0001104659-24-052464 | 20-F | XBRL Viewer

Schedule of effects of changes in Company's ownership interest in less than wholly owned subsidiaries on equity attributable to Canadian Solar Inc


	Year ended December 31,
	2021		2022		2023
Net income attributable to Canadian Solar Inc.	$	95,248	$	239,968	$	274,187
Transfers from the non-controlling interests:
Increase in the Company’s paid-in capital from transfer of equity interest in subsidiary and subsidiary’s offering of its equity interests		—		11,185		244,629
Increase in the Company’s accumulated other comprehensive loss from transfer of equity interest in subsidiary and subsidiary’s offering of its equity interests		—		544		38,395
Net transfers from non-controlling interests		—		11,729		283,024
Change from net income attributable to Canadian Solar Inc. and transfers from non-controlling interests		95,248		251,697		557,211

INCOME TAXES - Movement of the valuation allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Movement of allowances
Beginning of the year	$ 43,488
End of the year	72,678	$ 43,488
Allowance
Movement of allowances
Beginning of the year	43,488	45,682	$ 50,118
Reversals	28,819	(1,531)	(4,671)
Foreign exchange effect	371	(663)	235
End of the year	$ 72,678	$ 43,488	$ 45,682

VARIABLE INTEREST ENTITIES

12 Months Ended

Dec. 31, 2023

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES

10. VARIABLE INTEREST ENTITIES

The Company, through its subsidiaries, may enter into silent partnership agreements and/or various types of bankruptcy remote arrangements for the sole purpose of holding Japan project companies. Under the silent partnership agreements and/or the bankruptcy remote arrangements, the project companies are considered VIEs in which the Company has no majority equity interests, but is entitled to substantially all of the economic interests of the projects. In addition, the Company has the power to make decisions over the activities that most significantly impact the economic performance of the projects under the asset management agreement signed simultaneously between the project companies and a wholly-owned subsidiary, Canadian Solar Projects K.K. As such, the Company concluded it was the primary beneficiary of the project companies and thus these project companies were accounted for as consolidated VIEs since their establishment. The Company does not retain any ownership interest nor control of the bankruptcy remote entities, which individually and, in the aggregate, are insignificant.

As of December 31, 2022 and 2023, the carrying amounts and classifications of the consolidated VIEs’ major assets and liabilities with immaterial items combined, excluding intercompany balances which are eliminated upon consolidation, included in the Company’s consolidated balance sheets are as follows:


	At December 31,	At December 31,
	2022	2023
	$	$
Cash	15,903	10,478
Project assets	320,460	109,144
Other assets	30,163	40,340
Total assets	366,526	159,962

Short-term borrowings	191,792	73,131
Long-term borrowings	49,675	16,956
Other liabilities	26,366	27,376
Total liabilities	267,833	117,463

Net income and overall cash flow activities during the years ended December 31, 2021, 2022 and 2023 were insignificant to the Company’s consolidated financial statements.

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Investments in affiliates, Impairment of long-lived assets, Advances from customers and Asset retirement obligation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES
Impairment charges on investments	$ 0	$ 357	$ 0
Impairment charges for long-lived assets	5,938	60,330	$ 6,084
Asset retirement obligation	1,249	399
Advances from customers	392,308	334,943
Contract with Customer, Liability, Noncurrent	$ 52,693	$ 0

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2023

Property, plant and equipment

Schedule of payment for commitments


Year Ending December 31:		$
2024		622,701
2025		33,234
2026		2,562
2027		9
2028		17
Total		658,523

Solar power system

Schedule of payment for commitments


Year Ending December 31:		$
2024		29,715
2025		2,425
2026		346
Total		32,486

NON-CONTROLLING INTERESTS - Additional Information (Details) - USD ($)

12 Months Ended

Jun. 09, 2023

Dec. 31, 2021

Jun. 08, 2023

Equity (Deficits) Attribute to Canadian Solar Inc.

^[1]

$ 148,510,000

^[1]

$ 148,510,000

CSI Solar

Noncontrolling interest ownership percentage

$ 927,897

62.24%

Ownership percentage by non-controlling owners

37.76%

20.41%

CSI Solar | Non-Controlling Interest

CSI Solar | Additional Paid-in Capital

$ 644,873

CSI Solar | Accumulated Other Comprehensive Income

244,629

$ 38,395

[1]	Represented proceeds from “at-the-market” offering of 3,639,918 shares of common shares in 2021, net of commissions and offering expenses of $1,490.

Equity impact of the value of new stock issued during the period. Includes shares issued in an initial public offering or a secondary public offering.

ORGANIZATION AND PRINCIPAL ACTIVITIES (Details) $ in Thousands		1 Months Ended		12 Months Ended
	Jun. 09, 2023 USD ($)	Jul. 31, 2020 USD ($)	Jul. 31, 2020 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2023 CNY (¥)	Dec. 31, 2022
Energy storage projects				15 years	15 years
Canadian Solar Employees
Aggregated value of consideration transferred		$ 4,500	¥ 31,000,000
Canadian Solar
Ownership percentage by non-controlling owners						20.40%
Canadian Solar \| Third-Party Investors \| 2020 CSI Solar employee incentive plan
Aggregated transaction amount under employee incentive plan				$ 36,342	¥ 248,000,000
CSI Solar Co., Ltd.
Noncontrolling interest ownership percentage	62.24%
Subsidiaries
Aggregate consideration transferred		$ 219,000	¥ 1,500,000,000
CSI Solar Co., Ltd.
Net of transaction costs	$ 927,897			$ 927,897	¥ 6,628,683

INCOME TAXES - Domestic federal statutory tax rates (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($) item	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Income taxes:
Federal and provincial income tax rate (as a percent)	27.00%	27.00%	27.00%
Amount of interest and penalties accrued related to unrecognized tax benefits	$ 956	$ 961
Effective Income Tax Rate Reconciliation at Federal and Provincial Income Tax Rate	27.00%	27.00%	27.00%
Changes to the company's liabilities for uncertain tax positions
Beginning balance	$ 4,770	$ 5,863	$ 9,628
Reductions for tax positions from prior years/Statute of limitations expirations	(24)		(3,763)
Statue of limitations expirations		(678)
Foreign exchange effect	(1)	(415)	(2)
Ending balance	$ 4,745	$ 4,770	$ 5,863
Canada
Income taxes:
Federal and provincial income tax rate (as a percent)	26.50%
Effective Income Tax Rate Reconciliation at Federal and Provincial Income Tax Rate	26.50%
United States \| Canadian Solar Solutions Inc.
Income taxes:
Income tax rate (as a percent)	28.10%
United States \| Canadian Solar (USA) Inc.
Income taxes:
Income tax rate (as a percent)	25.50%	24.60%	26.40%
United States \| Canadian Solar SSES (US) Inc
Income taxes:
Income tax rate (as a percent)		21.90%
United States \| Recurrent Energy Group Inc.
Income taxes:
Income tax rate (as a percent)	26.10%	22.50%	22.20%
Japan \| Canadian Solar Japan K.K.
Income taxes:
Income tax rate (as a percent)	31.80%	31.80%	31.80%
Germany \| Canadian Solar EMEA GmbH
Income taxes:
Income tax rate (as a percent)	33.00%	33.00%	33.00%
Thailand \| Canadian Solar Manufacturing (Thailand) Co., Ltd.
Income taxes:
Income tax rate (as a percent)	20.00%
Number of Board of Investment certificates for tax exemption \| item	5
Hong Kong \| HKSI
Income taxes:
Income tax rate (as a percent)	16.50%	16.50%	16.50%
Brazil \| Canadian Solar Brazil Commerce, Import and Export of Solar Panels Ltd.
Income taxes:
Income tax rate (as a percent)	34.00%	34.00%	34.00%

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Electricity revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Revenue recognition
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration]	Net revenues	Net revenues	Net revenues
Net revenues	$ 7,613,626	$ 7,468,610	$ 5,277,169
Electricity
Revenue recognition
Total net revenues	48,115	23,835	29,420
Operating lease income	4,434	4,736	4,940
Net revenues	43,681	19,099	24,480
CSI Solar Segment \| Electricity
Revenue recognition
Total net revenues	3,273	2,256	15,302
Recurrent Energy Segment \| Electricity
Revenue recognition
Total net revenues	$ 44,842	$ 21,579	$ 14,118

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.

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Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2023

EARNINGS PER SHARE

EARNINGS PER SHARE

19. EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share for the years indicated:


	Years Ended December 31,
	2021		2022		2023

	(In Thousands of U.S. Dollars, except share and per share data)
Numerator:
Net income attributable to Canadian Solar Inc. — basic	$	95,248	$	239,968	$	274,187
Dilutive effect of convertible notes		5,300		5,183		5,290
Net income attributable to Canadian Solar Inc. — diluted	$	100,548	$	245,151	$	279,477
Denominator:
Denominator for basic calculation — weighted average number of common shares — basic		61,614,391		64,324,558		65,375,084
Diluted effects of share number from RSUs and share options		985,554		586,420		546,765
Dilutive effects of share number from convertible notes		6,272,157		6,272,157		6,272,157
Denominator for diluted calculation — weighted average number of common shares — diluted		68,872,102		71,183,135		72,194,006
Basic earnings per share	$	1.55	$	3.73	$	4.19
Diluted earnings per share	$	1.46	$	3.44	$	3.87

The following table sets forth anti-dilutive shares excluded from the computation of diluted earnings per share for the years indicated.

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Allowance for doubtful receivables (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Financial Guarantee \| Variable Interest Entity
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES
Guarantor obligations, maximum exposure	$ 11,163	$ 25,257
Prepaid expenses and other current assets
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES
Allowance for credit losses	$ 2,929	$ 1,873

SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2023

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

25. SHARE-BASED COMPENSATION

2006 Share Incentive Plan

In March 2006, the Company adopted a share incentive plan, or the Plan. The purpose of the Plan is to promote the success and enhance the value of the Company by linking the personal interests of the directors, employees and consultants to those of the shareholders and providing the directors, employees and consultants with an incentive for outstanding performance to generate superior returns to the shareholders. The Plan is also intended to motivate, attract and retain the services of the directors, employees and consultants upon whose judgment, interest and effort the successful conduct of the Company’s operations is largely dependent. In September 2010, the shareholders approved an amendment to the Plan to increase the maximum number of common shares which may be issued pursuant to all awards of options, restricted shares and RSUs under the Plan to the sum of (i) 2,330,000 plus (ii) the sum of (a) 1% of the number of outstanding common shares of the Company on the first day of each of 2007, 2008 and 2009 and (b) 2.5% of the number of outstanding common shares of the Company outstanding on the first day of each calendar year after 2009. In June 2020, the shareholders approved an amendment to the Plan to extend the term of the Plan for a further ten years period. As a result, the Plan will expire on, and no awards may be granted after June 30, 2029. Under the terms of the Plan, options are generally granted with an exercise price equal to the fair market value of the Company’s ordinary shares and expire ten years from the date of grant.

Options Activities

During the year ended December 31, 2021, 2022 and 2023, no options were exercised. As of December 31, 2023, there were 26,291 options outstanding with a weighted average exercise price of $9.33 and weighted average remaining contract terms of 0.4 year. The intrinsic value of outstanding options as of December 31, 2023 was $444. No compensation cost on options was recognized in the years ended December 31, 2021, 2022 and 2023.

25. SHARE-BASED COMPENSATION (Continued)

RSUs Activities

The Company granted 2,161,098, 444,167 and 206,067 RSUs in 2021, 2022 and 2023, respectively. The RSUs entitle the holders to receive the Company’s common shares upon vesting.

The RSUs were granted for free and generally vest over periods from one to four years based on the specific terms of the grants. Between 2021 and 2022, 2,301,000 of the RSUs granted were made to the Company’s directors and a group of key employees, whereby vesting is contingent upon the completion of the IPO of CSI Solar (50% vested on the IPO date, followed by 25% vesting on each of the first and second anniversaries of the IPO). The average grant date fair value of these contingent awards was $25.57 per award. As of December 31, 2023, 1,096,000 of such RSUs were unvested and outstanding.

The fair market value of the Company’s ordinary shares at the date of grant resulted in total compensation cost of approximately $55,822, $12,909 and $7,785 that will be recognized ratably over the vesting period for the RSUs granted in 2021, 2022 and 2023, respectively.

As of December 31, 2023, there was $34,015 of total unrecognized share-based compensation related to unvested RSUs, which is expected to be recognized over a weighted-average period of 1.6 years.

A summary of the RSU activity is as follows:


		Weighted Average
	Number of	Grant-Date
	Shares	Fair Value
		(in whole US dollars)
Unvested at January 1, 2023	3,189,376	25.65
Granted	206,067	38.64
Vested	(1,652,686)	24.81
Forfeited	(82,575)	26.97
Unvested at December 31, 2023	1,660,182	27.21

The total fair value of RSUs vested during the years ended December 31, 2021, 2022 and 2023 was $21,628, $13,276 and $57,298, respectively.

2020 CSI Solar Employee Incentive Plan

In 2020, CSI Solar approved the CSI Solar employee incentive plan. Eligible CSI Solar directors and employees and board members subscribed to equity interest in the partnership for an aggregate of RMB248 million ($36,342 on the date of the transaction). Vesting conditions include the completion of the IPO and the service period, which were met in 2023. The CSI Solar employee incentive plan was accounted for based on the grant date fair value which equals to the value of the discount benefited by the CSI employee incentive plan participants. As of December 31, 2023, no awards granted were outstanding and no future grants may be available for issuance under CSI Solar employee incentive plan.

The following table summarizes the Company’s share-based compensation expense by plan included in the consolidated statements of operations:


	Years Ended December 31,
	2021		2022		2023
	$		$		$
2006 Share incentive plan		8,808		9,370		46,981
2020 CSI Solar employee incentive plan		—		—		8,354
		8,808		9,370		55,335

SHORT-TERM NOTES PAYABLE (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
SHORT-TERM NOTES PAYABLE
Short-term notes payable	$ 878,285	$ 1,493,399

SHARE-BASED COMPENSATION - 2020 CSI Solar Employee Incentive Plan (Details) $ in Thousands, ¥ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2020 CNY (¥)
SHARE-BASED COMPENSATION
Aggregate amount of subscription	$ 55,335	$ 9,370	$ 8,808
Company's share-based compensation expense by plan
Aggregate amount of subscription	55,335	9,370	8,808
2006 Share incentive plan
SHARE-BASED COMPENSATION
Aggregate amount of subscription	46,981	9,370	8,808
Company's share-based compensation expense by plan
Aggregate amount of subscription	46,981	$ 9,370	$ 8,808
2020 CSI Solar employee incentive plan \| CSI Solar
SHARE-BASED COMPENSATION
Aggregate amount of subscription				$ 36,342	¥ 248
Company's share-based compensation expense by plan
Recognized compensation expense	$ 8,354
Aggregate amount of subscription				$ 36,342	¥ 248

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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-Section 50
-Paragraph 2
-Subparagraph (d)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(ii)
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-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(iii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(iv)
-Publisher FASB
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Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(v)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Accounts, Notes, Loans and Financing Receivable [Line Items]

Financial Statement Schedule I (Details) $ in Thousands	12 Months Ended
Financial Statement Schedule I (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Additional Information - Financial Statement Schedule I
Restricted net assets of the entity's consolidated and unconsolidated subsidiaries not available for distribution	$ 1,587,503
Threshold percentage of restricted net assets of the entity's consolidated and unconsolidated subsidiaries	25.00%

MAJOR CUSTOMERS

12 Months Ended

Dec. 31, 2023

MAJOR CUSTOMERS

MAJOR CUSTOMERS

23. MAJOR CUSTOMERS

No customers accounted for 10% or more of total net revenues for the years ended December 31, 2021, 2022 and 2023.No customers accounted for 10% or more of total net accounts receivable as of December 31, 2022 and 2023.

SUBSEQUENT EVENT (Details) - Recurrent Energy, LLC - BlackRock - Subsequent event $ in Millions	1 Months Ended
	Jan. 31, 2024 USD ($) tranche
Invest amount \| $	$ 500
Number of tranches \| tranche	2
Percentage of voting rights	20.00%

ALLOWANCE FOR CREDIT LOSSES (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of allowances for credit losses


		Advances to
		Suppliers, Warranty
	Accounts Receivable	Insurance Receivable and
	Trade	Other Receivable
	$	$
Balance as of December 31, 2020	40,293	28,502
Provision for credit losses, net	7,171	444
Write-offs	(197)	(53)
Foreign exchange effect	(141)	186
Balance as of December 31, 2021	47,126	29,079
Provision for credit losses, net	4,349	1,424
Write-offs	(109)	(18,295)
Foreign exchange effect	(1,436)	(834)
Balance as of December 31, 2022	49,930	11,374
Provision for credit losses, net	7,381	4,633
Write-offs	(2,073)	(242)
Foreign exchange effect	1,564	(163)
Balance as of December 31, 2023	56,802	15,602

Allowances for accounts receivable

Accounts, Notes, Loans and Financing Receivable [Line Items]

Allowances for advances to suppliers


	At December 31,	At December 31,
	2022	2023
	$	$
Accounts receivable trade, gross	1,020,880	961,745
Allowance for credit losses	(49,930)	(56,802)
Accounts receivable trade, net	970,950	904,943

Accounts, Notes, Loans and Financing Receivable [Line Items]

Warranty insurance receivable net


	At December 31,	At December 31,
	2022	2023
	$	$
Advances to suppliers, gross	320,211	328,460
Allowance for credit losses	(1,375)	(2,424)
Advances to suppliers, net	318,836	326,036

Accounts, Notes, Loans and Financing Receivable [Line Items]

Allowances for other receivables


	At December 31,	At December 31,
	2022	2023
	$	$
Warranty insurance receivable, gross	84,474	84,035
Allowance for credit losses	—	(1,300)
Warranty insurance receivable, net	84,474	82,735

Accounts, Notes, Loans and Financing Receivable [Line Items]


	At December 31,	At December 31,
	2022	2023
	$	$
Other receivable, gross	129,195	145,376
Allowance for credit losses	(9,999)	(11,878)
Other receivable, net	119,196	133,498

FAIR VALUE MEASUREMENT

12 Months Ended

Dec. 31, 2023

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT

9. FAIR VALUE MEASUREMENT

The Company measures at fair value its financial assets and liabilities by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is the price that would be received from the sale of an asset or paid to transfer a liability (i.e., an exit price) on the measurement date in an orderly transaction between market participants.

Foreign exchange option and forward contracts

The Company entered into certain foreign currency derivative contracts to protect against volatility of future cash flows caused by the changes in foreign exchange rates. The foreign currency derivative contracts do not qualify for hedge accounting and, as a result, the changes in fair value of the foreign currency derivative contracts are recognized in the consolidated statements of operations.

The Company’s foreign currency derivative instruments relate to foreign exchange options or forward contracts involving major currencies such as Renminbi, Brazilian reals, Euros, Canadian dollars, Japanese Yen and South African rand. Since its derivative instruments are not traded on an exchange, the Company values them using standard industry valuation models. As applicable, these models use market-based observable inputs, including credit risk, foreign exchange rates, forward and spot rates for currencies. These inputs are observable in active markets over the terms of the instruments the Company holds, and accordingly, the fair value measurements are considered as Level 2 inputs.

Interest rate swap and commodity hedge

In 2022 and 2023, the Company entered into interest rate swaps to manage part of its interest rate risks, and entered into commodity hedge to manage part of its risks of rising raw material costs.

The estimated fair value of interest rate swaps and commodity hedge was measured based on observable market data, which were considered Level 2 inputs. The unrealized gains or losses on interest rate swaps that qualified as cash flow hedges were recognized in other comprehensive income.

The fair value of derivative instruments on the consolidated balance sheets as of December 31, 2022 and 2023 and the effect of derivative instruments on the consolidated statements of operations for the years ended December 31, 2021, 2022 and 2023 are as follows:


	Fair Value of Derivative Assets
	At December 31, 2022		At December 31, 2023
	Balance Sheet Location	Fair Value	Balance Sheet Location	Fair Value
		$		$
Foreign exchange forward contracts	Derivative assets — current	7,730	Derivative assets — current	9,282
Foreign exchange option contracts	Derivative assets — current	9,576	Derivative assets — current	—
Commodity hedge	Derivative assets — current	210	Derivative assets — current	—
Interest rate swap	Other non-current assets	1,064	Other non-current assets	387
	Total	18,580	Total	9,669


	Fair Value of Derivative Liabilities
	At December 31, 2022		At December 31, 2023
	Balance Sheet Location	Fair Value	Balance Sheet Location	Fair Value
		$		$
Foreign exchange forward contracts	Derivative liabilities — current	24,104	Derivative liabilities — current	6,702
Foreign exchange option contracts	Derivative liabilities — current	1,255	Derivative liabilities — current	—
Interest rate swap	Other non-current liabilities	—	Other non-current liabilities	801
	Total	25,359	Total	7,503

9. FAIR VALUE MEASUREMENT (Continued)

Interest rate swap and commodity hedge (Continued)


		Amount of Gain (Loss)
		Recognized in Statements
	Location of	of Operations
	Gain (Loss) Recognized	Years Ended December 31
	in Statements of Operations	2021	2022	2023
		$	$	$
Foreign exchange forward contracts	Gain (loss) on change in fair value of derivatives, net	22,582	(49,388)	(38,241)
Foreign exchange option contracts	Gain (loss) on change in fair value of derivatives, net	220	8,918	10,712
Commodity hedge	Gain (loss) on change in fair value of derivatives, net	983	(4,019)	25
	Total	23,785	(44,489)	(27,504)

Marketable securities

In 2020, the Company received shares of Suzhou Good-Ark Electronics Co., Ltd (“Good-Ark”), listed on Shenzhen stock exchange, for the disposal of its ownership of Suzhou iSilver Materials Co., Ltd as part of the consideration. These shares were carried at fair value of $18,337 and $15,190 as of December 31, 2022 and 2023, respectively, included as a component of Prepaid expenses and other current assets. Fair value gain on these shares of $4,744 was recorded under investment income in the consolidated statements of operations for the year ended December 31, 2021, and fair value losses of $418 and $2,826 were recorded for the years ended December 31, 2022 and 2023 under investment income, net, respectively, in the consolidated statements of operations. The fair values of Good-Ark were measured based on quoted prices on the Shenzhen stock exchange, which is classified as Level 1 fair value input.

9. FAIR VALUE MEASUREMENT (Continued)

Other fair value measurements

The Company measures certain long-lived assets or long-term investments at fair value on a non-recurring basis in periods after initial measurement in circumstances when the fair value of such assets is below its recorded cost and impairment is required.

The Company invested in Suzhou Jingkong Energy Technology Co., Ltd., Hangzhou Gaote Electronic Equipment Co., Ltd., Suzhou Hongruida New Energy Equipment Co., Ltd. and Youli Intelligent Technology (Shanghai) Co., Ltd. These shares were accounted for using fair value option, and were included as a component of other non-current assets and were carried at fair value of $7,134 and $22,869 as of December 31, 2022 and 2023, respectively. Unrealized gain on these shares of $1,810 and $15,500 were recorded for the years ended December 31, 2022 and 2023 under investment income, net, in the consolidated statements of operations. The fair value of these investments were measured based on valuation incorporating the Company’s own assumptions that were consistent with those of market participant, and were classified as Level 3 fair value measurements as the inputs are not observable.

The Company invested in available-for-sale debt securities. These investments were carried at fair value of $3,739 and $4,134 as of December 31, 2022 and 2023, respectively, and were included as a component of prepaid expenses and other current assets. Gain of $904 and loss of $3,487 on these investments were recorded for the years ended December 31, 2022 and 2023, respectively, as a component of other comprehensive income (loss). The fair values of the available-for-sale debt securities were measured based on quoted prices of other debt securities with similar maturity dates and interest rates, which is classified as Level 2 fair value input.

The Company recorded property, plant and equipment impairment charges of $6,084, $60,330 and $5,938 for the years ended December 31, 2021, 2022 and 2023, respectively, on certain solar product manufacturing asset group. The fair value of these assets was measured based on prices offered by unrelated third-party willing buyers and classified as Level 3 fair value measurements as the prices are not observable. The impairment was recorded in general and administrative expenses of CSI Solar segment on its consolidated statements of operations.

The Company recorded impairment loss on project assets of $17,152, $1,674 and $16,239 for the years ended December 31, 2021, 2022 and 2023, respectively. The fair value of project assets was measured based on prices offered by unrelated third-party willing buyers and classified as Level 3 fair value measurements as the prices are not observable. The impairment was recorded as cost of revenues on its consolidated statements of operations.

The Company also holds financial instruments that are not recorded at fair value in the consolidated balance sheets, but whose fair value is required to be disclosed under the U.S. GAAP.

The carrying values of cash and cash equivalents, restricted cash, trade receivables, billed and unbilled, amounts due from related parties, other receivable, accounts payables, short-term notes payable, amounts due to related parties, current portion of advances from customers, other payables and short-term borrowings approximate their fair values due to the shorter -term maturity of these instruments. Long-term borrowings were $813,406 and $1,265,965 as of December 31, 2022 and 2023, respectively, which approximate their fair values since most of the borrowings contain variable interest rates. The carrying value of the Company’s outstanding green bonds and convertible notes was $257,615 and $389,033 as of December 31, 2022 and 2023, respectively, which approximates the fair value. The fair value of long-term borrowings and green bonds was measured based on discounted cash flow approach, which is classified as Level 2 as the key inputs can be corroborated with market data.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Revenue recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Revenue recognition
Net revenues	$ 7,613,626	$ 7,468,610	$ 5,277,169
Revenue generated	0	0	0
CSI Solar Segment \| Recognized at a point in time
Revenue recognition
Net revenues	6,767,156	6,173,338	3,881,573
CSI Solar Segment \| Recognized over time
Revenue recognition
Net revenues	348,817	473,747	271,513
Recurrent Energy Segment \| Recognized at a point in time
Revenue recognition
Net revenues	399,826	763,698	1,068,179
Recurrent Energy Segment \| Recognized over time
Revenue recognition
Net revenues	$ 97,827	$ 57,827	$ 55,904

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

Schedule of provision for income taxes

INTANGIBLE ASSETS, NET (Details) - USD ($) $ in Thousands	12 Months Ended
INTANGIBLE ASSETS, NET (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
INTANGIBLE ASSETS, NET
Gross Carrying Amount	$ 44,078	$ 39,091
Accumulated Amortization	(24,351)	(21,561)
Total intangible assets, net	19,727	17,530
Amortization expense	3,793	3,586	$ 4,601
Expected amortization expense of intangible assets
2024	3,532
2025	3,066
2026	2,821
2027	2,669
2028	2,597
Thereafter	5,042
Technical know-how
INTANGIBLE ASSETS, NET
Gross Carrying Amount		1,443
Accumulated Amortization		(1,430)
Total intangible assets, net		13
Computer software
INTANGIBLE ASSETS, NET
Gross Carrying Amount	37,898	37,648
Accumulated Amortization	(23,820)	(20,131)
Total intangible assets, net	14,078	$ 17,517
Customer-related intangible assets
INTANGIBLE ASSETS, NET
Gross Carrying Amount	3,647
Accumulated Amortization	(478)
Total intangible assets, net	3,169
Trademark
INTANGIBLE ASSETS, NET
Gross Carrying Amount	2,533
Accumulated Amortization	(53)
Total intangible assets, net	$ 2,480

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
CONSOLIDATED STATEMENTS OF OPERATIONS
Net revenues	$ 7,613,626	$ 7,468,610	$ 5,277,169
Cost of revenues	6,333,643	6,205,474	4,367,857
Gross profit	1,279,983	1,263,136	909,312
Operating expenses:
Selling and distribution expenses	369,670	558,926	398,650
General and administrative expenses	440,488	342,129	308,942
Research and development expenses	100,844	69,822	58,407
Other operating income, net	(84,339)	(63,802)	(47,068)
Total operating expenses	826,663	907,075	718,931
Income from operations	453,320	356,061	190,381
Other income (expenses):
Interest expense	(114,099)	(74,266)	(58,153)
Interest income	51,621	40,615	11,051
Gain (loss) on change in fair value of derivatives, net	(27,504)	(44,489)	23,785
Foreign exchange gain (loss), net	30,555	77,689	(47,234)
Investment income, net	14,632	858	18,634
Total other income (expenses)	(44,795)	407	(51,917)
Income before income taxes and equity in earnings of affiliates	408,525	356,468	138,464
Income tax expense	(59,501)	(73,353)	(35,844)
Equity in earnings of affiliates	14,610	15,440	7,256
Net income	363,634	298,555	109,876
Less: net income attributable to non-controlling interests	89,447	58,587	14,628
Net income attributable to Canadian Solar Inc.	$ 274,187	$ 239,968	$ 95,248
Earnings per share - basic	$ 4.19	$ 3.73	$ 1.55
Shares used in computation - basic	65,375,084	64,324,558	61,614,391
Earnings per share - diluted	$ 3.87	$ 3.44	$ 1.46
Shares used in computation - diluted	72,194,006	71,183,135	68,872,102

RELATED PARTY BALANCES AND TRANSACTIONS (Details) ¥ in Thousands, ¥ in Thousands	12 Months Ended
	Dec. 31, 2023 JPY (¥) item shares	Dec. 31, 2023 USD ($) item shares	Dec. 31, 2023 CNY (¥) item shares	Dec. 31, 2022 JPY (¥) shares	Dec. 31, 2022 USD ($) shares	Dec. 31, 2022 CNY (¥) shares	Dec. 31, 2021 JPY (¥) item shares	Dec. 31, 2021 USD ($) item shares	Dec. 31, 2021 CNY (¥) item shares	Dec. 31, 2021 CNY (¥)	Sep. 30, 2021
RELATED PARTY BALANCES AND TRANSACTIONS
Amount due from related parties, Non current		$ 32,313,000			$ 33,489,000
Other Receivable, after Allowance for Credit Loss, Noncurrent, Related Party, Type [Extensible Enumeration]		srt:AffiliatedEntityMember			srt:AffiliatedEntityMember
Horus and Recursos
RELATED PARTY BALANCES AND TRANSACTIONS
Ownership percentage		49.00%			49.00%
Crimson
RELATED PARTY BALANCES AND TRANSACTIONS
Ownership percentage		20.00%			20.00%						20.00%
RSUs
RELATED PARTY BALANCES AND TRANSACTIONS
Granted (in shares) \| shares	206,067	206,067	206,067	444,167	444,167	444,167	2,161,098	2,161,098	2,161,098
Canadian Solar Infrastructure Fund, Inc
RELATED PARTY BALANCES AND TRANSACTIONS
Number of solar power plants sold \| item	1	1	1				2	2	2
Revenues	¥ 230,144	$ 1,591,000					¥ 30,601,181	$ 282,133,000
Canadian Solar Infrastructure Fund, Inc \| Asset management service
RELATED PARTY BALANCES AND TRANSACTIONS
Revenue from providing development services	1,405,513	10,004,000
Canadian Solar Infrastructure Fund, Inc \| O & M Service
RELATED PARTY BALANCES AND TRANSACTIONS
Revenue from providing development services	¥ 984,527	6,974,000
Related party
RELATED PARTY BALANCES AND TRANSACTIONS
Amount due from related parties, current		40,582,000			$ 48,614,000
Other current liabilities		$ 511,000			$ 89,000
Related party \| Canadian Solar Inc \| Chinese investor
RELATED PARTY BALANCES AND TRANSACTIONS
Noncontrolling interest ownership percentage		70.00%			80.00%			80.00%		80.00%
Related party \| Canadian Solar Inc \| Canadian infrastructure fund
RELATED PARTY BALANCES AND TRANSACTIONS
Noncontrolling interest ownership percentage		80.00%			80.00%			80.00%		80.00%
Related party \| Canadian Solar Inc \| Brazilian Investor
RELATED PARTY BALANCES AND TRANSACTIONS
Noncontrolling interest ownership percentage		80.00%
Related party \| Canadian Solar Infrastructure Fund, Inc
RELATED PARTY BALANCES AND TRANSACTIONS
Equity method investee percentage		14.54%
Related party \| Canadian Solar Infrastructure Fund, Inc \| Asset management service
RELATED PARTY BALANCES AND TRANSACTIONS
Revenue from providing development services				¥ 545,131	$ 4,180,000		829,053	$ 7,541,000
Related party \| Canadian Solar Infrastructure Fund, Inc \| O & M Service
RELATED PARTY BALANCES AND TRANSACTIONS
Revenue from providing development services				¥ 914,933	7,036,000		¥ 981,161	9,195,000
Related party \| Dr. Shawn Qu \| Chinese Commercial Banks
RELATED PARTY BALANCES AND TRANSACTIONS
Maximum borrowing capacity								$ 1,882,000		¥ 12,000
Related party \| Luoyang Jiwa New Material Technology Co., Ltd [Member]
RELATED PARTY BALANCES AND TRANSACTIONS
Percent of units purchased							10.91%	10.91%	10.91%
Purchase from related party								$ 2,995,000	¥ 19,378
Related party \| Luoyang Jiwa New Material Technology Co., Ltd [Member] \| Canadian Solar Inc \| Chinese investor
RELATED PARTY BALANCES AND TRANSACTIONS
Noncontrolling interest ownership percentage								89.09%		89.09%
Related party \| Horus Solar S.A. De Capital Variable
RELATED PARTY BALANCES AND TRANSACTIONS
Shareholder loans due from related parties		$ 33,664			52,424,000
Related party \| Recourses Solares PV De Mexico II S.A. De Capital Variable
RELATED PARTY BALANCES AND TRANSACTIONS
Shareholder loans due from related parties		$ 36,832,000			$ 29,613,000
Related party \| Francisco SA I Renewable Energy S.A.
RELATED PARTY BALANCES AND TRANSACTIONS
Revenues								$ 7,090,000
Related party \| Yancheng Jiwa New Material Technology Co., Ltd
RELATED PARTY BALANCES AND TRANSACTIONS
Percent of units purchased	10.91%	10.91%	10.91%	10.91%	10.91%	10.91%	10.91%	10.91%	10.91%
Purchase from related party		$ 8,300,000	¥ 58,869		$ 5,192,000	¥ 34,772		$ 1,688,000	¥ 10,831
Related party \| Yancheng Jiwa New Material Technology Co., Ltd \| Canadian Solar Inc \| Canadian infrastructure fund
RELATED PARTY BALANCES AND TRANSACTIONS
Noncontrolling interest ownership percentage		89.09%			89.09%			89.09%		89.09%
Related party \| Marangatu
RELATED PARTY BALANCES AND TRANSACTIONS
Revenues		$ 100,939,000
Percentage of ownership after sale transaction	30.00%	30.00%	30.00%
Related party \| Panati
RELATED PARTY BALANCES AND TRANSACTIONS
Revenues		$ 67,463,000
Percentage of ownership after sale transaction	30.00%	30.00%	30.00%
Related party \| Crimson
RELATED PARTY BALANCES AND TRANSACTIONS
Revenues		$ 17,182,000			$ 367,383,000			$ 19,777,000
Percentage of ownership after sale transaction	20.00%	20.00%	20.00%	20.00%	20.00%	20.00%	20.00%	20.00%	20.00%
Related party \| Salgueiro
RELATED PARTY BALANCES AND TRANSACTIONS
Revenues					$ 357,000			$ 324,000
Percentage of ownership after sale transaction				20.00%	20.00%	20.00%	20.00%	20.00%	20.00%
Related party \| Francisco
RELATED PARTY BALANCES AND TRANSACTIONS
Revenues					$ 642,000			$ 24,883,000
Percentage of ownership after sale transaction				20.00%	20.00%	20.00%	20.00%	20.00%	20.00%
Related party \| Lavras
RELATED PARTY BALANCES AND TRANSACTIONS
Purchase from related party					$ 202,000			$ 30,064,000
Percentage of ownership after sale transaction				20.00%	20.00%	20.00%	20.00%	20.00%	20.00%
Related party \| Jaiba
RELATED PARTY BALANCES AND TRANSACTIONS
Revenues								$ 7,090,000
Percentage of ownership after sale transaction							20.00%	20.00%	20.00%

ACCRUED WARRANTY COSTS (Details) - USD ($) $ in Thousands	12 Months Ended
ACCRUED WARRANTY COSTS (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
ACCRUED WARRANTY COSTS
Beginning balance	$ 76,677	$ 45,146	$ 37,732
Warranty provision	27,944	68,411	45,053
Warranty costs incurred	(21,011)	(31,943)	(35,432)
Foreign exchange effect	(8,091)	(4,937)	(2,207)
Ending balance	$ 75,519	$ 76,677	$ 45,146

INVENTORIES (Tables)

12 Months Ended

Dec. 31, 2023

INVENTORIES

Schedule of inventories


	At December 31,	At December 31,
	2022	2023
	$	$
Raw materials	310,394	222,826
Work-in-process	265,109	139,116
Finished goods	948,592	817,699
	1,524,095	1,179,641

