overcome these challenges.

Our market value extends well beyond supplying batteries. We produce our own battery cells, design the SolBank platform, integrate the power conversion and proprietary energy management controls, deliver full EPC and commissioning services, and provide ongoing support through long-term service agreements. This end-to-end full-stack model offers customers a single, accountable partner while supplying us with real-world operating data to refine future solutions. Now let me hand the call over to [ Dylan Marks ] to review updates for Recurrent Energy, Canadian Solar's global project development business. [ Dylan Marks ], please go ahead.

Unknown Executive

Thank you, Colin. Starting on slide 8, we generated $117 million of revenue in the second quarter. Revenue declined sequentially, primarily because several project sales moved into the second half of the year. Electricity sales revenue rose quarter-over-quarter, supported by the commercial operation of a large solar asset in Spain. With muted project sales during the quarter and a $24 million impairment charge related to an upcoming project sale in Latin America, operating expenses rose quarter-over-quarter. As a result, we recorded an operating loss of $19 million. Despite the lowered financial performance, we continued to hit key operational milestones throughout the second quarter.

Earlier in the quarter, we brought a 426-megawatt solar asset in Spain into commercial operation, which began contributing recurring energy. Our partnerships with leading global technology companies further validate our development platform. In Australia, we recently connected the 150-megawatt [ Carwarp ] project, which is backed by a long-term power purchase agreement with Microsoft. We also continue to secure competitive, large-scale project financing. Recently, we closed a $695 million construction financing equity package for our 330-megawatt [ cobalt ] solar facility in California. MUFG and NORD/LB provided the construction loans while Wells Fargo provided the tax equity.

Turning to slide 9 for our portfolio pipeline update. As of June 30, 2026, we have secured grid interconnections for approximately 6 gigawatts of solar and 13 gigawatt-hours of energy storage globally, excluding projects already in operation. Our total development pipeline stands at nearly 22 gigawatts of solar and 84 gigawatt-hours of energy storage. Our strategy for this pipeline remains focused on high-quality, high-margin opportunities that drive real value, actively pruning lower-margin assets. For instance, we scaled back our EMEA pipeline following detailed evaluations of permitting, technical, and commercial viability. At the same time, we are moving decisively where we see attractive upside.

Our team is actively positioning us to compete in Brazil's upcoming energy storage auction, which expanded our early-stage pipeline in Latin America. For the second half of the year, our priority remains the selective monetization of certain operating assets under construction and development assets. These transactions are intended to support our capital recycling strategy, improve financial flexibility, and address leverage levels over time while preserving our ability to invest in high-return growth opportunities. Now, let me hand the call over to [ Simbo Jules ] who will go through our financial results in more detail. Please go ahead.

Unknown Executive

Thank you, [ Dylan Marks ]. Beginning on slide 10. In the second quarter, we recognized revenue on 3.1 gigawatts of modules and 3.3 gigawatt-hours of energy storage solutions, both sequentially higher. Module performance was bolstered by strong U.S. volumes. We beat storage guidance due to accelerated project deliveries in North America. Despite light contributions from Recurrent Energy due to deferred project sales, solid execution in the manufacturing segment lifted total revenue to $1.2 billion, reaching the high end of our guidance. Gross margin was 13.9%, in line with guidance. The sequential and year-over-year margin drops reflect 2 non-recurring items: the tariff refund benefits recognized last quarter and second, the release of unrealized profit upon sales of a U.S. project in the prior year period.

Operating expenses rose 21% sequentially. This was driven by a combination of elevated freight rates and non-logistic ramp-up costs at our Jeffersonville solar cell plant. Net interest expense rose to $43 million from $36 million in the first quarter, primarily due to lower capitalized interest. We recorded a net foreign exchange loss of $9 million, primarily driven by strong appreciation in the Chinese yuan. [ CSI Solar ] recorded a $41 million mark-to-market gain in investment income from its equity investment in a battery equipment company, helping buffer our bottom line. As a result, Canadian Solar recorded a total net loss attributable to shareholders of $77 million, or $1.40 per share.

Now let's turn to cash flow and the balance sheet on slide 11. Net cash flow used in operating activities during the second quarter of 2026 was $181 million, driven primarily by changes in working capital. Total assets grew to $16.1 billion. This increase primarily reflects ongoing consumption of U.S. solar and storage projects, along with inventory expansion to support our U.S. manufacturing strategy. Total debt increased to $7.1 billion, mainly from non-recourse construction financing for solar and storage projects under Recurrent Energy in the U.S. As we monetize operating under-construction and development assets, we expect to deleverage the project's development business.

