Canadian Solar is reviewing strategic options for its Recurrent Energy unit, including potential asset sales or other alternatives, according to a person familiar with the matter.
The unit, which develops solar farms and energy storage projects, has built a portfolio of 12.2 gigawatts of solar capacity and 6.4 gigawatt-hours of battery storage across six continents. Recurrent Energy has been pursuing a deleveraging strategy to reduce its roughly $2.17 billion in non-recourse borrowings, as disclosed in its latest filings.
The review comes as the unit faces challenges securing U.S. clean energy tax credits. New regulations restrict the use of Chinese-manufactured equipment in projects seeking the investment tax credit, and developers were required to commence construction before July 4 to qualify for the benefit. Higher material costs and tariff pressures have also weighed on U.S. solar operations.
Canadian Solar has engaged Guggenheim Securities to assist in evaluating the options for Recurrent Energy, the person said. The company did not immediately respond to requests for comment.
Recurrent Energy had previously outlined its deleveraging efforts in May, emphasizing its focus on reducing debt through asset sales.