LEASE - Total leases - Summary (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Leases
Short-term	$ 108,384
Long-term	188,497
Total lease liabilities	296,881
Operating lease liabilities, current	20,204	$ 9,810
Operating lease liabilities, noncurrent	116,846	25,714
Total operating lease liabilities	137,050	35,524
Finance lease liabilities, current	$ 88,180	$ 14,697
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other current liabilities	Other current liabilities
Finance lease liabilities, noncurrent	$ 71,651	$ 14,372
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other non-current liabilities	Other non-current liabilities
Total Finance lease liabilities	$ 159,831	$ 29,069

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

INCOME TAXES


	Years Ended December 31,
	2021	2022	2023
	$	$	$
Income (loss) before income taxes and equity in earnings of affiliates
Canada	6,237	(19,357)	(61,704)
United States	66,432	22,275	(49,536)
PRC including Hong Kong and Taiwan	(35,943)	193,705	230,768
Japan	51,910	1,179	5,026
Singapore	(7,728)	69,424	153,437
Brazil	14,448	32,052	(44,663)
Thailand	(15,562)	17,155	162,303
Other	58,670	40,035	12,894
	138,464	356,468	408,525
Current tax expense (benefit)
Canada	(1,124)	(16,707)	1,944
United States	15,937	(1,684)	12,570
PRC including Hong Kong and Taiwan	47,356	47,528	55,780
Japan	24,047	3,054	4,104
Singapore	617	872	475
Brazil	6,151	5,023	(7,518)
Thailand	—	—	—
Other	10,097	19,183	7,695
	103,081	57,269	75,050
Deferred tax expense (benefit)
Canada	685	10,629	2,048
United States	(1,604)	1,996	(4,176)
PRC including Hong Kong and Taiwan	(65,017)	500	(724)
Japan	(353)	(173)	2,008
Singapore	—	231	—
Brazil	1,244	5,546	(25,657)
Thailand	—	—	—
Other	(2,192)	(2,645)	10,952
	(67,237)	16,084	(15,549)
Total income tax expense (benefit)
Canada	(439)	(6,078)	3,992
United States	14,333	312	8,394
PRC including Hong Kong and Taiwan	(17,661)	48,028	55,056
Japan	23,694	2,881	6,112
Singapore	617	1,103	475
Brazil	7,395	10,569	(33,175)
Thailand	—	—	—
Other	7,905	16,538	18,647
	35,844	73,353	59,501

Schedule of reconciliation between the provision for income tax computed by applying Canadian federal and provincial statutory tax rates to income before income taxes and the actual provision and benefit for income taxes


	Years Ended December 31,
	2021		2022		2023
Combined federal and provincial income tax rate	27	%	27	%	27	%
Effect of permanent difference	4	%	(3)	%	(15)	%
Effect of different tax rate on earnings in other jurisdictions	9	%	1	%	(4)	%
Effect of tax holiday	(3)	%	(1)	%	(1)	%
Effect of true-up	4	%	(2)	%	—	%
Effect of cross-border tax	—	%	—	%	1	%
Unrecognized tax provision	(5)	%	—	%	—	%
Change in valuation allowance	(3)	%	(1)	%	7	%
Effect of change in tax rate	(7)	%	—	%	—	%
	26	%	21	%	15	%

Schedule of aggregate amount and per share effect of the tax holiday


	Years Ended December 31,
	2021	2022	2023

	(In Thousands of U.S. Dollars, except per share data)
The aggregate amount	4,466	2,520	3,043
Per share — basic	0.07	0.04	0.05
Per share — diluted	0.07	0.04	0.04

Schedule of components of the deferred tax assets and liabilities


	At December 31,	At December 31,
	2022	2023
	$	$
Deferred tax assets:
Accrued warranty costs	17,318	12,944
Allowance for credit losses	11,772	14,728
Inventory write-down	1,235	5,807
Future deductible expenses	32,351	28,720
Depreciation and impairment difference of property, plant and equipment and solar power systems	36,332	18,428
Accrued liabilities related to antidumping and countervailing duty deposits	40	39
Government subsidies	28,723	46,712
Net operating losses carry-forward	79,474	131,094
Unrealized foreign exchange loss and capital loss	2,677	190
Interest limitation	14,031	15,471
Others	48,761	62,003
Total deferred tax assets, gross	272,714	336,136
Valuation allowance	(43,488)	(72,678)
Total deferred tax assets, net of valuation allowance	229,226	263,458

Deferred tax liabilities:
Derivative assets	2,899	654
Depreciation difference of property, plant and equipment	34,914	34,625
Insurance recoverable	55	71
Unrealized foreign exchange gain	3,906	1,816
Others	24,856	45,662
Total deferred tax liabilities	66,630	82,828
Net deferred tax assets	162,596	180,630
Analysis as:
Deferred tax assets	229,226	263,458
Deferred tax liabilities	(66,630)	(82,828)
Net deferred tax assets	162,596	180,630

Schedule of movement of the valuation allowance


	Years Ended December 31,
	2021	2022	2023
	$	$	$
Beginning balance	50,118	45,682	43,488
Additions (reversals)	(4,671)	(1,531)	28,819
Foreign exchange effect	235	(663)	371
Ending balance	45,682	43,488	72,678

Schedule of movement and balance of the Company's liability for uncertain tax positions (excluding interest and penalties)


	Years Ended December 31,
	2021	2022	2023
	$	$	$
Beginning balance	9,628	5,863	4,770
Reductions for tax positions from prior years/Statute of limitations expirations	(3,763)	(678)	(24)
Foreign exchange effect	(2)	(415)	(1)
Ending balance	5,863	4,770	4,745

PROPERTY, PLANT AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2023

PROPERTY, PLANT AND EQUIPMENT, NET

PROPERTY, PLANT AND EQUIPMENT, NET

6. PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment, net consist of the following:


	At December 31,	At December 31,
	2022	2023
	$	$
Buildings	764,577	978,924
Leasehold improvements	30,896	44,275
Machinery	1,470,957	2,213,281
Furniture, fixtures and equipment	58,928	178,455
Motor vehicles	11,527	14,768
Freehold land	39,285	45,397
	2,376,170	3,475,100
Accumulated depreciation	(908,888)	(1,061,281)
Subtotal	1,467,282	2,413,819
Construction in progress	359,361	674,623
Property, plant and equipment, net	1,826,643	3,088,442

Depreciation expense of property, plant and equipment was $266,956, $225,351 and $287,130 for the years ended December 31, 2021, 2022 and 2023, respectively. Construction in progress primarily represents production facilities under construction and the machinery under installation.

NON-CONTROLLING INTERESTS - Effects of changes in Company's ownership interest in less than wholly owned subsidiaries on equity attributable to Canadian Solar Inc (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
NON-CONTROLLING INTERESTS
Net income attributable to Canadian Solar Inc. - basic	$ 274,187,000	$ 239,968,000	$ 95,248,000
Transfers from the non-controlling interests:
Increase in the Company's transfer of equity interest in subsidiary and subsidiary's offering of its equity interests	3,990,000
CSI Solar
NON-CONTROLLING INTERESTS
Net income attributable to Canadian Solar Inc. - basic	274,187	239,968	95,248
Transfers from the non-controlling interests:
Net transfers from non-controlling interests	283,024	11,729
Change from net income attributable to Canadian Solar Inc. and transfers from non-controlling interests	557,211	251,697	$ 95,248
CSI Solar \| Additional Paid-in Capital
Transfers from the non-controlling interests:
Increase in the Company's transfer of equity interest in subsidiary and subsidiary's offering of its equity interests	244,629	11,185
CSI Solar \| Accumulated Other Comprehensive Income (Loss)
Transfers from the non-controlling interests:
Increase in the Company's transfer of equity interest in subsidiary and subsidiary's offering of its equity interests	$ 38,395	$ 544

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-3

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-4

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 5
-Subparagraph (SAB Topic 6.B)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483621/220-10-S99-5

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482662/260-10-50-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482689/260-10-45-10

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
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-Paragraph 32
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 11
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482689/260-10-45-11

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 60B
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482689/260-10-45-60B

Additional Information - Financial Statement Schedule I

Additional Information - Financial Statement Schedule I

12 Months Ended

Dec. 31, 2023

Additional Information - Financial Statement Schedule I

Additional Information — Condensed Financial Statements of Parent Company

Canadian Solar Inc.

The following condensed financial statements of Canadian Solar Inc. has been provided pursuant to the requirements of Rule 12-04(a) and 4-08(e)(3) of Regulation S-X, which require condensed financial information as to financial position, cash flows and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented as the restricted net assets of Canadian Solar Inc.’s consolidated and unconsolidated subsidiaries not available for distribution to Canadian Solar Inc. as of December 31, 2023 of $1,587,503, exceeded the 25% threshold.

The condensed financial information has been prepared using the same accounting policies as set out in the consolidated financial statements, except that the equity method has been used to account for investments in subsidiaries. The Company’s share of income from its subsidiaries is reported as equity in earnings of subsidiaries in the condensed financial statements. These statements should be read in conjunction with the notes to the consolidated financial statements of the Company. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted.

FINANCIAL INFORMATION OF PARENT COMPANY

BALANCE SHEETS


	December 31,	December 31,
	2022	2023

	(In Thousands of U.S. Dollars, except
	share data)
ASSETS
Current assets:
Cash and cash equivalents	15,661	642
Amounts due from subsidiaries	582,685	339,809
Prepaid expenses and other current assets	13,218	14,812
Total current assets	611,564	355,263
Investments in subsidiaries	2,158,474	2,561,797
Investments in affiliates	11,745	11,745
Deferred tax assets	1,755	—
Other non-current assets	39,837	39,837
TOTAL ASSETS	2,823,375	2,968,642
LIABILITIES AND EQUITY
Current liabilities:
Amounts due to subsidiaries	640,055	157,821
Derivative liabilities	762	1,438
Other current liabilities	4,522	8,899
Total current liabilities	645,339	168,158
Convertible notes	225,977	227,424
Deferred tax liabilities	4,690	8,115
Liability for uncertain tax positions	5,730	5,702
TOTAL LIABILITIES	881,736	409,399
Equity:
Common shares — no par value: unlimited authorized shares, 64,506,055 and 66,158,741 shares issued and outstanding at December 31, 2022 and 2023, respectively	835,543	835,543
Additional paid-in capital	1,127	292,737
Retained earnings	1,275,520	1,549,707
Accumulated other comprehensive loss	(170,551)	(118,744)
TOTAL EQUITY	1,941,639	2,559,243
TOTAL LIABILITIES AND EQUITY	2,823,375	2,968,642

FINANCIAL INFORMATION OF PARENT COMPANY

STATEMENTS OF OPERATIONS


	Years Ended December 31,
	2021	2022	2023

	(In Thousands of U.S. Dollars)
Net revenues	341	—	—
Cost of revenues	—	—	—
Gross profit	341	—	—
Operating expenses:
Selling and distribution expenses	766	890	263
General and administrative expenses	9,177	11,261	39,838
Research and development expenses	182	155	97
Other operating income, net	(282)	—	—
Total operating expenses	9,843	12,306	40,198
Loss from operations	(9,502)	(12,306)	(40,198)
Other income (expenses):
Interest expense	(19,677)	(23,229)	(18,720)
Interest income	20,249	20,563	22,862
Gain (loss) on change in fair value of derivatives, net	4,043	(844)	(1,535)
Foreign exchange gain (loss), net	(3,674)	616	(772)
Other income (expenses), net:	941	(2,894)	1,835
Loss before income taxes and equity in earnings of subsidiaries	(8,561)	(15,200)	(38,363)
Income tax benefit (expense)	2,424	8,786	(6,775)
Equity in earnings of subsidiaries	101,385	246,382	319,325
Net income	95,248	239,968	274,187

FINANCIAL INFORMATION OF PARENT COMPANY

STATEMENTS OF COMPREHENSIVE INCOME


	Years Ended December 31,
	2021	2022	2023

	(In Thousands of U.S. Dollars)
Net income	95,248	239,968	274,187
Other comprehensive income (loss) (net of tax)	(21,905)	(120,511)	13,412
Comprehensive income	73,343	119,457	287,599

FINANCIAL INFORMATION OF PARENT COMPANY

STATEMENTS OF CASH FLOWS


	Years Ended December 31,
	2021	2022	2023

	(In Thousands of U.S. Dollars)
Operating activities:
Net income	95,248	239,968	274,187
Adjustments to reconcile net income to net cash provided by provided by (used in) operating activities:
Depreciation and amortization	150	—	—
Accretion of convertible notes	1,461	1,302	1,447
Loss (gain) on change in fair value of derivatives	(4,043)	844	1,535
Equity in earnings of subsidiaries	(101,385)	(246,382)	(319,325)
Share-based compensation	8,808	9,370	28,410
Deferred taxes	805	3,319	5,180
Changes in operating assets and liabilities:
Amounts due from subsidiaries	(206,892)	10,990	245,001
Prepaid expenses and other current assets	17,353	(7,900)	(1,594)
Other non-current assets	(4,907)	10	—
Amounts due to subsidiaries	(42,224)	38,610	(232,650)
Other current liabilities	(27,293)	(1,154)	4,377
Liability for uncertain tax positions	(5,915)	(1,702)	(28)
Net settlement of derivatives	4,633	439	(859)
Net cash provided by (used in) operating activities	(264,201)	47,714	5,681
Investing activities:
Investments in subsidiaries	(138,456)	(65,421)	(22,164)
Investments in affiliates	(5,273)	(990)	—
Loans to subsidiaries	(201,192)	(122,050)	(62,226)
Repayment of loans to subsidiaries	253,816	172,573	69,150
Net cash used in investing activities	(91,105)	(15,888)	(15,240)
Financing activities:
Proceeds from (repayment of) short-term borrowings	(80,000)	—	—
Repayment of loan from subsidiary	—	(49,554)	—
Loan from a subsidiary	280,000	—	—
Net proceeds from issuance of common shares	148,510	—	—
Net cash provided by (used in) financing activities	348,510	(49,554)	—
Effect of exchange rate changes	(797)	5,957	(5,460)
Net decrease in cash, cash equivalents and restricted cash	(7,593)	(11,771)	(15,019)
Cash, cash equivalents and restricted cash at the beginning of the year	35,025	27,432	15,661
Cash, cash equivalents and restricted cash at the end of the year	27,432	15,661	642
Supplemental disclosure of cash flow information:
Interest paid (net of amounts capitalized)	20,272	30,521	11,586

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) $ in Thousands		12 Months Ended
	May 27, 2021 USD ($) shares	Dec. 31, 2023 USD ($)	Dec. 31, 2023 CNY (¥)
Commissions and offering expenses		$ 38,995
Common Shares
Number of shares repurchased \| shares	3,639,918
Commissions and offering expenses	$ 1,490
CSI Solar Co., Ltd.
Net proceeds		927,897	¥ 6,628,683
Commissions and offering expenses		$ 38,995	¥ 277,929

Number of shares that have been repurchased during the period and have not been retired and are not held in treasury. Some state laws may govern the circumstances under which an entity may acquire its own stock and prescribe the accounting treatment therefore. This element is used when state law does not recognize treasury stock.

Schedule of carrying amounts and classifications of consolidated VIE's assets and liabilities, excluding intercompany balances

VARIABLE INTEREST ENTITIES (Tables)

12 Months Ended

Dec. 31, 2023

VARIABLE INTEREST ENTITIES


	At December 31,	At December 31,
	2022	2023
	$	$
Cash	15,903	10,478
Project assets	320,460	109,144
Other assets	30,163	40,340
Total assets	366,526	159,962

Short-term borrowings	191,792	73,131
Long-term borrowings	49,675	16,956
Other liabilities	26,366	27,376
Total liabilities	267,833	117,463

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

BORROWINGS

12 Months Ended

Dec. 31, 2023

BORROWINGS

BORROWINGS

13. BORROWINGS

Borrowings consist of the following:


	At December 31,	At December 31,
	2022	2023
	$	$
Short-term borrowings related to project assets⁽¹⁾	333,521	291,982
Other short-term borrowings	1,110,295	1,513,216
Subtotal for short-term borrowings	1,443,816	1,805,198
Long-term borrowings related to project assets	318,987	450,455
Other long-term borrowings	494,419	815,510
Subtotal for long-term borrowings	813,406	1,265,965
Total	2,257,222	3,071,163

(1)	Includes long-term borrowings that were classified as current liabilities because these borrowings are associated with certain solar power and battery energy storage assets that are expected to be sold within one year.

Total borrowings was $3,071,163 as of December 31, 2023, including $1,702,785 and $1,368,378 related to CSI Solar and Recurrent Energy, respectively. In addition, the Company had $161,609 of green bonds related to Recurrent Energy and $227,424 of convertible notes as of December 31, 2023. Total borrowings was $2,257,222 as of December 31, 2022, including $1,200,582 and $1,056,640 related to CSI Solar and Recurrent Energy, respectively. In addition, the Company had $31,638 of green bonds and $225,977 of convertible notes as of December 31, 2022. Refer to Note 17 for further details of the Company’s convertible notes.

As of December 31, 2023, the Company had contractual credit facilities of $5,254,518, of which $2,162,501 has been drawn under borrowings and $366,197 has been drawn under arrangements with banks including bank guarantees, letters of credit and short-term notes payable, and $2,725,820 was available for draw down upon demand. In addition, as of December 31, 2023, the Company also had uncommitted credit facilities of $2,587,712, of which $901,519 has been drawn under borrowings and $411,160 under arrangements with banks including bank guarantees, letters of credit and short-term notes payable. As of December 31, 2023, $374,840 of the Company’s borrowings under its Recurrent Energy business were non-recourse in nature.

The lenders under the Company’s non-recourse facilities generally require the pledge of underlying solar power and battery energy storage assets and do not have direct recourse to Canadian Solar Inc.

As of December 31, 2023, borrowings of $1,647,038 were secured by property, plant and equipment with carrying amounts of $414,195, inventories of $1,763, land use rights of $55,976, restricted cash of $462,959, accounts receivable of $28,237, equity interest of $367,354, project assets of $233,740 and solar power systems of $609,201. These borrowings were recorded as short-term borrowings of $690,215, non-recourse borrowings - current of $146,869, long-term borrowings of $581,983 and non-recourse borrowings of $227,971.

The Company’s significant borrowings during the years ended December 31, 2022 and 2023 were as follows:

In 2016, Canadian Solar Projects K.K. obtained a syndicated three-year loan facility of JPY9,600,000 ($85,200) with Sumitomo Mitsui Banking Corporation (“SMBC”), acting as the lead arranger and 13 other participating financial institutions. The loan proceeds may be used to develop its solar project development pipeline in Japan and for general corporate working capital purposes. In 2020, the facility agreement was renewed with 11 participating financial institutions led by SMBC at a term of two years and a facility amount of JPY9,100,000 ($88,200). In 2021, the subsidiary further expanded the facility to JPY10,000,000 ($89,859) for a term of three years, with a September 2024 maturity. In 2022, the subsidiary amended the facility agreement to tranche 1 loan facility of JPY7,500,000 ($57,198) guaranteed by the Company and tranche 2 loan facility of JPY2,500,000 ($19,066) secured by a pledge of equity interest in CSIF. In 2023, the subsidiary amended the tranche 1 loan facility to JPY6,250,000 ($44,317), with maturity unchanged at September 2024. As of December 31, 2023, both tranche 1 and tranche 2 loan facility was fully drawn.

13. BORROWINGS (Continued)

In 2020, Recurrent Energy, LLC (“Recurrent”) executed a $75,000 development loan with Nomura Securities International, Inc. In 2021, the syndicated facility was renewed with Nomura at an expanded amount of $125,000 and and was set to mature in December 2023. In November 2023, the maturity of syndicated facility was extended for another two years to November 2025. The outstanding credit facility is secured by certain project assets in the U.S., and is guaranteed by the Company. As of December 31, 2023, the loan was fully drawn.

In 2021, Azuma Kofuji Daiichi Hatsudensho G.K. obtained a JPY24,513,530 ($230,759) project finance loan facility with Nomura Capital Investment Co., Ltd. acting as lead arranger and other participating financial institutions to construct the 100MWp Azuma Kofuji project in Japan. The loan, secured by the project, was assumed by a buyer in connection with the sale of the project in May 2023.

In 2021, Sunmex Renovables, S.A. De C.V., a 51% owned subsidiary, obtained a $60,000 project finance loan facility with Sumitomo Mitsui Banking Corporation (“SMBC”). The facility has been partially drawn for the construction of the El Mayo project in Mexico. As of December 31, 2023, the outstanding balance was $25,584. The Company has provided a guarantee on the outstanding balance through a letter of credit.

In 2021, Canadian Solar Spain S.L.U obtained a €50,000 ($61,132) credit facility with Banco Santander, S.A. (“Santander”). The facility comprises a term loan of €25,000 and a revolving credit facility of €25,000, and is guaranteed by the Company. In 2022, the subsidiary obtained additional term loan facility of €45,000 ($48,309). The facility will mature in May 2024. As of December 31, 2023, the two term loan facilities were fully drawn and the outstanding balance on the revolving credit facility was $27,429.

In 2021, eight Brazilian subsidiaries obtained a BRL500,000 ($95,921) financing facility with BTG Pactual and Itaú BBA to support the equity contribution for the development and construction of solar power projects in Brazil. The facility is guaranteed by the Company and was set to mature in December 2023. In 2023, the maturity of the facility was extended to December 2024. In 2023, two of these subsidiaries received BRL490,934 ($101,213) of non - recourse project financing for the 300MWp Ciranda project portfolio, consisting of BRL285,000 ($60,292) non - recourse project bonds issued in a private placement with investment funds managed by Vinci Partners for Ciranda Phase I, and a BRL205,934 ($40,921) non - recourse project finance facility with Banco Nacional de Desenvolvimento Econômico e Social (“BNDES”) for Ciranda Phase II. Both the project bonds and project finance facility are secured by the project assets, with maturities set for 2041 and 2047, respectively. As of December 31, 2023, the outstanding balance on the development and construction facility was $95,724, the outstanding balance on the project bonds was $60,909, and the outstanding balance on the project finance facility was $41,024.

In March 2023, Canadian Solar Netherlands Cooperative U.A. secured a $100,000 credit facility with Nomura Securities International, Inc., The facility will mature in March 2025 and is guaranteed by the Company. As of December 31, 2023, the loan was fully drawn.

In June 2023, Canadian Solar Netherlands Cooperative U.A. secured two credit facilities, comprising a €30,000 ($32,736) and $20,000 term loan facility, and a $110,500 revolving credit facility with Santander Corporate & Investment Banking (“Santander CIB”). The two facilities will mature in June 2026 and are guaranteed by the Company. As of December 31, 2023, the term loans and the revolving credit facility were fully drawn.

In October 2023, AURORA 01 GK issued JPY18,500,000 ($121,958) green bonds to finance development and construction costs of Recurrent projects globally. The bonds will mature in September 2026 and is guaranteed by the Company. As of December 31, 2023, the carrying value net of unamortized issuance costs of the green bonds was $128,818, and was included as a component of green bonds and convertible notes on the consolidated balance sheet.

13. BORROWINGS (Continued)

In 2023, Canadian Solar Sunenergy (Jiaxing) Co. Ltd. entered into credit facilities in the aggregate of RMB2,282,809 ($319,993) with various banks, and these credit facilities will mature through April 2030 by installments. Credit facilities of RMB1,869,600 ($262,044) are unsecured and are guaranteed by CSI Solar, and the remaining RMB413,209 ($57,949) are secured by certain land use rights, property, plant and equipment and equity interest of Canadian Solar Sunenergy (Jiaxing) Co. Ltd., and are guaranteed by CSI Solar. As of December 31, 2023, $165,231 was drawn.

In 2023, CSI Cells (Suqian) Co., Ltd. entered into credit facilities in the aggregate of RMB2,590,000 ($375,229) with various banks, and these credit facilities will mature through September 2026 by installments. Credit facilities of RMB90,000 ($13,097) are unsecured and are guaranteed by CSI Solar, and the remaining RMB2,500,000 ($362,132) are secured by certain property, plant and equipment and equity interest of CSI Cells (Suqian) Co., Ltd, and are guaranteed by CSI Solar. As of December 31, 2023, $142,601 was drawn.

In 2023, CSI Cells (Yangzhou) Co., Ltd. entered into credit facilities in the aggregate of RMB1,900,000 ($263,132) with various banks, and these credit facilities will mature through August 2028 by installments. The credit facilities are secured by certain property, plant and equipment and equity interest of CSI Cells (Yangzhou) Co., Ltd., and are guaranteed by CSI Solar. As of December 31, 2023, $66,350 was drawn.

In 2023, CSI Solar Technology (Xining) Co., Ltd. entered into credit facilities in the aggregate of RMB2,038,947 ($293,293) with various banks, and these credit facilities will mature through May 2028 by installments. Credit facilities of RMB180,000 ($25,761) are unsecured and are guaranteed by CSI Solar. The remaining RMB1,858,947 ($267,532) are secured by certain property, plant and equipment and equity interest of CSI Solar Technology (Xining) Co., Ltd, and are guaranteed by CSI Solar. As of December 31, 2023, $113,415 was drawn.

As of December 31, 2023, the financial covenants related to these borrowings were met.

In connection with the sale of solar projects for the years ended December 31, 2021, 2022 and 2023, borrowings of $118,406, $193,578 and $161,709, respectively, were assumed by the buyers.

These obtained borrowings mentioned above bear effective floating interest rates from 1.2% to 16.8%.

Future principal repayments on the borrowings are as follows. Included in the future principal repayment are $75,550 of current portion of long-term borrowings, associated with certain solar power and battery energy storage assets that are expected to be sold within one year of December 31, 2023:


2024	$	1,805,198
2025		551,022
2026		355,269
2027		84,689
2028		49,252
Thereafter		225,733
Total	$	3,071,163

13. BORROWINGS (Continued)

Weighted average effective interest rates on borrowings are as follows:


	At December 31,		At December 31,
	2022		2023
Short-term borrowings	5.3	%	3.8	%
Long-term borrowings	4.1	%	6.7	%

The Company capitalized interest costs incurred on borrowings obtained to finance construction of project assets, solar power systems or property, plant and equipment until the asset is ready for its intended use. The interests incurred during the years ended December 31, 2021, 2022 and 2023 are as follows:


	Years Ended December 31,
	2021	2022	2023
	$	$	$
Interest capitalized — project assets	17,316	26,439	27,676
Interest capitalized — solar power systems	—	18,666	33,097
Interest capitalized — property, plant and equipment	—	—	963
Interest expense	58,153	74,266	114,099
Total interest incurred	75,469	119,371	175,835

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

COMMITMENTS AND CONTINGENCIES

SEGMENT INFORMATION - Each product or service (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Revenues generated from each product
Total net revenues	$ 7,613,626	$ 7,468,610	$ 5,277,169
CSI Solar Segment \| Solar modules
Revenues generated from each product
Total net revenues	5,941,345	5,534,379	3,328,301
CSI Solar Segment \| Solar system kits
Revenues generated from each product
Total net revenues	679,350	538,157	302,133
CSI Solar Segment \| EPC and Others
Revenues generated from each product
Total net revenues	250,105	133,833	299,997
CSI Solar Segment \| Battery storage solutions
Revenues generated from each product
Total net revenues	245,173	440,716	222,655
Recurrent Energy Segment \| Electricity Revenue From Operating Portfolio and Others
Revenues generated from each product
Total net revenues	46,176	26,072	24,571
Recurrent Energy Segment \| Solar power and battery energy storage asset sales
Revenues generated from each product
Total net revenues	399,098	761,677	1,064,178
Recurrent Energy Segment \| Power services (O&M) and asset management
Revenues generated from each product
Total net revenues	$ 52,379	$ 33,776	$ 35,334

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2023

COMMITMENTS AND CONTINGENCIES

21. COMMITMENTS AND CONTINGENCIES

a) Capital commitments

As of December 31, 2023, the commitments for the purchase of property, plant and equipment were approximately $658,523, and the payment schedule for the commitments is as follow:


Year Ending December 31:		$
2024		622,701
2025		33,234
2026		2,562
2027		9
2028		17
Total		658,523

b) Solar power system commitments

As of December 31, 2023, the commitments related to construction EPC and other services of the Company’s solar power systems were approximately $32,486, and the payment schedule for the commitments is as follow:


Year Ending December 31:		$
2024		29,715
2025		2,425
2026		346
Total		32,486

c) Contingencies

Class Action Lawsuits

The Company and certain of its directors and executive officers were named as defendants in class action lawsuits in the U.S. and Canada alleging that its financial disclosures during 2009 and early 2010 were false or misleading and in violation of U.S. federal securities laws and Ontario securities laws, respectively. The lawsuits in the U.S. were consolidated into one class action, which was dismissed with prejudice by the district court in March 2013. The dismissal was subsequently affirmed by the circuit court in December 2013. In January 2015, the plaintiff in the class action lawsuit obtained an order for class certification in respect of certain claims for which he had obtained leave in September 2014 to assert the statutory cause of action for misrepresentation under the Ontario Securities Act, for certain negligent misrepresentation claims and for oppression remedy claims advanced under the Canada Business Corporations Act (the Company’s governing corporate statute at the time). A settlement of the lawsuit in Canada was achieved and approved by the Ontario Superior Court of Justice on October 30, 2020. The settlement is no admission of liability or wrongdoing by the Company or any of the other defendants.

21. COMMITMENTS AND CONTINGENCIES (Continued)

c) Contingencies (Continued)

U.S. Antidumping, Countervailing Duty and Safeguard Proceedings

Solar 1 China

On October 17, 2012, the United States Department of Commerce, or USDOC, issued final affirmative determinations with respect to its antidumping and countervailing duty investigations on crystalline silicon photovoltaic, or CSPV, cells, whether or not incorporated into modules, from China. On November 30, 2012, the U.S. International Trade Commission, or USITC, determined that imports of CSPV cells had caused material injury to the U.S. CSPV industry. The USITC’s determination was subsequently affirmed by the U.S. Court of International Trade, or CIT, and the U.S. Court of Appeals for the Federal Circuit, or Federal Circuit.

As a result of these determinations, the Company was required to pay cash deposits on Chinese-origin CSPV cells imported into the U.S., whether or not incorporated into modules. The rates applicable to the Company were 13.94% (antidumping duty) and 15.24% (countervailing duty). The Company paid all the cash deposits due under these determinations. Several parties challenged the determinations of the USITC in appeals to the CIT. On August 7, 2015, the CIT sustained the USITC’s final determination and on January 22, 2018, the Federal Circuit upheld the CIT’s decision. There was no further appeal to the U.S. Supreme Court and, therefore, this decision is final.

The rates at which duties will be assessed and payable are subject to administrative reviews.

The USDOC published the final results of the first administrative reviews in July 2015. As a result of these decisions, the duty rates applicable to the Company were revised to 9.67% (antidumping duty) and 20.94% (countervailing duty). The assessed rates were appealed to the CIT. The CIT affirmed the USDOC’s countervailing duty rates, and no change was made to the Company’s countervailing duty rate. This decision by the CIT was not appealed to the Federal Circuit. The CIT likewise affirmed USDOC’s antidumping duty rates, and no change was made to the Company’s antidumping duty rate. This decision by the CIT was, however, appealed to the Federal Circuit, which upheld the CIT’s decision. There was no further appeal to the U.S. Supreme Court and, therefore, this decision is final.

The USDOC published the final results of the second administrative reviews in June 2016 (antidumping duty) and July 2016 (countervailing duty). As a result of these decisions, the antidumping duty rate applicable to the Company was reduced to 8.52% (from 9.67%) and then to 3.96% (from 8.52%). Because the Company was not subject to the second administrative review of the countervailing duty order, its countervailing duty rate remained at 20.94%. The antidumping duty rates were appealed to the CIT. The CIT affirmed the USDOC’s second antidumping duty rate. This decision by the CIT was appealed to the Federal Circuit, which in June 2020 reversed the CIT’s decision, in part, and directed the USDOC to reconsider certain issues related to its final determination. The USDOC submitted its antidumping duty redetermination to the CIT in September 2021. In December 2021, the CIT sustained USDOC’s antidumping duty redetermination. As a result, the Company’s antidumping duty rate was reduced to 0.00% (from 3.96%). There was no further appeal to the Federal Circuit of the USDOC’s antidumping duty redetermination and, therefore, this decision is final.

21. COMMITMENTS AND CONTINGENCIES (Continued)

c) Contingencies (Continued)

The USDOC published the final results of the third administrative reviews in June 2017 (antidumping duty) and July 2017 (countervailing duty), and later amended in October 2017. As result of these decisions, the duty rates applicable to the Company were changed to 13.07% (from 8.52%) (antidumping duty) and 18.16% (from 20.94%) (countervailing duty). The assessed rates were appealed to the CIT. The CIT has twice remanded the antidumping duty appeal to the USDOC to consider adjustments to the Company’s rate. Pursuant to CIT’s remand orders, the USDOC issued a redetermination. The antidumping duty rate applicable to the Company was reduced to 4.12% (from 13.07%) and then further to 3.19% (from 4.12%). In June 2020, the CIT issued its third opinion sustaining the USDOC’s remand redetermination. The Company filed a motion for reconsideration with the CIT advocating for an even lower antidumping duty rate. In September 2020, the CIT granted the Company’s motion for reconsideration and remanded to USDOC for further consideration of its antidumping duty rate. The USDOC submitted its antidumping duty redetermination to the CIT in September 2021. In December 2021, the CIT sustained USDOC’s antidumping duty redetermination. As a result, the Company’s antidumping duty rate was reduced to 0.00% (from 3.19%). There was no further appeal to the Federal Circuit of the USDOC’s antidumping duty redetermination and, therefore, this decision is final. The CIT has likewise twice remanded the countervailing duty appeal to the USDOC to consider adjustments to the Company’s rate. In August 2020, the CIT sustained USDOC’s second remand redetermination. As a result, the Company’s countervailing duty rate was reduced to 7.36% (from 18.16%). There was no further appeal to the Federal Circuit of the USDOC’s countervailing duty redetermination and, therefore, this decision is final.

The USDOC published the final results of the fourth administrative reviews in July 2018 (both antidumping duty and countervailing duty), with the countervailing duty rate later amended in October 2018. Because the Company was not subject to the fourth administrative review of the antidumping duty order, its antidumping duty rate remained at 13.07%. In this review, the countervailing duty rate applicable to the Company was reduced to 11.59% (from 18.16%) for the broader Company and 10.64% (from 18.16)% for Canadian Solar International Limited. The countervailing duty rates were appealed to the CIT. The CIT remanded the countervailing duty appeal to the USDOC to consider adjustments to the Company’s rate. Pursuant to the CIT’s remand orders, the USDOC made a redetermination that reduced the Company’s countervailing duty rate to 5.02% (from 11.59%) for the broader Company and 4.22% (from 10.64)% for Canadian Solar International Limited. The Company appealed the CIT decision to the Federal Circuit to contest USDOC’s continued assessment of a countervailing duty rate related to the alleged electricity subsidy program. In January 2022, the Federal Circuit sustained the CIT’s decision, and no change was made to the Company’s countervailing duty rate. There was no further appeal to the U.S. Supreme Court and, therefore, this decision is final.

The USDOC published the final results of the fifth administrative reviews in July 2019 (antidumping duty) and August 2019 (countervailing duty). The antidumping duty rate applicable to the Company was lowered to 4.06% (from 13.07%). The countervailing duty rate applicable to the Company was reduced to 9.70% (from 11.59%). The countervailing duty final results were amended to correct ministerial errors in December 2019, but this amendment resulted in no change to the Company’s 9.70% rate. The countervailing duty and antidumping duty rates were appealed to the CIT. Pursuant to the CIT’s remand order in the antidumping appeal, USDOC made a remand redetermination that reduced the Company’s antidumping duty rate to 3.30% (from 4.06%). In May 2021, the CIT sustained USDOC’s antidumping duty redetermination. There was no further appeal to the Federal Circuit of the USDOC’s antidumping duty redetermination and, therefore, this decision is final. The CIT remanded the countervailing duty appeal to the USDOC to consider adjustments to the Company’s rate. Pursuant to the CIT’s remand order in the countervailing duty appeal, USDOC made a remand redetermination that reduced the Company’s countervailing duty rate to 3.65% (from 9.70%). In May 2022, the CIT sustained USDOC’s countervailing duty redetermination. There was no further appeal to the Federal Circuit of the USDOC’s countervailing duty redetermination and, therefore, this decision is final.