At the same time, our manufacturing segment will take on incremental debt to fund strategic U.S. manufacturing investments, which we expect to expand profitability and cash flow in 2027 and beyond. Capital expenditures in the second quarter were $172 million, primarily directed toward our [ U.S. manufacturing ] initiatives. We anticipate full-year 2026 CapEx to total around $1.3 billion. This implies higher capital outlays in the second half as we begin Phase 2 equipment installation at Jeffersonville, double capacity at our Mesquite module plant, and scale up our energy storage facility in Shelbyville. We closed the quarter with a cash balance of $1.9 billion, providing us with solid liquidity to execute on our strategic priorities. Now let me turn the call to [ Sean Hsu ], who will discuss our sustainability achievements and the technology roadmap. [ Sean Hsu ], please go ahead.

Unknown Executive

Thank you, [ Simbo Jules ]. Turning to slide 12. In June, we published our 2025 Corporate Sustainability Report. This highlights our commitment to driving the global clean energy transition through sustainable and responsible business practices. The report tracks our focus on value-driven growth. Notably, the Science Based Targets initiative validated our net-zero greenhouse gas target. We also advanced our resource efficiency, achieving significant energy and water savings alongside 2 zero-carbon factory certifications. Furthermore, we reinforced our supply chain transparency and ethical labor standards. These efforts are backed by independent audits and certifications across our manufacturing footprint and key suppliers. Overall, this report demonstrates that environmental, social responsibility, and strong governance are fundamental to how we build long-term stakeholder value.

At the core of everything we do is technological innovation. Turning to slide 13, we continue to execute a multi-generation technology roadmap across both solar PV and energy storage solutions. Starting with solar PV, our near-term priority through 2028 is the mass production and optimization of our next-generation HJT, our heterojunction, and TOPCon architectures. Across our commercial, utility, C&I, and residential markets, we are scaling module efficiency from 23.2% up to 24.4%, while aggressively reducing silver consumption from 6.5 milligrams per watt down to 3 milligrams per watt to drive down this key input cost. Looking slightly further ahead, we expect mass production of our premium TBC architecture by 2028. Designed primarily for the premium residential market, TBC aims to deliver efficiencies between 24.8% and 25.2% with ultra-low silver usage of just 1 to 2 milligrams per watt.

Beyond terrestrial single-junction silicon, we approach physical limits at around 25% to 26% module efficiency. For applications and multi-junction technologies, we have already begun collaborating on space PV opportunities using our HJT cell technology with planned shipments in 2029 for extreme space environments where radiation tolerance and thermal cycling resilience are critical. For long-term utility-scale expansion, our ultimate efficiency frontier lies in tandem cells, targeted for commercial shipments in 2030 to break through the 30% module efficiency barrier. Given that Perovskite reliability will require another 5 to 10 years of validation before large-scale ground deployment, space applications may well serve as the initial commercial stepping stones to these next-generation tandem structures.

Turning to our energy storage and power electronics roadmap on slide 14. We are building a foundation for sustainable, high-density, and long-duration storage assets. We are currently mass-producing SolBank 3.0, which delivers 5 megawatt-hours of capacity in a standard 20-foot enclosure using 314 Ah LFP cells. We will soon begin shipping the next iteration, SolBank 4.0, starting in 2027. This solution increases energy density by 25%, delivering 6.25 megawatt-hours in the same 20-foot footprint utilizing high-capacity 588 Ah LFP cells. To complement these larger battery systems, our solar electronics hardware is scaling in tandem. We are transitioning from our air-cooled mid-voltage [ SCET 1.0 ] to our liquid-cooled mid-voltage [ SCET 2.0 ], which integrates 32 of our 450-kilowatt inverters to achieve 14.4 megawatts in a 40-foot layout.

Further out on our 2030 roadmap, we're exploring solid-state transformers at 2.5 megawatts, 34.5 kilovolts AC to 800 volts DC solutions, achieving over 98.35% conversion efficiency that has the potential to replace traditional PCS units and integrate directly into BESS platforms as cost and reliability mature. To address long-duration storage and harsh environment requirements at a potentially lower levelized cost of storage, or LCOS, we are actively validating our containerized sodium-ion platform. This will eventually deliver an exceptional cycle life of over 15,000 cycles. [ 3D MIME ] technologies offer compelling structural advantages, abundant raw materials free from geopolitical restraints, superior performance in extreme cold temperatures, and simplified cooling requirements that could meaningfully reduce long-term operational expenditures. It also delivers important safety advantages such as significantly reduced thermal runaway risk.

