Tier One Solar Panel Manufacturers – What Does It Mean?

If you have been researching solar panels, you may have come across the term ‘tier one’, ‘tier two’ and ‘tier three’. But what do these ratings mean? How do I know which one is best for me? This blog will discuss what these tiers are and how solar panel manufacturers are categorised into tiers one, two and three.

 

What Does Tier One Solar Mean?

Solar panel manufacturers are essentially ‘ranked’ into three tiers. The ranking system was constructed by Bloomberg New Energy Finance Corporation (BNEF) to compare manufacturers in terms of their financial stability, making choices easier for prospective buyers.

 

Bloomberg Tier One Solar Panels:

Bloomberg tier one solar panels are manufactured by a company that has the following:

  • Have been producing solar panels for five years or more;
  • Have their own solar panel production facilities;
  • Are publicly listed on the stock exchange or have a stable and robust backing;
  • Involved in large scale projects of 1.5MWp of solar (this is the equivalent of a reasonably large wind farm) in the previous two years.

Bloomberg believes the manufacturers that have provided products to large-scale solar projects, financed by banks, indicate their solar panel quality.

Tier two and tier three solar panel manufacturers are all those that don’t meet one or more of these criteria. For example, if a solar panel manufacturer outsources their building of panels, they would not be considered a tier one.

One primary reason for this is that companies that have established their own personal manufacturing plants will have invested time, money and expertise into developing their production lines, therefore contributing to research and development of their brand and the pursuit of solar energy.

Indeed, a minimal amount of the world’s solar panel manufacturers achieve Tier one ranking given the high threshold which must be reached. As the criteria are extensive, Bloomberg tier one solar panels are generally 10-30% more expensive than tier two and tier three solar panels.

 

The Tier Two and Three Solar Panels Are Cheaper – Are Tier One Solar Panels Worth It?

When considering classified Bloomberg tier one solar panels, it all comes down to personal choice. On one hand, tier-one panels are higher in price, but they are trusted and are considered to originate from a manufacturer with experience and financial stability with an enhanced manufacturing process.

As tier one panels require the manufacturers to have their own solar panel production facilities, this infers that their products’ quality control exceeds companies who may outsource their manufacturing. However, it is essential to note that both tier two and tier three solar panel assembly lines are designed and built by the same engineering firms. This means they will most likely have a high-quality automated manufacturing process.

Tier one solar panel manufacturers have invested time and money into building their brand’s reputation through research, testing, and promotion. Essentially, with a better reputation, tier one solar panel manufacturers hold a more significant market share and thus have more money to invest in generating products.

With greater range comes a more substantial market and, in some circumstances, a higher price. The 10-30% premium that tier one manufactures charge comes down to quality control, warranties and corporate strength to enforce these. By making more money, a tier-one manufacturer has the liberty to focus upon quality control with purpose-built manufacturing just for their brand. Also, due to a tier-one solar panel manufacturers company’s overall strength in terms of money, market and power, in the chance there is a defective product, they have more flexibility to fix this.

When a manufacturer has invested in promoting its brand and its products, they are unlikely to allow a defective product to tarnish the brand’s reputation. It remains in their best interest to invest in extensive quality control when manufacturing panels and be accommodating when responding to warranty claims.

 

At the End of The Day, It May Just Come Down to Dollars and Cents…

As the name suggests, tier one solar panel manufacturers are more reliable and financially trustworthy as per the BNEFC guidelines than their tier two and three counterparts. With these guidelines met, it’s likely that tier one solar panel manufacturers as an option are perhaps a more solid choice in the long term.

If the tier one price tag is prohibitive, don’t be disheartened. It is important to note that smaller start-up manufacturers with new and innovative technology may be unable to obtain the status of tier one as they have not provided panels to large scale projects. Even with better technology than tier one products, their history is not there yet, though that is not to say they won’t get there.

Ultimately, the manufacturer’s tier ranking is just one of the several factors to consider when choosing your solar panels. If you would like more information about the different solar panel manufacturers tiers, or if you are just interested in discussing your options when it comes to solar power, call us today! Our industry professionals are here to guide you on your solar energy journey.