21. COMMITMENTS AND CONTINGENCIES (Continued)

c) Contingencies (Continued)

The USDOC published the final results of the sixth administrative reviews in October 2020 (antidumping duty) and December 2020 (countervailing duty). USDOC assessed an antidumping duty rate of 68.93% (from 13.07%). The antidumping duty final results were amended to correct ministerial errors in December 2020 and as a result, the antidumping duty rate applicable to the Company was raised to 95.50% (from 68.93%). USDOC assessed a countervailing duty rate of 12.67% (from 9.70%). The countervailing duty final results were amended to correct ministerial errors in April 2021 and, as a result, the Company’s countervailing duty rate was reduced to 11.97% (from 12.67%). The antidumping duty rates were appealed to the CIT. The CIT remanded the antidumping duty appeal to the USDOC to consider adjustments to the Company’s rate. Pursuant to the CIT’s remand order, the USDOC made a redetermination that reduced the Company’s antidumping duty rate to 23.02% (from 95.50)%. This decision by the CIT was appealed to the Federal Circuit in March 2023, and the Company is currently participating in the appeal at the Federal Circuit. The Company did not appeal USDOC’s final results of its sixth administrative review of the countervailing duty order and, therefore, this decision is final and the Company’s countervailing duty rate is expected to remain at 11.97%.

The USDOC published the final results of the seventh administrative reviews in August 2021 (countervailing duty) and October 2021 (antidumping duty). The antidumping duty rate applicable to the Company was lowered to 0.00% (from 95.50%). The countervailing duty rate applicable to Canadian Solar International Limited (“CSIL”) was raised to 19.28% (from 11.97%). USDOC did not change the rate of 11.97% for Canadian Solar Manufacturing (Changshu) Inc. and Canadian Solar Manufacturing (Luoyang) Inc. because the countervailing duty review was rescinded for both of these companies. The Company did not appeal USDOC’s final results of its seventh administrative reviews and, therefore, these decisions are final. The Company’s antidumping duty rate will remain at 0.00% and the Company’s countervailing duty rate is expected to remain at 19.28% for CSIL.

The USDOC published the final results of the eighth administrative reviews in June 2022 (antidumping duty) and July 2022 (countervailing duty). The USDOC determined that the Canadian Solar entities subject to the eighth antidumping duty administrative review had no shipments during the period of review and therefore, the Company’s antidumping duty rate (0.00%) will remain unchanged for its Solar 1 CSPV products. The antidumping duty final results were amended to correct ministerial errors in August 2022, but this amendment resulted in no change to USDOC’s no shipment determination with respect to the Company. USDOC assessed a countervailing duty rate of 15.75% (from 19.28%). The countervailing duty final results were amended to correct ministerial errors in August 2022 and, as a result, the Company’s countervailing duty rate was raised to 15.87% (from 15.75%). The Company did not appeal USDOC’s final results of its eighth administrative review of the countervailing duty order and, therefore, this decision is final and the Company’s countervailing duty rate is expected to remain at 15.87%.

The USDOC published the final results of the ninth administrative reviews in July 2023. The USDOC determined that the Canadian Solar entities subject to the ninth antidumping duty administrative review had no shipments during the period of review and therefore, the Company’s antidumping duty rate (0.00)% will remain unchanged for its Solar 1 CSPV products. The USDOC did not change the Company’s countervailing duty rate of 15.87% because the countervailing duty review was rescinded for the Canadian Solar entities subject to the ninth countervailing duty administrative review. The countervailing duty final results were amended in August 2023, but this amendment resulted in no change to USDOC’s determination to rescind the review with respect to the Company. The Company did not appeal USDOC’s final results of its ninth administrative reviews and, therefore, these decisions are final.

The tenth and eleventh antidumping duty and countervailing duty administrative reviews were initiated in February 2023 and February 2024 and are currently underway. The USDOC is currently scheduled to release the final results of the tenth antidumping and countervailing duty administrative reviews in May 2024, subject to potential extensions. The Company submitted a no-shipment certification in the tenth administrative reviews. In its preliminary results, USDOC preliminarily determined that the Company had no shipments and stated its intent to rescind the reviews for the Company. The Company’s antidumping duty and countervailing duty rates, therefore, are expected to remain the same at 0.00% and 15.87%, respectively. USDOC will likely issue preliminary results of the eleventh administrative reviews in late 2024 or early 2025.

21. COMMITMENTS AND CONTINGENCIES (Continued)

c) Contingencies (Continued)

Between 2017 and 2019, the USDOC and USITC conducted five-year sunset reviews and determined to continue the Solar 1 antidumping and countervailing duty orders. In March 2018, the USDOC published the results of its expedited first sunset reviews and concluded that revocation of the Solar 1 orders would likely lead to a continuation or recurrence of dumping and a countervailable subsidy. The Company did not participate in USDOC’s first sunset review. The Company did, however, participate in the USITC’s first sunset review and requested that the Solar 1 duties be revoked. The USITC issued an affirmative determination in March 2019 declining to revoke the Solar 1 orders and finding that such revocation would be likely to lead to a continuation or recurrence of material injury to the U.S. industry within a reasonably foreseeable time. As a result, the Solar 1 orders remain in effect. In February 2024, the USDOC and USITC initiated the second five - year sunset reviews of the Solar 1 antidumping and countervailing duty orders, and those sunset reviews are currently underway.

Solar 2 China

On December 31, 2013, SolarWorld Industries America, Inc. filed a new trade action with the USDOC and the USITC accusing Chinese producers of certain CSPV modules of dumping their products into the U.S. and of receiving countervailable subsidies from the Chinese authorities. This trade action also alleged that Taiwanese producers of certain CSPV cells and modules dumped their products into the U.S. Excluded from these new actions were those Chinese-origin solar products covered by the Solar 1 orders described above. The Company was identified as one of a number of Chinese producers exporting the Solar 2 subject goods to the U.S. market.

“Chinese CSPV products subject to Solar 2 orders” refers to CSPV products manufactured in mainland China using non-Chinese (e.g., Taiwanese) CSPV cells and imported into the U.S. during the investigation or administrative review periods of Solar 2. “Taiwanese CSPV products subject to Solar 2 orders” refer to CSPV products manufactured outside of mainland China using Taiwanese CSPV cells and imported into the U.S. during the investigation or review periods of Solar 2.

On December 23, 2014, the USDOC issued final affirmative determinations with respect to its antidumping and countervailing duty investigation on these CSPV products. On January 21, 2015, the USITC determined that imports of these CSPV products had caused material injury to the U.S. CSPV industry. As a result of these determinations, the Company is required to pay cash deposits on these CSPV products, the rates of which applicable to the Company’s Chinese CSPV products were 30.06% (antidumping duty) and 38.43% (countervailing duty).

The USDOC’s determination and the assessed countervailing duty rates were appealed to the CIT and the Federal Circuit. In March 2019, the Federal Circuit affirmed the CIT’s decision confirming the USDOC’s determination but reduced the Company’s countervailing duty rate to 33.58% (from 38.43%). There was no further appeal to the U.S. Supreme Court and, therefore, this decision is final.

The antidumping cash deposit rate applicable to the Company’s Taiwanese CSPV products subject to Solar 2 orders varied by solar cell producer. The Company paid all the cash deposits due under these determinations. There is no countervailing duty order on Taiwan Solar 2 products. The rates at which duties will be assessed and payable are subject to administrative reviews.

The USDOC published the final results of the first administrative reviews in July 2017 (China and Taiwan antidumping duty orders) and September 2017 (China-only countervailing duty order). Because the Company was not subject to the first administrative reviews of the Solar 2 orders, the Company’s duty rates will remain at 30.06% (antidumping duty) and 33.58% (countervailing duty) for the Company’s Chinese CSPV products. The Company’s antidumping duty rates for the Company’s Taiwanese CSPV products had ranged from 3.56% to 4.20%, until they were changed to 1.52% to 3.78% in June 2019.

21. COMMITMENTS AND CONTINGENCIES (Continued)

c) Contingencies (Continued)

The second administrative reviews for the Solar 2 China antidumping and countervailing duty orders were rescinded, meaning that there is no change in the Chinese antidumping and countervailing duty rates applicable to the Company’s Chinese CSPV products 30.06% (antidumping duty) and 33.58% (countervailing duty). The USDOC published the final results of the second administrative review for the Taiwan antidumping duty order (there is no countervailing duty order) in June 2018. The rate applicable to the Company is 1.33%. There is no ongoing litigation related to the Taiwan antidumping duty rate.

The Company was not subject to the third administrative reviews of the Chinese orders and, therefore, the Company’s duty rates remained unchanged at 30.06% (antidumping duty) and 33.58% (countervailing duty) for the Company’s Chinese CSPV products. The third administrative review of the Taiwan antidumping order concluded in mid-2019. The rate assessed to the Company was 4.39% (from 1.33%). There is no ongoing litigation related to the Taiwan antidumping duty rate.

The USDOC rescinded the fourth administrative reviews of the Solar 2 China antidumping duty and countervailing duty orders in late 2019. The Company’s duty rates will remain unchanged at 30.06% (antidumping duty) and 33.58% (countervailing duty) for the Company’s Chinese CSPV products. The rate assessed to the Company in the fourth administrative review of the Taiwan antidumping order was 2.57% (from 4.39%). The USDOC also found that certain Canadian Solar entities had no shipments during this period of this review.

The USDOC rescinded the fifth administrative reviews of the Solar 2 China antidumping and countervailing duty orders. The Company’s duty rates will remain unchanged at 30.06% (antidumping duty) and 33.58% (countervailing duty) for the Company’s Chinese CSPV products. The USDOC published the final results of the fifth administrative review of the Taiwan antidumping duty order in September 2021. The USDOC determined that the Canadian Solar entities subject to the fifth administrative review had no shipments during the period of review and therefore, the Company’s antidumping duty rates will remain unchanged for its Taiwanese CSPV products.

The USDOC did not initiate the sixth administrative reviews of the Solar 2 China antidumping and countervailing duty orders because no parties requested reviews. The Company’s duty rates will remain unchanged at 30.06% (antidumping duty) and 33.58% (countervailing duty) for its Chinese CSPV products. The USDOC published the final results of the sixth administrative review of the Taiwan antidumping duty order in March 2022. The USDOC determined that the Canadian Solar entities subject to the sixth administrative review had no shipments during the period of review and therefore, the Company’s antidumping duty rates will remain unchanged for its Taiwanese CSPV products.

The USDOC initiated the seventh administrative reviews of the Solar 2 China antidumping and countervailing duty orders in April 2022. The countervailing duty review was not initiated with respect to the Company and therefore, the Company’s countervailing duty rates (33.58%) will remain unchanged for its Solar 2 China CSPV products. The USDOC rescinded the seventh administrative review of the Solar 2 Taiwan antidumping duty order in October 2022 and therefore, the Company’s antidumping duty rates will remain unchanged for its Solar 2 Taiwan CSPV products. The USDOC initiated the seventh administrative review of the Solar 2 China antidumping duty order in April 2022 with respect to certain of the Canadian Solar entities. The USDOC rescinded the seventh administrative review of the Solar 2 China antidumping duty order in March 2023 with respect to the Canadian Solar entities and therefore, the Company’s antidumping duty rates will remain unchanged for its Solar 2 China CSPV products.

21. COMMITMENTS AND CONTINGENCIES (Continued)

c) Contingencies (Continued)

The USDOC initiated the eighth administrative review of the Solar 2 China antidumping duty order in April 2023 with respect to certain of the Canadian Solar entities. The USDOC rescinded the eighth administrative review of the Solar 2 China antidumping duty order in July 2023 and therefore, the Company’s antidumping duty rates will remain unchanged for its Solar 2 China CSPV products. The USDOC did not initiate the eighth administrative review of the Solar 2 China countervailing duty order because no parties requested reviews and therefore, the Company’s countervailing duty rates (33.58%) will remain unchanged for its Solar 2 China CSPV products. The USDOC initiated the eighth administrative review of the Solar 2 Taiwan antidumping duty order in April 2023, however, the review was not initiated with respect to the Company and therefore, the Company’s antidumping duty rates will remain unchanged for its Taiwanese CSPV products.

In 2020, the USDOC and USITC conducted five-year sunset reviews and determined to continue the Solar 2 antidumping and countervailing duty orders. In May 2020, the USDOC published the results of its expedited first sunset reviews and concluded that revocation of the Solar 2 orders would likely lead to a continuation or recurrence of dumping and a countervailable subsidy. The USITC issued an affirmative determination on September 4, 2020, declining to revoke the Solar 2 orders and finding that such revocation would be likely to lead to a continuation or recurrence of material injury to the U.S. industry within a reasonably foreseeable time. As a result, the Solar 2 orders are expected to remain in effect through at least 2025.

Solar 3 Southeast Asia

On April 24, 2024, the American Alliance for Solar Manufacturing Trade Committee filed petitions requesting that the USDOC and USITC initiate investigations into whether new AD/CVD duties should be imposed on CSPV cells and modules imported from Cambodia, Malaysia, Thailand, and Vietnam. If the USDOC and USITC initiate these investigations, there is the potential for significant disruptions to imports of solar cells and modules from Cambodia, Malaysia, Thailand (including by Canadian Solar Manufacturing (Thailand) Co., Ltd.), and Vietnam. The USITC will issue its preliminary determinaton on June 7, 2024, and USDOC will likely announce its AD and CVD preliminary determinations on or around September 30 and November 27, 2024, respectively. Canadian Solar is reviewing the petitions, assessing the potential impacts on the Company, and determining appropriate actions to defend its interests.

Section 201 Safeguard

On May 17, 2017, following receipt of a petition from Suniva, Inc., which was later joined by SolarWorld Americas, Inc., the USITC instituted a safeguard investigation to determine whether there were increased imports of CSPV products in such quantities as to be a substantial cause of serious injury, or the threat thereof, to the domestic industry producing like or directly competitive products. On September 22, 2017, the USITC determined that CSPV products are being imported into the United States in such increased quantities as to be a substantial cause of serious injury to the domestic industry.

On January 23, 2018, the President of the United States imposed a safeguard measure on imports of CSPV cells, whether or not partially or fully assembled into other products such as modules, consisting of (1) a tariff-rate quota for four years on imports of CSPV cells not partially or fully assembled into other products, with (a) an in-quota quantity of 2.5 gigawatts, and (b) a tariff rate applicable to over-quota CSPV cells of 30%, declining annually by five percentage points to 25% in the second year, 20% in the third year, and 15% in the fourth year; and (2) a 30% tariff for four years on CSPV modules, declining annually by five percentage points to 25% in the second year, 20% in the third year, and 15% in the fourth year. This safeguard measure, which became effective on February 7, 2018, applies to CSPV products imported from all countries, except for certain developing country members of the World Trade Organization.

On June 13, 2019 and following an abbreviated public comment period, the Office of the U.S. Trade Representative (or USTR) granted an exclusion from the safeguard measure for solar panels comprising solely bifacial solar cells (or bifacial solar panels). In October 2019, USTR determined to withdraw this exclusion. Invenergy Renewables LLC (or Invenergy) promptly contested USTR’s withdrawal determination at the CIT and secured a temporary restraining order against USTR in November 2019. In December 2019,

the CIT preliminarily enjoined USTR’s withdrawal due to procedural deficiencies. USTR then sought and was granted a voluntary remand to reconsider its withdrawal determination for bifacial solar panels.

In early 2020, USTR conducted a renewed notice-and-comment process regarding the exclusion for bifacial solar panels from the safeguard measures. In April 2020, USTR again determined that the exclusion for bifacial solar panels should be withdrawn based on the findings of its second notice-and-comment process. Notwithstanding, in May 2020 the CIT denied without prejudice the United States’ motion to dissolve the preliminary injunction and to resume the collection of the safeguard tariff on entries of bifacial modules. USTR appealed the CIT’s interlocutory decision to the Federal Circuit in July 2020, but subsequently dismissed its appeal in January 2021. The United States continued to litigate the merits of USTR’s April 2020 withdrawal of the bifacial exclusion before the CIT. On November 17, 2021, the CIT vacated USTR’s April 2020 withdrawal in Invenergy Renewables LLC v. United States. The CIT’s judgment holding USTR’s April 2020 withdrawal of the bifacial exclusion unlawful was not appealed to the Federal Circuit and, therefore, this decision is final.

21. COMMITMENTS AND CONTINGENCIES (Continued)

c) Contingencies (Continued)

In early 2020, the USITC conducted a midterm review of the safeguard order, issuing its monitoring report in February 2020. Additionally, in March 2020, at the request of the USTR, the USITC released a report regarding the probable economic effect on the domestic CSPV cell and module manufacturing industry of modifying the safeguard measure on CSPV products. The USITC found that increasing the tariff-rate quota (TRQ) on CSPV cells (an integral component of CSPV modules) would likely result in a substantial increase in U.S. module producers’ production, capacity utilization, and employment.

The President must consider the USITC’s views but is not required to follow them or to take any action in the safeguard midterm review. On October 10, 2020, President Trump issued Proclamation 10101 pertaining to the midterm review. Proclamation 10101 authorized the following: (1) the revocation of the bifacial module exclusion effective October 25, 2020; (2) the reduction of the safeguard tariff to 18% ad valorem (as opposed to 15% ad valorem as prescribed in the original safeguard measures) effective February 7, 2021; and (3) the delegation to USTR of the President’s authority to ask the USITC to assess whether the safeguard measures should be extended. The President decided not to follow the USITC’s recommendation to increase the TRQ applicable to CSPV cells.

Following the issuance of Proclamation 10101, Invenergy and other plaintiffs (AES Distributed Energy, Inc., Clearway Energy Group LLC, EDF Renewables, Inc. (“EDF”), the Solar Energy Industries Association (“SEIA”)) sought to challenge the Proclamation and filed motions to amend their complaints with the CIT. The CIT ultimately denied plaintiffs’ motions and refused to extend the bifacial module exclusion beyond October 24, 2020 as a consequence of the Proclamation (as opposed to USTR’s withdrawals). Subsequently, on December 29, 2020, Invenergy and another set of plaintiffs (SEIA, NextEra Energy, Inc., and EDF) commenced new and separate litigation once again challenging Proclamation 10101 in the CIT. This new complaint alleges that the President unlawfully terminated the bifacial module exclusion and revised the safeguard tariff, effective February 7, 2021, to be 18% ad valorem (as opposed to the originally announced 15% ad valorem).

On November 16, 2021, the CIT held in Solar Energy Industries Association et al. v. United States (SEIA) that the President acted outside of his statutory authority in issuing Proclamation 10101, and enjoined the Government from enforcing that proclamation. This judgment had the effect of reinstating the exclusion of bifacial modules from the safeguard tariffs and lowering the fourth year safeguard tariff to 15% ad valorem. On January 14, 2022, the Government filed a notice of appeal of SEIA to the Federal Circuit. In November 2023, the Federal Circuit reversed and remanded the CIT’s judgment, finding that the President had acted lawfully in issuing Proclamation 10101. Appellees have filed a petition for en banc rehearing in January 2024, and the Federal Circuit’s decision on the petition is pending. In October 2022, the Company filed an appeal at the CIT challenging U.S. Customs and Border Protection’s erroneous collection of certain Section 201 safeguard duties on bifacial panels pursuant to Proclamation 10101, which the CIT had previously ruled “null and void” in SEIA. The Company’s appeal remains stayed pending final resolution of the SEIA appeal at the Federal Circuit.

In 2021, the USITC conducted an extension investigation of the safeguard measure, in response to petitions by representatives of the domestic industry. In December 2021, the USITC issued its determination and report finding that the safeguard order continues to be necessary to prevent or remedy the serious injury to the domestic industry, and that there is evidence that the domestic industry is making a positive adjustment to import competition. On February 4, 2022, President Biden issued a Proclamation extending the safeguard measure on U.S. imports of CSPV products for four years until February 6, 2026. The extended safeguard measure doubles the volume of the TRQ on imported CSPV cells to 5.0 gigawatts and maintains a tariff on imports of CSPV modules and above-quota CSPV cells, beginning at a rate of 14.75% ad valorem and declining annually by 0.25 percentage points to 14.50% in the sixth year, 14.25% in the seventh year, and 14.0% in the eighth year. The extended safeguard measure excludes bifacial panels.

21. COMMITMENTS AND CONTINGENCIES (Continued)

c) Contingencies (Continued)

CSPV cells and modules from Canada are no longer subject to the safeguard measure as of February 1, 2022 following the United States and Canada’s entrance into a memorandum of understanding to resolve a dispute under the U.S.-Mexico-Canada Agreement.

In late 2023, the USITC conducted its second midterm review of the safeguard measure, issuing its monitoring report in February 2024. The President must consider the USITC’s views but is not required to act prior to the expiration of the safeguard in February 2026.

Canadian Antidumping and Countervailing Duties Expiry Review

On June 3, 2015, the Canada Border Services Agency (“CBSA”) released final determinations regarding the dumping and subsidization of solar modules and laminates originating from China. The CBSA determined that such goods were dumped and subsidized. The CBSA found Canadian Solar to be a “cooperative exporter” and, as such, ascertained a low (relative to other Chinese exporters) Canadian Solar-specific subsidies rate of RMB0.014 per Watt. On July 3, 2015 the Canadian International Trade Tribunal (“CITT”) determined that the Canadian industry was not negatively affected as a result of imported modules but was threatened with such negative impact. As a result of these findings, definitive duties were imposed on imports of Chinese solar modules into Canada starting on July 3, 2015. The CITT may initiate an expiry review pursuant to Subsection 76.03(3) of the Special Import Measures Act (“SIMA”) before the end of 5 years of its finding. If the CITT does not initiate such an expiry review pursuant to Subsection 76.03(3) of SIMA, the finding is deemed to have been rescinded as of the expiry of the five years.

On April 1, 2020, the CITT initiated the expiry review which concluded on March 25, 2021. The CITT determined to continue its aforementioned finding to impose definitive duties on imports of Chinese solar modules and laminates into Canada and declined to make a product exclusion on the Order for bifacial PV modules consisting of either 72 monocrystalline silicon photovoltaic cells or 144 monocrystalline silicon photovoltaic half-cells, with a power output exceeding 515 Watts and module efficiency exceeding 20.5%. As a result, the Canadian Solar-specific subsidies rate of RMB0.014 per Watt remains unchanged. The subsidies rate applies for a period of five years. The CITT is required to conduct a further expiry review before the scheduled termination of the Order on March 24, 2026.

Patent Dispute

On March 25, 2024, Maxeon Solar Pte. Ltd. (“Maxeon”) filed a patent infringement lawsuit against Canadian Solar, Inc. in the U.S. District Court for the Eastern District of Texas. Maxeon alleges that by manufacturing, importing, selling, or offering for sale of its TOPCon (Tunnel Oxide Passivated Contact) solar modules in the United States, Canadian Solar, Inc., via its affiliates, has directly and indirectly infringed and continues to infringe upon three patents currently held by Maxeon. The three patents asserted by Maxeon are U.S. Patent Nos. 8222516, 8878053, and 11251315. Maxeon’s complaint requests the Court to grant, among other relief, a permanent injunction enjoining Canadian Solar, Inc. from the alleged infringement, and a judgment for monetary damages and fees. The specific amount of monetary damages has not been identified. Based on its preliminary assessment, the Company believes that its TOPCon solar modules do not infringe Maxeon’s asserted patents and intends to vigorously defend itself in the lawsuit.

From time to time, the Company receives claims that its products infringe patents of third parties. Although the Company has been able to resolve all of those claims or potential claims without a material adverse effect on the Company, other claims are pending, which if resolved unfavorably to the Company could have a material adverse effect on its business and results of operations.

CONVERTIBLE NOTES (Details) $ / shares in Units, $ in Thousands		12 Months Ended
	Sep. 16, 2020 USD ($) D item $ / shares	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
CONVERTIBLE NOTES
Amortization of financing costs		$ 1,447	$ 1,302
Interest expense		5,750	5,750
Convertible Debt
CONVERTIBLE NOTES
Proceeds from initial issuance of convertible notes	$ 200,000
Period of option for additional issuance	30 days
Proceeds from additional issuance of convertible notes	$ 30,000
Interest rate (as a percent)	2.50%
Conversion rate	27.2707
Conversion rate initial principal amount	$ 1,000
Conversion price (in dollars per share) \| $ / shares	$ 36.67
Sales price of common stock as percentage of conversion price for redemption at Company's option	130.00%
Number of trading days that threshold percentage exceeds stock price for trigger of redemption at Company's option \| item	20
Period of consecutive trading days that the threshold of trading days must fall within for trigger of redemption at Company's option \| D	30
Redemption prices as percentage of outstanding principal amount plus accrued and unpaid interest following occurrence of certain tax related events	100.00%
Carrying value of convertible notes		227,424	225,977
Unamortized issuance costs		$ 2,576	4,023
Effective interest rate (as a percent)		3.18%
Interest not paid recorded in other payables		$ 1,438	$ 1,438

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Warranty cost (Details) - USD ($) $ in Thousands		1 Months Ended		12 Months Ended
	May 31, 2009	Aug. 31, 2011	Jun. 30, 2009	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2019
Warranty cost
Warranty accrual rate for sales of solar modules as a percentage of revenue				1.00%
Unamortized carrying amount of insurance premium				$ 168	$ 264
Insurance receivable				82,735	84,474
Downward adjustment of other non-current assets				39,449
Warranty costs (net effect of adjustment) included in cost of revenues				$ 27,944	$ 68,411	$ 45,053
Standard solar modules
Warranty cost
Term of insurance policy over which the insurance premium will be amortized					25 years
Guarantee of solar modules for defects in materials and engineering design, installation and construction	2 years
Warranty period of solar modules and products against decline of more than 10% of initial power generation capacity	10 years
Warranty period of solar modules and products against decline of more than 20% of initial power generation capacity	25 years
Minimum percentage of decline in initial minimum power generation capacity for 10 years	10.00%
Minimum percentage of decline in initial minimum power generation capacity for 25 years	20.00%
Standard solar modules \| Material and workmanship
Warranty cost
Term of insurance policy over which the insurance premium will be amortized		10 years	6 years				12 years
Bifacial module and double glass module
Warranty cost
Warranty period of solar modules and products against decline of more than 10% of initial power generation capacity					30 years
Certain solar module \| Material and workmanship
Warranty cost
Warranty period of solar modules and products against decline of more than 10% of initial power generation capacity					15 years
Warranty period of solar modules and products against decline of more than 20% of initial power generation capacity					25 years
Battery storage products
Warranty cost
Standard product warranty, extension period				15 years
Solar power projects by EPC services
Warranty cost
Guarantee of solar modules for defects in materials and engineering design, installation and construction				2 years
Minimum \| Battery storage products
Warranty cost
Standard warranty				1 year
Maximum \| Battery storage products
Warranty cost
Standard warranty				5 years

INVESTMENTS IN AFFILIATES - Other investments (Details) $ in Thousands	1 Months Ended			12 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Aug. 31, 2019 USD ($)	Dec. 31, 2023 USD ($) director shares	Dec. 31, 2022 USD ($) shares	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Aug. 31, 2023
Other investments
Board members designated \| director				1
Total board members \| director				5
Gain on sale of interest in affiliates						$ 10,392
Equity in earnings of affiliates				$ 14,610	$ 15,440	7,256
Canadian Solar Infrastructure Fund, Inc
Other investments
Number of units held \| shares				65,672	56,620
Suzhou Financial Leasing Co., Ltd.
Other investments
Ownership percentage				3.00%	4.20%
Canadian Solar Infrastructure Fund, Inc
Other investments
Ownership percentage				14.50%	14.60%
Lavras
Other investments
Ownership percentage				20.00%	20.00%
Francisco
Other investments
Ownership percentage				20.00%	20.00%
Salgueiro
Other investments
Ownership percentage				20.00%	20.00%
Jaiba
Other investments
Ownership percentage				20.00%	20.00%
Suzhou Zhuosheng Venture Investment Fund, LLP
Other investments
Ownership percentage				14.00%	17.90%
Crimson
Other investments
Ownership percentage		20.00%		20.00%	20.00%
Interest sold (in percent)		80.00%
Gain on sale of interest in affiliates		$ 123,135
Net assets derecognized		$ 42,333
JuSheng (Suzhou) Solar Tech Co., Ltd.
Other investments
Ownership percentage				2.20%	4.40%
Horus Solar S.A. De Capital Variable ("Horus") and Recursos Solares PV De Mxico II S.A. De Capital Variable ("Recursos")
Other investments
Ownership percentage				49.00%	49.00%
Gain on sale of interest in affiliates						113,843	$ 100,896
Net assets derecognized					$ 7,527	$ 10,363
Lingang Frontier CSI New Energy Investment Fund, LP
Other investments
Ownership percentage				44.30%
Lingang Frontier CSI New Energy Investment Fund, LP \| CSI Solar Co Ltd [Member]
Other investments
Ownership percentage								44.30%
Salgueiro, Francisco, Jaiba and Larvras
Other investments
Ownership percentage			20.00%
Gain on sale of interest in affiliates			$ 12,793
Net assets derecognized			$ 8,369
Marangatu Holding S.A
Other investments
Ownership percentage	30.00%			30.00%	30.00%
Gain on sale of interest in affiliates	$ 12,007
Net assets derecognized	$ 6,267
Panati
Other investments
Ownership percentage	30.00%			30.00%	30.00%
Gain on sale of interest in affiliates	$ 2,259
Net assets derecognized	$ 2,262

INVESTMENTS IN AFFILIATES

12 Months Ended

Dec. 31, 2023

INVESTMENTS IN AFFILIATES

INVESTMENTS IN AFFILIATES

11. INVESTMENTS IN AFFILIATES

Investments in affiliates consist of the following:


	At December 31,
	2022		2023
	Carrying	Ownership	Carrying	Ownership
	Value	Percentage	Value	Percentage
	$	(%)	$	(%)
Lingang Frontier (Yangzhou) CSI New Energy Investment Fund, LP	—	—	42,357	44.3
Marangatu Holding S.A.	2,500	30	30,790	30
Suzhou Financial Leasing Co., Ltd.	27,328	4.2	30,048	3.0
Panati Holding S.A.	1,818	30	28,185	30
RE Crimson Holdings LLC	22,272	20	26,551	20
Canadian Solar Infrastructure Fund, Inc.	8,961	14.6	17,677	14.5
Lavras Solar Holding S.A.	14,318	20	12,881	20
Suzhou Zhuosheng Venture Investment Fund, LLP	6,868	17.9	8,957	14.0
Francisco Sa Solar Holding S.A.	7,683	20	7,553	20
Salgueiro Solar Holding S.A	6,595	20	7,250	20
JuSheng (Suzhou) Solar Tech Co., Ltd.	5,922	4.4	7,028	2.2
Jaiba Solar Holding S.A.	5,077	20	4,131	20
Others	6,442	10.9-49	13,520	8.5-49
Total	115,784		236,928

In 2015, the Company co-established an entity, Suzhou Financial Leasing Co., Ltd. and owned an effective interest of 4.2% and 3.0% as of December 31, 2022 and 2023, respectively. One of five board members is designated by CSI Solar. This investment is held through CSI Solar Co., Ltd. and is accounted for under the equity method, as CSI Solar Co., Ltd. has significant influence over the investee.

In 2017, Canadian Solar Infrastructure Fund, Inc. (“CSIF”) completed its initial public offering, and the Company held a total of 56,620 and 65,672 units as of December 31, 2022 and 2023, respectively, representing 14.6% and 14.5% of total units of CSIF, respectively. One out of the three members of the board of directors of CSIF represents the Company. The quorum for a board resolution of CSIF is a majority of the members of the board of directors, and the adoption of a resolution requires a majority of the votes present. As such, the Company is considered to have significant influence over the investee and the equity method is used in this investment.

In 2020, the Company acquired a minor interest in Suzhou Zhuosheng Venture Investment Fund, LLP and owned an effective interest of 17.9% and 14.0% as of December 31, 2022 and 2023. This investment is held through CSI Solar Co., Ltd., and is accounted for under the equity method as it designated a representative to participate in the investee’s investment decision-making processes and exercised significant influence over the investee.

In September 2021, the Company, through its wholly owned subsidiary, Recurrent Energy, LLC, completed the sale of its 80% stake in RE Crimson Holdings LLC (“Crimson”) to an unrelated third party. Effective with the sale of the equity interests, the Company ceased having controlling financial interests in Crimson, and accounted for the transaction as partial sales of real estates under ASC 360-20. The Company considered that it would continue to exercise significant influences over its retained 20% equity interests in Crimson, and has accounted for these interests pursuant to the equity method of accounting. In connection with the sale, $123,135 was recognized as revenue, and with the loss of controlling financial interests in Crimson, the Company derecognized net assets of $42,333 and recognized the retained equity interests as investments in affiliates on its consolidated balance sheets.

11. INVESTMENTS IN AFFILIATES (Continued)

In October 2021, the Company acquired a minor interest in JuSheng (Suzhou) Solar Tech Co., Ltd, and owned an effective interest of 4.4% and 2.2% as of December 31, 2022 and 2023, respectively. This investment is held through CSI Solar Co., Ltd., and is accounted for under the equity method as CSI Solar Co., Ltd. designated a representative director to participate in the investee’s policy-making processes and exercised significant influence over the investee.

In December 2020 and December 2021, the Company completed the sales of its majority interests in Horus Solar S.A. De Capital Variable (“Horus”) which holds its Horus project, and Recursos Solares PV De México II S.A. De Capital Variable (“Recursos”) which holds its Tastiota project, respectively, to unrelated third parties. In connection with these sales, $100,896 and $113,843 were recognized as revenue in 2020 and 2021, respectively and the Company’s interest in Horus and Recursos have each decreased to 49%. With the loss of controlling financial interests in Horus and Recursos, the Company derecognized net assets of $10,363 and $7,527 in 2020 and 2021, respectively, and recognized the retained equity interests as investments in affiliates on its consolidated balance sheets. As of December 31, 2022 and 2023, the Company owned 49% of each of Horus and Recursos.

In August 2019, the Company completed the sales of its majority interests in Salgueiro Solar Holding S.A (“Salgueiro”) which holds its Salgueiro project, Francisco Sa Solar Holding S.A (“Francisco”) which holds its Francisco project, Jaiba Solar Holding S.A (“Jaiba”) which holds its Jaiba project, and Lavras Solar Holding S.A. (“Lavras”) which holds its Lavras project, to an unrelated third party. In connection with these sales, $12,793 was recognized as revenue in 2019 and the Company’s interest in Salgueiro, Francisco, Jaiba and Larvras have each decreased to 20%. With the loss of controlling financial interests in Salgueiro, Francisco, Jaiba and Larvras, the Company derecognized net assets of $8,369 in 2019 and recognized the retained equity interests as investments in affiliates on its consolidated balance sheets.

In September 2022, the Company completed the sales of its majority interests in Marangatu Holding S.A. (“Marangatu”) which holds its Marangatu projects, and Panati Holding S.A. (“Panati”) which holds its Panati projects, respectively, to unrelated third parties. In connection with these sales, $12,007 and $2,259 were recognized as revenue, respectively in 2022 and the Company’s interest in Marangatu and Panati have each decreased to 30%. With the loss of controlling financial interests in Marangatu and Panati, the Company derecognized net assets of $6,267 and $2,262, respectively, in 2022 and recognized the retained equity interests as investments in affiliates on its consolidated balance sheets.

In August 2023, the Company, through CSI Solar Co., Ltd., established an entity, Lingang Frontier (Yangzhou) CSI New Energy Investment Fund, LP, with 44.3% effective interest in the form of limited partnership. This investment is accounted for by CSI Solar Co., Ltd under the equity method as it exercised significant influence over the investee.

Equity in earnings of affiliates were $7,256, $15,440 and $14,610 for the years ended December 31, 2021, 2022 and 2023, respectively. Refer to Note 20 for the Company’s related party balances and transactions in 2021, 2022 and 2023.

