{"id":3748,"date":"2023-05-26T13:26:10","date_gmt":"2023-05-26T13:26:10","guid":{"rendered":"https:\/\/www.sunhub.com\/blog\/?p=3748"},"modified":"2025-08-11T09:26:01","modified_gmt":"2025-08-11T13:26:01","slug":"what-tier-1-solar-panels-means","status":"publish","type":"post","link":"https:\/\/www.sunhub.com\/blog\/what-tier-1-solar-panels-means\/","title":{"rendered":"What Tier 1 Solar Panels Mean in Solar Industry?"},"content":{"rendered":"\n<p>Have you come across the term &#8216;Tier 1 solar panels&#8217; as you work on your solar project? What about Tiers 2 and 3?&nbsp;<\/p>\n\n\n\n<p>Tiering is a challenging concept to keep track of for those of us in the solar industry, so it might be a tough one for you as well.&nbsp;&nbsp;<\/p>\n\n\n\n<p>If the solar tiering system has you vexed, we&#8217;ll clear things up so you can get back to shopping.<\/p>\n\n\n\n<p>Now, let&#8217;s shine some light on how understanding solar tiering can help you choose your system.\u00a0<\/p>\n\n\n\n<div class=\"sunhub-products-wrapper mb-5\"><div class=\"row\"><div class=\"col-md-4 single-sunhub-slide p-2\"><a id=\"cta-click-1\" class=\"cta-link-1\" data-form-id=\"cta-form-1\" href=\"https:\/\/www.sunhub.com\/product\/3BCGO\/canadian-solar-435w-96-topcon-cells-n-type-solar-panel?utm_source=google&#038;utm_medium=blog&#038;utm_campaign=cta-link-1\" target=\"_blank\"><img decoding=\"async\" style=\"border-radius:.7rem\" src=\"https:\/\/www.sunhub.com\/blog\/wp-content\/uploads\/2026\/04\/Vertical-Banner.jpg\" class=\"img-fluid\" alt=\"Product\"><\/a><\/div><div class=\"col-md-4 single-sunhub-slide p-2\"><a id=\"cta-click-2\" class=\"cta-link-2\" data-form-id=\"cta-form-2\" href=\"https:\/\/www.sunhub.com\/product\/31TP8\/sma-sunny-boy-smart-energy-11-5kw-grid-tie-string-inverter?utm_source=google&#038;utm_medium=blog&#038;utm_campaign=cta-link-2\" target=\"_blank\"><img decoding=\"async\" style=\"border-radius:.7rem\" src=\"https:\/\/www.sunhub.com\/blog\/wp-content\/uploads\/2026\/04\/Vertical-Banner-2.jpg\" class=\"img-fluid\" alt=\"Product\"><\/a><\/div><div class=\"col-md-4 single-sunhub-slide p-2\"><a id=\"cta-click-3\" class=\"cta-link-3\" data-form-id=\"cta-form-3\" href=\"https:\/\/www.sunhub.com\/product\/3AG6G\/jackery-explorer-1000-v2-portable-power-station?utm_source=google&#038;utm_medium=blog&#038;utm_campaign=cta-link-3\" target=\"_blank\"><img decoding=\"async\" style=\"border-radius:.7rem\" src=\"https:\/\/www.sunhub.com\/blog\/wp-content\/uploads\/2026\/04\/Vertical-Banner-1.jpg\" class=\"img-fluid\" alt=\"Product\"><\/a><\/div><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">What the solar panel tier system is, and why it exists<\/h2>\n\n\n\n<p>Let&#8217;s start with what the tier system isn&#8217;t. It&#8217;s not a solar panel rating but rather a description of the bankability of the manufacturer of the solar panels, which is a valuable piece of information for consumers. Bankability refers to critical financial and manufacturing metrics determining a manufacturer&#8217;s ability to repay its debts. You can read more about that and check the ratings of <a href=\"https:\/\/marketresearch.solarmedia.co.uk\/reports\/pv-moduletech-bankability-ratings-quarterly-report\/\" rel=\"nofollow noopener\" target=\"_blank\">manufacturers here<\/a>.&nbsp;<\/p>\n\n\n\n<p>There are several solar rating systems, but the Bloomberg New Energy Finance (BNEF) Solar Module &amp; Inverter Bankability report is the most highly regarded by investors and industry insiders. There are a few important things we want you to take away from Bloomberg\u2019s reports:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>They specify that their tiering system refers to bankability only. They recommend that consumers and banks seeking information about solar panel quality go to technical due diligence firms such <a href=\"https:\/\/www.rina.org\/en\" rel=\"nofollow