If you’re considering switching to solar energy, chances are you’ve been hearing many terminologies that make it seem daunting and complex. You may have come across terms like “Tier 1 Solar Panels,” in which case the question in your head is – how do I know if the panel I am being quoted on is tier 1?
In this blog post, we will answer your questions by explaining what constitutes a Tier 1 solar panel and why these panels are often preferred over others when it comes to powering your home or business with renewable energy.
Whether you’re looking to join the growing numbers taking advantage of today’s clean energy technologies or just want some reliable information on how best to invest in your future power needs, let us help guide you through the process!
Explaining Tier Ranking Systems
Tier rankings have become an integral part of the solar energy industry, helping investors
evaluate solar panel product bankability. These systems make it easier to categorize the most dependable and cutting-edge products on the market. Financial analysis and investment firms typically use them. While originally intended for medium- to large-scale solar projects, tier rankings have become a common point of reference for residential solar customers in Australia.
Given the importance of reliable solar panel products, it is no wonder that tier rankings have become an essential tool for those looking to invest in solar energy. By providing critical information about bankability, they help ensure that investment capital is deployed to maximize both profit and technological innovation.
At the start, it’s essential to grasp a few key aspects of tier ranking systems.
Various tier ranking systems exist, but Bloomberg’s list is the one Australian solar firms commonly consult. Although their overall objectives are similar, their requirements differ; hence, a Tier 1 producer placed on one list might not retain the same position on another’s ranking.
Tier rankings refer to panel manufacturers rather than the panels themselves. Manufacturers provide a spectrum of panels rated by quality, from premium to budget. Hence, selecting panels from a Tier 1 manufacturer does not negate the possibility of acquiring outdated or low-quality panels.
Typically, tier ranking lists are not openly accessible to the public. It’s possible that your installer may have access to one of these lists, either through subscriptions or alternative means, to attest to their solar systems using ‘Tier 1’ panels. However, you may be unable to verify their claim autonomously. Request the installer to present proof of the tier ranking list using third-party sources, ideally the authentic and updated ranking report from the respective rating company.
Tier rankings frequently prioritize significant initiatives and their financial backing. Though, if you intend to install solar panels on your roof, you may not be interested in whether the manufacturer’s products have been utilized in solar farms or the number of banks that provided financial support; however, that is the foundation on which tier rankings are often established.
Manufacturing capacity is also a key aspect considered in tier rankings. Manufacturers designated as ‘Tier 1’ usually belong to the world’s largest producers.
Although tier rankings do not guarantee the quality, they provide a reliable indication. Companies that prepare tier ranking lists don’t directly examine panels themselves; rather, they rely on indirect financial institution feedback to identify manufacturers with investment-worthy panels.
Therefore, when extending these rankings (predominantly designed for large-scale commercial investors) to the smaller residential market, the general reasoning follows thus: “If these panels qualify for financing to be deployed across vast solar farms globally, they should be suitable for installation on my rooftop.”
Tier rankings may not consider aspects important to Australian consumers. One critical issue is relevant to warranties: whether the company has an Australia-based office that can promptly and efficiently process warranty claims (in the unfortunate event of problems). If the manufacturer is based overseas, warranty replacement is likely to be tedious and time-consuming.
What Is a Tier 1 Solar Panel?
When it comes to solar panels, Tier 1 is the highest standard a manufacturer can achieve. To earn this rating, the manufacturer must score well on a range of criteria, including financial stability, manufacturing and deployment scale, durability and quality, and technical performance. Additionally, they must have strong insurance and backing, show experience, and offer exceptional service and support. While Tier 1 status is a good indicator of quality, it’s important to note that not all Tier 1 brands are created equal. As a result, it’s essential to research and find the brand that best meets your specific needs and budget.
Bonus:
When it comes to solar panels, tier 1 is not just a label, it’s a guarantee of excellence.
Advantages of Tier 1 Solar Panels
Tier 1 solar panels are the clear front runners in the industry. Their major advantage lies in their use of high-quality silicon. The solar panels produced with this level of silicon perform much more effectively. Furthermore, Tier 1 manufacturers have implemented advanced robotic methods to reduce or eliminate human errors.
These companies invest heavily in research and development to stay ahead of the curve. Their vertical integration means they produce all the major components of a solar panel. Finally, staying consistent in their performance, Tier 1 manufacturers produce over 1 GW of solar panels annually for at least five years. There’s no doubt that Tier 1 solar panels provide a level of reliability that’s hard to beat!
When it comes to solar panels, the quality of the materials used can make all the difference. That’s why Tier 1 solar panel manufacturers are highly sought after. These manufacturers prioritize quality over cost, resulting in significantly more expensive panels than those from other manufacturers.
However, the advantages provided by Tier 1 panels more than makeup for the higher cost. With a 12-year product guarantee and 25-year linear performance warranty, homeowners can have peace of mind knowing their investment is protected. Additionally, Tier 1 manufacturers have a strong balance sheet and are publicly traded on the stock exchange, giving them a stable and reliable reputation in the market.
Which Tier 1 Solar Panels Are the Best?
Here is a list of the top Tier 1 solar panel manufacturers in Southeast Asia according to BNEF’s Q2 2021 rankings. It’s worth noting that the most sought-after solar panel manufacturer varies based on the country due to factors such as logistics, supply chain, and the solar PV panel’s efficiency relative to its cost.
| Manufacturer | Capacity (MW/year) |
| JA Solar (China) | 23,200 |
| Canadian Solar (Canada) | 16,100 |
| REC Group (Norway) | 1,800 |
| Jinko (China) | 31,000 |
| LG | 2,400 |
| Panasonic | N/A |
| Risen Energy (China) | 14,100 |
| SunPower / Maxeon (United States) | 3,600 |
| Trina (China) | 33,600 |
| LONGi (China) | 50,000 |
Be sure to refer to the aforementioned factors when selecting your preferred solar panel manufacturer.
Conclusion
So, when choosing a Tier 1 solar panel for your home, the different tiers should be taken into account. It will greatly depend on your needs and budget – a Tier 1 panel doesn’t always mean you’ll get the best product. However, since all reputable manufacturers strive for Tier 1 status, you can be sure that any Tier 1 solar panel is a great investment.
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