SEGMENT INFORMATION - Different geographic locations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Revenues generated by geographic location of customers' headquarter
Net revenues	$ 7,613,626	$ 7,468,610	$ 5,277,169
Total long-lived assets	4,296,689	2,312,589
The Americas
Revenues generated by geographic location of customers' headquarter
Net revenues	2,616,145	2,793,651	2,279,594
United States
Revenues generated by geographic location of customers' headquarter
Net revenues	1,485,919	1,963,956	1,590,573
Total long-lived assets	528,538	5,545
Brazil
Revenues generated by geographic location of customers' headquarter
Net revenues	846,387	623,331	442,603
Total long-lived assets	409,211	242,761
Canada
Revenues generated by geographic location of customers' headquarter
Net revenues	52,525	49,148	30,792
Total long-lived assets	11,401	6,200
Chile
Revenues generated by geographic location of customers' headquarter
Net revenues	29,663	37,370	18,461
Puerto Rico
Revenues generated by geographic location of customers' headquarter
Net revenues	37,922	22,353	11,344
Mexico
Revenues generated by geographic location of customers' headquarter
Net revenues	50,884	31,912	139,611
Others
Revenues generated by geographic location of customers' headquarter
Net revenues	112,845	65,581	46,210
Asia and other regions
Revenues generated by geographic location of customers' headquarter
Net revenues	3,125,496	2,739,779	2,139,070
PRC
Revenues generated by geographic location of customers' headquarter
Net revenues	2,151,243	1,904,862	1,207,003
Total long-lived assets	2,398,130	1,668,177
Japan
Revenues generated by geographic location of customers' headquarter
Net revenues	597,188	325,344	509,233
Total long-lived assets	13,164	14,440
India
Revenues generated by geographic location of customers' headquarter
Net revenues	91,020	197,772	142,300
Pakistan
Revenues generated by geographic location of customers' headquarter
Net revenues	78,203	73,531	48,838
Philippines
Revenues generated by geographic location of customers' headquarter
Net revenues	40,612	26,578	6,660
Taiwan
Revenues generated by geographic location of customers' headquarter
Net revenues	19,369	67,411	7,702
Hong Kong
Revenues generated by geographic location of customers' headquarter
Net revenues	32,707	46,254	9,979
U.A.E
Revenues generated by geographic location of customers' headquarter
Net revenues	22,915	15,974	6,168
Thailand
Revenues generated by geographic location of customers' headquarter
Net revenues	10,217	9,941	59,451
Total long-lived assets	691,467	276,497
Vietnam
Revenues generated by geographic location of customers' headquarter
Net revenues	16,208	9,078	19,956
Others
Revenues generated by geographic location of customers' headquarter
Net revenues	65,814	63,034	121,780
Europe
Revenues generated by geographic location of customers' headquarter
Net revenues	1,871,985	1,935,180	858,505
Total long-lived assets	99,738	27,182
Spain
Revenues generated by geographic location of customers' headquarter
Net revenues	445,321	434,841	100,658
Australia
Revenues generated by geographic location of customers' headquarter
Net revenues	128,247	393,959	165,772
Germany
Revenues generated by geographic location of customers' headquarter
Net revenues	291,385	322,189	231,995
Netherlands
Revenues generated by geographic location of customers' headquarter
Net revenues	81,820	136,375	104,715
South Africa
Revenues generated by geographic location of customers' headquarter
Net revenues	218,596	118,458	90,761
United Kingdom
Revenues generated by geographic location of customers' headquarter
Net revenues	144,994	106,662	7,749
Czech
Revenues generated by geographic location of customers' headquarter
Net revenues	62,079	79,414	34,604
Norway
Revenues generated by geographic location of customers' headquarter
Net revenues	139,769	30,231	157
Italy
Revenues generated by geographic location of customers' headquarter
Net revenues	79,041	14,465	6,531
Ireland
Revenues generated by geographic location of customers' headquarter
Net revenues	41,611	63,740	7,844
Romania
Revenues generated by geographic location of customers' headquarter
Net revenues	24,491	31,804	3,699
France
Revenues generated by geographic location of customers' headquarter
Net revenues	22,341	31,147	25,980
Colombia
Revenues generated by geographic location of customers' headquarter
Total long-lived assets	61,847
Argentina
Revenues generated by geographic location of customers' headquarter
Total long-lived assets	63,526	66,017
Others
Revenues generated by geographic location of customers' headquarter
Net revenues	192,290	171,895	$ 78,040
Others
Revenues generated by geographic location of customers' headquarter
Total long-lived assets	$ 19,667	$ 5,770

Financial Statement Schedule I - STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Operating activities:
Net income	$ 363,634	$ 298,555	$ 109,876
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	307,040	234,559	282,769
Accretion of convertible notes	2,145	1,302	1,461
Loss (gain) on disposal of property, plant and equipment	(5,342)	(4,259)	83
Loss (gain) on change in fair value of derivatives	27,504	44,489	(23,785)
Allowance for credit losses	12,014	5,773	7,615
Share-based compensation	55,335	9,370	8,808
Deferred taxes	(17,908)	16,908	(67,386)
Changes in operating assets and liabilities:
Accounts receivable trade	58,985	(357,276)	(284,785)
Amounts due from subsidiaries	9,210	(4,451)	(68,912)
Prepaid expenses and other current assets	(22,277)	151,663	(85,754)
Other non-current assets	(33,597)	(17,350)	20,357
Accounts payable	13,115	351,535	11,023
Amounts due from subsidiaries	427	(54)	(171)
Liability for uncertain tax positions	(29)	(1,718)	(7,281)
Net settlement of derivatives	(39,133)	(31,851)	31,886
Net cash provided by (used in) operating activities	684,615	916,631	(408,254)
Investing activities:
Net cash used in investing activities	(1,671,416)	(630,488)	(429,570)
Financing activities:
Net proceeds from issuance of common shares			148,510
Proceeds from changes in ownership interests in subsidiaries without change of control	5,910	15,109	10,003
Net cash provided by financing activities	2,052,828	428,639	614,071
Effect of exchange rate changes	(89,098)	(179,561)	18,320
Net increase (decrease) in cash, cash equivalents and restricted cash	976,929	535,221	(205,433)
Cash, cash equivalents and restricted cash at the beginning of the year	1,969,503	1,434,282
Cash, cash equivalents and restricted cash at the end of the year	2,946,432	1,969,503	1,434,282
Supplemental disclosure of cash flow information:
Interest paid (net of amounts capitalized)	121,665	76,511	71,006
Parent Company \| Reportable legal entities
Operating activities:
Net income	274,187	239,968	95,248
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization			150
Accretion of convertible notes	1,447	1,302	1,461
Loss (gain) on change in fair value of derivatives	1,535	844	(4,043)
Equity in earnings of subsidiaries	(319,325)	(246,382)	(101,385)
Share-based compensation	28,410	9,370	8,808
Deferred taxes	5,180	3,319	805
Changes in operating assets and liabilities:
Amounts due from subsidiaries	245,001	10,990	(206,892)
Prepaid expenses and other current assets	(1,594)	(7,900)	17,353
Other non-current assets		10	(4,907)
Amounts due from subsidiaries	(232,650)	38,610	(42,224)
Other current liabilities	4,377	(1,154)	(27,293)
Liability for uncertain tax positions	(28)	(1,702)	(5,915)
Net settlement of derivatives	(859)	439	4,633
Net cash provided by (used in) operating activities	5,681	47,714	(264,201)
Investing activities:
Investments in subsidiaries	(22,164)	(65,421)	(138,456)
Investments in affiliates		(990)	(5,273)
Loans to subsidiaries	(62,226)	(122,050)	(201,192)
Repayment of loans from subsidiaries	69,150	172,573	253,816
Net cash used in investing activities	(15,240)	(15,888)	(91,105)
Financing activities:
Proceeds from (repayment of) short-term borrowings			(80,000)
Repayment of loan from subsidiary		(49,554)
Loans from a subsidiaries			280,000
Net proceeds from issuance of common shares			148,510
Net cash provided by financing activities		(49,554)	348,510
Effect of exchange rate changes	(5,460)	5,957	(797)
Net increase (decrease) in cash, cash equivalents and restricted cash	(15,019)	(11,771)	(7,593)
Cash, cash equivalents and restricted cash at the beginning of the year	15,661	27,432	35,025
Cash, cash equivalents and restricted cash at the end of the year	642	15,661	27,432
Supplemental disclosure of cash flow information:
Interest paid (net of amounts capitalized)	$ 11,586	$ 30,521	$ 20,272

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2019
CONSOLIDATED STATEMENTS OF CASH FLOWS
Cash and cash equivalents	$ 1,938,689	$ 981,434
Restricted cash - current	999,933	978,116
Restricted cash - non-current	7,810	9,953
Total cash and cash equivalents, and restricted cash shown in the statements of cash flows	$ 2,946,432	$ 1,969,503	$ 1,434,282	$ 1,639,715

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Anti-dilutive shares excluded from the computation of diluted earnings per share
Net income attributable to Canadian Solar Inc. - basic	$ 274,187	$ 239,968	$ 95,248
Dilutive effect of convertible notes	5,290	5,183	5,300
Net income attributable to Canadian Solar Inc. - diluted	$ 279,477	$ 245,151	$ 100,548
Denominator for basic calculation - weighted average number of common shares - basic	65,375,084	64,324,558	61,614,391
Diluted effects of share number from RSUs and share options	546,765	586,420	985,554
Dilutive effects of share number from convertible notes	6,272,157	6,272,157	6,272,157
Denominator for diluted calculation - weighted average number of common shares - diluted	72,194,006	71,183,135	68,872,102
Basic earnings per share	$ 4.19	$ 3.73	$ 1.55
Diluted earnings per share	$ 3.87	$ 3.44	$ 1.46
RSUs and share options
Anti-dilutive shares excluded from the computation of diluted earnings per share
Anti-dilutive shares excluded from the computation of diluted earnings per share, total	48,598	9,295	3,877

LEASE - Lease expense (Details) - USD ($) $ in Thousands	12 Months Ended
LEASE - Lease expense (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Finance lease cost:
Amortization of ROU assets	$ 49,483	$ 11,406
Interest on lease liabilities	5,368	1,994
Operating fixed lease cost	24,489	14,936
Short-term lease cost	1,824	1,028
Total lease cost	$ 81,164	$ 29,364
Maximum
Finance lease cost:
Lease term	50 years

SHARE-BASED COMPENSATION - Options to Employees (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Sep. 30, 2010	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
SHARE-BASED COMPENSATION
Maximum aggregate number of shares to be issued	2,330,000
Annual percentage increase in authorized shares on the first day of each of 2007, 2008 and 2009 prior to the year of amendment for awards other than incentive option shares	1.00%
Annual percentage increase in authorized shares on the first day of each calendar year from the year of amendment for awards other than incentive option shares	2.50%
Number of shares to be granted after expiration		0
Expiry term of share options		10 years
Compensation cost		$ 0	$ 0	$ 0
Options \| Employees
SHARE-BASED COMPENSATION
Option exercised		0	0	0
Options outstanding		26,291
Weighted average exercise price of options outstanding (in dollars per share)		$ 9.33
Weighted average remaining contract terms of options outstanding (in years)		4 months 24 days
Intrinsic value of outstanding options (in dollars)		$ 444

LEASE - Cash flow (Details) - USD ($) $ in Thousands	12 Months Ended
LEASE - Cash flow (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
LEASE
Operating cash outflows from finance lease	$ (5,368)	$ (1,994)
Operating cash outflows from operating lease	(19,686)	(15,032)
Financing cash outflows from finance lease	(42,319)	(20,194)
ROU assets obtained in exchange of new finance lease liabilities in non-cash transaction	167,726
ROU assets obtained in exchange of new operating lease liabilities in non-cash transaction	119,412	14,393
ROU assets disposed through early termination of operating leases in non-cash transaction	$ (3,288)	$ (965)

LEASE - Total leases - Gross difference (Details) $ in Thousands	Dec. 31, 2023 USD ($)
LEASE
Total future minimum lease payments	$ 396,728
Less: imputed interest	99,847
NPV for future minimum lease payments	$ 296,881

COMMITMENTS AND CONTINGENCIES - Contingencies (Details) - item				1 Months Ended																																											3 Months Ended	12 Months Ended
	Sep. 01, 2022	Jan. 21, 2015	Nov. 30, 2012	Feb. 29, 2024	Jul. 31, 2023	Apr. 30, 2023	Mar. 31, 2023	Feb. 28, 2023	Sep. 30, 2022	Aug. 31, 2022	Jul. 31, 2022	Jun. 30, 2022	Apr. 30, 2022	Dec. 31, 2021	Nov. 30, 2021	Oct. 31, 2021	Sep. 30, 2021	Aug. 31, 2021	Jul. 31, 2021	May 31, 2021	Apr. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Nov. 30, 2020	Oct. 31, 2020	Aug. 31, 2020	Jul. 31, 2020	May 31, 2020	Apr. 30, 2020	Dec. 31, 2019	Aug. 31, 2019	Jul. 31, 2019	Jun. 30, 2019	Mar. 31, 2019	Feb. 28, 2019	Oct. 31, 2018	Sep. 30, 2018	Jul. 31, 2018	Jun. 30, 2018	Oct. 31, 2017	Sep. 30, 2017	Jul. 31, 2017	Jul. 31, 2016	Jun. 30, 2016	May 31, 2016	Jul. 31, 2015	Mar. 31, 2021	Dec. 31, 2023	Dec. 31, 2022
COMMITMENTS AND CONTINGENCIES
Number of monocrystalline silicon photovoltaic cells																													72
Number of monocrystalline silicon photovoltaic half-cells																													144
Minimum module efficiency																													20.50%
Solar 1
COMMITMENTS AND CONTINGENCIES
Cash deposit rate for anti-dumping duty on CSPV cells imported from China (as a percent)			13.94%
Cash deposit rate for countervailing duty on CSPV cells imported from China (as a percent)			15.24%
First administrative review of Solar 1
COMMITMENTS AND CONTINGENCIES
Cash deposit rate for anti-dumping duty on CSPV cells imported from China (as a percent)																																														9.67%
Cash deposit rate for countervailing duty on CSPV cells imported from China (as a percent)																																														20.94%
Second administrative review of Solar 1
COMMITMENTS AND CONTINGENCIES
Cash deposit rate for anti-dumping duty on CSPV cells imported from China (as a percent)														0.00%	3.96%																												3.96%	8.52%	9.67%
Cash deposit rate for countervailing duty on CSPV cells imported from China (as a percent)																																											20.94%
Third administrative review of Solar 1
COMMITMENTS AND CONTINGENCIES
Cash deposit rate for anti-dumping duty on CSPV cells imported from China (as a percent)														0.00%	3.19%													3.19%	4.12%											13.07%	8.52%
Cash deposit rate for countervailing duty on CSPV cells imported from China (as a percent)																										7.36%	18.16%													18.16%	20.94%
Fourth administrative review of Solar 1
COMMITMENTS AND CONTINGENCIES
Cash deposit rate for anti-dumping duty on CSPV cells imported from China (as a percent)																			13.07%
Cash deposit rate for countervailing duty on CSPV cells imported from China (as a percent)																																				11.59%	18.16%											5.02%
Fifth administrative review of Solar 1
COMMITMENTS AND CONTINGENCIES
Cash deposit rate for anti-dumping duty on CSPV cells imported from China (as a percent)																															4.06%	3.30%						13.07%
Cash deposit rate for countervailing duty on CSPV cells imported from China (as a percent)																				3.65%	9.70%									9.70%	9.70%					11.59%
Sixth administrative review of Solar 1
COMMITMENTS AND CONTINGENCIES
Cash deposit rate for anti-dumping duty on CSPV cells imported from China (as a percent)						95.50%	23.02%																95.50%	13.07%	68.93%																								68.93%
Cash deposit rate for countervailing duty on CSPV cells imported from China (as a percent)																						11.97%	12.67%							9.70%																	11.97%
Seventh administrative review of Solar 1
COMMITMENTS AND CONTINGENCIES
Cash deposit rate for anti-dumping duty on CSPV cells imported from China (as a percent)																0.00%	95.50%
Cash deposit rate for countervailing duty on CSPV cells imported from China (as a percent)																		19.28%	11.97%
Eighth administrative review of Solar 1
COMMITMENTS AND CONTINGENCIES
Cash deposit rate for anti-dumping duty on CSPV cells imported from China (as a percent)												0.00%
Cash deposit rate for countervailing duty on CSPV cells imported from China (as a percent)	15.87%									15.75%	19.28%
Ninth administrative review of Solar 1
COMMITMENTS AND CONTINGENCIES
Cash deposit rate for anti-dumping duty on CSPV cells imported from China (as a percent)					0.00%
Cash deposit rate for countervailing duty on CSPV cells imported from China (as a percent)									15.87%
Tenth And Eleventh Administrative Review Of Solar 1
COMMITMENTS AND CONTINGENCIES
Cash deposit rate for countervailing duty on CSPV cells imported from China (as a percent)				15.87%				0.00%
Solar 2
COMMITMENTS AND CONTINGENCIES
Cash deposit rate for anti-dumping duty on CSPV cells imported from China (as a percent)		30.06%															30.06%													30.06%			30.06%						30.06%			30.06%
Cash deposit rate for countervailing duty on CSPV cells imported from China (as a percent)		38.43%															33.58%													33.58%			33.58%	33.58%	38.43%				33.58%			33.58%
Duty rate for anti-dumping duty on CSPV cells imported from Taiwan (as a percent)																														2.57%			4.39%						1.33%
Solar 2 \| Minimum
COMMITMENTS AND CONTINGENCIES
Cash deposit rate for anti-dumping duty on CSPV cells imported from China (as a percent)																																										3.56%
Duty rate for anti-dumping duty on CSPV cells imported from Taiwan (as a percent)																																	1.52%
Solar 2 \| Maximum
COMMITMENTS AND CONTINGENCIES
Duty rate for anti-dumping duty on CSPV cells imported from Taiwan (as a percent)																																	3.78%									4.20%
Seventh administrative review of Solar 2
COMMITMENTS AND CONTINGENCIES
Cash deposit rate for countervailing duty on CSPV cells imported from China (as a percent)													33.58%
Eighth administrative review of the Solar 2
COMMITMENTS AND CONTINGENCIES
Cash deposit rate for countervailing duty on CSPV cells imported from China (as a percent)						33.58%
Canadian Solar International Ltd. \| Fourth administrative review of Solar 1
COMMITMENTS AND CONTINGENCIES
Cash deposit rate for countervailing duty on CSPV cells imported from China (as a percent)																																				10.64%	18.16%											4.22%

SOLAR POWER SYSTEMS, NET

12 Months Ended

Dec. 31, 2023

SOLAR POWER SYSTEMS, NET

SOLAR POWER SYSTEMS, NET

7. SOLAR POWER SYSTEMS, NET

Solar power systems, net consist of the following:


	At December 31,	At December 31,
	2022	2023
	$	$
Solar power systems in operation	172,707	532,833
Solar power systems under construction	209,200	450,339
	381,907	983,172
Accumulated depreciation	(17,091)	(31,659)
Solar power systems, net	364,816	951,513

The Company reclassified certain project assets of nil, $263,710 and $119,067 to solar power systems during the years ended December 31, 2021, 2022 and 2023, respectively. The Company intends to operate the project assets for the purpose of generating income from the sale of electricity.

Depreciation expense of solar power systems was $11,212, $4,074 and $14,266 for the years ended December 31, 2021, 2022 and 2023, respectively. Interest capitalized during development and construction of solar power systems, net was nil, $18,666 and $33,097 for the years ended December 31, 2021, 2022 and 2023, respectively.

BORROWINGS - Long term (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Future principal repayment on the long-term borrowings loans
2024	$ 1,805,198
2025	551,022
2026	355,269
2027	84,689
2028	49,252
Thereafter	225,733
Total	$ 3,071,163

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

Summary of Company's revenues and gross profit and income from operations generated from each segment

SHORT-TERM NOTES PAYABLE

12 Months Ended

Dec. 31, 2023

SHORT-TERM NOTES PAYABLE

SHORT-TERM NOTES PAYABLE

14. SHORT-TERM NOTES PAYABLE

The Company enters into arrangements with banks whereby the banks issue notes to the Company’s materials and equipment vendors, which effectively serve to extend the payment date of the associated accounts payable. Vendors may present the notes for payment to a bank, including the bank issuing the note, prior to the stated maturity date, but generally at a discount from the face amount of the note. The Company is generally required to deposit restricted cash balances with the issuing bank, which are utilized to immediately repay the bank upon the bank’s settlement of the notes. Given the purpose of these arrangements is to extend the payment dates of accounts payable due to suppliers, the Company has recorded such amounts as short-term notes payable. As payments by the bank are immediately repaid by the Company’s restricted cash balances and other deposits with the same bank, the notes payable does not represent cash borrowings from the bank. As of December 31, 2022 and 2023, short-term notes payable was $1,493,399 and $878,285, respectively.

SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2023

SEGMENT INFORMATION


	Years Ended December 31, 2023
			Elimination
			and
		Recurrent	unallocated
	CSI Solar	Energy	items ⁽¹⁾	Total
	$	$	$	$
Net revenues	7,230,550	497,653	(114,577)	7,613,626
Cost of revenues	6,121,332	292,926	(80,615)	6,333,643
Gross profit	1,109,218	204,727	(33,962)	1,279,983
Income from operations ⁽²⁾	456,083	96,621	(99,384)	453,320


	Years Ended December 31, 2022
			Elimination
			and
		Recurrent	unallocated
	CSI Solar	Energy	items ⁽¹⁾	Total
	$	$	$	$
Net revenues	6,975,612	821,525	(328,527)	7,468,610
Cost of revenues	5,824,855	660,161	(279,542)	6,205,474
Gross profit	1,150,757	161,364	(48,985)	1,263,136
Income from operations ⁽²⁾	343,798	80,364	(68,101)	356,061


	Years Ended December 31, 2021
			Elimination
			and
		Recurrent	unallocated
	CSI Solar	Energy	items ⁽¹⁾	Total
	$	$	$	$
Net revenues	4,371,603	1,124,083	(218,517)	5,277,169
Cost of revenues	3,689,126	930,099	(251,368)	4,367,857
Gross profit	682,477	193,984	32,851	909,312
Income from operations ⁽²⁾	74,132	97,179	19,070	190,381

(1)	Includes inter-segment elimination, and unallocated corporate costs not considered part of management’s evaluation of reportable segment operating performance.

(2)	Income from operations reflects management’s allocation and estimate as some services are shared by the Company’s two reportable segments.

Summary of the Company's net revenues generated from different geographic locations


	Years Ended December 31,
	2021	2022	2023
	$	$	$
The Americas:
—United States	1,590,573	1,963,956	1,485,919
—Brazil	442,603	623,331	846,387
—Canada	30,792	49,148	52,525
—Mexico	139,611	31,912	50,884
—Puerto Rico	11,344	22,353	37,922
—Chile	18,461	37,370	29,663
—Others	46,210	65,581	112,845
	2,279,594	2,793,651	2,616,145
Asia:
—PRC	1,207,003	1,904,862	2,151,243
—Japan	509,233	325,344	597,188
—India	142,300	197,772	91,020
—Pakistan	48,838	73,531	78,203
—Philippines	6,660	26,578	40,612
—Hong Kong	9,979	46,254	32,707
—United Arab Emirates	6,168	15,974	22,915
—Taiwan	7,702	67,411	19,369
—Vietnam	19,956	9,078	16,208
—Thailand	59,451	9,941	10,217
—Others	121,780	63,034	65,814
	2,139,070	2,739,779	3,125,496
Europe and other regions:
—Spain	100,658	434,841	445,321
—Germany	231,995	322,189	291,385
—South Africa	90,761	118,458	218,596
—United Kingdom	7,749	106,662	144,994
—Norway	157	30,231	139,769
—Australia	165,772	393,959	128,247
—Netherlands	104,715	136,375	81,820
—Italy	6,531	14,465	79,041
—Czech	34,604	79,414	62,079
—Ireland	7,844	63,740	41,611
—Romania	3,699	31,804	24,491
—France	25,980	31,147	22,341
—Others	78,040	171,895	192,290
	858,505	1,935,180	1,871,985
Total net revenues	5,277,169	7,468,610	7,613,626

Schedule of long-lived assets, including property, plant and equipment, non-current project assets, solar power systems, prepaid land use rights and intangible assets by geographic region


	At December 31,	At December 31,
	2022	2023
	$	$
PRC	1,668,177	2,398,130
Thailand	276,497	691,467
United States	5,545	528,538
Brazil	242,761	409,211
EU	27,182	99,738
Argentina	66,017	63,526
Colombia	—	61,847
Japan	14,440	13,164
Canada	6,200	11,401
Others	5,770	19,667
Total long-lived assets	2,312,589	4,296,689

Summary of the Company's revenues generated from each product or service


	Years Ended December 31,
	2021	2022	2023
	$	$	$
CSI Solar:
Solar modules	3,328,301	5,534,379	5,941,345
Solar system kits	302,133	538,157	679,350
Battery energy storage solutions	222,655	440,716	245,173
EPC and others	299,997	133,833	250,105
Recurrent Energy:
Solar power and battery energy storage asset sales	1,064,178	761,677	399,098
Power services (O&M) and asset management	35,334	33,776	52,379
Electricity revenue from operating portfolio and others	24,571	26,072	46,176
Total net revenues	5,277,169	7,468,610	7,613,626

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Revenue recognition - Contract assets and liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES
Revenue recognized from beginning balance of contract liabilities	$ 398,545	$ 219,836
Contract liabilities expected to be recognized	725,808
Contract Assets
Accounts receivables, unbilled	101,435	57,770
Contract Liabilities
Advances from customers	392,308	334,943
Other current liabilities	333,500	71,808
Other non-current liabilities	52,693
Contract liability	$ 778,501	$ 406,751

SEGMENT INFORMATION (Narrative) (Details) $ in Thousands	12 Months Ended
SEGMENT INFORMATION (Narrative) (Details) $ in Thousands	Dec. 31, 2023 USD ($) segment	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Number of Reportable Segments \| segment	2
Impairment loss of investments in affiliates	$ 0	$ 357	$ 0
Impairment charges for long-lived assets	5,938	60,330	6,084
Project assets impairment	16,239	1,674	17,152
CSI Solar Segment
Impairment loss of investments in affiliates	0	357	0
Impairment charges for long-lived assets	5,938	60,330	6,084
Recurrent Energy Segment
Project assets impairment	$ 16,239	$ 1,674	$ 17,152

FAIR VALUE MEASUREMENT - Gain (Loss) Recognized in Statements of Operation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Effect of derivative instruments on consolidated statements of operations
Gain (loss) on change in fair value of derivatives	$ (27,504)	$ (44,489)	$ 23,785
Foreign exchange forward contracts
Effect of derivative instruments on consolidated statements of operations
Gain (loss) on change in fair value of derivatives	(38,241)	(49,388)	22,582
Foreign exchange option contracts
Effect of derivative instruments on consolidated statements of operations
Gain (loss) on change in fair value of derivatives	10,712	8,918	220
Commodity hedge
Effect of derivative instruments on consolidated statements of operations
Gain (loss) on change in fair value of derivatives	$ 25	$ (4,019)	$ 983

ALLOWANCE FOR CREDIT LOSSES

12 Months Ended

Dec. 31, 2023

ALLOWANCE FOR CREDIT LOSSES

ALLOWANCE FOR CREDIT LOSSES

3. ALLOWANCE FOR CREDIT LOSSES

Allowance for credit losses is comprised of allowances for accounts receivable trade, advances to suppliers, warranty insurance receivable and other receivable. Warranty insurance receivable was included as a component of other non - current assets. Other receivable was included as a component of prepaid expenses and other current assets.

Accounts receivable trade, net consisted of the following:


	At December 31,	At December 31,
	2022	2023
	$	$
Accounts receivable trade, gross	1,020,880	961,745
Allowance for credit losses	(49,930)	(56,802)
Accounts receivable trade, net	970,950	904,943

Advances to suppliers, net consisted of the following:


	At December 31,	At December 31,
	2022	2023
	$	$
Advances to suppliers, gross	320,211	328,460
Allowance for credit losses	(1,375)	(2,424)
Advances to suppliers, net	318,836	326,036

Warranty insurance receivable, net consisted of the following:


	At December 31,	At December 31,
	2022	2023
	$	$
Warranty insurance receivable, gross	84,474	84,035
Allowance for credit losses	—	(1,300)
Warranty insurance receivable, net	84,474	82,735

Other receivable, net consisted of the following:


	At December 31,	At December 31,
	2022	2023
	$	$
Other receivable, gross	129,195	145,376
Allowance for credit losses	(9,999)	(11,878)
Other receivable, net	119,196	133,498

3. ALLOWANCE FOR CREDIT LOSSES (Continued)

The following table presents the change in the allowances for credit losses related to the Company’s accounts receivable trade, advances to suppliers, warranty insurance receivable and other receivable:


		Advances to
		Suppliers, Warranty
	Accounts Receivable	Insurance Receivable and
	Trade	Other Receivable
	$	$
Balance as of December 31, 2020	40,293	28,502
Provision for credit losses, net	7,171	444
Write-offs	(197)	(53)
Foreign exchange effect	(141)	186
Balance as of December 31, 2021	47,126	29,079
Provision for credit losses, net	4,349	1,424
Write-offs	(109)	(18,295)
Foreign exchange effect	(1,436)	(834)
Balance as of December 31, 2022	49,930	11,374
Provision for credit losses, net	7,381	4,633
Write-offs	(2,073)	(242)
Foreign exchange effect	1,564	(163)
Balance as of December 31, 2023	56,802	15,602

SOLAR POWER SYSTEMS, NET (Tables)

12 Months Ended

Dec. 31, 2023

SOLAR POWER SYSTEMS, NET

Schedule of solar power systems, net


	At December 31,	At December 31,
	2022	2023
	$	$
Solar power systems in operation	172,707	532,833
Solar power systems under construction	209,200	450,339
	381,907	983,172
Accumulated depreciation	(17,091)	(31,659)
Solar power systems, net	364,816	951,513

SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2023

SHARE-BASED COMPENSATION

Schedule of the RSU activity


		Weighted Average
	Number of	Grant-Date
	Shares	Fair Value
		(in whole US dollars)
Unvested at January 1, 2023	3,189,376	25.65
Granted	206,067	38.64
Vested	(1,652,686)	24.81
Forfeited	(82,575)	26.97
Unvested at December 31, 2023	1,660,182	27.21

Summary of Company share-based compensation expense by plan included in consolidated statements of operations


	Years Ended December 31,
	2021		2022		2023
	$		$		$
2006 Share incentive plan		8,808		9,370		46,981
2020 CSI Solar employee incentive plan		—		—		8,354
		8,808		9,370		55,335

Financial Statement Schedule I - BALANCE SHEETS Additional Information (Details) - $ / shares	Dec. 31, 2023	Dec. 31, 2022
Condensed Financial Statements
Common share, par value (in dollars per share)	$ 0	$ 0
Common shares, shares issued (in shares)	66,158,741	64,506,055
Common shares, shares outstanding (in shares)	66,158,741	64,506,055
Reportable legal entities \| Parent Company
Condensed Financial Statements
Common share, par value (in dollars per share)	$ 0	$ 0
Common shares, shares issued (in shares)	66,158,741	64,506,055
Common shares, shares outstanding (in shares)	66,158,741	64,506,055

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Shipping and handling costs, Research and development (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Research and development expenses	$ 100,844	$ 69,822	$ 58,407
Shipping and Handling \| CSI Solar Segment
Selling and distribution expenses	$ 237,947	$ 453,865	$ 316,358

INVESTMENTS IN AFFILIATES (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Sep. 30, 2021
Other investments
Carrying Value	$ 236,928	$ 115,784
Lingang Frontier CSI New Energy Investment Fund, LP
Other investments
Carrying Value	$ 42,357
Ownership Percentage	44.30%
Marangatu
Other investments
Carrying Value	$ 30,790	$ 2,500
Ownership Percentage	30.00%	30.00%	30.00%
Suzhou Financial Leasing Co., Ltd.
Other investments
Carrying Value	$ 30,048	$ 27,328
Ownership Percentage	3.00%	4.20%
Panati
Other investments
Carrying Value	$ 28,185	$ 1,818
Ownership Percentage	30.00%	30.00%	30.00%
Crimson
Other investments
Carrying Value	$ 26,551	$ 22,272
Ownership Percentage	20.00%	20.00%		20.00%
Lavras
Other investments
Carrying Value	$ 12,881	$ 14,318
Ownership Percentage	20.00%	20.00%
Canadian Solar Infrastructure Fund, Inc.
Other investments
Carrying Value	$ 17,677	$ 8,961
Ownership Percentage	14.50%	14.60%
Francisco
Other investments
Carrying Value	$ 7,553	$ 7,683
Ownership Percentage	20.00%	20.00%
Suzhou Zhuosheng Venture Investment Fund, LLP
Other investments
Carrying Value	$ 8,957	$ 6,868
Ownership Percentage	14.00%	17.90%
Salgueiro
Other investments
Carrying Value	$ 7,250	$ 6,595
Ownership Percentage	20.00%	20.00%
JuSheng (Suzhou) Solar Tech Co., Ltd.
Other investments
Carrying Value	$ 7,028	$ 5,922
Ownership Percentage	2.20%	4.40%
Jaiba
Other investments
Carrying Value	$ 4,131	$ 5,077
Ownership Percentage	20.00%	20.00%
Others
Other investments
Carrying Value	$ 13,520	$ 6,442
Others \| Minimum
Other investments
Ownership Percentage	8.50%	10.90%
Others \| Maximum
Other investments
Ownership Percentage	49.00%	49.00%

INCOME TAXES - Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets:
Accrued warranty costs	$ 12,944	$ 17,318
Allowance for credit losses	14,728	11,772
Inventory write-down	5,807	1,235
Future deductible expenses	28,720	32,351
Depreciation and impairment difference of property, plant and equipment and solar power systems	18,428	36,332
Accrued liabilities related to antidumping, countervailing and other duty costs and true-up charges	39	40
Government subsidies	46,712	28,723
Net operating losses carry-forward	131,094	79,474
Unrealized foreign exchange loss and capital loss	190	2,677
Interest limitation	15,471	14,031
Others	62,003	48,761
Total deferred tax assets, gross	336,136	272,714
Valuation allowance	(72,678)	(43,488)
Total deferred tax assets, net of valuation allowance	263,458	229,226
Deferred tax liabilities:
Derivative assets	654	2,899
Depreciation difference of property, plant and equipment	34,625	34,914
Insurance recoverable	71	55
Unrealized foreign exchange gain	1,816	3,906
Others	45,662	24,856
Total deferred tax liabilities	82,828	66,630
Analysis as:
Deferred tax assets	263,458	229,226
Deferred tax liabilities	(82,828)	(66,630)
Net deferred tax assets	180,630	162,596
Accumulated net operating losses	821,591
U.S. federal and state
Analysis as:
Accumulated net operating losses subject to expiration between 2021 and 2040	331,767
Allowance
Deferred tax assets:
Valuation allowance	$ (72,678)	$ (43,488)	$ (45,682)	$ (50,118)

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2023

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES

Basis of presentation

(a) Basis of presentation

The consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).

Basis of consolidation

(b) Basis of consolidation

The consolidated financial statements include the financial statements of the Company and its subsidiaries in which it has a controlling financial interest or variable interest entities (“VIEs”) for which the Company is a primary beneficiary. The permanent equity represented by third party or affiliate interest in non-wholly owned entities that the Company consolidates is shown as non-controlling interests in equity.

A controlling financial interest is typically determined when a company holds a majority of the voting equity interest in an entity, the non-controlling shareholder or partner do not hold substantive participating rights, redemption rights and no other conditions exist that would indicate that a company does not control the entity. All intercompany balances and transactions between the Company and its subsidiaries have been eliminated in consolidation.

The Company consolidates VIEs when the Company is the primary beneficiary. VIEs are entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders, as a group, lack one or more of the following characteristics: (a) direct or indirect ability to make decisions; (b) obligation to absorb expected losses; or (c) right to receive expected residual returns. VIEs must be evaluated quantitatively and qualitatively to determine the primary beneficiary, which is the reporting entity that has (a) the power to direct activities of a VIE that most significantly impact the VIEs economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. A VIE can have only one primary beneficiary, but may not have a primary beneficiary if no party meets the criteria described above.

For the Company’s consolidated VIEs, the Company has presented in Note 10, to the extent material, the assets of its consolidated VIEs that can only be used to settle specific obligations of the consolidated VIE, and the liabilities of its consolidated VIEs for which creditors do not have recourse to its general assets outside of the consolidated VIE, except for financial guarantee provided by the Company with respect to the debt obligations of the consolidated VIEs of $25,257 and $11,163 as of December 31, 2022 and 2023, respectively. All intercompany accounts and transactions between the Company and its consolidated VIEs have been eliminated in consolidation.

Reclassifications

Certain prior period balances have been reclassified to conform to the current period presentation in the Company’s consolidated financial statements and the accompanying notes. Such reclassifications had no effect on previously reported results of operations or retained earnings.

Use of estimates

(d) Use of estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates under different assumptions or conditions. Significant accounting estimates reflected in the Company’s consolidated financial statements include revenue recognition (including identification of performance obligation, determination and allocation of transaction price, determination of deconsolidation of the project companies, estimates of total cost and estimates of variable consideration), allowance for credit losses on accounts receivable, advances to suppliers, warranty insurance receivable and other receivable, valuation of inventories and provision for firm purchase commitments, provision for contingent liability, impairment of long-lived assets and project assets, the estimated useful lives of long-lived assets, determination of assets retirement obligation (“ARO”) associated with long-lived assets, discount rates used to measure operating lease liabilities, accrual for warranty and the recognition of the benefit from the purchased warranty insurance, fair value estimate of financial instruments including foreign exchange option and forward contracts and other types of derivative, accrual for uncertain tax positions, valuation allowances for deferred tax assets, applying acquisition method of accounting to business acquisitions, the impairment on goodwill and intangible assets acquired, the grant-date fair value of share-based compensation awards and related forfeiture rates.