noopener\" target=\"_blank\">as RINA<\/a> (formerly OST Energy), <a href=\"http:\/\/atarenewables.com\/\" rel=\"nofollow noopener\" target=\"_blank\">ATA Renewables<\/a>,&nbsp; <a href=\"https:\/\/www.woodplc.com\/\" rel=\"nofollow noopener\" target=\"_blank\">Wood Plc<\/a>, <a href=\"https:\/\/www.pvel.com\/\" rel=\"nofollow noopener\" target=\"_blank\">PVEL<\/a>, <a href=\"https:\/\/www.bv.com\/\" rel=\"nofollow noopener\" target=\"_blank\">Black &amp; Veatch<\/a>, <a href=\"https:\/\/www.tuvsud.com\/en-us\" rel=\"nofollow noopener\" target=\"_blank\">TUV<\/a>, <a href=\"https:\/\/www.ethree.com\/\" rel=\"nofollow noopener\" target=\"_blank\">E3<\/a>, <a href=\"https:\/\/sts-certified.com\/\" rel=\"nofollow noopener\" target=\"_blank\">STS Certified<\/a>, <a href=\"https:\/\/www.cea3.com\/?utm_term=clean%20energy%20associates&amp;utm_campaign=Brand-WMD&amp;utm_source=adwords&amp;utm_medium=ppc&amp;hsa_acc=7813127442&amp;hsa_cam=11624760229&amp;hsa_grp=114889193882&amp;hsa_ad=480005591881&amp;hsa_src=g&amp;hsa_tgt=kwd-1021329056125&amp;hsa_kw=clean%20energy%20associates&amp;hsa_mt=e&amp;hsa_net=adwords&amp;hsa_ver=3&amp;gclid=CjwKCAjw67ajBhAVEiwA2g_jENlDSHT2F6nZvv5D4Lq-iJGyjcNCbKY0PtVOd0AOEzoie7h0cNP16BoCmHUQAvD_BwE\" rel=\"nofollow noopener\" target=\"_blank\">Clean Energy Associates<\/a>, <a href=\"https:\/\/www.pi-berlin.com\/\" rel=\"nofollow noopener\" target=\"_blank\">PI Berlin<\/a>,<a href=\"http:\/\/www.pvbuyer.com\/\" rel=\"nofollow noopener\" target=\"_blank\"> Pvbuyer<\/a>, <a href=\"https:\/\/www.enertisapplus.com\/\" rel=\"nofollow noopener\" target=\"_blank\">Enertis<\/a>, Oravia, <a href=\"https:\/\/www.leidos.com\/\" rel=\"nofollow noopener\" target=\"_blank\">Leidos Engineering<\/a>, the <a href=\"https:\/\/www.ait.ac.at\/en\/\" rel=\"nofollow noopener\" target=\"_blank\">Austrian Institute of Technology (AIT)<\/a> or <a href=\"https:\/\/phoventus.com\/\" rel=\"nofollow noopener\" target=\"_blank\">Phoventus<\/a>.<strong><em> For that reason, we&#8217;d recommend you do the same.&nbsp;<\/em><\/strong><\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Bloomberg only provides tier 1 ratings. Other rating sources classify Tier 2 and Tier 3 ratings.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Tier 1 manufacturers must have completed at least six 1.5 MW+ projects, financed <a href=\"https:\/\/apps.irs.gov\/app\/vita\/content\/36\/36_02_020.jsp#:~:text=A%20nonrecourse%20debt%20(loan)%20does,money%20owed%20on%20the%20debt.\" rel=\"nofollow noopener\" target=\"_blank\">non-recourse <\/a>by six different commercial banks in the past two years. Non-recourse means the lender cannot take anything back other than the collateral associated with the project, indicating that the manufacturer has strong credit.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The tier 1 system is a sliding scale meaning that manufacturers can be removed from the list, and new ones can make it on at any time. Bankruptcy or insolvency qualifies as a reason for removal.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Tier 1 companies are considered the most reputable and reliable, with strong financial backing and a proven track record of delivering high-quality solar products. Tier 2 companies produce quality products with slightly lower production capabilities and financial stability, while Tier 3 companies are relatively new entrants in the market with limited experience.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How Tiers 1, 2, and 3 differ<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Tier 1 Manufacturers<\/h3>\n\n\n\n<p>Tier 1 manufacturers are the gold standard because they produce high-quality, reliable products with best-in-class warranties.&nbsp;<\/p>\n\n\n\n<p>They&#8217;re manufacturers with strong financial stability, a long history of producing solar panels, and an extensive research and development budget.