We are also developing a high-capacity energy storage product designed for deployment inside AI Data Center server rooms to deliver millisecond-scale energy management solutions. Ultimately, unifying these solar and storage developments advances our vision of Canadian Solar as a total energy technologies provider. By pairing these technology roadmaps with robust end-to-end capabilities and full visibility across our supply chain, we are uniquely positioned to deliver the mission-critical clean energy infrastructure of tomorrow to our global customers. We will unveil more cutting-edge energy technologies in the future, so stay tuned. Now, let me turn the call back to Colin, who will conclude with our guidance and business outlook. Colin, please go ahead.

Colin Parkin

Thank you, [ Sean Hsu ]. Turning now to slide 15. For the third quarter of 2026, we expect to recognize revenue from 3.5 to 3.8 gigawatts of solar modules. We expect energy storage deliveries to range between 3.4 and 3.8 gigawatt-hours. Driven by sequentially higher manufacturing volumes, we project third-quarter revenue to be between $1.3 and $1.5 billion, with gross margin expected to range between 13.5% and 15.5%. We anticipate U.S. solar and storage shipments to accelerate in the second half, with each remaining quarter delivering higher volumes than the last. At Recurrent Energy, we expect to finalize the project sales delayed from the second quarter. This will drive a sequentially stronger third quarter. For the full year of 2026, we reiterate our U.S. volume guidance of 6.5 to 7 gigawatts of module shipments and 4.5 to 5.5 gigawatt-hours of energy storage shipments. With that, I would now like to open the floor for questions. Operator, please go ahead.

Operator

[Operator Instructions] Our first question comes from the line of Colin Rusch with Oppenheimer and Company. Please proceed with your question.

分析師問答

Colin Rusch

Sean, if you look at the roadmap that you just articulated from the technology perspective, it's pretty robust. There's a lot of activity. I want to understand 2 dynamics. One, just trend lines on overall spending on the R&D line to bring all of this to fruition. Then secondarily, where from a regionalization perspective, where is that work going to happen and where is the IP going to sit as you bring, it looks like, 5 or 6 pretty significant technology evolutions to market.

Unknown Executive

Yes, Colin, thank you. Because our revenue base is big, although the R&D spending is significant, typically it's around 1% to 2% of the total revenue. So we are controlling it well.

Colin Rusch

And from an IP perspective, is that going to sit in the U.S.? Is it going to sit outside the U.S.? Is it not a concern, is it more around just know-how and understanding how to manufacture these things where you guys feel like you have an advantage?

Unknown Executive

Yes, Colin, this is a good question. Yes, we develop more and more the manufacturing and also process R&D capabilities in the U.S. We're seeing more and more IP sit with the U.S. Meanwhile, we also developed a lot of good technology in Canada. I also see more and more IP in Canada, especially the IP related to the power electronics and either from inverter to the PCS or the energy storage system.

Colin Rusch

Excellent. And just the follow-up here is really around shipping expense and kind of practical ways that you guys can manage that or start passing that on in a more material way to customers here over the next 6 to 12 months.

Colin Parkin

Good morning, Colin. Thanks for the question. Colin here. Regarding the shipping expense, we do build that into our contracts and pass that along. But of course, the dynamic of the shipping cost, logistics costs start to change when we look at this continuing to scale in North America. Obviously, we don't have as significant overseas freight. So we'll start to see that shipping costs start to decrease just primarily due to the onshoring in the U.S.

Operator

Our next question comes from the line of Maheep Mandloi with Mizuho Securities. Please proceed with your question.

Maheep Mandloi

One question on that, you talked about the 13 gigawatts of bookings through '29. The pricing seems to be in mid-30 cents per watt. Could you clarify if that already includes any impact of this new Section 232 on polysilicon? If not, then what prices are you seeing and is there any flexibility to go to the existing customers on higher prices if the spot prices move up on Section 232?

Colin Parkin

Good morning, Maheep. Thanks for the question, Colin here. And we have Thomas on the line as well, but I'll start. Our contracts are structured with change in law and adjustment mechanisms with all this anticipated. So what we see is this is all very new. I think, as you know, this is only fresh in the last couple of weeks with the new Poly 232. But we already see the market adjusting. We think it will definitely drive for accelerated deliveries in the second half of this year in advance of the proclamation implementation, I think on December 4th. We're going to see a rush and with that, it's driving an increase in price and correlating demand.

So we are seeing that start to adjust. We are seeing the market start to adjust, but it is a relatively new change to the market. But I think overall from Canadian Solar's standpoint with the backlog that we mentioned, the 13 gigawatts backlog, it shows a strong demand for our U.S.-based products, and our customers are certainly willing to work with us as they have to adjust as well. Thomas, do you have anything to add on top of that?