Cash and cash equivalents and restricted cash

(e) Cash and cash equivalents and restricted cash

Cash and cash equivalents are stated at cost, which approximates fair value. Cash and cash equivalents consist of cash on hand, money market fund and demand deposits, which are unrestricted as to withdrawal and use, and have original maturities of three months or less when acquired.

Restricted cash represents amounts held by banks, which are not available for the Company’s general use, as security for issuance of short-term notes payable, letters of guarantee, letters of credit and bank borrowings. Upon maturity of the letters of guarantee and letters of credit, and repayment of short - term notes payable or bank borrowings, the deposits are released by the bank and become available for general use by the Company.

Accounts receivable, unbilled

(f) Accounts receivable, unbilled

Accounts receivable, unbilled represents a contract asset for revenue that has been recognized in advance of billing the customer. The Company uses a cost-based input method to recognize revenue from battery energy storage solutions and EPC services when all relevant revenue recognition criteria have been met. Under this accounting method, revenue may be recognized in advance of billing the customer, which results in the recording of accounts receivable, unbilled. Once the Company meets the billing criteria under such contract, the rights to consideration becomes unconditional, it bills the customer and reclassifies the unbilled balance to accounts receivable trade. Billing requirements vary by contract, but are generally structured around completion of certain construction milestones.

Allowance for credit losses

(g) Allowance for credit losses

The Company’s accounts receivable trade, advances to suppliers, warranty insurance receivable and other receivable are presented net of an allowance for credit losses. The Company establishes current expected credit losses (“CECL”) through an assessment based on external credit rating, internal credit rating and historical loss rates of debtors. Where CECL is measured on a collective basis or caters for cases where evidence at the individual instrument level may not yet be available, the financial instruments are grouped on the aging status; and nature, size and industry of debtors.

The Company has been purchasing credit insurance from insurers, such as the China Export & Credit Insurance Corporation and PICC Property and Casualty Company Limited, for certain of its accounts receivable trade in order to reduce its exposure to credit loss. The Company provides an allowance for accounts receivable trade considering factors such as historical collection experience, the age of the accounts receivable and other currently available evidence supporting recoverability. An allowance is recorded regardless of whether such account is covered by credit insurance. At the time the claim is made, the Company records a receivable from these insurers equal to the expected recovery up to the amount of the specific allowance, and a corresponding reduction in general and administrative expenses. The balance of receivable from these insurers in prepaid expenses and other current assets were $1,873 and $2,929 as of December 31, 2022 and 2023, respectively.

Advances to suppliers

(h) Advances to suppliers

The Company makes prepayments to certain suppliers and such amounts are recorded in advances to suppliers in the consolidated balance sheets. Advances to suppliers expected to be utilized within twelve months as of each balance sheet date are recorded as current assets and the portion expected to be utilized after twelve months are classified as non-current assets in the consolidated balance sheets.

Inventories

(i) Inventories

Inventories are stated at the lower of cost or net realizable value. Cost is determined by the weighted-average method. Cost of inventories consists of direct materials and, where applicable, direct labor costs, tolling costs and those overhead costs that have been incurred in bringing the inventories to their present location and condition.

When an impairment indicator suggests that the carrying amounts of inventories might not be recoverable, adjustments are recorded to write down the cost of obsolete and excess inventories to the estimated net realizable value based on historical and forecast demand. Impairment indicators considered for these purposes are, among others, obsolescence and damages, decrease in market prices, and future demand forecast.

Project assets

(j) Project assets

Project assets consist primarily of capitalized costs relating to solar power and battery energy storage assets in various stages of development prior to the intended sale of the solar power and battery energy storage projects. These costs include certain acquisition costs, land costs and costs for developing and constructing a solar power and battery energy storage project. Development costs can include legal, consulting, permitting, and other similar costs. Construction costs can include execution of field construction, installation of solar equipment, solar modules, lithium batteries, inverters, energy stations, power plant controllers and related equipment. Interest costs incurred on debt during the construction phase, all deferred financing costs amortized during the construction phase, and indirect project costs are also capitalized within project assets.

Solar power and battery energy storage assets are classified as project assets unless the Company has intention not to sell them to third parties. In that case, these projects that the Company intends to hold and operate to generate income from the sale or storage of electricity are classified as solar power and battery energy storage systems on the consolidated balance sheets. During the development phase, the Company capitalizes costs of the solar power and battery energy storage assets as guided by ASC 970. The costs to develop or construct solar power and battery energy storage assets are presented as operating activities or investing activities in the consolidated statement of cash flows, if they are related to project assets or solar power and battery energy storage systems, respectively. While the solar power and battery energy storage assets are in the development phase, they are generally classified as non-current assets, unless it is anticipated that the sale will occur within one year. Appropriateness of the classification of the solar power and battery energy storage assets is assessed based on the circumstances on each balance sheet date. Solar power and battery energy storage assets that the Company intends to sell within one year are classified as project assets-current.

The Company reviews project assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company considers a fully developed or constructed project commercially viable or recoverable if it is anticipated to be sold for a profit. Otherwise, the Company considers the project commercially viable or recoverable if the anticipated selling price less cost to sell is higher than the carrying value of the related project assets. The Company examines a number of factors to determine if the project will be recoverable, the most notable of which include whether there are any changes in environmental, permitting, grid interconnection, capital cost, market pricing or regulatory conditions that impact the project. Such changes could cause the costs of the project to increase or the selling price of the project to decrease. If a project is not considered recoverable, the Company impairs the project asset and adjusts the carrying value to the estimated recoverable amount, with the resulting impairment recorded within cost of revenues in the consolidated statements of operations.

Project assets are often held in separate legal entities and VIEs which are formed for the special purpose of constructing the project assets, which the Company refers to as “project companies”. The Company consolidates project companies as described in note 2(b) above.

The Company does not depreciate the project assets. Any revenue generated from a solar power and battery energy storage power system connected to the grid would be considered incidental revenue and accounted for as a reduction of the capitalized project costs for development. If circumstances change, and the Company intends to operate the project assets for the purpose of generating income from the sale or storage of electricity, the project assets will be reclassified to solar power and battery energy storage power systems at the lower of their carrying amounts, adjusted for any depreciation expense that would have been recognized had the project assets been continuously classified as held and used, or fair value at the date of the subsequent decision not to sell.

Business combination

(k) Business combination

Business combinations are recorded using the acquisition method of accounting and, accordingly, the acquired assets and liabilities are recorded at their fair market value at the date of acquisition. Any excess of acquisition cost over the fair value of the acquired assets and liabilities, including identifiable intangible assets, is recorded as goodwill. The Company charges acquisition related costs that are not part of the purchase price consideration to general and administrative expenses as they are incurred. These costs typically include transaction and integration costs, such as legal, accounting, and other professional fees. The Company recognizes adjustments to provisional amounts to reflect additional information obtained for incomplete facts and circumstances as of acquisition date. The measurement period ends once the Company receives sufficient information to finalize fair value, however, the period will not exceed 1 year from the acquisition date. The Company includes the results of operations of the acquired business in the consolidated financial statements beginning on the acquisition date. For the year ended December 31, 2023, the Company completed three acquisitions that were not individually, nor in the aggregate, significant to the consolidated financial position, results of operations and cash flows of the Company.

Assets acquisition

(l) Assets acquisition

When the Company acquires other entities, if the assets acquired and liabilities assumed do not constitute a business, the transaction is accounted for as an asset acquisition. Assets are recognized based on the cost, which generally includes the transaction costs of the asset acquisition, and no gain or loss is recognized unless the fair value of noncash assets given as consideration differs from the assets’ carrying amounts on the Company’s books. If the consideration given is not in the form of cash (that is, in the form of non cash assets, liabilities incurred, or equity interests issued), measurement is based on either the cost to the acquiring entity or the fair value of the assets (or net assets) acquired, whichever is more clearly evident and, thus, more reliably measurable. The cost of a group of assets acquired in an asset acquisition is allocated to the individual assets acquired or liabilities assumed based on their relative fair value and does not give rise to goodwill.

Property, plant and equipment

(m) Property, plant and equipment

Property, plant and equipment is recorded at cost less accumulated depreciation. The cost of property, plant and equipment comprises its purchase price and any directly attributable costs, including interest costs capitalized during the period the asset is brought to its working condition and location for its intended use. The Company expenses repair and maintenance costs as incurred.

Depreciation is computed on a straight-line basis over the following estimated useful lives:


Buildings		10-20 years
Leasehold improvements		Over the shorter of the lease term or their estimated useful lives
Machinery		5-10 years
Furniture, fixtures and equipment		5 years
Motor vehicles		5 years

Costs incurred in constructing new facilities, including progress payments, capitalized interests and other costs relating to the construction, are capitalized and transferred to property, plant and equipment on completion and depreciation commences from that time.

For property, plant and equipment that has been placed into service, but is subsequently idled temporarily, the Company continues to record depreciation expense during the idle period. The Company adjusts the estimated useful life of the idled assets if the estimated useful life has changed.

Solar power systems

(n) Solar power systems

Solar power systems generally comprised of ground-mounted utility-scale projects that the Company intends to hold for use. The solar power systems are stated at cost less accumulated depreciation. The cost consists primarily of direct costs incurred in various stages of development prior to the commencement of operations. For a self-developed solar power system, the actual cost capitalized is the amount of the expenditure incurred for the application of the power purchase agreements (“PPA”) and performance based energy incentives, permits, consents, construction costs, equipment costs, land costs, interest costs capitalized, and other costs capitalized. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred.

When solar power systems are retired, or otherwise disposed of, the cost and accumulated depreciation is removed from the balance sheets and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is recognized using the straight-line method over the estimated useful lives of the solar power systems.

The Company reviews the estimated useful lives of its solar power systems on an ongoing basis. This review indicated that the actual lives of certain solar power systems were longer than the estimated useful lives used for depreciation purposes in the Company’s financial statements. As a result, effective January 1, 2022, the Company changed the estimates of its useful lives of its solar power systems from 20-25 years to 30 years, based on internal studies and market analysis that support a 30-year useful life as appropriate given advances in solar power technology. The useful life was not changed for projects to be transferred to an offtaker at the end of a PPA that is less than 30 years in duration. The change was being accounted for prospectively as a change in accounting estimate. Depreciation expense for the year ended December 31, 2021 would have been lowered by $2,186 if the change had been made at the beginning of 2021.

Intangible assets

(o) Intangible assets

Intangible assets are comprised of customer-related intangible assets that include customer relationships and backlog, trademark, technical know - how, and computer software purchased from third parties. Intangible assets are recorded at fair value at the time of acquisition less accumulated amortization, if applicable. Amortization is recorded according to the following table on a straight - line basis for all intangible assets:


Customer-related intangible assets		7-20 years
Trademark		20 years
Technical know-how		10 years
Computer software		1-10 years

Land use rights

(p) Land use rights

Land use rights represent operating leases in accordance with ASC 842. The amounts paid for the use right of lands located in China (“PRC”) is recorded as operating lease right-of-use (“ROU”) assets on the consolidated balance sheets. Amounts are charged to earnings ratably over the land use right periods of generally 50 years.

Investments in affiliates

(q) Investments in affiliates

The Company uses the equity method of accounting for the investments. The Company records the equity method investments at historical cost and subsequently adjusts the carrying amount each period for share of the earnings or losses of the investee and other adjustments required by the equity method of accounting. Dividends received from the equity method investments are recorded as reductions in the cost of such investments. The amount associated with the share of earnings is considered as return on capital, and the rest of the amount is considered as return of capital.

Investments are evaluated for impairment when facts or circumstances indicate that the fair value of the investment is less than its carrying value. An impairment is recognized when a decline in fair value is determined to be other-than-temporary. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration of the impairment; (iii) extent to which fair value is less than cost; (iv) financial conditions and near term prospects of the affiliates; and (v) ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. During the years ended December 31, 2021, 2022 and 2023, the Company recorded nil, $357 and nil of impairment charges on its investments, respectively.

Impairment of long-lived assets

(r) Impairment of long-lived assets

The Company assesses the recoverability of the carrying value of long-lived assets, including property, plant and equipment, non-current project assets, solar power systems, and intangible assets, when an indicator of impairment has been identified. The Company reviews the long-lived assets each reporting period to assess whether impairment indicators are present. For purposes of recognition and measurement of an impairment loss, a long-lived asset or assets is grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For long-lived assets, when impairment indicators are present, the Company compares undiscounted future cash flows, including the eventual disposition of the asset group at market value, to the asset group’s carrying value to determine if the asset group is recoverable. Assessments also consider changes in asset group utilization, including the temporary idling of capacity and the expected timing of placing this capacity back into production. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Company will recognize an impairment loss for amount by which the carrying amount of the assets exceeds its fair value. Fair value is generally measured based on either quoted market prices, if available, or discounted cash flow analyses. The Company recorded impairment charges for long-lived assets of $6,084, $60,330 and $5,938 for the years ended December 31, 2021, 2022 and 2023, respectively.

Interest capitalization

(s) Interest capitalization

The Company capitalizes interest costs as part of the historical costs of acquiring or constructing certain assets during the period of time required to get the assets ready for their intended use or sale to a customer. The Company capitalizes interest costs to the extent that expenditures to acquire, construct, or develop an asset have occurred and interest costs have been incurred. Interest capitalized for property, plant and equipment, or solar power systems is depreciated over the estimated useful life of the related asset, as the qualifying asset is placed into service. The interest capitalized for project assets forms part of the cost of revenues when such project assets are sold and all revenue recognition criteria are met. Interest capitalization ceases once a project is substantially complete or no longer undergoing construction activities to prepare it for its intended use.

Advances from customers

(t) Advances from customers

The Company may receive payments from customers in advance of the satisfaction of performance obligations primarily for inventory purchases. These current portion amounted to $334,943 and $392,308 as of December 31, 2022 and 2023, respectively, and the non-current portion amounted to nil and $52,693 as of December 31, 2022 and 2023, respectively. These current and non-current amounts are recognized as contract liabilities until the performance obligations are completed and are included as advances from customer and other non-current liabilities in the consolidated balance sheets, respectively, based on the expected timing of performance obligation of the contract liabilities.

Assets retirement obligation

(u) Assets retirement obligation

Certain jurisdictions in which the Company’s long-lived assets are located or certain land lease agreements require the removal of the solar power systems when the project is decommissioned. The Company recognizes the fair value of a liability for an assets retirement obligation (“ARO”) in the period in which the obligation is incurred and a reasonable estimate of fair value can be made. Upon initial recognition of a liability for an ARO, the asset retirement cost is capitalized by increasing the carrying amount of the related long-lived asset by the same amount. Over time, the liability is accreted to its expected future value, while the capitalized cost is depreciated over the useful life of the related asset, except in cases where the asset is depreciated over lease terms that differ from its useful life. Upon settlement of the obligation, the Company eliminates the liability and, based on actual cost to retire, may incur a gain or loss. The Company’s ARO included in solar power systems were $399 and $1,249 as of December 31, 2022 and 2023, respectively.

Leases

(v) Leases

The Company determines if an arrangement is a lease at inception based on the relevant facts and circumstances. Operating leases are included in operating lease ROU assets and operating lease liabilities on the consolidated balance sheets. Finance leases are included in property, plant and equipment, other payables and other non-current liabilities on the consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are calculated as the present value of the lease payments not yet paid. Variable lease payments are excluded from the ROU asset and lease liability calculations and are recognized in the period in which the obligations for those payments are incurred. Operating lease ROU assets also include any lease prepayments made, initial direct costs and deferred rent if any and exclude lease incentives. As the rate implicit in the Company’s operating leases is not typically readily available, the Company uses an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. Some of the Company’s lease agreements include options to extend or terminate the lease, which are not included in its minimum lease terms unless they are reasonably certain to be exercised. All operating lease expenses are fixed, which are accounted for on a straight-line basis over the lease term and that of finance lease include interest and amortization expenses incurred during the current year.

Lease liabilities that become due within one year of the balance sheet date are classified as current liabilities.

The Company’s leases do not contain any material residual value guarantees or material restrictive covenants. Leases with an initial lease term of 12 months or less and do not include a purchase option or extension that is reasonably certain to be exercised are not recorded on the consolidated balance sheets, and instead the lease expense is recognized on a straight-line basis over the term of the lease.

For finance leases, the amortization of the asset is recognized over the shorter of the lease term or useful life of the underlying asset within depreciation and amortization expense in the Company’s consolidated statements of operations. The interest expense related to finance leases, including any variable lease payments, is recognized in interest expense in its consolidated statements of operations.

The Company assesses ROU assets for impairment quarterly. When events or circumstances indicate the carrying value may not be recoverable, the Company evaluates the net book value of the asset for impairment by comparison to the projected undiscounted future cash flows. If the carrying value of the asset is determined to not be recoverable and is in excess of the estimated fair value, the Company recognizes an impairment loss on its consolidated statements of operations.

Contingencies

(w) Contingencies

Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but the amount cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. Legal costs incurred in connection with loss contingencies are expensed as incurred.

Income taxes

(x) Income taxes

Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, net tax loss carry-forwards and credits using the enacted tax rates expected to apply to taxable income in the periods in which the deferred tax liability or asset is expected to be settled or realized. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities.

Income tax expense includes (i) deferred tax expense, which generally represents the net change in the deferred tax asset or liability balance during the year plus any change in valuation allowances; (ii) current tax expense, which represents the amount of tax payable to or receivable from a taxing authority; and (iii) non-current tax expense, which represents the increases and decreases in amounts related to uncertain tax positions from prior periods and not settled with cash or other tax attributes. The Company only recognizes tax benefits related to uncertain tax positions when such positions are more likely than not of being sustained upon examination. For such positions, the amount of tax benefit that the Company recognizes is the largest amount of tax benefit that is more than fifty percent likely of being sustained upon the ultimate settlement of such uncertain tax position. The Company records penalties and interests associated with the uncertain tax positions as a component of income tax expense.

The Company uses the flow-through method to account for investment tax credits earned on qualifying projects placed into service. Under this method the investment tax credits are recognized as a reduction to income tax expense in the year the credit arises. The use of the flow-through method also results in a basis difference from the recognition of a deferred tax liability and an immediate income tax expense for reduced future tax depreciation of the related assets. Such basis differences are accounted for pursuant to the income statement method.

Revenue recognition

(y) Revenue recognition

The Company recognizes revenue when it satisfies a performance obligation by transferring a promised good or service to a customer. The Company is subjected to sales taxes, goods and services taxes and value added taxes on its sales of products, and recognizes revenue net of these taxes and estimated returns.

Solar power products

Solar power products, including solar modules, solar system kits, inverters, accessories and materials related to solar power products are transferred at a point in time when the customers obtain control of the products, which is typically upon shipment or delivery depending on the contract terms. Revenues of solar product sales also include charges to customers for shipping and handling activities. Sales agreements typically contain the assurance-type customary product warranties but do not contain any post-shipment obligations nor any return or credit provisions, see note 2 (ac) for the Company’s accounting policy for warranty.

The Company assessed whether it is probable that the Company will collect substantially all of the consideration to which it will be entitled in exchange for the products that will be transferred to the customers. The delivered products remain as inventories on consolidated balance sheets, regardless of whether the control has been transferred. If the collection of payment becomes probable in the future, the Company would then recognize revenue, adjust inventories and recognize cost of revenues.

Battery energy storage solutions and EPC services

The Company recognizes revenue for the sales of battery energy storage products, at a point in time when the customers obtain control of the products, which is typically upon shipment or delivery depending on the contract terms. Revenue from the delivery of turnkey battery energy storage solutions and EPC services is recognized over time based on the estimated progress to completion using a cost-based input method. This includes the advances that battery energy storage customers are required to make on the value of their battery energy storage solution that is treated as deferred revenue on the Company’s consolidated balance sheet and then recognized as revenue over time based on the estimated progress to completion.

In applying the cost-based input method of revenue recognition, the Company uses the actual costs incurred relative to the total estimated costs to determine its progress towards contract completion and to calculate the corresponding amount of revenue to recognize. The Company is also required to make estimates of revenues and costs to complete its projects. In making such estimates, significant judgment is required to evaluate the underlying assumptions, including the impact of any performance incentives, liquidated damages, and other payments to customers. If estimated total costs of any contract are greater than the estimated net revenues of the contract, the Company recognizes the entire estimated loss in the period the loss becomes known. The cumulative effect of revisions to estimates using the cost-based input method of revenue recognition are recorded in the period in which the revisions are identified. At the inception of each contract that includes variable consideration, the Company evaluates the amount of potential payment and the likelihood that the payments will be received. The Company utilizes either the most likely amount method or expected value method to estimate the amount expected to be received based on which method best predicts the amount expected to be received. The contracts do not contain significant financing component.

Performance obligation for long term service contract, including capacity, operating system performance and battery augmentation, is accounted for separately if the performance obligation is considered to be distinct. The Company considers the performance obligation to be distinct if the customer can benefit from the good or service either on its own or together with other resources readily available to the customer, and the Company’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract. The Company generally allocates the transaction price to each performance obligation based on a relative standalone selling price basis. The Company develops assumptions that require judgment to determine the standalone selling price for each performance obligation in consideration of applicable market conditions, relevant entity-specific factors and information about the customer.

Solar power and battery energy storage assets sales

Sales of solar power and battery energy storage assets (project development activities, including sourcing land, interconnection, structuring power purchase agreements, obtaining permits and other requirements) are recognized at a point in time when customers obtain control of solar or battery energy storage assets. For sales of solar power and battery energy storage assets in which the Company obtains an interest in the project sold to the customers, the Company recognizes all of the revenue for the consideration received, including the fair value of the non-controlling interest it obtained, and defer any profit associated with the interest obtained.

The solar power and battery energy storage assets are often held in separate legal entities, trusts or investment funds which are formed for the special purpose of constructing the solar power and battery energy storage projects, which the Company refers to as “project companies”. The Company applies guidance under ASC 810 to determine deconsolidation of the project companies upon transfer of equity interest to the customers, and then applies guidance under ASC 606 to identify performance obligations, and to estimate the variable consideration, if any, as part of the transaction price for revenue recognition.

Power services (Operations and Maintenance, or “O&M”) and asset management

Power services (O&M) and asset management services are transferred over time when customers receive and consume the benefits provided by the Company’s performance under the terms of service arrangements. Revenues from power services (O&M) and asset management services are recognized over time based on the work completed to date which does not require re-performance and the costs of power services (O&M) and asset management services are expensed when incurred.

Electricity revenue from operating portfolio

Electricity revenue from operating portfolio is generated primarily by the Company’s solar power plants under long-term PPAs, virtual power purchase agreements (“VPPAs”) and performance based energy incentives. For electricity sold under PPAs, the Company generally recognizes electricity revenue based on the price stated in the PPAs when the specific volume of electricity has been generated and transmitted to the grid. Performance-based energy incentives are awarded under certain state programs for the delivery of renewable electricity when the attached conditions have been met and there is reasonable assurance that the incentives will be received. During the years ended December 31, 2021, 2022 and 2023, the Company recognized performance-based energy incentives related to electricity generated of $9,402, $2,908 and $2,772, respectively, in revenue.

The Company evaluates offtake contracts, such as PPAs and VPPAs, and long-term contracts to determine whether the agreements is or contains a lease where the fulfillments of the arrangement is dependent on the use of specific asset and arrangement conveys to the customer the right to control the use of the asset. Where the Company determines that the contractual provisions of a contract contain, or are, a lease and result in the customer assuming the principal risks and rewards of ownership of the asset, the arrangement is a finance lease. Assets subject to finance leases are not reflected as solar power systems and the net investment in the lease, represented by the present value of the amounts due from the lessee, is recorded in the consolidated balance sheet as a finance lease receivable. The payments considered to be part of the leasing arrangement are apportioned between a reduction in the lease receivable and finance lease income. The finance lease income element of the payments is recognized using a method that results in a constant rate of return on the net investment in each period and is reflected in finance lease income on the consolidated statements of operations. Where the Company determines that the contractual provisions of a contract contain, or are, a lease and result in the Company retaining the principal risks and rewards of ownership of the asset, the arrangement is an operating lease. For operating leases, the asset is, or continues to be, capitalized as solar power systems and depreciated over its useful life. Variable lease payment is recognized over the term of lease as contingent rent revenue when output is delivered, whereas fixed lease payment is recognized as lease revenue on a straight-line basis over the lease term.

The Company’s electricity revenue during the years ended December 31, 2021, 2022 and 2023 were as follows:


	Years Ended December 31,
	2021	2022	2023
	$	$	$
Electricity Revenue:
CSI Solar Segment	15,302	2,256	3,273
Recurrent Energy Segment	14,118	21,579	44,842
	29,420	23,835	48,115

The Company determined that certain PPAs are operating leases and as a result, recognizes revenue as contingent rental revenue when output is delivered. Such revenue, which is presented as electricity revenue above, amounted to $4,940, $4,736 and $4,434 for the years ended December 31, 2021, 2022 and 2023, respectively. The remaining amounts of $24,480, $19,099 and $43,681 for the years ended December 31, 2021, 2022 and 2023, respectively, including performance-based energy incentives are recorded in accordance with ASC 606. For the years ended December 31, 2021, 2022 and 2023, there was no revenue generated from finance lease. In 2023, the Company entered into a fixed-price VPPA for the offtake of the generation from one of its solar power systems. The VPPA is settled financially on a monthly basis. The Company’s VPPA contract does not meet the definition of a derivative because it does not have a notional amount.

Disaggregation of Revenue

The disaggregation of revenue from contracts with customers for the years ended December 31, 2021, 2022 and 2023 has been disclosed under Segment Information. See Note 22 for details of revenues generated from each product or service and revenues generated from different geographic locations.

The following table represents a disaggregation of revenue recognized at a point in time or over time:


	Years Ended December 31,
	2021		2022		2023
	$		$		$
CSI Solar Segment:
Revenue recognized at a point in time		3,881,573		6,173,338		6,767,156
Revenue recognized over time		271,513		473,747		348,817

Recurrent Energy Segment:
Revenue recognized at a point in time		1,068,179		763,698		399,826
Revenue recognized over time		55,904		57,827		97,827
		5,277,169		7,468,610		7,613,626

For the year ended December 31, 2023, $398,545 of the Company’s revenue was recognized from the beginning balance of contract liabilities as of January 1, 2023. For the year ended December 31, 2022, $219,836 of the Company’s revenue was recognized from the beginning balance of contract liabilities as of January 1, 2022. Contract liabilities of $725,808 as of December 31, 2023 are expected to be realized within one year.

The Company’s contract assets and liabilities are as follow:


	At December 31,		At December 31,
	2022		2023
	$		$
Contract Assets
Accounts receivable, unbilled		57,770		101,435

Contract Liabilities
Advances from customers		334,943		392,308
Other current liabilities		71,808		333,500
Other non-current liabilities		—		52,693
		406,751		778,501

The Company has applied the practical expedient by accounting for contracts (or performance obligations) with similar characteristics on a portfolio basis. The Company does not expect that the effects on the financial statements of applying the revenue recognition guidance to the portfolio would differ materially from applying the guidance to the individual contracts (or performance obligations) within that portfolio.

The Company does not assess whether promised products are performance obligations if they are immaterial in the context of the contract with the customer. If the revenue related to a performance obligation that includes products that are immaterial in the context of the contract is recognized before those immaterial products are transferred to the customer, then the related costs to transfer those products are accrued.

The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed. Revenue recognized in years ended December 31, 2021, 2022 and 2023 from performance obligations satisfied in prior periods were insignificant.

The Company generally expenses incremental costs of obtaining a contract when incurred because the amortization period would be less than one year. The incremental costs are recorded in operating expense. Incremental costs of obtaining a contract with an amortization period of more than one year are not material to the Company.

Shipping and handling

(z) Shipping and handling

Payments received from customers for shipping and handling activities are included in net revenues. Shipping and handling costs relating to sales within the CSI Solar segment of $316,358, $453,865 and $237,947, are included in selling and distribution expenses for the years ended December 31, 2021, 2022 and 2023, respectively.

Research and development

(aa) Research and development

Costs related to the design, development, testing and enhancement of products are included in research and development expenses. Research and development costs are expensed when incurred and amounted to $58,407, $69,822 and $100,844 for the years ended December 31, 2021, 2022 and 2023, respectively.

Other operating income, net

(ab) Other operating income, net

Other operating income, net primarily consists of gains or losses on disposal of solar power systems and property, plant and equipment, government grants received and weather-related project damages.

Government grants primarily consist of unrestricted and restricted grants and subsidies. Unrestricted grants received that allowed the Company’s full discretion in utilizing the funds are recognized as other operating income when it is probable that all the conditions stipulated by the local governments, generally for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments, have been satisfied. Restricted grants received that are related to ROU assets, property, plants and equipment and certain projects, are recorded as deferred subsidies in other non-current liabilities and are amortized on a straight-line basis over the term of related assets.

In most case, the attached conditions of grants are for a specific performance or duration related to the construction and acquisition of property, plant and equipment, achievement of business development plan, technology innovation, and human capital development. These conditions may be subject to review, audit and approval by the local government authorities and, therefore, could be different from the amounts recorded.

As of December 31, 2023, the Company has $159,991 of government grants in other non-current liabilities.

The following table summarizes the Company’s other operating income, net:


	Years Ended December 31,
	2021	2022	2023
	$	$	$
Government grants	(38,468)	(59,543)	(79,241)
Net (gain) loss on disposal of property, plant and equipment	83	(4,259)	(5,342)
Net (gain) loss on disposal of solar power system	(10,091)	—	244
Weather-related project damages	1,408	—	—
	(47,068)	(63,802)	(84,339)

Warranty cost

(ac) Warranty costs

Before 2009, the Company typically sold its standard solar modules with a two-year guarantee for defects in materials and workmanship and a 10-year and 25-year warranty against declines of more than 10% and 20%, respectively, from the initial minimum power generation capacity at the time of delivery. In 2009, the Company increased its guarantee for defects in materials and workmanship to six years. In 2011, the Company increased its guarantee for defects in materials and workmanship to ten years. In 2019, the Company increased its guarantee for defects in materials and workmanship up to 12 years. In 2022, the Company increased its guarantee for defects in materials and workmanship up to 15 years or 25 years, and provided warranty against decline in performance for certain module types for a period of 25 years. The Company has also provided warranty against decline in performance for its bifacial module and double glass module products for 30 years.

The Company maintains warranty reserves to cover potential liabilities that could arise under these guarantees and warranties related to defects that existed when the product was sold to the customer. Due to limited warranty claims to date, the Company accrues the estimated warranty costs based on an assessment of its competitors’ and its own actual claim history, industry-standard accelerated testing, estimates of failure rates from the Company’s quality review, and other assumptions that the Company believes to be reasonable under the circumstances. Actual warranty costs are accumulated and charged against the accrued warranty liability. To the extent that accrual for warranty costs differs from the estimates, the Company will prospectively revise its accrual rate. The Company currently records a 1% warranty provision against the revenue from sales of solar module products.

The Company warrants its battery energy storage products for a specific amount of time against performance or manufacturing defects. The standard warranty is typically for an initial term of 1 to 5 years from the date of installation, and is accounted for as an assurance-type warranty, which provides a guarantee of quality, limited to specific usage parameters, and does not represent a separate performance obligation. Extended warranties and performance guarantees for up to an additional 15 years that the customers purchase separately are accounted for as separate performance obligations. The Company accrue warranty reserves at the time of recording the revenue.The Company continuously monitors its warranty failures and review its reserve for the related warranty expenses based on various factors, including historical warranty claims, results of field monitoring, vendor reliability estimates, and data on industry averages for similar products. Estimates related to the outstanding warranty liability are re-evaluated on an ongoing basis using best-available information and revisions are made as necessary. The Company has obtained warranties from its suppliers to back up a portion of its battery energy storage warranties. The Company also records a liability for specific warranty matters when they become known and are reasonably estimable.

For solar power projects built by the Company under EPC services, the Company provides a limited workmanship or balance of system warranty against defects in engineering design, installation and construction under normal use, operation and service conditions generally for a period of two years following the energizing of the solar power project. In resolving claims under the workmanship or balance of system warranty, the Company has the option of remedying through repair, refurbishment or replacement of equipment. The Company has entered into similar workmanship warranties with its suppliers to back up a portion of its warranties.

The Company has historically entered into agreements with a group of insurance companies to back up a portion of its warranties on solar module products against defects. The insurance companies are obliged to reimburse the Company, subject to certain maximum claim limits and certain deductibles, for the actual product warranty costs that the Company incurs under the terms of its solar module product warranty policy. The Company records the insurance premiums initially as prepaid expenses and amortizes them over the respective policy periods. The unamortized carrying amount is $264 and $168 as of December 31, 2022 and 2023, respectively, and was included as a component of prepaid expenses and other current assets. The Company views the insured losses attributable to the shipment of defective products covered under its warranty as analogous to potential claims, or claims that have been incurred as of the product ship date, but not yet reported. The Company expects to recover all or a portion of the cost of its obligations with respect to the defective solar module products through insurance claims. Therefore, the Company’s accounting policy is to record an asset for the amount determined to be probable of recovery from the insurance claims (not to exceed the amount of the total losses incurred), consistent with the guidance set forth at ASC 410-30.

The Company considers the following factors in determining whether an insurance receivable that is probable and recoverability can be reasonably estimated: (i) reputation and credit rating of the insurance company; (ii) comparison of the solar module product warranty policy against the terms of the insurance policies, to ensure valid warranty claims submitted by customers will be covered by the policy and therefore reimbursable by the insurance companies; and (iii) with respect to specific claims submitted, written communications from the insurance companies are monitored to ensure the claim has been submitted to the insurance companies, and reimbursements are probable to be subsequently collected. The successfully processed claims provide further evidence that the insurance policies are functioning as anticipated.

To the extent uncertainties regarding the solvency of insurance carriers or the legal sufficiency of insurance claims (including if they became subject to litigation) were to arise, the Company will establish a provision for uncollectible amounts based on the specific facts and circumstances, and the measurement of expected credit losses. To date, no significant provision has been determined to be necessary.

As the warranty obligation and related recovery asset do not meet the criteria for offsetting, the gross amounts are reported in the Company’s consolidated balance sheets. The asset is expected to be realized over the life of the warranty obligation as described above and is treated as a non-current asset consistent with the underlying warranty obligation. The insurance proceeds expected to be collected within twelve months of the balance sheet date is included as current receivable, while the remaining balance is included within other non- current assets on the consolidated balance sheets. The non-current insurance receivable amounts were $84,474 and $82,735 as of December 31, 2022 and 2023, respectively.

The Company made downward adjustments to its accrued warranty costs of $39,449 for the year ended December 31, 2023, to reflect the net effect of a decrease in average selling price of solar modules and a volume increase in solar modules shipment, which are two primary inputs into the estimated warranty costs. Accrued warranty costs, net effect of adjustments, of $45,053, $68,411 and $27,944 are included in cost of revenues for the years ended December 31, 2021, 2022 and 2023, respectively.

Foreign currency translation

(ad) Foreign currency translation

The United States dollars (“U.S. dollars” or “$”), the currency in which a substantial amount of the Company’s transactions are denominated, is used as the functional and reporting currency of CSI. Monetary assets and liabilities denominated in currencies other than the U.S. dollars are translated into U.S. dollars at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the U.S. dollars during the year are converted into the U.S. dollars at the applicable rates of exchange prevailing on the transaction date. Transaction gains and losses are recognized in the consolidated statements of operations. Gains and losses on intra-entity foreign currency transactions that are of a long-term-investment nature (that is, settlement is not planned or anticipated in the foreseeable future) between consolidated entities are not recognized in earnings, but are included as a component of other comprehensive income.

The financial records of certain of the Company’s subsidiaries are maintained in local currencies other than the U.S. dollars, such as Renminbi (“RMB”), Euros, Canadian dollars (“CAD”), Japanese yen, Brazilian reals (“BRL”) and Australian dollars, which are their functional currencies. Assets and liabilities are translated at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as foreign currency translation adjustment and are shown as a separate component of other comprehensive income in the statements of comprehensive income.

Comprehensive income

(ae) Comprehensive income

Comprehensive income includes all changes in equity except those resulting from investments by owners and distributions to owners. For the years presented, total comprehensive income included (i) net income, (ii) foreign currency translation adjustments, including gains and losses on intra-entity foreign currency transactions that are of a long-term-investment nature (that is, settlement is not planned or anticipated in the foreseeable future) between consolidated entities, (iii) the unrealized gains or losses (effective portion) on and de-recognition of derivative instruments that qualify for and have been designated as cash flow hedges and (iv) unrealized gains or losses in fair value of available-for-sale debt securities.

