Tier 1 Solar Panels
In the solar industry, the term “Tier 1” is often used to signify the highest quality and most reliable solar panel manufacturers. But what does Tier 1 in Solar Industry really mean, and is it always the best indicator of quality? As a key player in the solar energy market, it’s crucial to understand the nuances of this classification, especially when making purchasing decisions for solar installations.
What is the BloombergNEF Tier 1 Classification?
BloombergNEF (BNEF) is one of the most recognized names in the solar industry when it comes to evaluating the “bankability” of solar products. The term “bankability” refers to whether banks are likely to offer non-recourse debt financing for projects that use these solar products. To make the Tier 1 list, solar module manufacturers need to meet strict criteria based on financing activity and project success. Specifically, they must have supplied products for at least six different projects of 1.5 MW or more over the past two years, with each project receiving non-recourse financing from six different commercial banks.
Criteria to be Tier 1:
- Own Production Facilities: The manufacturer must own and operate its production facilities and sell solar panels under its own brand.
- Non-Recourse Debt Financing: Projects using their solar panels must be financed with non-recourse loans by multiple banks, which is a sign that the bank believes in the long-term viability of the manufacturer’s product.
- Proven Track Record: A Tier 1 manufacturer has been involved in substantial, large-scale projects, which have met stringent financial and technical requirements.
- Financial Stability: The manufacturer must not have filed for bankruptcy, insolvency, or defaulted on major financial obligations.
The Misconception About Tier 1 Solar Panels
While Tier 1 manufacturers have a proven track record of financial and project success, there are several important caveats that make the “Tier 1” label not the end-all-be-all when choosing solar panels for your projects.
- Tier 1 Does Not Guarantee Quality
The Tier 1 classification is based solely on bankability, not product quality. A manufacturer could technically be classified as Tier 1 while still facing quality control issues, financial instability, or having subpar manufacturing practices. Therefore, it’s essential to perform due diligence beyond just the label. - Tier 1 is Not Static
A Tier 1 status can change, as manufacturers are reviewed quarterly based on their performance. A manufacturer could be removed from the list due to bankruptcy or failure to meet project requirements, leaving buyers vulnerable if they solely rely on this label when selecting a supplier. - Quality Testing is Key
As highlighted by multiple industry sources, including Renvu and BloombergNEF, technical due diligence is vital. Many banks and financing organizations will not rely only on Tier 1 status to assess a manufacturer’s bankability—they will also conduct rigorous product reliability tests, such as degradation testing and evaluation of factory conditions. - There Are Alternative Indicators of Quality
While the Tier 1 list is an important consideration for project financing, it’s not the only benchmark of a manufacturer’s quality. Organizations like PVEL (PV Evolution Labs) and other technical evaluators perform reliability scorecards and accelerated degradation tests to assess product longevity and performance. These tests can often provide more insight into a product’s real-world performance than its Tier 1 status. - Tier 2 and 3 Manufacturers Can Also Offer Great Products
The idea that Tier 1 manufacturers are the only “good” manufacturers is a myth. Many Tier 2 and Tier 3 manufacturers offer solar panels that are highly competitive in terms of price and performance. These manufacturers may not yet have the financial backing or project portfolio to meet the Tier 1 criteria but could still provide quality, reliable products.
Why You Shouldn’t Rely Solely on Tier 1
As someone in the solar industry, it’s crucial to understand that bankability and quality aren’t always the same thing. The Tier 1 classification from BloombergNEF, while useful in evaluating a manufacturer’s ability to secure large-scale financing, doesn’t guarantee the panel’s performance, durability, or the company’s long-term stability.
Before making any purchasing decisions, consider the following:
- Check the warranty: A strong, long-term warranty can give you confidence in the panel’s performance.
- Do independent testing: Look for third-party certifications and reliability scorecards from organizations like PVEL or RETCS.
- Understand the manufacturer’s history and factory conditions: It’s always wise to ensure that the production facilities are up to standard and are producing panels that meet industry expectations.
Looking Ahead
As the renewable energy industry continues to expand, Energy Solutions and Supplies LLC (ESAS) remains dedicated to driving clean energy adoption through innovation, collaboration, and sustainability-focused initiatives. Together, we aim to support EPC firms, developers, and investors in achieving solar energy success with top-tier products and services.
At ESAS, we focus not only on Tier 1 certification but also on providing reliable, cost-effective, and high-performance solutions tailored to each project’s unique needs. We’re committed to helping you find the right solar panels and systems to maximize your return on investment and long-term energy savings.
Contact Information
Energy Solutions and Supplies LLC
33 West Broadway Road, Mesa, AZ, Chandler, AZ, United States, 85210
Phone: +1 480-478-1616
Email: marketing@energysolutions-solar.com
Website: www.energysolutions-solar.com
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References: https://assets.bnef.com/public/tiering/solarmodules.pdf
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