Thomas Koerner

Sure. So good morning. Colin is spot on. The only comment I would make is that this backlog and the respective revenue value does not include a 232 adjustment yet. So this is going to increase and grow further as we're adjusting contracts and agreements with customers, but it includes, of course, a certain portion of down payment, certain shipment costs, some are further away, some are closer away, so you can take that all into account. But the 232 announcement will push the respective value upwards as we discuss and readjust and renegotiate with customers. I hope this answers your question.

Maheep Mandloi

Maybe just like a different follow-up on the tariff or the duty exemption issue with domestic CapEx. Just want to understand how much could we expect on that for you guys for CapEx? I think there's some language on that exemption is only applicable for new CapEx. So just curious if the R&D CapEx would be applicable or just certain CapEx.

Unknown Executive

Well, the policy 232 does allow the U.S. manufacturing project to offset the tariff duties. So as Colin said, we will actively engage with the Department of Commerce and we'll try to go through this process. And yes, we will apply for the tariff and the MIP exemptions related to our U.S. manufacturing products.

Operator

Our next question comes from the line of Philip Shen with ROTH Capital Partners. Please proceed with your question.

Philip Shen

As a follow-up to Maheep's second question on the tariff rebate program, Sean, you just mentioned that you have good standing with the Commerce Department. So I was wondering if you might be able to elaborate on that, and specifically, do you expect to qualify for the tariff rebate program? And if so, can you give us some color on why and how?

Unknown Executive

Well, we do expect we are qualified. We qualify for the tariff relief program because we are the one who invest and really invested into U.S. manufacturing through our solar module factory in Mesquite and also the solar cell factory in Jeffersonville, plus the energy storage factory in Shelbyville. So we are putting real dollars into onshoring the U.S. manufacturing. So we believe we are qualified. As I mentioned, we will go through the process. So I guess I shouldn't comment too much before we finish the dialogue and the process with the Department of Commerce.

Philip Shen

And then earlier, Colin and Thomas talked about pricing already moving. And so I was wondering if you guys might be able to quantify the magnitude of the price increase that you've seen thus far and then where you expect things to change. So if your existing bookings are at X, do you think we see a $0.05 move in pricing to the upside? Or do you think it's $0.10 or maybe more?

Colin Parkin

Philip, I think we're just like everybody else. We're monitoring the market and seeing what the opportunity looks like. I think it might be a little premature for us to speculate how fast those changes and the magnitude. So I think we're only a week or 2 into this new proclamation and we're still waiting for, as a matter of fact, expecting new guidance to come. So that could also shape things as well. So I'd hesitate to give a specific amount, but I can tell you that we do feel it's going to be accretive to [ CSI Solar ] overall.

Philip Shen

One last follow-up. As it relates back to the tariff rebates program based on U.S. CapEx, what happens and what do you guys do if you cannot qualify for that tariff rebate program?

Unknown Executive

Well, that's a good question. I think the MIP requirements will help to strengthen the U.S. manufacturers' advantages. The overall price will go up. If the overall solar module price goes up, it will help us even in the case that we don't fully receive the rebate related to our CapEx. So overall, without rebate, I think that this decision will be accretive to [ CSI Solar ] and any real, meaningful manufacturers investing in the U.S.

Operator

Our next question comes from the line of Alan Lau with Jefferies. Please proceed with your question.

Alan Lau

I asked management about the recent policy coming out from the White House last night on the Bulk-Power System. So we'd like to know, because Canadian Solar actually has a battery cell plant in the U.S. So what's your view on complying to that U.S. manufacturing requirement, especially in relation to energy storage?

Colin Parkin

Alan, I would like to just hold off responding on that because it's something very new and we haven't had a chance to fully study that. I will just generally say that in all respects, our ability to comply to U.S. requirements is strong generally because our supply chain has already evolved to supporting the domestic content requirements and our U.S. manufacturing plans have been structured around that. I don't want to comment on such a recent policy change, but I would only say that at the moment, I expect we'll be able to address any changes.

Alan Lau

So we got into another previous FTC investigation. I think there were a couple of clarifications I think on the 20th of August on basically for inverters that were produced in the U.S. and is eligible for 45X would not be classified as currently produced. So I recall the company previously was having third-party as a supplier for inverters, but also the company is also starting to do PCS as well. So I wonder if management has any comment in regards to FTC previous restrictions on this one.