Foreign currency risk

(af) Foreign currency risk

The majority of the Company’s sales in 2021, 2022 and 2023 were denominated in U.S. dollars, Renminbi and Euros, with the remainder in other currencies such as Japanese Yen, Brazilian reals, Australian dollars, South African rand and British pounds. The Company’s Renminbi costs and expenses are primarily related to the sourcing of silicon wafers and polysilicon, other raw materials, such as solar glass and aluminum, labor costs and local overhead expenses within the PRC. From time to time, the Company enters into loan arrangements with commercial banks that are denominated primarily in Renminbi, U.S. dollars, Japanese yen, Brazilian reals and Euros and Thai baht. Most of its cash and cash equivalents and restricted cash are denominated in Renminbi and U.S. dollars. Fluctuations in exchange rates, particularly between the U.S. dollars, Renminbi, Canadian dollars, Japanese yen, Euros, Brazilian reals, South African rand and Thai baht, may result in foreign exchange gains or losses. The Company has hedged part of its foreign currency exposures primarily against the U.S. dollars using foreign currency forward or option contracts.

Concentration of credit risk

(ag) Concentration of credit risk

Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, accounts receivable, advances to suppliers and amounts due from related parties.

All of the Company’s cash and cash equivalents are held with financial institutions that Company management believes to have high credit quality.

The Company conducts credit evaluations of customers and generally does not require collateral or other security from its customers. The Company establishes an allowance for credit losses primarily based upon the age of the receivables and factors surrounding the credit risk of specific customers. With respect to advances to suppliers, such suppliers are primarily suppliers of raw materials and equipment. The Company performs ongoing credit evaluations of its suppliers’ financial conditions. The Company generally does not require collateral or security against advances to suppliers, however, it maintains a reserve for potential credit losses and such losses have historically been within management’s expectation.

The prepayments made by the Company are unsecured and expose the Company to supplier credit risk. As of December 31, 2022 and 2023, gross prepayments made to individual suppliers in excess of 10% of total advances to suppliers are as follows:


	As of December 31,
	2022	2023
	$	$
Supplier A	35,359	—	(1)

(1)	Not in excess of 10% of total advances to suppliers as of December 31, 2023.

Fair value of financial instruments

(ah) Fair value of financial instruments

The Company applies authoritative guidance for fair value measurements for its financial assets and liabilities. The guidance defines fair value as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The three-tiered fair value hierarchy, which prioritizes which inputs should be used in measuring fair value and requires the use of observable market data when available in determining fair value, is comprised of:

Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. The Company’s money market fund included in cash equivalent, restricted cash balance, mutual funds to satisfy obligations under employee deferred compensation plan and listed equity securities for all periods presented, use Level 1 fair value inputs.

Level 2—Inputs reflect quoted prices for identical assets or liabilities in markets that are not active, quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the assets or liabilities, or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3—Unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.

Derivatives instruments and hedging activity

(ai) Derivatives instruments and hedging activity

The Company’s primary objective for holding derivative financial instruments is to manage risks. Depending on the terms of the specific derivative instruments and market conditions, some of the Company’s derivative instruments may be assets and liabilities at any particular point in time. The recognition of gains or losses resulting from changes in fair value of these derivative instruments is based on the use of each derivative instrument and whether it qualifies for hedge accounting. ASC 815 provides for three different ways to account for derivative instruments: (i) as a cash flow or fair value hedge; (ii) as a mark-to-market agreement with changes in fair value recognized in current period earnings; or (iii) as an accrual agreement, if the criteria for the normal purchase normal sale exception are met and documented.

The Company enters into derivatives to hedge its foreign currency risk exposure to losses from non-functional currency-denominated monetary assets, liabilities and cash flows, and to hedge its commodity risk exposure to losses from raw material price fluctuations. When the Company determines to designate a derivative instrument as a cash flow hedge, the Company formally documents the hedging relationship and its risk management objective and strategy for undertaking the hedge, the hedging instrument, the hedged item, the nature of the risk being hedged, how the hedging instrument’s effectiveness in offsetting the hedged risk will be assessed, and a description of the method of measuring ineffectiveness. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative that is used in hedging transactions is highly effective in offsetting changes in cash flows of hedged items. The effective portion of gains and losses on derivatives designated as cash flow hedges are initially deferred in other comprehensive income before being recognized in the statements of operations in the same period as the hedged transactions are reflected in earnings. Gains and losses on derivatives that are not designated or fail to qualify as effective hedges are recognized in the statements of operations as incurred. The Company classifies the cash flows related to realized gain or loss on settlement of derivatives as operating activities, which are based on the nature of the cash flows the derivative is economically hedging.

Fair value of the derivative instruments is determined using observable inputs obtained from active markets or pricing models developed based on the underlying price of the hedged items. The values are also adjusted to reflect nonperformance risk of the counterparty with the Company, as necessary.

Earnings per share

(aj) Earnings per share

Basic earnings per common share is computed by dividing income attributable to holders of common shares by the weighted average number of common shares outstanding during the year. Diluted earnings per common share reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted into common shares. The dilutive effect of outstanding share-based awards is reflected by application of the treasury stock method and convertible notes by application of the if-converted method, as applicable. Common share equivalents are not included in the calculation of dilutive earnings per share if their effects are anti-dilutive.

Risks and uncertainties related to the COVID-19 pandemic

(ak) Share-based compensation

The Company’s share-based compensation with employees, such as restricted share units (“RSUs”) and share options with a time-based vesting condition, is measured at the grant date, based on the fair value of the award, and is recognized as compensation expense, net of estimated forfeitures, over the period during which an employee is required to provide service in exchange for the award, which is generally the vesting period. The share-based compensation expense related to the award which contains both time-based and performance-based vesting condition will be recognized when it is probable that the performance-based condition will be met. The probability of the performance condition to be met is not reflected when determining the fair value of the award. The Company allocated share-based compensation expenses to cost of revenues, selling and distribution expenses, general and administrative expenses and research and development expenses on its consolidated statements of operations, depending on the job functions of the individuals to whom we granted the restricted share units.

In 2020, the Company’s subsidiary, CSI Solar, approved the CSI Solar employee incentive plan. Determination of estimated fair value of the Company’s subsidiary before public listing requires complex and subjective judgments due to its limited financial and operating history, unique business risks and limited public information on companies that are similar to the Company’s subsidiary. The Company estimated CSI Solar’s enterprise value for purposes of recording share-based compensation, and the information considered by the Company mainly includes but is not limited to future cash flow forecasts, discount rates, and liquidity factors.

(al) Risks and uncertainties related to the COVID-19 pandemic

Over the past three years, the COVID-19 pandemic posed significant challenges to many aspects of the Company’s business, including its operations, customers, suppliers and projects. On May 5, 2023, the World Health Organization announced that COVID-19 was no longer a public health emergency.

As of the date of issuance of these consolidated financial statements, the Company is not aware of any specific event or circumstance that would require updates to its estimates and judgments or revisions due to COVID-19 to the carrying value of its assets or liabilities. These estimates may change, as new events occur and additional information is obtained, and are recognized in the consolidated financial statements as soon as they become known.

Recently issued accounting pronouncements

(am) Recently issued accounting pronouncements

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848), to provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The new guidance is effective, at the Company’s election, beginning March 12, 2020 through December 31, 2022. In addition, in January 2021 the FASB issued ASU No. 2021-01, “Reference Rate Reform — Scope,” which clarified the scope of ASC 848 relating to contract modifications. In addition, in December 2022, the FASB issued ASU No. 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848,” which deferred the sunset date in Topic 848 from December 31, 2022 to December 31, 2024. The ASU 2022-06 became effective upon issuance. As of December 31, 2023, the Company no longer had any LIBOR debts. The adoption of this new standard did not have a material impact on the Company’s consolidated financial statements, as all of the Company’s previous LIBOR debt agreements contemplated a change to the Secured Overnight Financing Rate (SOFR) as the reference rate upon discontinuance of LIBOR.

In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which require that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Revenue from Contracts with Customers (Topic 606). At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. The amendments in this update also provide certain practical expedients for acquirers when recognizing and measuring acquired contract assets and contract liabilities from revenue contracts in a business combination. The new standard was effective for the Company beginning January 1, 2023. The adoption of this new standard did not have a material impact on the Company’s consolidated financial statements.

In September 2022, the FASB issued ASU No. 2022-04, Liabilities-Supplier Finance Programs (Subtopic 405-50) - Disclosure of Supplier Finance Program Obligations, which requires that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. The amendment in this update is expected to improve financial reporting by requiring new disclosures about the programs, thereby allowing financial statement users to better consider the effect of the programs on an entity’s working capital, liquidity, and cash flows. The new standard is effective for fiscal years beginning after December 15, 2022, except for the amendment on roll forward information which is effective for fiscal years beginning after December 15, 2023. The Company adopted provisions of this ASU beginning January 1, 2023, with the exception of the amendment on rollforward information, which was adopted in January 1, 2024. Adoption of the new standard did not have a material impact on the Company’s consolidated financial statements.

In March 2023, the FASB issued ASU No. 2023 - 01, Leases (Topic 842): Common Control Arrangements, which requires leasehold improvements associated with common control leases to be amortized over the useful life to the common control group. The new standard is effective for fiscal years beginning after December 15, 2023. The Company is currently evaluating the impact of adopting this new guidance and the potential effects it could have on the Company’s consolidated financial statements.

In November 2023, the FASB issued ASU No. 2023 - 07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The new standard is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of adopting this new guidance on disclosures in the Company’s consolidated financial statements.

In December 2023, the FASB issued ASU No. 2023 - 09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disclosure of specific categories in the income tax rate reconciliation, and additional information for reconciling items that meet a quantitative threshold disaggregated by nature and jurisdiction. The new standard is effective for fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of adopting this new guidance and the potential effects it could have on the Company’s consolidated financial statements.

FAIR VALUE MEASUREMENT (Tables)

12 Months Ended

Dec. 31, 2023

FAIR VALUE MEASUREMENT

Schedule of fair value of derivative instruments on the consolidated balance sheets


	Fair Value of Derivative Assets
	At December 31, 2022		At December 31, 2023
	Balance Sheet Location	Fair Value	Balance Sheet Location	Fair Value
		$		$
Foreign exchange forward contracts	Derivative assets — current	7,730	Derivative assets — current	9,282
Foreign exchange option contracts	Derivative assets — current	9,576	Derivative assets — current	—
Commodity hedge	Derivative assets — current	210	Derivative assets — current	—
Interest rate swap	Other non-current assets	1,064	Other non-current assets	387
	Total	18,580	Total	9,669


	Fair Value of Derivative Liabilities
	At December 31, 2022		At December 31, 2023
	Balance Sheet Location	Fair Value	Balance Sheet Location	Fair Value
		$		$
Foreign exchange forward contracts	Derivative liabilities — current	24,104	Derivative liabilities — current	6,702
Foreign exchange option contracts	Derivative liabilities — current	1,255	Derivative liabilities — current	—
Interest rate swap	Other non-current liabilities	—	Other non-current liabilities	801
	Total	25,359	Total	7,503

Schedule of effect of derivative instruments on consolidated statements of operations


		Amount of Gain (Loss)
		Recognized in Statements
	Location of	of Operations
	Gain (Loss) Recognized	Years Ended December 31
	in Statements of Operations	2021	2022	2023
		$	$	$
Foreign exchange forward contracts	Gain (loss) on change in fair value of derivatives, net	22,582	(49,388)	(38,241)
Foreign exchange option contracts	Gain (loss) on change in fair value of derivatives, net	220	8,918	10,712
Commodity hedge	Gain (loss) on change in fair value of derivatives, net	983	(4,019)	25
	Total	23,785	(44,489)	(27,504)

RELATED PARTY BALANCES AND TRANSACTIONS

12 Months Ended

Dec. 31, 2023

RELATED PARTY BALANCES AND TRANSACTIONS

20. RELATED PARTY BALANCES AND TRANSACTIONS

Related party balances

The amount due from related parties, current of $48,614 and $40,582 and amount due from related parties, non-current of $33,489 and $32,313 as of December 31, 2022 and 2023, respectively, primarily consist of receivables of $52,424 and $33,664 for Horus, respectively, and $29,613 and $36,832 for Recursos, respectively, as of December 31, 2022 and 2023, each the Company’s 49% owned affiliates in Mexico.

The amount due to related parties as of December 31, 2022 and 2023 were $89 and $511, respectively.

Guarantees and loans

Dr. Shawn Qu fully guaranteed loan facilities from a Chinese bank of RMB12,000 ($1,882) in 2021. No amount was drawn down under the facilities as of December 31, 2021. Dr. Shawn Qu did not guarantee loan facilities of the Company in 2022 and 2023.

Sales and purchase contracts with affiliates

In 2023, the Company sold one solar power project to CSIF, the Company’s 14.54% owned affiliate in Japan, in the amount of JPY230,144 ($1,591). In 2021, the Company sold two solar power projects to CSIF in the amount of JPY30,601,181 ($282,133).

20. RELATED PARTY BALANCES AND TRANSACTIONS (Continued)

Sales and purchase contracts with affiliates (Continued)

In 2021, 2022 and 2023, the Company provided asset management service to CSIF in the amount of JPY829,053 ($7,541), JPY545,131 ($4,180) and JPY1,405,513 ($10,004), respectively, and provided power services (O&M) to CSIF in the amounts of JPY981,161 ($9,195), JPY914,933 ($7,036) and JPY984,527 ($6,974), respectively.

In 2023, the Company sold modules to subsidiaries of Marangatu, the Company’s 30% owned affiliate in Brazil with the remaining 70% ownership by a Brazilian investor, in the amount of $100,939.

In 2023, the Company sold modules to subsidiaries of Panati, the Company’s 30% owned affiliate in Brazil with the remaining 80% ownership by a Brazilian investor, in the amount of $67,463.

In 2021 and 2022, the Company sold modules to subsidiaries of Francisco, the Company’s 20% owned affiliate in Brazil with the remaining 80% ownership by Chinese investors, in the amounts of $24,883 and $642, respectively.

In 2021 and 2022, the Company sold modules to subsidiaries of Lavras, the Company’s 20% owned affiliate in Brazil with the remaining 80% ownership by Chinese investors, in the amounts of $30,064 and $202, respectively.

In 2021 and 2022, the Company sold modules to subsidiaries of Salgueiro, the Company’s 20% owned affiliate in Brazil with the remaining 80% ownership by Chinese investors, in the amounts of $324 and $357, respectively.

In 2021, the Company sold modules to subsidiaries of Jaiba, the Company’s 20% owned affiliate in Brazil with the remaining 80% ownership by Chinese investors, in the amount of $7,090.

In 2021, 2022 and 2023, the Company provided battery energy storage solutions to subsidiaries of Crimson, the Company’s 20% owned affiliate in the U.S. with the remaining 80% ownership by a Canadian infrastructure fund, in the amounts of $19,777, $367,383 and $17,182, respectively.

In 2021, 2022 and 2023, the Company purchased raw materials from Yancheng Jiwa New Material Technology Co., Ltd., the Company’s 10.91% owned affiliate with the remaining 89.09% ownership by Chinese investors, in the amounts of RMB10,831 ($1,688), RMB34,772 ($5,192) and RMB58,869 ($8,300), respectively.

In 2021, the Company purchased raw materials from Luoyang Jiwa New Material Technology Co., Ltd., the Company’s 10.91% owned affiliate with the remaining 89.09% ownership by Chinese investors, in the amount of RMB19,378 ($2,995).

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
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-Paragraph 5
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-URI https://asc.fasb.org//1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
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-Paragraph 1
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
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-Name Accounting Standards Codification
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-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

LEASE - Finance leases - Maturities (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Maturities of finance leases
2024	$ 95,023
2025	30,972
2026	17,411
2027	16,586
2028	15,342
Thereafter	3,962
Total future minimum lease payments	$ 179,296

ACCRUED WARRANTY COSTS

12 Months Ended

Dec. 31, 2023

ACCRUED WARRANTY COSTS

ACCRUED WARRANTY COSTS

15. ACCRUED WARRANTY COSTS

The Company’s warranty activity is summarized below:


	Years Ended December 31,
	2021	2022	2023
	$	$	$
Beginning balance	37,732	45,146	76,677
Warranty provision	45,053	68,411	27,944
Warranty costs incurred	(35,432)	(31,943)	(21,011)
Foreign exchange effect	(2,207)	(4,937)	(8,091)
Ending balance	45,146	76,677	75,519

LEASE

12 Months Ended

Dec. 31, 2023

LEASE

LEASE

12. LEASE

The Company leases manufacturing facilities in various regions where the Company operates. The Company also leases land for construction and operations of solar power systems, and leases office space, office equipment and motor vehicles for its sales and administrative functions. Leased assets are mainly located in the United States, PRC and Europe.

The Company capitalizes lease costs to its project assets and solar power systems, when such costs qualify for capitalization as during periods in which activities necessary to get the property ready for its intended use are in progress.

The leases considered as ROU assets have various terms of up to 50 years. The Company also has certain leases with terms of 12 months or less, which are not recorded on the consolidated balance sheet.

The components of lease expenses were as follows:


	Year ended	Year ended
	December 31, 2022	December 31, 2023
	$	$
Finance lease cost:
Amortization of ROU assets	11,406	49,483
Interest on lease liabilities	1,994	5,368
Operating fixed lease cost	14,936	24,489
Short-term lease cost	1,028	1,824
Total lease cost	29,364	81,164

Supplemental balance sheet information related to leases was as follows:


		At	At
	Balance Sheet Location	December 31, 2022	December 31, 2023
		$	$
Assets:
Operating lease assets	Right-of-use assets	35,506	132,786
Land use rights, net	Right-of use assets	68,094	104,221
Total operating lease ROU assets		103,600	237,007

Finance lease assets	Property, plant and equipment, net	41,705	163,553
Total finance lease ROU assets		41,705	163,553

Liabilities:
Operating lease	Operating lease liabilities – current	9,810	20,204
Operating lease	Operating lease liabilities – non-current	25,714	116,846
Total operating lease liabilities		35,524	137,050

Finance lease	Other current liabilities	14,697	88,180
Finance lease	Other non-current liabilities	14,372	71,651
Total finance lease liabilities		29,069	159,831

12. LEASE (Continued)

Other supplemental information related to leases was as follows:


	Year ended	Year ended
	December 31, 2022	December 31, 2023
	$	$
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows from finance lease	(1,994)	(5,368)
Operating cash outflows from operating lease	(15,032)	(19,686)
Financing cash outflows from finance lease	(20,194)	(42,319)
ROU assets obtained in exchange of new finance lease liabilities in non-cash transaction	—	167,726
ROU assets obtained in exchange of new operating lease liabilities in non-cash transaction	14,393	119,412
ROU assets disposed through early termination of operating leases in non-cash transaction	(965)	(3,288)


	At December 31,		At December 31,
	2022		2023
Weighted average of remaining lease term - finance leases (in years)	1.8		4.0
Weighted average of remaining lease term - operating leases (in years)	6.6		14.4
Weighted average of lease discount rate - finance lease	4.9	%	5.5	%
Weighted average of lease discount rate - operating lease	10.4	%	5.7	%

As of December 31, 2023, maturities of operating and finance lease liabilities were as follows:


	Operating Lease	Finance Lease	Total Lease
	Payment	Payment	Payment
	$	$	$
Year Ending December 31:
2024	24,927	95,023	119,950
2025	18,322	30,972	49,294
2026	15,952	17,411	33,363
2027	12,351	16,586	28,937
2028	13,655	15,342	28,997
Thereafter	132,225	3,962	136,187
Total future minimum lease payments	217,432	179,296	396,728
Less: imputed interest	80,382	19,465	99,847
NPV for future minimum lease payments	137,050	159,831	296,881

Analysis as:
Short-term	20,204	88,180	108,384
Long-term	116,846	71,651	188,497
Total lease liabilities	137,050	159,831	296,881

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Revenue recognition (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Electricity
Revenue recognition
Amount of performance based energy incentives	$ 2,772	$ 2,908	$ 9,402

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

INVENTORIES

12 Months Ended

Dec. 31, 2023

INVENTORIES

INVENTORIES

4. INVENTORIES

Inventories consist of the following:


	At December 31,	At December 31,
	2022	2023
	$	$
Raw materials	310,394	222,826
Work-in-process	265,109	139,116
Finished goods	948,592	817,699
	1,524,095	1,179,641

Finished goods include modules of $161,138 and $112,440 as of December 31, 2022 and 2023, respectively, that allow solar energy systems to qualify for the U.S. Federal Investment Tax Credit by satisfying the 5% safe harbor method outlined in the U.S. Internal Revenue Service (“IRS”) guidance notice.

In 2021, 2022 and 2023, inventory was written down by $14,070, $7,475 and $113,079, respectively, to reflect the lower of cost and net realizable value.

PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
PROPERTY, PLANT AND EQUIPMENT, NET
Property, plant and equipment, gross	$ 3,475,100	$ 2,376,170
Accumulated depreciation	(1,061,281)	(908,888)
Property, plant and equipment, excluding construction in process, net	2,413,819	1,467,282
Construction in process	674,623	359,361
Property, plant and equipment, net	3,088,442	1,826,643
Depreciation expense	287,130	225,351	$ 266,956
Buildings
PROPERTY, PLANT AND EQUIPMENT, NET
Property, plant and equipment, gross	978,924	764,577
Leasehold improvements
PROPERTY, PLANT AND EQUIPMENT, NET
Property, plant and equipment, gross	44,275	30,896
Machinery
PROPERTY, PLANT AND EQUIPMENT, NET
Property, plant and equipment, gross	2,213,281	1,470,957
Furniture, fixtures and equipment
PROPERTY, PLANT AND EQUIPMENT, NET
Property, plant and equipment, gross	178,455	58,928
Motor vehicles
PROPERTY, PLANT AND EQUIPMENT, NET
Property, plant and equipment, gross	14,768	11,527
Freehold land
PROPERTY, PLANT AND EQUIPMENT, NET
Property, plant and equipment, gross	$ 45,397	$ 39,285

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Other operating income, net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Revenue recognition
Net (gain) loss on disposal of property, plant and equipment	$ (5,342)	$ (4,259)	$ 83
Net (gain) loss on disposal of solar power system	244		(10,091)
Weather-related project damages			1,408
Other operating income, net	(84,339)	(63,802)	(47,068)
Other current liabilities
Revenue recognition
Government grants, non current	159,991
Government grants
Revenue recognition
Other operating income, net	$ (79,241)	$ (59,543)	$ (38,468)

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

Schedule of project assets

ALLOWANCE FOR CREDIT LOSSES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Allowance for credit losses
Receivable, Net	$ 904,943	$ 970,950
Allowances for accounts receivable
Allowance for credit losses
Receivable, gross	961,745	1,020,880
Allowance for credit losses	(56,802)	(49,930)	$ (47,126)
Receivable, Net	904,943	970,950
Movement of allowances
Beginning of the year	49,930	47,126	40,293
Provision for credit losses, net	7,381	4,349	7,171
Write-offs	(2,073)	(109)	(197)
Foreign exchange effect	1,564	(1,436)	(141)
Closing balance	56,802	49,930	47,126
Allowances for advances to suppliers
Allowance for credit losses
Receivable, gross	328,460	320,211
Allowance for credit losses	(2,424)	(1,375)
Receivable, Net	326,036	318,836
Movement of allowances
Beginning of the year	1,375
Closing balance	2,424	1,375
Warranty insurance receivable net
Allowance for credit losses
Receivable, gross	84,035	84,474
Allowance for credit losses	(1,300)
Receivable, Net	82,735	84,474
Movement of allowances
Closing balance	1,300
Allowances for other receivables
Allowance for credit losses
Receivable, gross	145,376	129,195
Allowance for credit losses	(11,878)	(9,999)
Receivable, Net	133,498	119,196
Movement of allowances
Beginning of the year	9,999
Closing balance	11,878	9,999
Advances to suppliers, warranty insurance receivable and other receivable
Allowance for credit losses
Allowance for credit losses	(15,602)	(11,374)	(29,079)
Movement of allowances
Beginning of the year	11,374	29,079	28,502
Provision for credit losses, net	4,633	1,424	444
Write-offs	(242)	(18,295)	(53)
Foreign exchange effect	(163)	(834)	186
Closing balance	$ 15,602	$ 11,374	$ 29,079

PROJECT ASSETS (Tables)

12 Months Ended

Dec. 31, 2023

PROJECT ASSETS


	At December 31,	At December 31,
	2022	2023
	$	$
Project assets — Development cost, including project acquisition and land cost	444,858	651,920
Project assets — EPC and other construction cost	379,635	205,666
	824,493	857,586
Current portion	385,964	280,793
Non-current portion	438,529	576,793

Financial Statement Schedule I - BALANCE SHEETS (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 1,938,689	$ 981,434
Derivative assets	9,282	17,516
Prepaid expenses and other current assets	283,600	267,941
Total current assets	6,095,453	5,644,657
Deferred tax assets	263,458	229,226
Other non-current assets	254,098	187,549
TOTAL ASSETS	11,895,760	9,037,128
Current liabilities:
Short-term borrowings	1,805,198	1,443,816
Derivative liabilities	6,702	25,359
Total current liabilities	5,864,391	5,258,768
Deferred tax liabilities	82,828	66,630
Liability for uncertain tax positions	5,701	5,730
TOTAL LIABILITIES	8,190,516	6,730,434
Equity:
Common shares - no par value: unlimited authorized shares, 64,022,678 and 64,506,055 shares issued and outstanding at December 31, 2021 and 2022, respectively	835,543	835,543
Additional paid-in capital	292,737	1,127
Retained earnings	1,549,707	1,275,520
Accumulated other comprehensive loss	(118,744)	(170,551)
Total Canadian Solar Inc. shareholders' equity	2,559,243	1,941,639
TOTAL LIABILITIES AND EQUITY	11,895,760	9,037,128
Related Party [Member]
Current assets:
Amounts due from subsidiaries	40,582	48,614
Current liabilities:
Other current liabilities	511	89
Nonrelated Party [Member]
Current liabilities:
Other current liabilities	587,827	293,012
Parent Company \| Reportable legal entities
Current assets:
Cash and cash equivalents	642	15,661
Prepaid expenses and other current assets	14,812	13,218
Total current assets	355,263	611,564
Investment in subsidiaries	2,561,797	2,158,474
Investments in affiliates	11,745	11,745
Deferred tax assets		1,755
Other non-current assets	39,837	39,837
TOTAL ASSETS	2,968,642	2,823,375
Current liabilities:
Derivative liabilities	1,438	762
Total current liabilities	168,158	645,339
Convertible notes	227,424	225,977
Deferred tax liabilities	8,115	4,690
Liability for uncertain tax positions	5,702	5,730
TOTAL LIABILITIES	409,399	881,736
Equity:
Common shares - no par value: unlimited authorized shares, 64,022,678 and 64,506,055 shares issued and outstanding at December 31, 2021 and 2022, respectively	835,543	835,543
Additional paid-in capital	292,737	1,127
Retained earnings	1,549,707	1,275,520
Accumulated other comprehensive loss	(118,744)	(170,551)
Total Canadian Solar Inc. shareholders' equity	2,559,243	1,941,639
TOTAL LIABILITIES AND EQUITY	2,968,642	2,823,375
Parent Company \| Reportable legal entities \| Subsidiaries
Current assets:
Amounts due from subsidiaries	339,809	582,685
Current liabilities:
Other current liabilities	157,821	640,055
Parent Company \| Reportable legal entities \| Nonrelated Party [Member]
Current liabilities:
Other current liabilities	$ 8,899	$ 4,522

SEGMENT INFORMATION (Details) $ in Thousands	12 Months Ended
SEGMENT INFORMATION (Details) $ in Thousands	Dec. 31, 2023 USD ($) segment	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
SEGMENT INFORMATION
Number of principal reportable business segments \| segment	2
Revenues and gross profit generated from each segment
Net revenues	$ 7,613,626	$ 7,468,610	$ 5,277,169
Cost of revenues	6,333,643	6,205,474	4,367,857
Gross profit	1,279,983	1,263,136	909,312
Income from operations	453,320	356,061	190,381
Operating segment \| CSI Solar Segment
Revenues and gross profit generated from each segment
Net revenues	7,230,550	6,975,612	4,371,603
Cost of revenues	6,121,332	5,824,855	3,689,126
Gross profit	1,109,218	1,150,757	682,477
Income from operations	456,083	343,798	74,132
Operating segment \| Recurrent Energy Segment
Revenues and gross profit generated from each segment
Net revenues	497,653	821,525	1,124,083
Cost of revenues	292,926	660,161	930,099
Gross profit	204,727	161,364	193,984
Income from operations	96,621	80,364	97,179
Elimination and unallocated items
Revenues and gross profit generated from each segment
Net revenues	(114,577)	(328,527)	(218,517)
Cost of revenues	(80,615)	(279,542)	(251,368)
Gross profit	(33,962)	(48,985)	32,851
Income from operations	$ (99,384)	$ (68,101)	$ 19,070

Financial Statement Schedule I - STATEMENTS OF COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Condensed Financial Statements
Net income	$ 363,634	$ 298,555	$ 109,876
Comprehensive income attributable to Canadian Solar Inc.	287,599	119,457	73,343
Reportable legal entities \| Parent Company
Condensed Financial Statements
Net income	274,187	239,968	95,248
Other comprehensive income (loss) (net of tax)	13,412	(120,511)	(21,905)
Comprehensive income attributable to Canadian Solar Inc.	$ 287,599	$ 119,457	$ 73,343

Amount after tax and reclassification adjustments of other comprehensive income (loss).

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RESTRICTED NET ASSETS (Details) $ in Thousands	Dec. 31, 2023 USD ($)
RESTRICTED NET ASSETS
Minimum percentage of the profit after tax to be appropriated to the general reserve	10.00%
Restricted net assets	$ 1,587,503

EMPLOYEE BENEFIT PLANS

12 Months Ended

Dec. 31, 2023

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS

24. EMPLOYEE BENEFIT PLANS

Employees of the Company located in the PRC are covered by the retirement schemes defined by local practice and regulations, which are essentially defined contribution schemes. The calculation of contributions for eligible employees is based on 16% of the applicable payroll cost in 2022. The expense incurred by the Company to such defined contributions schemes was $14,362, $17,753 and $26,558 for the years ended December 31, 2021, 2022 and 2023, respectively.

In addition, the Company is required by PRC law to contribute approximately 6-8.5%, 8%, 0.2-0.7% and 0.9-2.5% of applicable salaries for medical insurance benefits, housing funds, unemployment and other statutory benefits, respectively. The PRC government is directly responsible for the payment of the benefits to these employees. The amounts contributed for these benefit schemes were $13,584, $15,918 and $20,702 for the years ended December 31, 2021, 2022 and 2023, respectively.

In the U.S., the Company has a qualified 401 (k) plan which provides retirement benefits for all of its eligible manufacturing and non - manufacturing employees. Under the plan, the Company matches 100% of the first five percent of employee contributions. The matching contribution made by the Company for the 401 (k) plan were $409, $383 and $1,664 for the years ended December 31, 2021, 2022 and 2023, respectively.

The entire disclosure for retirement benefits.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 70
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480794/715-70-50-1

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 715
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-Paragraph 17
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480266/715-60-50-3

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES

FAIR VALUE MEASUREMENT - Interest rate swap (Details) - Not designated as hedging instruments - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Effect of fair value of derivative instruments on the consolidated balance sheets
Total derivatives asset	$ 9,669	$ 18,580
Total derivatives liability	7,503	25,359
Derivative assets - current \| Foreign exchange forward contracts
Effect of fair value of derivative instruments on the consolidated balance sheets
Total derivatives asset	9,282	7,730
Derivative assets - current \| Foreign exchange option contracts
Effect of fair value of derivative instruments on the consolidated balance sheets
Total derivatives asset		9,576
Derivative assets - current \| Commodity hedge
Effect of fair value of derivative instruments on the consolidated balance sheets
Total derivatives asset		210
Other non-current assets. \| Interest rate swap
Effect of fair value of derivative instruments on the consolidated balance sheets
Total derivatives asset	387	1,064
Derivative liabilities - current \| Foreign exchange forward contracts
Effect of fair value of derivative instruments on the consolidated balance sheets
Total derivatives liability	6,702	24,104
Derivative liabilities - current \| Foreign exchange option contracts
Effect of fair value of derivative instruments on the consolidated balance sheets
Total derivatives liability		$ 1,255
Other non-current liabilities \| Interest rate swap
Effect of fair value of derivative instruments on the consolidated balance sheets
Total derivatives liability	$ 801

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Operating activities:
Net income	$ 363,634	$ 298,555	$ 109,876
Adjustments to net income:
Depreciation and amortization	307,040	234,559	282,769
Accretion of green bonds and convertible notes	2,145	1,302	1,461
Loss (gain) on disposal of property, plant and equipment	(5,342)	(4,259)	83
Loss on disposal of solar power systems	244		(10,091)
Gain on disposal of investments in affiliates			(10,392)
Impairment loss of property, plant and equipment	5,938	60,330	6,084
Impairment loss of project assets	16,239	1,674	17,152
Impairment loss of investments in affiliates	0	357	0
Loss (gain) on change in fair value of derivatives, net	27,504	44,489	(23,785)
Gain on change in fair value of other financial assets	(12,696)
Equity in earnings of affiliates	(14,610)	(15,440)	(7,256)
Allowance for credit losses	12,014	5,773	7,615
Non-cash operating lease expenses	18,844	13,208	14,321
Write-down of inventories	113,079	7,475	14,070
Share-based compensation	55,335	9,370	8,808
Unrealized gain from sales to affiliates	2,892	5,971	35,890
Deferred taxes	(17,908)	16,908	(67,386)
Changes in operating assets and liabilities:
Accounts receivable trade	58,985	(357,276)	(284,785)
Accounts receivable, unbilled	(43,571)	(23,367)	(8,783)
Amounts due from related parties	9,210	(4,451)	(68,912)
Inventories	182,767	(406,343)	(518,741)
Value added tax recoverable	(5,985)	(43,881)	(21,873)
Advances to suppliers	54,915	(52,893)	(30,416)
Project assets	(349,830)	(302,839)	(73,375)
Prepaid expenses and other current assets	(22,277)	151,663	(85,754)
Other non-current assets	(33,597)	(17,350)	20,357
Accounts payable	13,115	351,535	11,023
Short-term notes payable	(590,418)	721,039	150,982
Amounts due to related parties	427	(54)	(171)
Other payables	169,944	(417)	126,215
Advances from customers	59,383	209,855	(53,998)
Operating lease liabilities	(14,571)	(14,160)	(14,156)
Other liabilities	337,055	68,492	51,248
Liability for uncertain tax positions	(29)	(1,718)	(7,281)
Net settlement of derivatives	(39,133)	(31,851)	31,886
Loss contingency accruals	23,873	(9,625)	(10,939)
Net cash provided by (used in) operating activities	684,615	916,631	(408,254)
Investing activities:
Investments in affiliates	(113,404)	(19,355)	(54,004)
Acquisition of subsidiaries, net of cash	(9,448)
Investment in equity securities	(427)
Return of capital from affiliates	2,759	7,083	2,671
Proceeds from disposal of investments in affiliates	301		14,311
Purchase of property, plant and equipment	(1,116,461)	(627,115)	(428,725)
Acquisition of right-of-use assets	(36,121)
Proceeds from disposal of property, plant and equipment	10,317	7,479	18,555
Purchase of solar power systems	(408,999)	(882)	(775)
Proceeds from disposal of solar power systems	67	2,302	18,397
Net cash used in investing activities	(1,671,416)	(630,488)	(429,570)
Financing activities:
Proceeds from short-term borrowings	1,566,240	1,387,537	1,742,064
Repayment of short-term borrowings	(1,603,571)	(1,695,563)	(1,879,884)
Proceeds from long-term borrowings	1,016,931	770,368	588,082
Net proceeds from issuance of green bonds	121,023
Acquisition of non-controlling interests	(1,446)		(10,719)
Proceeds from non-controlling interests	5,910	15,109	10,003
Distribution to non - controlling interests	(3,990)
Repayment to non-controlling interests			(6,588)
Net proceeds from issuance of common shares			148,510
Proceeds from subsidiary's offering of its equity interests	966,892
Cash payment for transaction costs of subsidiary's offering	(38,995)
Repayment of financing liabilities	(28,013)	(29,595)
Proceeds from sales-leaseback arrangement	91,648		45,693
Repayments of finance lease obligation	(39,801)	(19,217)	(23,090)
Net cash provided by financing activities	2,052,828	428,639	614,071
Effect of exchange rate changes	(89,098)	(179,561)	18,320
Net increase (decrease) in cash, cash equivalents and restricted cash	976,929	535,221	(205,433)
Cash, cash equivalents and restricted cash at the beginning of the year	1,969,503	1,434,282
Cash, cash equivalents and restricted cash at the end of the year	2,946,432	1,969,503	1,434,282
Supplemental disclosure of cash flow information:
Interest paid (net of amounts capitalized)	121,665	76,511	71,006
Income taxes paid, net of tax refund	83,077	77,400	57,396
Supplemental schedule of non-cash activities:
Reclassification from project assets to solar power systems	119,067	263,710
Reclassification from inventories to solar power systems	46,197
Borrowings assumed by third parties with project asset sales	161,709	193,578	118,406
Property, plant and equipment costs included in other payables	$ 933,029	$ 549,883	$ 299,664

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2023

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES

2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES

(a) Basis of presentation

The consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).

