What does it mean for solar panels to have tiers?
A solar “tiered classification system” is an analysis of how well the manufacturer of a solar system is and how many banks are willing to invest in its work. The tier classification system initiated from the Bloomberg New Energy Finance Corporation with the purpose of defining solar panel manufacturer bankability. There are three tier classifications that solar panel manufacturers are arranged in (Gambone, n.d.) (Sendy, 2020).
According to Andrew Sendy of SolarReviews, tier 1 consists of solar panel manufacturers that have been in development for over 5 years with a “fully automated production and high degree of vertical integration.” They also have a stock index or an accurate and reliable balance sheet, and put a great deal of investment in their marketing programs. Solar panels in this category also tend to be 10-30% higher in price value than the other tiers. Tier 2 and 3 do not meet the same precedents as Tier 1 and tend to be small or medium solar manufacturers (2020). They also do not hold the BloombergNEF publication, unlike tier 1 (Gambone). Solar panels in tier 1 also make up only 2% of manufacturers and are typical large scaled at about 1.5 megawatts or more (2020) (Gambone).
For many of you wondering, we at Equity Solar Energy work with tier 1 solar panels to provide better quality and service for our customers in the Central Florida region. If you would like to learn more about where our solar panels are manufactured and if your home qualifies, please give us a call at (407) 901-2040.
- Gambone, Sara. (n.d.). Tier 1 vs Tier 2 Solar Panels. Paradise Energy Solutions. Retrieved from https://www.paradisesolarenergy.com/blog/tier-1-vs-tier-2-solar-panels.
- Sendy, Andrew. (2020, May 8). Pros and Cons of Tier 1 vs. Tier 2 solar panels. SolarReviews. Retrieved from https://www.solarreviews.com/blog/pros-and-cons-of-tier-1-vs-tier-2-solar-panels#:~:text=Typically%20tier%201%20solar%20panels,Rene%20Solar%20and%20Canadian%20Solar.