Fire Energy, a system integrator, said it will promote Canadian Solar's PV products in Spain, Germany and Italy. Initial shipments started this month.
Wednesday's news comes a day after the Italian government said it will unveil a much-awaited plan for new incentives for its rapidly-growing solar energy sector on February 11.
However, concerns over a potential deep cut in feed-in tariffs (FIT) in Germany that could hit solar companies around the world has left investors jittery.
In November, Canadian Solar had said it expects to double shipments in 2010, with major markets, including Germany and Italy driving demand.
Shares of the company were up 2 percent at $23.39 Wednesday morning on Nasdaq.
The stock, off about 30 percent from a year-high it hit earlier this month, is still up eight-fold from a March 2009 year-low.
(Reporting by Adveith Nair in Bangalore; Editing by Maju Samuel)