(b) Basis of consolidation

2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued)

(d) Use of estimates

(e) Cash and cash equivalents and restricted cash

(f) Accounts receivable, unbilled

2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued)

(g) Allowance for credit losses

(h) Advances to suppliers

(i) Inventories

(j) Project assets

2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued)

(j) Project assets (Continued)

2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued)

(k) Business combination

(l) Assets acquisition

(m) Property, plant and equipment

Depreciation is computed on a straight-line basis over the following estimated useful lives:


Buildings		10-20 years
Leasehold improvements		Over the shorter of the lease term or their estimated useful lives
Machinery		5-10 years
Furniture, fixtures and equipment		5 years
Motor vehicles		5 years

2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued)

(n) Solar power systems

(o) Intangible assets


Customer-related intangible assets		7-20 years
Trademark		20 years
Technical know-how		10 years
Computer software		1-10 years

(p) Land use rights

2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued)

(q) Investments in affiliates

(r) Impairment of long-lived assets

(s) Interest capitalization

(t) Advances from customers

2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued)

(u) Assets retirement obligation

(v) Leases

Lease liabilities that become due within one year of the balance sheet date are classified as current liabilities.

2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued)

(w) Contingencies

(x) Income taxes

(y) Revenue recognition

Solar power products

2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued)

(y) Revenue recognition (Continued)

Battery energy storage solutions and EPC services

Solar power and battery energy storage assets sales

2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued)

(y) Revenue recognition (Continued)

Power services (Operations and Maintenance, or “O&M”) and asset management

Electricity revenue from operating portfolio

The Company’s electricity revenue during the years ended December 31, 2021, 2022 and 2023 were as follows:


	Years Ended December 31,
	2021	2022	2023
	$	$	$
Electricity Revenue:
CSI Solar Segment	15,302	2,256	3,273
Recurrent Energy Segment	14,118	21,579	44,842
	29,420	23,835	48,115

2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued)

(y) Revenue recognition (Continued)

Disaggregation of Revenue

The following table represents a disaggregation of revenue recognized at a point in time or over time:


	Years Ended December 31,
	2021		2022		2023
	$		$		$
CSI Solar Segment:
Revenue recognized at a point in time		3,881,573		6,173,338		6,767,156
Revenue recognized over time		271,513		473,747		348,817

Recurrent Energy Segment:
Revenue recognized at a point in time		1,068,179		763,698		399,826
Revenue recognized over time		55,904		57,827		97,827
		5,277,169		7,468,610		7,613,626

The Company’s contract assets and liabilities are as follow:


	At December 31,		At December 31,
	2022		2023
	$		$
Contract Assets
Accounts receivable, unbilled		57,770		101,435

Contract Liabilities
Advances from customers		334,943		392,308
Other current liabilities		71,808		333,500
Other non-current liabilities		—		52,693
		406,751		778,501

2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued)

(y) Revenue recognition (Continued)

(z) Shipping and handling

(aa) Research and development

(ab) Other operating income, net

Other operating income, net primarily consists of gains or losses on disposal of solar power systems and property, plant and equipment, government grants received and weather-related project damages.

2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued)

(ab) Other operating income, net (Continued)

As of December 31, 2023, the Company has $159,991 of government grants in other non-current liabilities.

The following table summarizes the Company’s other operating income, net:


	Years Ended December 31,
	2021	2022	2023
	$	$	$
Government grants	(38,468)	(59,543)	(79,241)
Net (gain) loss on disposal of property, plant and equipment	83	(4,259)	(5,342)
Net (gain) loss on disposal of solar power system	(10,091)	—	244
Weather-related project damages	1,408	—	—
	(47,068)	(63,802)	(84,339)

(ac) Warranty costs

2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued)

(ac) Warranty cost (Continued)

2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued)

(ac) Warranty costs (Continued)

(ad) Foreign currency translation

(ae) Comprehensive income

2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued)

(af) Foreign currency risk

(ag) Concentration of credit risk

All of the Company’s cash and cash equivalents are held with financial institutions that Company management believes to have high credit quality.


	As of December 31,
	2022	2023
	$	$
Supplier A	35,359	—	(1)

(1)	Not in excess of 10% of total advances to suppliers as of December 31, 2023.

2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued)

(ah) Fair value of financial instruments

(ai) Derivatives instruments and hedging activity

2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued)

(aj) Earnings per share

(ak) Share-based compensation

(al) Risks and uncertainties related to the COVID-19 pandemic

2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued)

(am) Recently issued accounting pronouncements

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($)
$ in Thousands

Common Shares

Additional Paid-in Capital

Retained Earnings

Accumulated Other Comprehensive Income (Loss)

Earnings Attributable to Canadian Solar Inc.

Non-Controlling Interests

Total

Balance at Dec. 31, 2020

$ 687,033

$ (28,236)

$ 940,304

$ (28,679)

$ 1,570,422

$ 322,363

$ 1,892,785

Balance (in shares) at Dec. 31, 2020

59,820,384

Increase (Decrease) in Stockholders' Equity

Net income

95,248

14,628

109,876

Foreign currency translation adjustment

(21,964)

(4,332)

(26,296)

Exercise of RSUs (in shares)

8,808

562,376

Issuance of ordinary shares, net of issuance costs (in shares)

^[1]

$ 148,510

148,510

^[1]

3,639,918

Acquisition of non-controlling interest's ownership

(10,719)

Proceeds from non-controlling interests

10,003

Disposal of subsidiaries

(6,588)

Fair value change on derivatives (interest rate swap)

Balance at Dec. 31, 2021

$ 835,543

(19,428)

1,035,552

(50,584)

1,801,083

325,355

2,126,438

Balance (in shares) at Dec. 31, 2021

64,022,678

Increase (Decrease) in Stockholders' Equity

Net income

239,968

58,587

298,555

Foreign currency translation adjustment

(125,885)

(24,242)

(150,127)

Exercise of RSUs (in shares)

9,370

483,377

Transfer of equity interest in subsidiary to non-controlling interest

11,185

544

11,729

4,094

15,823

Proceeds from non-controlling interests

2,529

Disposal of subsidiaries

(1,268)

Fair value change of available-for-sale debt securities

904

Fair value change on derivatives (interest rate swap)

716

Share of fair value change on interest rate swap of affiliates

3,754

Balance at Dec. 31, 2022

$ 835,543

1,127

1,275,520

(170,551)

1,941,639

365,055

$ 2,306,694

Balance (in shares) at Dec. 31, 2022

64,506,055

Increase (Decrease) in Stockholders' Equity

Net income

274,187

89,447

$ 363,634

Foreign currency translation adjustment

6,759

1,382

8,141

Exercise of RSUs (in shares)

46,981

8,354

55,335

^[2]

1,652,686

Transfer of equity interest in subsidiary to non-controlling interest

244,629

38,395

283,024

644,873

927,897

Sales proceed distribution to non-controlling interests

(3,990)

Acquisition of non-controlling interest's ownership

(1,446)

Proceeds from non-controlling interests

5,910

Subsidiary's shares under employee incentive plan

36,416

Fair value change of available-for-sale debt securities

(3,487)

Fair value change on derivatives (interest rate swap)

(1,124)

Share of fair value change on interest rate swap of affiliates

11,264

Balance at Dec. 31, 2023

$ 835,543

$ 292,737

$ 1,549,707

$ (118,744)

$ 2,559,243

$ 1,146,001

$ 3,705,244

Balance (in shares) at Dec. 31, 2023

66,158,741

[1]	Represented proceeds from “at-the-market” offering of 3,639,918 shares of common shares in 2021, net of commissions and offering expenses of $1,490.
[2]	Represented the net proceeds of RMB6,628,683 ($927,897), after deducting the offering expenses of RMB277,929 ($38,995), from the IPO of CSI Solar Co., Ltd in 2023. Refer to Note 26 to the consolidated financial statements for further information.

BORROWINGS - Long term narrative and interest expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Interest expense
Interest capitalized - project assets	$ 27,676	$ 26,439	$ 17,316
Interest capitalized - solar power systems, net	33,097	18,666	0
Interest capitalized - property, plant, and equipment	963
Interest expense	114,099	74,266	58,153
Total interest incurred	$ 175,835	$ 119,371	$ 75,469
Short-term borrowings
BORROWINGS
Floating interest rate (as a percent)	3.80%	5.30%
Long-term borrowings
BORROWINGS
Floating interest rate (as a percent)	6.70%	4.10%

LEASE - Total leases - Maturities (Details) $ in Thousands	Dec. 31, 2023 USD ($)
LEASE
2024	$ 119,950
2025	49,294
2026	33,363
2027	28,937
2028	28,997
Thereafter	136,187
Total future minimum lease payments	$ 396,728

CONVERTIBLE NOTES

12 Months Ended

Dec. 31, 2023

CONVERTIBLE NOTES

CONVERTIBLE NOTES

17. CONVERTIBLE NOTES

On September 16, 2020, the Company issued $200,000 of convertible notes (the “2020 Notes”). The Company granted the initial purchasers a 30-day option to purchase up to an additional $30,000 aggregate principal amount of the 2020 Notes. The option was fully exercised by initial purchasers on the same day. The key terms of the 2020 Notes are described as follows:

Maturity date. The 2020 Notes mature on October 1, 2025.

Interest. The 2020 Notes holders are entitled to receive interest at 2.50% per annum on the principal outstanding, in semi-annually installments, payable in arrears on April 1 and October 1 of each year, beginning April 1, 2021.

Conversion. The initial conversion rate is 27.2707 shares per $1,000 initial principal amount, which represents an initial conversion price of approximately $36.67 per share. The 2020 Notes are convertible at any time prior to maturity. The conversion rate is subject to change for certain anti-dilution events and upon a change in control. If the holders elect to convert the 2020 Notes upon a change of control, the conversion rate will increase by a number of additional shares as determined by reference to an adjustment schedule based on the date on which the change in control becomes effective and the price paid per common share in the transaction (referred to as the “Fundamental Change Make-Whole Premium”). The Fundamental Make-Whole Premium is intended to compensate holders for the loss of time value upon early exercise.

Redemption. The Company may redeem for cash all or any portion of the notes (i) at the Company’s option, on or after October 6, 2023, if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption, or (ii) following the occurrence of certain tax related events, in each case, at a redemption price equals to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.

As of December 31, 2022 and 2023, the carrying value of the convertible notes was $225,977 and $227,424, net of unamortized issuance costs of $4,023 and $2,576, respectively. The debt issuance costs are being amortized through interest expense over the period from September 16, 2020, the date of issuance, to October 1, 2025, the date of expiration, using the effective interest rate method at the rate of 3.18%. The amortization expense was $1,302 and $1,447 for the years ended December 31, 2022 and 2023, respectively. Coupon interest of $5,750 was recorded for each of the years ended December 31, 2022 and 2023, of which $1,438 was not paid and was recorded in other payables on the consolidated balance sheets as of December 31, 2022 and 2023.

BORROWINGS (Details)
$ in Thousands

1 Months Ended

12 Months Ended

Sep. 30, 2021

JPY (¥)

Oct. 31, 2020

JPY (¥)

Institution

Dec. 31, 2023

USD ($)

Dec. 31, 2016

JPY (¥)

Institution

Dec. 31, 2023

JPY (¥)

Dec. 31, 2023

BRL (R$)

Dec. 31, 2023

USD ($)

Dec. 31, 2023

CNY (¥)

Oct. 31, 2023

JPY (¥)

Oct. 31, 2023

USD ($)

Jun. 30, 2023

EUR (€)

Jun. 30, 2023

USD ($)

Mar. 31, 2023

USD ($)

Dec. 31, 2022

JPY (¥)

Dec. 31, 2022

EUR (€)

Dec. 31, 2022

USD ($)

Dec. 31, 2021

JPY (¥)

Dec. 31, 2021

EUR (€)

Dec. 31, 2021

BRL (R$)

Dec. 31, 2021

USD ($)

Sep. 30, 2021

USD ($)

Dec. 31, 2020

USD ($)

Oct. 31, 2020

USD ($)

Dec. 31, 2016

USD ($)

Short-term borrowings related to project assets

$ 291,982

$ 333,521

Other short-term borrowings

1,513,216

1,110,295

Subtotal for short-term borrowings

1,805,198

1,443,816

Long-term borrowings related to project assets

^[1]

450,455

318,987

Other long-term borrowings

815,510

494,419

Subtotal for long-term borrowings

1,265,965

813,406

3,071,163

2,257,222

Secured borrowings

1,647,038

Short-term borrowings

690,215

Amount of development loan

3,071,163

2,257,222

$ 75,000

Amount of matures

125,000

Future principal repayment of long-term borrowings on project assets - current

581,983

75,550

3,071,163

Minimum

Average interest rate on long-term borrowings (as a percent)

1.20%

Maximum

Average interest rate on long-term borrowings (as a percent)

16.80%

Solar project

Asset Pledged as Collateral without Right [Member]

Borrowings

161,709

193,578

$ 118,406

Carrying value of property, plant and equipment that serve as collateral for short-term and long-term borrowings

414,195

Carrying value of inventories that serve as collateral for short-term and long-term borrowings

1,763

Carrying value of land use rights that serve as collateral for short-term and long-term borrowings

55,976

Carrying value of restricted cash that serve as collateral for short-term and long-term borrowings

$ 462,959

Carrying value of accounts receivable that serve as collateral for short-term and long-term borrowings

28,237

Carrying value of equity that serve as collateral for short-term and long-term borrowings

367,354

Carrying value of project assets that serve as collateral for short-term and long-term borrowings

233,740

Carrying value of solar power systems that serve as collateral for short-term and long-term borrowings

609,201

Tranche 1

57,198

Tranche 2

Green Bonds | Convertible Debt

19,066

227,424

225,977

227,424

225,977

Recurrent Energy, LLC

1,368,378

1,056,640

Recurrent Energy, LLC | Green Bonds

1,368,378

1,056,640

161,609

31,638

Azuma Kofuji Daiichi Hatsudensho G.K.

161,609

31,638

Canadian Solar Spain, Sociedad Limitada

¥ 24,513,530

230,759

27,429

€ 45,000

48,309

€ 50,000

61,132

Canadian Solar Project K.K.

27,429

Term of facility (in years)

3 years

2 years

3 years

Number of participating financial institutions | Institution

¥ 10,000,000

¥ 9,100,000

¥ 9,600,000

$ 89,859

$ 88,200

$ 85,200

Canadian Solar Project K.K. | Tranche 1

Canadian Solar Project K.K. | Tranche 2

¥ 6,250,000

44,317

¥ 7,500,000

Amount of loan facility | ¥

¥ 2,500,000

Sunmex Renovables, S.A. De C.V. | Loan facility

25,584

60,000

Canadian Solar Netherlands Cooperative U.A.

25,584

CSI Cells (SuQian) Co., Ltd.

€ 30,000

$ 32,736

142,601

375,229

¥ 2,590,000

CSI Solar Co., Ltd.

1,702,785

1,200,582

CSI Cells (Yangzhou) Co., Ltd.

1,702,785

$ 1,200,582

66,350

263,132

1,900,000

Aurora 01 GK

¥ 18,500,000

$ 121,958

Bank borrowings | Canadian Solar Sunenergy (Jiaxing) Co. Ltd

128,818

Bank borrowings | Canadian Solar Sunenergy (Jiaxing) Co. Ltd | Unsecured

165,231

Bank borrowings | Canadian Solar Sunenergy (Jiaxing) Co. Ltd | Borrowings secured by property, plant and equipment

262,044

1,869,600

Bank borrowings | CSI Solar Technology (Xining) Co., Ltd

57,949

413,209

Amount of loan facility | ¥

113,415

2,038,947

Unsecured Credit Facility | CSI Solar Technology (Xining) Co., Ltd

Unsecured Credit Facility | CSI Cells (SuQian) Co., Ltd.

25,761

180,000

13,097

90,000

Credit facility

Maximum borrowing capacity

5,254,518

Additional amount drawn of under borrowing

366,197

Available amount of credit facilities

2,725,820

Credit facility | Canadian Solar Netherlands Cooperative U.A.

2,162,501

Credit facility | Bank borrowings | Canadian Solar Sunenergy (Jiaxing) Co. Ltd

$ 100,000

Credit facility | Bank borrowings | CSI Solar Technology (Xining) Co., Ltd

319,993

2,282,809

Non-binding bank credit facilities

293,293

Maximum borrowing capacity

2,587,712

$ 901,519

Short Term Note Payable

Additional amount drawn of under borrowing

411,160

Non-recourse

Short-term borrowings

146,869

374,840

Term loan | Canadian Solar Spain, Sociedad Limitada

227,971

Amount of loan facility | €

25,000

Revolving credit facility | Canadian Solar Spain, Sociedad Limitada

Amount of loan facility | €

€ 25,000

Revolving credit facility | Canadian Solar Netherlands Cooperative U.A.

Secured Credit Facility | CSI Solar Technology (Xining) Co., Ltd

110,500

Secured Credit Facility | CSI Cells (SuQian) Co., Ltd.

267,532

1,858,947

Financing facility | Brazilian subsidiaries

362,132

¥ 2,500,000

95,724

R$ 490,934

60,292

R$ 500,000

$ 95,921

Non Recourse Project bonds

95,724

60,909

Non Recourse Project bonds | Brazilian subsidiaries

60,909

41,024

285,000

101,213

Non Recourse Project Finance Facility [Member] | Brazilian subsidiaries

41,024

Term Loan Facility Two | Canadian Solar Netherlands Cooperative U.A.

R$ 205,934

$ 40,921

$ 20

[1]	Includes long-term borrowings that were classified as current liabilities because these borrowings are associated with certain solar power and battery energy storage assets that are expected to be sold within one year.

INCOME TAXES

12 Months Ended

Dec. 31, 2023

INCOME TAXES

INCOME TAXES

18. INCOME TAXES

Income tax expenses (benefits)

The provision for income taxes is comprised of the following:


	Years Ended December 31,
	2021	2022	2023
	$	$	$
Income (loss) before income taxes and equity in earnings of affiliates
Canada	6,237	(19,357)	(61,704)
United States	66,432	22,275	(49,536)
PRC including Hong Kong and Taiwan	(35,943)	193,705	230,768
Japan	51,910	1,179	5,026
Singapore	(7,728)	69,424	153,437
Brazil	14,448	32,052	(44,663)
Thailand	(15,562)	17,155	162,303
Other	58,670	40,035	12,894
	138,464	356,468	408,525
Current tax expense (benefit)
Canada	(1,124)	(16,707)	1,944
United States	15,937	(1,684)	12,570
PRC including Hong Kong and Taiwan	47,356	47,528	55,780
Japan	24,047	3,054	4,104
Singapore	617	872	475
Brazil	6,151	5,023	(7,518)
Thailand	—	—	—
Other	10,097	19,183	7,695
	103,081	57,269	75,050
Deferred tax expense (benefit)
Canada	685	10,629	2,048
United States	(1,604)	1,996	(4,176)
PRC including Hong Kong and Taiwan	(65,017)	500	(724)
Japan	(353)	(173)	2,008
Singapore	—	231	—
Brazil	1,244	5,546	(25,657)
Thailand	—	—	—
Other	(2,192)	(2,645)	10,952
	(67,237)	16,084	(15,549)
Total income tax expense (benefit)
Canada	(439)	(6,078)	3,992
United States	14,333	312	8,394
PRC including Hong Kong and Taiwan	(17,661)	48,028	55,056
Japan	23,694	2,881	6,112
Singapore	617	1,103	475
Brazil	7,395	10,569	(33,175)
Thailand	—	—	—
Other	7,905	16,538	18,647
	35,844	73,353	59,501

18. INCOME TAXES (Continued)

The Company’s major operating subsidiaries and their respective income taxes are as follows:

Canada

CSI was incorporated in Ontario, Canada and was subject to both federal and Ontario provincial corporate income taxes at a rate of 26.5%. In July 2022, CSI filed articles of continuance to change its jurisdiction from the provincial jurisdiction of British Columbia to the provincial jurisdiction of Ontario. CSI is subject to federal and Ontario provincial corporate income taxes at a rate of 26.5% through December 31, 2023.

United States

Canadian Solar (USA) Inc. was incorporated in Delaware, U.S. and is subject to federal and state corporate income taxes at a rate of 26.4%, 24.6% and 25.5% for the years ended December 31, 2021, 2022 and 2023, respectively.

Canadian Solar SSES (US) Inc. was incorporated in Delaware, U.S. and is subject to federal and state corporate income taxes at a rate of 21.9% and 28.1% for the years ended December 31, 2022 and 2023, respectively.

Recurrent Energy Group Inc. was incorporated in Delaware, U.S. and is subject to federal and state corporate income taxes at a rate of 22.2%, 22.5% and 26.1% for the years ended December 31, 2021, 2022 and 2023, respectively.

Japan

Canadian Solar Japan K.K. was incorporated in Japan and is subject to Japanese corporate income taxes at a normal statutory rate of approximately 31.8% for the years ended December 31, 2021, 2022 and 2023, respectively.

Germany

Canadian Solar EMEA GmbH was incorporated in Munich, Germany and is subject to German corporate income tax at a rate of approximately 33% for the years ended December 31, 2021, 2022 and 2023, respectively.

Brazil

Canadian Solar Brazil Commerce, Import and Export of Solar Panels Ltd. was incorporated in Brazil and is subject to Brazil corporate income tax at a rate of 34% for the years ended December 31, 2021, 2022 and 2023, respectively.

Thailand

Canadian Solar Manufacturing (Thailand) Co.,Ltd. was incorporated in Thailand and is subject to Thailand corporate income taxes at a normal statutory rate of 20%. The Company currently has five Board of Investment certificates for full tax exemption which have different effective years. The certificates started from year 2016 through 2023, respectively, one of which expired in 2021 and the other four will expire in 2024, 2027, 2030 and 2031, respectively.

PRC

The major operating subsidiaries, including CSI Solartronics (Suzhou) Co., Ltd., CSI Solar Technologies Inc., CSI Cells Co., Ltd., Canadian Solar Manufacturing (Luoyang) Inc., CSI Solar Co., Ltd. and Canadian Solar Manufacturing (Changshu) Inc., and Suzhou Sanysolar Materials Technology Co., Ltd. were governed by the PRC Enterprise Income Tax Law (“EIT Law”).

18. INCOME TAXES (Continued)

PRC (Continued)

In 2023, certain of the Company’s PRC subsidiaries, namely Suzhou Sanysolar Materials Technology Co., Ltd, Changshu Tegu New Material Technology Co., Ltd, CSI New Energy Development (Suzhou) Co., Ltd, CSI Solar Technologies (JiaXing) Co., Ltd and Canadian Solar Photovoltaic Technology (Luoyang) Co., Ltd. are HNTEs and enjoyed preferential enterprise income tax rates.

Hong Kong

Canadian Solar International Ltd. was incorporated in Hong Kong, China, and are subject to Hong Kong profits tax at a rate of 16.5% for the years ended December 31, 2021, 2022 and 2023, respectively.

Reconciliation between the provision for income tax computed by applying Canadian federal and provincial statutory tax rates to income before income taxes and equity in earnings of affiliates and the actual provision and benefit for income taxes is as follows:


	Years Ended December 31,
	2021		2022		2023
Combined federal and provincial income tax rate	27	%	27	%	27	%
Effect of permanent difference	4	%	(3)	%	(15)	%
Effect of different tax rate on earnings in other jurisdictions	9	%	1	%	(4)	%
Effect of tax holiday	(3)	%	(1)	%	(1)	%
Effect of true-up	4	%	(2)	%	—	%
Effect of cross-border tax	—	%	—	%	1	%
Unrecognized tax provision	(5)	%	—	%	—	%
Change in valuation allowance	(3)	%	(1)	%	7	%
Effect of change in tax rate	(7)	%	—	%	—	%
	26	%	21	%	15	%

The aggregate amount and per share effect of tax holiday are as follows:


	Years Ended December 31,
	2021	2022	2023

	(In Thousands of U.S. Dollars, except per share data)
The aggregate amount	4,466	2,520	3,043
Per share — basic	0.07	0.04	0.05
Per share — diluted	0.07	0.04	0.04

18. INCOME TAXES (Continued)

Hong Kong (Continued)

The components of the deferred tax assets and liabilities are presented as follows:


	At December 31,	At December 31,
	2022	2023
	$	$
Deferred tax assets:
Accrued warranty costs	17,318	12,944
Allowance for credit losses	11,772	14,728
Inventory write-down	1,235	5,807
Future deductible expenses	32,351	28,720
Depreciation and impairment difference of property, plant and equipment and solar power systems	36,332	18,428
Accrued liabilities related to antidumping and countervailing duty deposits	40	39
Government subsidies	28,723	46,712
Net operating losses carry-forward	79,474	131,094
Unrealized foreign exchange loss and capital loss	2,677	190
Interest limitation	14,031	15,471
Others	48,761	62,003
Total deferred tax assets, gross	272,714	336,136
Valuation allowance	(43,488)	(72,678)
Total deferred tax assets, net of valuation allowance	229,226	263,458

Deferred tax liabilities:
Derivative assets	2,899	654
Depreciation difference of property, plant and equipment	34,914	34,625
Insurance recoverable	55	71
Unrealized foreign exchange gain	3,906	1,816
Others	24,856	45,662
Total deferred tax liabilities	66,630	82,828
Net deferred tax assets	162,596	180,630
Analysis as:
Deferred tax assets	229,226	263,458
Deferred tax liabilities	(66,630)	(82,828)
Net deferred tax assets	162,596	180,630

18. INCOME TAXES (Continued)

Hong Kong (Continued)

In accordance with the EIT Law, dividends, which arise from profits of foreign invested enterprises in PRC earned after January 1, 2008, are subject to a 5% or 10% withholding income tax. Under applicable accounting principles, a deferred tax liability should be recorded for taxable temporary difference attributable to excess of financial reporting basis over tax basis in the investment in a foreign subsidiary. However, a deferred tax liability is not recognized if the basis difference is not expected to reverse in the foreseeable future and is expected to be permanent in duration. As of December 31, 2023, the Company provided $5,350 of withholding income tax for undistributed earnings of foreign subsidiaries in 2023 on the basis of expected future distribution plan. As of December 31, 2023, the remaining undistributed earnings of approximately $701,222 attributable to the Company’s PRC subsidiaries and affiliates are considered to be indefinitely reinvested. Upon distribution of those earnings generated after January 1, 2008, in the form of dividends or otherwise, the Company would be subject to the then applicable PRC tax laws and regulations. The amounts of unrecognized deferred tax liabilities for these earnings are in the range of $35,061 to $70,122, depending on whether the immediate offshore companies can enjoy the preferential withholding tax rate of 5%.

Movement of the valuation allowance is as follows:


	Years Ended December 31,
	2021	2022	2023
	$	$	$
Beginning balance	50,118	45,682	43,488
Additions (reversals)	(4,671)	(1,531)	28,819
Foreign exchange effect	235	(663)	371
Ending balance	45,682	43,488	72,678

As of December 31, 2023, the Company has accumulated net operating losses of $821,591, including U.S. federal and state net operating losses of $331,767, all of which will expire between 2027 and 2043.

The Company considers positive and negative evidences to determine whether some portion or all of the deferred tax assets will not be realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses, forecasts of future profitability, the duration of statutory carry-forward periods, the Company’s experience with tax attributes expiring unused and tax planning alternatives. The Company has considered the following possible sources of taxable income when assessing the realization of deferred tax assets:

●

Tax planning strategies;

●

Future reversals of existing taxable temporary differences;

●

Further taxable income exclusive of reversing temporary differences and carry-forwards;

18. INCOME TAXES (Continued)

Hong Kong (Continued)

The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible for tax purposes.

The Company has recognized a valuation allowance of $43,488 and $72,678 as at December 31, 2022 and 2023, respectively.

Uncertain tax positions

The Company makes an assessment of the level of authority for each of its uncertain tax positions (including the potential application of interest and penalties) based on their technical merits, and has measured the unrecognized benefits associated with such tax positions. This liability is recorded as liability for uncertain tax positions in the consolidated balance sheets. In accordance with its policies, the Company accrues and classifies interest and penalties associated with such unrecognized tax benefits as a component of its income tax provision. The amount of interest and penalties accrued as of December 31, 2022 and 2023 was $961 and $956, respectively. The Company does not anticipate any significant changes to its liability for unrecognized tax positions within the next 12 months.

The following table illustrates the movement and balance of the Company’s liability for uncertain tax positions (excluding interest and penalties) for the years ended December 31, 2021, 2022 and 2023, respectively.


	Years Ended December 31,
	2021	2022	2023
	$	$	$
Beginning balance	9,628	5,863	4,770
Reductions for tax positions from prior years/Statute of limitations expirations	(3,763)	(678)	(24)
Foreign exchange effect	(2)	(415)	(1)
Ending balance	5,863	4,770	4,745

The Company is subject to taxation in various jurisdictions where it operates, mainly including Canada, China and the United States. Generally, the Company’s taxation years from 2017 to 2023 are open for reassessment to the Canadian tax authorities. The Company is subject to taxation in the United States and various state jurisdictions. The Company is not currently under examination by the federal or state tax authorities. The Company’s income tax returns for 2019 through 2023 remain open to examination by the U.S. tax authorities.

According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of income taxes has resulted from the computational errors of the taxpayer. The statute of limitations could be extended to five years under special circumstances. For income tax adjustments relating to transfer pricing matters, the statute of limitations is ten years. Therefore, the Company’s Chinese subsidiaries might be subject to reexamination by the Chinese tax authorities on non-transfer pricing matters for taxation years up to 2018 retrospectively, and on transfer pricing matters for taxation years up to 2013 retrospectively. There is no statute of limitations in case of tax evasion in PRC.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES

LEASE - Finance leases - Gross difference (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Maturities of finance leases
Total future minimum lease payments	$ 179,296
Less: imputed interest	19,465
NPV for future minimum lease payments	$ 159,831	$ 29,069
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Other non-current liabilities

EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands	12 Months Ended
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
EMPLOYEE BENEFIT PLANS
Employer's contribution (as a percent)		16.00%
Defined contributions schemes expense	$ 26,558	$ 17,753	$ 14,362
Foreign Plan
EMPLOYEE BENEFIT PLANS
Defined contributions schemes expense	$ 1,664	383	409
Percentage of applicable salaries contributed by the employer for housing funds	8.00%
Amount of contribution by the employer for medical insurance benefits, housing funds, unemployment and other statutory benefits	$ 20,702	$ 15,918	$ 13,584
Defined Contribution Plan, Employer Matching Contribution, Percent of Match	100.00%
Minimum \| Foreign Plan
EMPLOYEE BENEFIT PLANS
Percentage of applicable salaries contributed by the employer for medical insurance benefits	6.00%
Percentage of applicable salaries contributed by the employer for unemployment benefits	0.20%
Percentage of applicable salaries contributed by the employer for other statutory benefits	0.90%
Maximum \| Foreign Plan
EMPLOYEE BENEFIT PLANS
Percentage of applicable salaries contributed by the employer for medical insurance benefits	8.50%
Percentage of applicable salaries contributed by the employer for unemployment benefits	0.70%
Percentage of applicable salaries contributed by the employer for other statutory benefits	2.50%

LEASE - Supplement balance sheet information (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Assets:
Operating lease assets	$ 132,786	$ 35,506
Land use rights, net	104,221	68,094
Total operating lease ROU assets	237,007	103,600
Finance lease assets	$ 163,553	$ 41,705
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property, Plant and Equipment, Net.	Property, Plant and Equipment, Net.
Liabilities:
Operating lease liabilities, current	$ 20,204	$ 9,810
Operating lease liabilities, noncurrent	116,846	25,714
Total operating lease liabilities	137,050	35,524
Other finance lease liabilities, current	$ 88,180	$ 14,697
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other current liabilities	Other current liabilities
Other finance lease liabilities, noncurrent	$ 71,651	$ 14,372
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other non-current liabilities	Other non-current liabilities
Total Finance lease liabilities	$ 159,831	$ 29,069

SUBSEQUENT EVENT

12 Months Ended

Dec. 31, 2023

SUBSEQUENT EVENT

SUBSEQUENT EVENT

27. SUBSEQUENT EVENT

In January 2024, Recurrent Energy B.V., a subsidiary of the Company, entered into a purchase and sale agreement with GRP IV UK Holdco Limited (a Climate Infrastructure business fund by BlackRock) to issue Series A convertible redeemable preferred shares of Recurrent Energy B.V. Under the purchase and sale agreement, BlackRock will invest $500 million in two tranches, representing 20% of its voting rights on an as-converted basis, subject to regulatory approvals and certain terms and conditions.

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of expected useful lives of property and equipment


Buildings		10-20 years
Leasehold improvements		Over the shorter of the lease term or their estimated useful lives
Machinery		5-10 years
Furniture, fixtures and equipment		5 years
Motor vehicles		5 years

Schedule of useful life intangible assets


Customer-related intangible assets		7-20 years
Trademark		20 years
Technical know-how		10 years
Computer software		1-10 years

Schedule of company's electricity revenue


	Years Ended December 31,
	2021	2022	2023
	$	$	$
Electricity Revenue:
CSI Solar Segment	15,302	2,256	3,273
Recurrent Energy Segment	14,118	21,579	44,842
	29,420	23,835	48,115

Schedule of disaggregation of revenue


	Years Ended December 31,
	2021		2022		2023
	$		$		$
CSI Solar Segment:
Revenue recognized at a point in time		3,881,573		6,173,338		6,767,156
Revenue recognized over time		271,513		473,747		348,817

Recurrent Energy Segment:
Revenue recognized at a point in time		1,068,179		763,698		399,826
Revenue recognized over time		55,904		57,827		97,827
		5,277,169		7,468,610		7,613,626

Schedule of contract assets and contract liabilities


	At December 31,		At December 31,
	2022		2023
	$		$
Contract Assets
Accounts receivable, unbilled		57,770		101,435

Contract Liabilities
Advances from customers		334,943		392,308
Other current liabilities		71,808		333,500
Other non-current liabilities		—		52,693
		406,751		778,501

Summary of the Company's other operating income, net


	Years Ended December 31,
	2021	2022	2023
	$	$	$
Government grants	(38,468)	(59,543)	(79,241)
Net (gain) loss on disposal of property, plant and equipment	83	(4,259)	(5,342)
Net (gain) loss on disposal of solar power system	(10,091)	—	244
Weather-related project damages	1,408	—	—
	(47,068)	(63,802)	(84,339)

Schedule of gross prepayments made to individual suppliers in excess of 10% of total advances to suppliers


	As of December 31,
	2022	2023
	$	$
Supplier A	35,359	—	(1)

(1)	Not in excess of 10% of total advances to suppliers as of December 31, 2023.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 363,634	$ 298,555	$ 109,876
Other comprehensive income (loss):
Foreign currency translation adjustment	8,141	(150,127)	(26,296)
Gain (loss) on changes in fair value of available-for-sale debt securities, net of tax	(3,487)	904
Gain (loss) on interest rate swap, net of tax	(1,124)	716	59
Share of gain on changes in fair value of interest rate swap of affiliate, net of tax	11,264	3,754
Comprehensive income	378,428	153,802	83,639
Less: comprehensive income attributable to non-controlling interests	90,829	34,345	10,296
Comprehensive income attributable to Canadian Solar Inc.	$ 287,599	$ 119,457	$ 73,343

SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2023

SEGMENT INFORMATION

SEGMENT INFORMATION

22. SEGMENT INFORMATION

The Company uses the management approach to determine operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker (“CODM”) for making decisions, allocating resources and assessing performance. The Company’s CODM has been identified as the Chief Executive Officer of the Company, since he reviews consolidated and segment results when making decisions about allocating resources and assessing performance of the Company. To align with the objective of ASC 280, Segment Reporting (“Topic 280”) and to present the Company’s disaggregated financial information consistent with the management approach, the Company reported its financial performance, including revenue, gross profit and income from operations, based on the following two reportable segments:

●

CSI Solar, which consists of solar module and battery energy storage manufacturing, and delivery of total system solutions, including inverters, solar system kits and EPC (engineering, procurement, and construction) services. CSI Solar’s e - STORAGE branded battery energy storage business includes its utility - scale turnkey battery system solutions, as well as a small but growing residential battery energy storage business. These storage systems solutions are complemented with long - term service agreements, including future battery capacity augmentation services.