Colin Parkin

Yes, Alan, a good question. First of all, our inverters are not currently being moved into the U.S., so it's not an issue for us in terms of our current supply chain. But as you mentioned, we do procure significant amounts of third-party inverters, PCS for example, and we are actively involved with our supply chain to ensure that they meet all the FCC requirements and or have the path to have those FCC requirements in place. We don't see any issues with any of our business activities at this time related to the recent changes. There's just recent clarification provided with respect to the communication protocols, which we're looking at very carefully, but we don't see any impact to our business at the moment with respect to the new SEC requirements.

Unknown Executive

I would like to add a little bit color comment on top of what Colin just said. We also noticed that the new guidance and FCC said anything qualified for the 45X, which means qualified for the local manufacturing and eligible for 45X, will be considered domestic. Therefore, will not require FCC approval. I think this is a very interesting policy clarification. As you mentioned, we do have our own PCS, we have that technology center in Canada. So we have started to actively look into the feasibility of manufacturing that PCS and inverter in the U.S. utilizing the advantage that Canadian Solar already has, [ CSI Solar ], which is the 45X qualified structure in the U.S. So yes, we are actively reviewing the feasibility of that.

Alan Lau

Because I recall the company actually got a very strong record in the U.S. manufacturing and has already secured 45X credits for other products like modules already. So that might actually be a positive opportunity for a company to take share. So that's why the question is coming from. So switching gears to the technology path, because I noticed that Sean has spent quite a lot of time, I think that is quite new I think in this quarterly results. I would like to know, because Sean has mentioned about space PV, so I suspect if there has already been some form of discussion with major clients in the aerospace industry or it's more a product development stage or there's actually already some early stage navigation already?

Unknown Executive

Yes, space PV is a very interesting direction, although I don't expect it to come to a meaningful scale next year. But in the long run, space is what everybody is looking at, including myself. Canadian Solar is a strong participant in the HJT or heterojunction cell architecture, and this is what the industry considers very favorable for silicon-based space PV applications. And the research so far shows that the p-type heterojunction will have better tolerance to the high-energy particle radiation bombardment in space. Therefore, p-type heterojunction, especially the HJT, is considered to be a leading candidate for silicon-based solar cell applications in space.

So we do manufacture the p-type. As you know, the Jeffersonville solar cell factory adopted the HJT solar cell structure. And so far we use n-type for the HJT for terrestrial applications, however, it's very easy for us to convert that into p-type. And we already use very thin wafers. And the wafer to be processed in our Jeffersonville factory averages at 110 micrometer thickness, which is one of the thinnest wafers used for commercial production. Now also on the R&D side, we have designed and processed even thinner, to a 50-micron thickness with p-type for heterojunctions and very successful, so we can supply that. So we are at the leading front of space PV. Now we are talking to other space and satellite, especially the satellite companies, about this application. We are collaborating. Now I can't disclose the customer name, but now we have close collaborations with space-related partners.

Alan Lau

So it's also interesting that your view on the space PV is on HJT. Having mentioned about HJT, there are some market views that TOPCon might have some issues in relation to the Section 337 patent investigation. Is it one of the reasons that you are selecting the HJT technology in the U.S. because it is not the mainstream technology outside of the U.S.? Or is it really other reasons like labor or to start the production process?

Unknown Executive

Yes, we choose HJT heterojunction for the U.S. factory for several reasons, not 1 reason. So number 1, yes, our strong R&D effort already into HJT. As a matter of fact, we have studied the HJT structure as early as 2017 and 2018. We have been doing HJT development for 6, 7 years already. We have very strong knowledge. By the way, that also explains why our ramp-up of the Jeffersonville solar cell line was so far successful. I will say pretty smooth. Any ramp-up will have some issues. That's the point of the ramp-up, which is to discover the results and solve an issue. But our ramp-up in Jeffersonville was very successful. So that's the technical side.

And second, our HJT process is very neat. It's more equipment dependent than human dependent. It does require much less operators than TOPCon. And we think this is a very unique advantage for the U.S. manufacturing. And IP is also an issue, no question about it. On one hand, we are very confident that our TOPCon technology stands alone on its own feet and does not have any conflict with other companies' TOPCon IPs. However, less IP conflict is even better. So the HJT IP is much cleaner than TOPCon. That's also 1 reason for our decision to select HJT for the U.S. cell manufacturing. So there are quite a few factors. And all in all, we believe that HJT is a good technology. Also, as I mentioned, HJT is a leading candidate for the space application. We also considered those factors when we made this decision around 3 years ago.

Operator

Ladies and gentlemen, that concludes our question and answer session. I'll turn the floor back to Mr. Parkin for final comments.

Colin Parkin

Thank you for joining us today and for your continued support. If you have any questions or would like to set up a call, please contact our investor relations team. Take care, everybody, and have a great day. Thank you.

Operator

This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.