Tier 1 solar
panels?

Most consumers would associate a term like ‘Tier 1’ with high-quality or the best. As we explain, Tier 1 solar panels don’t really mean that at all and, should not form a big part of your criteria for selecting a panel to install on your roof.

However, there are over 150 solar panel manufacturers selling modules in Australia. Does have a tiering system help with the selection process?

What are Tier 1 solar panels?

Tier 1 solar panels are an industry categorisation developed by research agency Bloomberg New Energy Finance Corporation for solar PV manufacturers based on the bankability of their large installs. The term does not refer to individual panels, it is a measure of the solar manufacturers that supply the modules.

Ranking criteria for Tier 1 panels

Tier 1 panels are not selected based on their performance; the categorisation relates to bankability only. Bloomberg explains the key criteria for classifying tier 1 panels is “whether projects using the manufacturer’s solar products are likely to be offered non-recourse debt financing by banks”. Specifically, it means that the panels have been installed in six or more large-scale projects that have received non-recourse financial funding from six or more different banks.

Is Tier 1 a mark of quality?

In Bloomberg’s own words, the Tier 1 term is not a mark of quality, ‘We strongly recommend that module purchasers and banks do not use this list as a measure of quality, but instead consult a technical due diligence firm such as RINA, ATA Renewables, RETC LLC, Wood Plc, PVEL, Black & Veatch, TUV, E3, STS Certified, Clean Energy Associates, PI Berlin, Pvbuyer, Enertis, Leidos Engineering, the Austrian Institute of Technology (AIT) or Phoventus’

Accessing the Tier 1 list

There is only one way to access the Tier 1 solar panel list, that is to contact Bloomberg and request a quote for downloading the list. The list is not publicly available so, if you see a list online, it has either been doctored or published without permission.

Are there Tier 2 and Tier 3 panels?

There is no such official term or definition, as ‘Tier 2 panels’, or ‘Tier 3 panels’. Nor, is there any official ranking criteria to delineate between a high quality panel and mid-range or entry-level modules.

The problem with Tier 1 panels

For household consumers, there are two major problems with Tier 1 solar panels:

• 1. The Tier 1 categorisation does not factor in panel performance
• 2. The list is not made public, so you have no way of knowing what if a module is a genuine Tier 1 panel

The Tier 1 classification does not necessarily help you select the best quality solar panels. If anything, it further confuses the exercise of comparing the various solar panel brands. As Bloomberg points out “a Tier 1 categorisation is not a recommendation for the company or its products.”. The use of the term Tier 1 panels is most problematic when a salesperson uses it to describe the system they are proposing to install. You have no way of telling whether or not the modules are genuine Tier 1 panels. Even if you are sure they are Tier 1 panels, is this classification relevant for your solar power installation?

How to find a Tier 1 manufacturer

If you really want to find out if a solar panel manufacturer is on the Tier 1 list, the best way to do so is check their website for any formal acknowledgement or, contact them directly.

Tier 1 panels are generally high quality

Tier 1 panels are typically high-quality panels. Despite what may appear to be an irrelevant method for assessing solar panels, the crux of the Tier 1 classification is that banks are only likely to fund large-scale installations if they believe the solar panels are of high quality and will perform as they should for their projected 25-year lifespan.

Tier 1 panels are manufactured in-house

Bloomberg’s assessment criteria for Tier 1 panels stipulates that the modules must be manufactured in-house by the solar companies. Many solar companies outsource the manufacture of their panels. Manufacturing in-house leads to better quality control measures and is likely to lead to an increase in research and development investment.

Selecting a panel Tier 1 or not

The Tier 1 term does not relate to quality at all, and should not form part of your criteria for selecting a panel. However, it may be useful as a mark of the experience and reputation of your panel manufacturer.

We have compiled an article on the best solar panels that provides tips on selecting solar panel brands. In short, we recommend looking at the product warranty, performance ratio, efficiency and performance in Australian conditions. The module type you ultimately select should also be a monocrystalline solar panel.

Questions to ask a salesperson

If a salesperson does claim that they are proposing to sell you a system that uses Tier 1 panels, here are some questions that you can ask to seek clarity on the quality of the panel:

• Can you provide documentary proof that the panels are Tier 1?
• Does the panel brand have a physical presence in Australia?
• What is the solar panel product warranty?
• What is the performance ratio after 25-years?