●

Recurrent Energy, which is the Company’s clean energy project development platform with 15 years of experience delivering solar power and battery energy storage projects. It is vertically integrated and has strong expertise in greenfield origination, development, financing, execution, operations and maintenance, and asset management.

The module, EPC and battery energy storage solutions sales from the Company’s CSI Solar business to its Recurrent Energy business are on terms and conditions similar to sales to third parties.

The Company continually monitors and reviews its segment reporting structure in accordance with Topic 280 to determine whether any changes have occurred that would impact its reportable segments.

The Company’s CODM reviews net revenue, gross profit and income from operations, and does not review balance sheet information by segment.

22. SEGMENT INFORMATION (Continued)

The following table summarizes the Company’s revenues, gross profit and income from operations generated from each segment:


	Years Ended December 31, 2023
			Elimination
			and
		Recurrent	unallocated
	CSI Solar	Energy	items ⁽¹⁾	Total
	$	$	$	$
Net revenues	7,230,550	497,653	(114,577)	7,613,626
Cost of revenues	6,121,332	292,926	(80,615)	6,333,643
Gross profit	1,109,218	204,727	(33,962)	1,279,983
Income from operations ⁽²⁾	456,083	96,621	(99,384)	453,320


	Years Ended December 31, 2022
			Elimination
			and
		Recurrent	unallocated
	CSI Solar	Energy	items ⁽¹⁾	Total
	$	$	$	$
Net revenues	6,975,612	821,525	(328,527)	7,468,610
Cost of revenues	5,824,855	660,161	(279,542)	6,205,474
Gross profit	1,150,757	161,364	(48,985)	1,263,136
Income from operations ⁽²⁾	343,798	80,364	(68,101)	356,061


	Years Ended December 31, 2021
			Elimination
			and
		Recurrent	unallocated
	CSI Solar	Energy	items ⁽¹⁾	Total
	$	$	$	$
Net revenues	4,371,603	1,124,083	(218,517)	5,277,169
Cost of revenues	3,689,126	930,099	(251,368)	4,367,857
Gross profit	682,477	193,984	32,851	909,312
Income from operations ⁽²⁾	74,132	97,179	19,070	190,381

(1)	Includes inter-segment elimination, and unallocated corporate costs not considered part of management’s evaluation of reportable segment operating performance.

(2)	Income from operations reflects management’s allocation and estimate as some services are shared by the Company’s two reportable segments.

22. SEGMENT INFORMATION (Continued)

During the years ended December 31, 2021, 2022 and 2023, $6,084, $60,330 and $5,938 of long-lived asset impairment charges, respectively, were recorded related to property, plant and equipment in CSI Solar segment. In addition, the Company recorded nil, $357 and nil of investment impairment in the CSI Solar segment, and $17,152, $1,674 and $16,239 of project assets impairment in the Recurrent Energy segment, for the years ended December 31, 2021, 2022 and 2023, respectively.

The following table summarizes the Company’s net revenues generated from different geographic locations. The information presented below is based on the location of customers’ global or regional headquarters, as appropriate:


	Years Ended December 31,
	2021	2022	2023
	$	$	$
The Americas:
—United States	1,590,573	1,963,956	1,485,919
—Brazil	442,603	623,331	846,387
—Canada	30,792	49,148	52,525
—Mexico	139,611	31,912	50,884
—Puerto Rico	11,344	22,353	37,922
—Chile	18,461	37,370	29,663
—Others	46,210	65,581	112,845
	2,279,594	2,793,651	2,616,145
Asia:
—PRC	1,207,003	1,904,862	2,151,243
—Japan	509,233	325,344	597,188
—India	142,300	197,772	91,020
—Pakistan	48,838	73,531	78,203
—Philippines	6,660	26,578	40,612
—Hong Kong	9,979	46,254	32,707
—United Arab Emirates	6,168	15,974	22,915
—Taiwan	7,702	67,411	19,369
—Vietnam	19,956	9,078	16,208
—Thailand	59,451	9,941	10,217
—Others	121,780	63,034	65,814
	2,139,070	2,739,779	3,125,496
Europe and other regions:
—Spain	100,658	434,841	445,321
—Germany	231,995	322,189	291,385
—South Africa	90,761	118,458	218,596
—United Kingdom	7,749	106,662	144,994
—Norway	157	30,231	139,769
—Australia	165,772	393,959	128,247
—Netherlands	104,715	136,375	81,820
—Italy	6,531	14,465	79,041
—Czech	34,604	79,414	62,079
—Ireland	7,844	63,740	41,611
—Romania	3,699	31,804	24,491
—France	25,980	31,147	22,341
—Others	78,040	171,895	192,290
	858,505	1,935,180	1,871,985
Total net revenues	5,277,169	7,468,610	7,613,626

22. SEGMENT INFORMATION (Continued)

The following table summarizes the Company’s long-lived assets, including property, plant and equipment, solar power systems, intangible assets and ROU assets at December 31, 2022 and 2023 by geographic region, based on the physical location of the assets:


	At December 31,	At December 31,
	2022	2023
	$	$
PRC	1,668,177	2,398,130
Thailand	276,497	691,467
United States	5,545	528,538
Brazil	242,761	409,211
EU	27,182	99,738
Argentina	66,017	63,526
Colombia	—	61,847
Japan	14,440	13,164
Canada	6,200	11,401
Others	5,770	19,667
Total long-lived assets	2,312,589	4,296,689

The following table summarizes the Company’s revenues generated from each product or service:


	Years Ended December 31,
	2021	2022	2023
	$	$	$
CSI Solar:
Solar modules	3,328,301	5,534,379	5,941,345
Solar system kits	302,133	538,157	679,350
Battery energy storage solutions	222,655	440,716	245,173
EPC and others	299,997	133,833	250,105
Recurrent Energy:
Solar power and battery energy storage asset sales	1,064,178	761,677	399,098
Power services (O&M) and asset management	35,334	33,776	52,379
Electricity revenue from operating portfolio and others	24,571	26,072	46,176
Total net revenues	5,277,169	7,468,610	7,613,626

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//280/tableOfContent

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-26

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Schedule of property, plant and equipment, net

INTANGIBLE ASSETS, NET

12 Months Ended

Dec. 31, 2023

INTANGIBLE ASSETS, NET

INTANGIBLE ASSETS, NET

8. INTANGIBLE ASSETS, NET

The following table summarizes the Company’s intangible assets, net:


	Gross
	Carrying	Accumulated
At December 31, 2023	Amount	Amortization	Net
	$	$	$
Computer software	37,898	(23,820)	14,078
Customer-related intangible assets	3,647	(478)	3,169
Trademark	2,533	(53)	2,480
Total intangible assets, net	44,078	(24,351)	19,727


	Gross
	Carrying	Accumulated
At December 31, 2022	Amount	Amortization	Net
	$	$	$
Technical know-how	1,443	(1,430)	13
Computer software	37,648	(20,131)	17,517
Total intangible assets, net	39,091	(21,561)	17,530

Amortization expense for the years ended December 31, 2021, 2022 and 2023 were $4,601, $3,586 and $3,793, respectively.

Amortization expenses of the above intangible assets are expected to be approximately $3,532, $3,066, $2,821, $2,669, $2,597 and $5,042 for the years ending December 31, 2024, 2025, 2026, 2027, 2028 and thereafter, respectively.

INCOME TAXES - Provision for income taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income (loss) before income taxes
Income (loss) before income taxes and equity in earnings of affiliates	$ 408,525	$ 356,468	$ 138,464
Current tax
Current tax expense (benefit)	75,050	57,269	103,081
Deferred tax
Deferred tax expense (benefit)	(15,549)	16,084	(67,237)
Total income tax expense
Total income tax expense (benefit)	59,501	73,353	35,844
Canada
Income (loss) before income taxes
Income (loss) before income taxes and equity in earnings of affiliates	(61,704)	(19,357)	6,237
Current tax
Current tax expense (benefit)	1,944	(16,707)	(1,124)
Deferred tax
Deferred tax expense (benefit)	2,048	10,629	685
Total income tax expense
Total income tax expense (benefit)	3,992	(6,078)	(439)
United States
Income (loss) before income taxes
Income (loss) before income taxes and equity in earnings of affiliates	(49,536)	22,275	66,432
Current tax
Current tax expense (benefit)	12,570	(1,684)	15,937
Deferred tax
Deferred tax expense (benefit)	(4,176)	1,996	(1,604)
Total income tax expense
Total income tax expense (benefit)	8,394	312	14,333
PRC
Income (loss) before income taxes
Income (loss) before income taxes and equity in earnings of affiliates	230,768	193,705	(35,943)
Current tax
Current tax expense (benefit)	55,780	47,528	47,356
Deferred tax
Deferred tax expense (benefit)	(724)	500	(65,017)
Total income tax expense
Total income tax expense (benefit)	55,056	48,028	(17,661)
Japan
Income (loss) before income taxes
Income (loss) before income taxes and equity in earnings of affiliates	5,026	1,179	51,910
Current tax
Current tax expense (benefit)	4,104	3,054	24,047
Deferred tax
Deferred tax expense (benefit)	2,008	(173)	(353)
Total income tax expense
Total income tax expense (benefit)	6,112	2,881	23,694
Singapore
Income (loss) before income taxes
Income (loss) before income taxes and equity in earnings of affiliates	153,437	69,424	(7,728)
Current tax
Current tax expense (benefit)	475	872	617
Deferred tax
Deferred tax expense (benefit)		231
Total income tax expense
Total income tax expense (benefit)	475	1,103	617
Brazil
Income (loss) before income taxes
Income (loss) before income taxes and equity in earnings of affiliates	(44,663)	32,052	14,448
Current tax
Current tax expense (benefit)	(7,518)	5,023	6,151
Deferred tax
Deferred tax expense (benefit)	(25,657)	5,546	1,244
Total income tax expense
Total income tax expense (benefit)	(33,175)	10,569	7,395
Thailand
Income (loss) before income taxes
Income (loss) before income taxes and equity in earnings of affiliates	162,303	17,155	(15,562)
Other
Income (loss) before income taxes
Income (loss) before income taxes and equity in earnings of affiliates	12,894	40,035	58,670
Current tax
Current tax expense (benefit)	7,695	19,183	10,097
Deferred tax
Deferred tax expense (benefit)	10,952	(2,645)	(2,192)
Total income tax expense
Total income tax expense (benefit)	$ 18,647	$ 16,538	$ 7,905

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Intangible assets and Land use rights (Details)	Dec. 31, 2023
Customer-related intangible assets \| Minimum
Intangible assets
Amortization period	7 years
Customer-related intangible assets \| Maximum
Intangible assets
Amortization period	20 years
Trademark
Intangible assets
Amortization period	20 years
Technical know-how
Intangible assets
Amortization period	10 years
Computer software \| Minimum
Intangible assets
Amortization period	1 year
Computer software \| Maximum
Intangible assets
Amortization period	10 years
Land use rights
Intangible assets
Amortization period	50 years

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Property, plant and equipment (Details) - USD ($) $ in Thousands		12 Months Ended
	Jan. 01, 2022	Dec. 31, 2021	Dec. 31, 2023
Buildings \| Minimum
Property, plant and equipment
Estimated useful lives			10 years
Buildings \| Maximum
Property, plant and equipment
Estimated useful lives			20 years
Machinery \| Minimum
Property, plant and equipment
Estimated useful lives			5 years
Machinery \| Maximum
Property, plant and equipment
Estimated useful lives			10 years
Furniture, fixtures and equipment
Property, plant and equipment
Estimated useful lives			5 years
Motor vehicles
Property, plant and equipment
Estimated useful lives			5 years
Solar power systems \| Depreciation life
Property, plant and equipment
Estimated useful lives	30 years
Maximum useful life of transferred to an offtaker	30 years
Increase or decrease in depreciation expenses		$ 2,186
Solar power systems \| Minimum \| Depreciation life
Property, plant and equipment
Estimated useful lives	20 years
Solar power systems \| Maximum \| Depreciation life
Property, plant and equipment
Estimated useful lives	25 years

SOLAR POWER SYSTEMS, NET (Details) - USD ($) $ in Thousands	12 Months Ended
SOLAR POWER SYSTEMS, NET (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Property, plant and equipment
Solar power systems, gross	$ 983,172	$ 381,907
Accumulated depreciation	(31,659)	(17,091)
Solar power systems, net	951,513	364,816
Depreciation expense	287,130	225,351	$ 266,956
Reclassification of solar power systems to project assets	119,067	263,710	0
Interest capitalized - solar power systems, net	33,097	18,666	0
Solar power systems in operation
Property, plant and equipment
Solar power systems, gross	532,833	172,707
Depreciation expense	14,266	4,074	$ 11,212
Solar power systems under construction
Property, plant and equipment
Solar power systems, gross	$ 450,339	$ 209,200

PROJECT ASSETS (Details) - USD ($) $ in Thousands	12 Months Ended
PROJECT ASSETS (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
PROJECT ASSETS
Project assets - Development cost, including project acquisition and land cost	$ 651,920	$ 444,858
Project assets - EPC and other construction cost	205,666	379,635
Total project assets	857,586	824,493
Current portion	280,793	385,964
Non-current portion	576,793	438,529
Impairment loss of project assets	16,239	1,674	$ 17,152
Interest capitalized - project assets	$ 27,676	$ 26,439	$ 17,316

PROPERTY, PLANT AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2023

PROPERTY, PLANT AND EQUIPMENT, NET


	At December 31,	At December 31,
	2022	2023
	$	$
Buildings	764,577	978,924
Leasehold improvements	30,896	44,275
Machinery	1,470,957	2,213,281
Furniture, fixtures and equipment	58,928	178,455
Motor vehicles	11,527	14,768
Freehold land	39,285	45,397
	2,376,170	3,475,100
Accumulated depreciation	(908,888)	(1,061,281)
Subtotal	1,467,282	2,413,819
Construction in progress	359,361	674,623
Property, plant and equipment, net	1,826,643	3,088,442

ORGANIZATION AND PRINCIPAL ACTIVITIES

12 Months Ended

Dec. 31, 2023

ORGANIZATION AND PRINCIPAL ACTIVITIES

ORGANIZATION AND PRINCIPAL ACTIVITIES

1. ORGANIZATION AND PRINCIPAL ACTIVITIES

Canadian Solar Inc.(“CSI”) and its subsidiaries (collectively, the “Company”) is one of the world’s largest solar technology and renewable energy companies, leading manufacturer of solar photovoltaic modules, provider of solar energy and battery energy storage solutions, and developer of utility-scale solar power and battery energy storage projects. The Company’s geographic footprint is diversified, as its sales as well as development pipeline in various stages of development are located across North America, South America, Europe, South Africa, the Middle East, Australia and Asia.

CSI was incorporated pursuant to the laws of the Province of Ontario in October 2001, and in 2006, changed its jurisdiction by continuing under the Canadian federal corporate statute, the Canada Business Corporations Act, or CBCA. In July 2020, CSI filed articles of continuance to change its jurisdiction from the federal jurisdiction of Canada to the provincial jurisdiction of the Province of British Columbia. In July 2022, CSI completed its continuance from the corporate jurisdiction under the laws of the province of British Columbia to the corporate jurisdiction under the laws of the province of Ontario pursuant to the Business Corporations Act (Ontario), or OBCA. As a result, CSI is governed by the OBCA, and its affairs are governed by its notice of articles and the articles.

In July 2020, the Company announced its plan to carve-out and publicly list its subsidiary, CSI Solar Co., Ltd. (“CSI Solar”) in China (the “IPO”). Refer to Note 22 for further information.To qualify CSI Solar for the planned carve-out IPO and to bring in leading institutional investors and strategic partners (“third-party investors”), the Company completed a capital raise in 2020 by transferring a portion of CSI Solar shares to third-party investors for an aggregate consideration of RMB1.50 billion (approximately $219,000 on the date of transaction), and selected employees also purchased existing CSI Solar shares from the Company for an aggregated consideration of RMB31 million (approximately $4,500 on the date of transaction), following which, the third-party investors and Canadian Solar employees, in aggregate, owned 20.4% of CSI Solar as of December 31, 2022. The Company’s wholly-owned global project development business, its Recurrent Energy segment, is not a part of the IPO transaction.

In addition, CSI Solar approved an employee incentive plan and utilized a limited liability partnership as a vehicle to hold CSI Solar shares that were used under the employee incentive plan. Eligible CSI Solar directors, employees and board members have collectively subscribed to equity interest in the partnership for an aggregate of RMB248 million ($36,342 on the date of transaction), for which the vesting conditions include the completion of the IPO and the service period.

On June 9 , 2023, CSI Solar completed its IPO and its shares began trading on the Science and Technology Innovation Board (the “STAR Market”) of the Shanghai Stock Exchange (the “SSE”). In the STAR IPO, CSI Solar raised proceeds of $927,897, net of transaction costs. Upon completion of the IPO and as of December 31, 2023, the Company owned 62.24% of the outstanding CSI Solar shares. The Company continues to present CSI Solar as a segment subsequent to the IPO.

As of December 31, 2023, the Company operated two reportable segments as follows:

●

CSI Solar, which consists of solar module and battery energy storage manufacturing, and delivery of total system solutions, including inverters, solar system kits and EPC (engineering, procurement, and construction) services. CSI Solar’s e-STORAGE branded battery energy storage business includes its utility-scale turnkey battery system solutions, as well as a small but growing residential battery energy storage business. These storage systems solutions are complemented with long-term service agreements, including future battery capacity augmentation services.

●

INCOME TAXES - Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Reconciliation between the provision for income tax computed by applying Canadian federal and provincial statutory tax rates to income before income taxes and the actual provision and benefit for income taxes
Combined federal and provincial income tax rate (as a percent)	27.00%	27.00%	27.00%
Effect of permanent difference (as a percent)	(15.00%)	(3.00%)	4.00%
Effect of different tax rate on earnings in other jurisdictions (as a percent)	(4.00%)	1.00%	9.00%
Effect of tax holiday (as a percent)	(1.00%)	(1.00%)	(3.00%)
Effect of true-up (as a percent)		(2.00%)	4.00%
Effect of cross-border tax (as a percent)	1.00%
Unrecognized tax provision (as a percent)			(5.00%)
Change in valuation allowance (as a percent)	7.00%	(1.00%)	(3.00%)
Effect of change in tax rate			(7.00%)
Actual income tax rate (as a percent)	15.00%	21.00%	26.00%
Additional disclosure
Undistributed earnings of subsidiaries and affiliates considered to be permanently reinvested	$ 701,222
Preferential withholding tax rate (as a percent)	5.00%
Withholding Income Tax for Undistributed Earnings of Foreign Subsidiaries	$ 5,350
Aggregate amount and per share effect of the tax holiday
The aggregate amount (in dollars)	$ 3,043	$ 2,520	$ 4,466
Per share effect - basic (in dollars per share)	$ 0.05	$ 0.04	$ 0.07
Per share effect - diluted (in dollars per share)	$ 0.04	$ 0.04	$ 0.07
Minimum
Additional disclosure
Withholding income tax rate on dividends distributed by foreign invested enterprises (as a percent)	5.00%
Unrecognized deferred tax liabilities	$ 35,061
Maximum
Additional disclosure
Withholding income tax rate on dividends distributed by foreign invested enterprises (as a percent)	10.00%
Unrecognized deferred tax liabilities	$ 70,122

RESTRICTED NET ASSETS

12 Months Ended

Dec. 31, 2023

RESTRICTED NET ASSETS

RESTRICTED NET ASSETS

16. RESTRICTED NET ASSETS

As stipulated by the relevant laws and regulations applicable to PRC’s foreign investment enterprise, the Company’s PRC subsidiaries are required to make appropriations from net income as determined under accounting principles generally accepted in the PRC (“PRC GAAP”) to non-distributable reserves, which include general reserve, enterprise expansion reserve and staff welfare and bonus reserve. The wholly-owned PRC subsidiaries are not required to make appropriations to the enterprise expansion reserve but appropriations to the general reserve are required to be made at not less than 10% of the profit after tax as determined under PRC GAAP. The board of directors determines the staff welfare and bonus reserve.

The general reserve is used to offset future losses. The PRC subsidiaries may, upon a resolution passed by the stockholder, convert the general reserve into capital. The staff welfare and bonus reserve is used for the collective welfare of the employees of the subsidiaries. The enterprise expansion reserve is for the expansion of the PRC subsidiaries’ operations and can be converted to capital subject to approval by the relevant authorities. These reserves represent appropriations of the retained earnings determined in accordance with Chinese law.

In addition to the general reserve, the Company’s PRC subsidiaries are required to obtain approval from the local PRC government prior to distributing any registered share capital. Accordingly, both the appropriations to general reserve and the registered share capital of the Company’s PRC subsidiaries are considered as restricted net assets amounting to $1,587,503 as of December 31, 2023.

Document and Entity Information	12 Months Ended
Document and Entity Information	Dec. 31, 2023 shares
Document Information [Line Items]
Entity Central Index Key	0001375877
Document Type	20-F
Document Registration Statement	false
Document Annual Report	true
Document Period End Date	Dec. 31, 2023
Document Transition Report	false
Document Shell Company Report	false
Entity File Number	001-33107
Entity Registrant Name	CANADIAN SOLAR INC.
Entity Incorporation, State or Country Code	A6
Entity Address, Address Line One	545 Speedvale Avenue West
Entity Address, City or Town	Guelph, Ontario
Entity Address, Country	CA
Entity Address, Postal Zip Code	N1K 1E6
Title of 12(b) Security	Common shares with no par value
Trading Symbol	CSIQ
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding	66,158,741
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Financial Statement Error Correction [Flag]	false
Document Accounting Standard	U.S. GAAP
Entity Shell Company	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Amendment Flag	false
Auditor Name	Deloitte Touche Tohmatsu Certified Public Accountants LLP
Auditor Location	Shanghai, China
Auditor Firm ID	1113
Business Contact
Document Information [Line Items]
Contact Personnel Name	Huifeng Chang
Entity Address, Address Line One	545 Speedvale Avenue West
Entity Address, City or Town	Guelph, Ontario
Entity Address, Country	CA
Entity Address, Postal Zip Code	N1K 1E6
City Area Code	1 519
Local Phone Number	837 1881

LEASE (Tables)

12 Months Ended

Dec. 31, 2023

LEASE

Schedule of leases


	Year ended	Year ended
	December 31, 2022	December 31, 2023
	$	$
Finance lease cost:
Amortization of ROU assets	11,406	49,483
Interest on lease liabilities	1,994	5,368
Operating fixed lease cost	14,936	24,489
Short-term lease cost	1,028	1,824
Total lease cost	29,364	81,164

Schedule of supplement balance sheet information


		At	At
	Balance Sheet Location	December 31, 2022	December 31, 2023
		$	$
Assets:
Operating lease assets	Right-of-use assets	35,506	132,786
Land use rights, net	Right-of use assets	68,094	104,221
Total operating lease ROU assets		103,600	237,007

Finance lease assets	Property, plant and equipment, net	41,705	163,553
Total finance lease ROU assets		41,705	163,553

Liabilities:
Operating lease	Operating lease liabilities – current	9,810	20,204
Operating lease	Operating lease liabilities – non-current	25,714	116,846
Total operating lease liabilities		35,524	137,050

Finance lease	Other current liabilities	14,697	88,180
Finance lease	Other non-current liabilities	14,372	71,651
Total finance lease liabilities		29,069	159,831

Schedule of other supplemental information


	Year ended	Year ended
	December 31, 2022	December 31, 2023
	$	$
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows from finance lease	(1,994)	(5,368)
Operating cash outflows from operating lease	(15,032)	(19,686)
Financing cash outflows from finance lease	(20,194)	(42,319)
ROU assets obtained in exchange of new finance lease liabilities in non-cash transaction	—	167,726
ROU assets obtained in exchange of new operating lease liabilities in non-cash transaction	14,393	119,412
ROU assets disposed through early termination of operating leases in non-cash transaction	(965)	(3,288)


	At December 31,		At December 31,
	2022		2023
Weighted average of remaining lease term - finance leases (in years)	1.8		4.0
Weighted average of remaining lease term - operating leases (in years)	6.6		14.4
Weighted average of lease discount rate - finance lease	4.9	%	5.5	%
Weighted average of lease discount rate - operating lease	10.4	%	5.7	%

Schedule of lease maturities


	Operating Lease	Finance Lease	Total Lease
	Payment	Payment	Payment
	$	$	$
Year Ending December 31:
2024	24,927	95,023	119,950
2025	18,322	30,972	49,294
2026	15,952	17,411	33,363
2027	12,351	16,586	28,937
2028	13,655	15,342	28,997
Thereafter	132,225	3,962	136,187
Total future minimum lease payments	217,432	179,296	396,728
Less: imputed interest	80,382	19,465	99,847
NPV for future minimum lease payments	137,050	159,831	296,881

Analysis as:
Short-term	20,204	88,180	108,384
Long-term	116,846	71,651	188,497
Total lease liabilities	137,050	159,831	296,881

LEASE - Operating leases - Maturities (Details) $ in Thousands	Dec. 31, 2023 USD ($)
LEASE
2024	$ 24,927
2025	18,322
2026	15,952
2027	12,351
2028	13,655
Thereafter	132,225
Total future minimum lease payments	$ 217,432

VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
VARIABLE INTEREST ENTITIES
TOTAL ASSETS	$ 11,895,760	$ 9,037,128
Short-term borrowings	1,805,198	1,443,816
Long-term borrowings	3,071,163
TOTAL LIABILITIES	8,190,516	6,730,434
Variable Interest Entity
VARIABLE INTEREST ENTITIES
Cash	10,478	15,903
Project assets	109,144	320,460
Other assets	40,340	30,163
TOTAL ASSETS	159,962	366,526
Short-term borrowings	73,131	191,792
Long-term borrowings	16,956	49,675
Other liabilities	27,376	26,366
TOTAL LIABILITIES	$ 117,463	$ 267,833

INVENTORIES (Details) - USD ($) $ in Thousands	12 Months Ended
INVENTORIES (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
INVENTORIES
Raw materials	$ 222,826	$ 310,394
Work-in-process	139,116	265,109
Finished goods	817,699	948,592
Inventories	1,179,641	1,524,095
Amount of finished goods includes modules	$ 112,440	161,138
Federal Investment Tax Credit (as a percentage)	5.00%
Inventory written down	$ 113,079	$ 7,475	$ 14,070

FAIR VALUE MEASUREMENT - Marketable securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
FAIR VALUE MEASUREMENT
Carried at fair value	$ 15,190	$ 18,337
Fair value (gain) losses	2,826	418	$ 4,744
Other Long-Term Investments	22,869	7,134
Unrealized gains	15,500	1,810
Carried at fair value	4,134	3,739
Gain of investments	$ 3,487	$ 904

BORROWINGS (Tables)

12 Months Ended

Dec. 31, 2023

BORROWINGS

Schedule of bank borrowings


	At December 31,	At December 31,
	2022	2023
	$	$
Short-term borrowings related to project assets⁽¹⁾	333,521	291,982
Other short-term borrowings	1,110,295	1,513,216
Subtotal for short-term borrowings	1,443,816	1,805,198
Long-term borrowings related to project assets	318,987	450,455
Other long-term borrowings	494,419	815,510
Subtotal for long-term borrowings	813,406	1,265,965
Total	2,257,222	3,071,163

(1)	Includes long-term borrowings that were classified as current liabilities because these borrowings are associated with certain solar power and battery energy storage assets that are expected to be sold within one year.

Schedule of future principal repayments on the long-term borrowings


2024	$	1,805,198
2025		551,022
2026		355,269
2027		84,689
2028		49,252
Thereafter		225,733
Total	$	3,071,163

Schedule of weighted average effective interest rates on borrowings


	At December 31,		At December 31,
	2022		2023
Short-term borrowings	5.3	%	3.8	%
Long-term borrowings	4.1	%	6.7	%

Schedule of interest incurred


	Years Ended December 31,
	2021	2022	2023
	$	$	$
Interest capitalized — project assets	17,316	26,439	27,676
Interest capitalized — solar power systems	—	18,666	33,097
Interest capitalized — property, plant and equipment	—	—	963
Interest expense	58,153	74,266	114,099
Total interest incurred	75,469	119,371	175,835

FAIR VALUE MEASUREMENT - Carrying value (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
FAIR VALUE MEASUREMENT
Impairment charges for long-lived assets	$ 5,938	$ 60,330	$ 6,084
Impairment loss of project assets	16,239	1,674	$ 17,152
Long-term borrowings	1,265,965	813,406
Convertible debt noncurrent	$ 389,033	$ 257,615

LEASE - Additional information (Details)	Dec. 31, 2023	Dec. 31, 2022
LEASE
Weighted average of remaining lease term - finance leases (in years)	4 years	1 year 9 months 18 days
Weighted average of remaining lease term - operating leases (in years)	14 years 4 months 24 days	6 years 7 months 6 days
Weighted average of lease discount rate - finance lease	5.50%	4.90%
Weighted average of lease discount rate - operating lease	5.70%	10.40%

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2023

EARNINGS PER SHARE

Schedule of computation of basic and diluted earnings per share


	Years Ended December 31,
	2021		2022		2023

	(In Thousands of U.S. Dollars, except share and per share data)
Numerator:
Net income attributable to Canadian Solar Inc. — basic	$	95,248	$	239,968	$	274,187
Dilutive effect of convertible notes		5,300		5,183		5,290
Net income attributable to Canadian Solar Inc. — diluted	$	100,548	$	245,151	$	279,477
Denominator:
Denominator for basic calculation — weighted average number of common shares — basic		61,614,391		64,324,558		65,375,084
Diluted effects of share number from RSUs and share options		985,554		586,420		546,765
Dilutive effects of share number from convertible notes		6,272,157		6,272,157		6,272,157
Denominator for diluted calculation — weighted average number of common shares — diluted		68,872,102		71,183,135		72,194,006
Basic earnings per share	$	1.55	$	3.73	$	4.19
Diluted earnings per share	$	1.46	$	3.44	$	3.87

Schedule of anti-dilutive shares excluded from the computation of diluted earnings per share

Financial Statement Schedule I - STATEMENTS OF OPERATIONS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Condensed Financial Statements
Net revenues	$ 7,613,626	$ 7,468,610	$ 5,277,169
Cost of revenues	6,333,643	6,205,474	4,367,857
Gross profit	1,279,983	1,263,136	909,312
Operating expenses:
General and administrative expenses	440,488	342,129	308,942
Research and development expenses	100,844	69,822	58,407
Other operating income, net	(84,339)	(63,802)	(47,068)
Total operating expenses	826,663	907,075	718,931
Loss from operations	453,320	356,061	190,381
Other income (expenses):
Interest expense	(114,099)	(74,266)	(58,153)
Interest income	51,621	40,615	11,051
Gain (loss) on change in fair value of derivatives, net	(27,504)	(44,489)	23,785
Foreign exchange gain (loss), net	30,555	77,689	(47,234)
Investment (loss) gain	14,632	858	18,634
Other income (expenses), net:	(44,795)	407	(51,917)
Income (loss) before income taxes and equity in earnings of subsidiaries	408,525	356,468	138,464
Income tax benefit (expense)	(59,501)	(73,353)	(35,844)
Net income attributable to Canadian Solar Inc.	274,187	239,968	95,248
Reportable legal entities \| Parent Company
Condensed Financial Statements
Net revenues			341
Gross profit			341
Operating expenses:
Selling and distribution expenses	263	890	766
General and administrative expenses	39,838	11,261	9,177
Research and development expenses	97	155	182
Other operating income, net			(282)
Total operating expenses	40,198	12,306	9,843
Loss from operations	(40,198)	(12,306)	(9,502)
Other income (expenses):
Interest expense	(18,720)	(23,229)	(19,677)
Interest income	22,862	20,563	20,249
Gain (loss) on change in fair value of derivatives, net	(1,535)	(844)	4,043
Foreign exchange gain (loss), net	(772)	616	(3,674)
Other income (expenses), net:	1,835	(2,894)	941
Income (loss) before income taxes and equity in earnings of subsidiaries	(38,363)	(15,200)	(8,561)
Income tax benefit (expense)	(6,775)	8,786	2,424
Equity in earnings of subsidiaries	319,325	246,382	101,385
Net income attributable to Canadian Solar Inc.	$ 274,187	$ 239,968	$ 95,248

INVESTMENTS IN AFFILIATES (Tables)

12 Months Ended

Dec. 31, 2023

INVESTMENTS IN AFFILIATES

Schedule of investments in affiliates


	At December 31,
	2022		2023
	Carrying	Ownership	Carrying	Ownership
	Value	Percentage	Value	Percentage
	$	(%)	$	(%)
Lingang Frontier (Yangzhou) CSI New Energy Investment Fund, LP	—	—	42,357	44.3
Marangatu Holding S.A.	2,500	30	30,790	30
Suzhou Financial Leasing Co., Ltd.	27,328	4.2	30,048	3.0
Panati Holding S.A.	1,818	30	28,185	30
RE Crimson Holdings LLC	22,272	20	26,551	20
Canadian Solar Infrastructure Fund, Inc.	8,961	14.6	17,677	14.5
Lavras Solar Holding S.A.	14,318	20	12,881	20
Suzhou Zhuosheng Venture Investment Fund, LLP	6,868	17.9	8,957	14.0
Francisco Sa Solar Holding S.A.	7,683	20	7,553	20
Salgueiro Solar Holding S.A	6,595	20	7,250	20
JuSheng (Suzhou) Solar Tech Co., Ltd.	5,922	4.4	7,028	2.2
Jaiba Solar Holding S.A.	5,077	20	4,131	20
Others	6,442	10.9-49	13,520	8.5-49
Total	115,784		236,928

LEASE - Operating leases - Gross difference (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Operating leases, gross difference
Total future minimum lease payments	$ 217,432
Less: imputed interest	$ 80,382

SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Concentration of credit risk (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Concentration of credit risk
Advances to suppliers	$ 193,818	$ 253,484
Supplier \| Supplier A
Concentration of credit risk
Advances to suppliers		$ 35,359

SHARE-BASED COMPENSATION - RSUs to Employees (Details) - RSUs - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
SHARE-BASED COMPENSATION
Shares granted to employees	206,067	444,167	2,161,098
Weighted average grant date fair value	$ 38.64
Number of unvested awards outstanding	1,660,182	3,189,376
Total compensation cost at the date of grant	$ 7,785	$ 12,909	$ 55,822
Total unrecognized share-based compensation costs	$ 34,015
Weighted-average period of recognition of compensation expense	1 year 7 months 6 days
Number of Shares
Unvested at the beginning of the period (in shares)	3,189,376
Granted (in shares)	206,067	444,167	2,161,098
Vested (in shares)	(1,652,686)
Forfeited (in shares)	(82,575)
Unvested at the end of the period (in shares)	1,660,182	3,189,376
Weighted Average Grant-Date Fair Value
Unvested at the beginning of the period (in dollars per share)	$ 25.65
Granted (in dollars per share)	38.64
Vested (in dollars per share)	24.81
Forfeited (in dollars per share)	26.97
Unvested at the end of the period (in dollars per share)	$ 27.21	$ 25.65
Total fair value of shares vested	$ 57,298	$ 13,276	$ 21,628
Employees
SHARE-BASED COMPENSATION
Shares granted to employees		2,301,000	2,301,000
Vesting percentage			50.00%
Weighted average grant date fair value			$ 25.57
Number of unvested awards outstanding	1,096,000
Number of Shares
Granted (in shares)		2,301,000	2,301,000
Unvested at the end of the period (in shares)	1,096,000
Weighted Average Grant-Date Fair Value
Granted (in dollars per share)			$ 25.57
Tranche one \| Employees
SHARE-BASED COMPENSATION
Vesting percentage			25.00%
Tranche two \| Employees
SHARE-BASED COMPENSATION
Vesting percentage			25.00%
Minimum
SHARE-BASED COMPENSATION
Grant period (in years)	1 year
Maximum
SHARE-BASED COMPENSATION
Grant period (in years)	4 years

INTANGIBLE ASSETS, NET (Tables)

12 Months Ended

Dec. 31, 2023

INTANGIBLE ASSETS, NET

Schedule of intangible assets


	Gross
	Carrying	Accumulated
At December 31, 2023	Amount	Amortization	Net
	$	$	$
Computer software	37,898	(23,820)	14,078
Customer-related intangible assets	3,647	(478)	3,169
Trademark	2,533	(53)	2,480
Total intangible assets, net	44,078	(24,351)	19,727


	Gross
	Carrying	Accumulated
At December 31, 2022	Amount	Amortization	Net
	$	$	$
Technical know-how	1,443	(1,430)	13
Computer software	37,648	(20,131)	17,517
Total intangible assets, net	39,091	(21,561)	17,530

NON-CONTROLLING INTERESTS

12 Months Ended

Dec. 31, 2023