E-Storage, Sunraycer Enter Agreements for Texas BESS Projects Totalling 503MWh

Why It Matters

The projects bolster ERCOT’s storage capacity, easing renewable integration and grid stability, while Canadian Solar’s asset consolidation accelerates U.S. clean‑energy supply chain development.

Key Takeaways

• 503 MWh Lupinus BESS projects approved in Texas
• e-Storage will provide SolBank 3.0 with ten‑year service
• Lupinus 1 (202 MWh) starts construction Q1 2027, operational Q3
• Lupinus 2 (301 MWh) begins Q3 2026, online Q2 2027
• Canadian Solar gains 75.1% control of US manufacturing assets

Pulse Analysis

The Lupinus battery projects represent a strategic push to deepen energy‑storage resources within the Electric Reliability Council of Texas (ERCOT), a market that has become a bellwether for North American storage demand. By adding 503 MWh of lithium‑iron‑phosphate capacity, the projects will provide fast‑response ancillary services, mitigate intermittency from wind and solar farms, and help balance supply‑demand fluctuations during peak load periods. This aligns with ERCOT’s recent policy incentives aimed at expanding grid‑scale storage to improve reliability after the 2021 winter crisis.

E‑Storage’s SolBank 3.0 platform, launched in 2025, showcases significant advances in LFP chemistry, notably a near‑zero degradation curve for the first four years of operation. Such performance guarantees lower total‑cost‑of‑ownership for owners and reduces the need for early battery replacements, a critical factor for investors seeking stable cash flows from long‑term service agreements. The ten‑year service contract further cements e‑Storage’s role as a full‑life‑cycle partner, covering performance optimisation, predictive maintenance, and remote monitoring, thereby enhancing asset uptime and investor confidence.

Beyond the Texas projects, Canadian Solar’s acquisition of a 75.1% stake in its U.S. manufacturing operations signals a broader vertical integration trend among solar and storage OEMs. Controlling cell, module, and battery production reduces supply‑chain exposure, accelerates time‑to‑market for next‑generation products, and positions the company to meet rising domestic demand driven by federal tax incentives and state‑level clean‑energy mandates. This consolidation could also spur further domestic job creation and strengthen the United States’ strategic independence in critical energy‑technology components.

E-Storage, Sunraycer enter agreements for Texas BESS projects totalling 503MWh

By April Bonner · February 6, 2026

E-Storage, Canadian Solar’s energy storage subsidiary, and owner and operator Sunraycer Renewables have entered into agreements for the supply and long‑term servicing of two battery energy storage systems (BESS) in Franklin County, Texas, US.

Totalling 503 MWh, the projects are being collectively referred to as the Lupinus projects, and are being developed by Sunraycer.

Lupinus consists of the 202 MWh Lupinus 1, which is expected to start construction in Q1 2027 and become operational by Q3 2027. It also includes Lupinus 2, a 301 MWh facility scheduled to begin construction in Q3 2026 and reach commercial operation in Q2 2027.

Under the agreements, e‑Storage will supply its SolBank 3.0 BESS and offer 10 years of services, helping ensure system reliability, optimise performance, and maintain availability throughout the project lifecycle.

In 2025, the company introduced an upgraded SolBank 3.0 BESS solution. The company states that it has improved its lithium‑iron‑phosphate (LFP) technology and provides a “near zero battery degradation curve” during the first four years.

As part of the announcement for Lupinus, e‑Storage claims the projects will play a vital role in supporting renewable‑energy integration and enhancing grid stability within the Electric Reliability Council of Texas (ERCOT) market, highlighting ERCOT’s importance to North America’s energy‑storage market overall.

Near the end of 2025, Canadian Solar announced that it would take direct control of its US solar PV and energy‑storage manufacturing facilities. As reported by colleagues at PV Tech, Canadian Solar will maintain a 75.1 % ownership stake in the new venture, which will manage its US solar PV cell and module production as well as its planned energy‑storage system manufacturing activities.

The parent company will also acquire a majority 75.1 % ownership of “certain overseas facilities that support US operations” from CSI Solar. It said the total consideration for these assets is expected to be around US$50 million.

Canadian Solar currently runs a module‑assembly plant in Mesquite, Texas, and intends to launch a solar‑cell plant in Indiana alongside a lithium‑battery factory in Kentucky by the end of this year. These are likely the facilities involved in this asset shift. However, it remains unclear which overseas facilities—such as solar‑PV and BESS factories in Southeast Asia, China, and Brazil—it plans to acquire.

In November, e‑Storage was contracted to provide engineering, procurement, and construction (EPC) services on the 411 MW/1,858 MWh Skyview 2 BESS in Edwardsburgh Cardinal, Ontario, Canada.

Sunraycer was active in Texas last year, reaching a revenue‑swap agreement with the international utility and power firm Engie for two solar‑plus‑storage projects. A revenue swap functions like a toll agreement, where an off‑taker pays the project owner a fixed amount for rights to the project’s revenues, thereby assuming some risk from the owner. Engie acts as the swap provider through its subsidiary, Engie Energy Marketing North America (EEMNA).