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Tier 2 Manufacturers<\/h3>\n\n\n\n<p>Tier 2 solar panels may still be good quality, but they may be less-established brands of less durable or <a href=\"https:\/\/www.sunhub.com\/blog\/what-is-capacity-factor\/\">efficient<\/a> components.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Tier 3 Manufacturers<\/h3>\n\n\n\n<p>Tier 3 solar panels usually come from new or less-experienced manufacturers and, as such, may have less stringent quality control measures in place. While they may be more affordable, they may also be less reliable in the long term.<\/p>\n\n\n\n<p>Remember that any of these panels can climb up the list over time.&nbsp;<\/p>\n\n\n\n<p>Understanding the differences between these tiers can help you decide which solar panel is right for your project.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Tier 1 Solar Panels<\/strong><\/td><td><strong>Tier 2 Solar Panels<\/strong><\/td><td><strong>Tier 3 Solar Panels<\/strong><\/td><\/tr><tr><td>Listed by Bloomberg New Energy Finance<\/td><td>Not listed by Bloomberg<\/td><td>Not listed by Bloomberg<\/td><\/tr><tr><td>Highest quality<\/td><td>Good quality<\/td><td>Quality unknown<\/td><\/tr><tr><td>Most reliable<\/td><td>Less established<\/td><td>Not established<\/td><\/tr><tr><td>Most bankable<\/td><td><\/td><td><\/td><\/tr><tr><td>Most durable<\/td><td><\/td><td><\/td><\/tr><tr><td>Best Warranties<\/td><td><\/td><td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">What to expect from tier 1 rated panels<\/h2>\n\n\n\n<p>While we&#8217;ve discussed that Bloomberg New Energy Finance considers bankability when releasing their ratings, we should consider why these solar companies are bankable in the first place. The chances are that they&#8217;re selling high-quality products!<\/p>\n\n\n\n<p>Here are some of the features you can expect from panels manufactured by tier 1 manufacturers:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The panels will have passed all necessary testing and certifications<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The manufacturers offer premium quality panels&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The panels will be <a href=\"https:\/\/www.energy.gov\/eere\/solar\/solar-performance-and-efficiency\" rel=\"nofollow noopener\" target=\"_blank\">efficient and durable<\/a> with <a href=\"https:\/\/www.nrel.gov\/state-local-tribal\/blog\/posts\/stat-faqs-part2-lifetime-of-pv-panels.html\" rel=\"nofollow noopener\" target=\"_blank\">low degradation rates<\/a> due to being manufactured from high grade components<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Warranty coverage of at least 25 years.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>By considering all of these factors, you can make an informed decision about which panels will best meet your needs and <a href=\"https:\/\/www.sunhub.com\/blog\/5-ways-solar-is-paying-off-for-businesses\/\">provide the greatest value <\/a>over the life of your system.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How tiering impacts manufacturers<\/h2>\n\n\n\n<p>Because tiering categorizes solar manufacturers based on their level of financial stability, reliability, and quality of products, a higher tier gives them an edge in the marketplace.&nbsp;<\/p>\n\n\n\n<p>Higher tiers allows them to secure more contracts and partnerships, strengthening their position in the industry which is critical for long-term success. It assures potential customers that the manufacturer is dependable, leading to increased market share and growth opportunities.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Ultimately, manufacturers who maintain a strong tier status benefit in the long run.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What types of projects are Tier 1 solar panels used for?<\/h2>\n\n\n\n<p>Recall that Tier 1 solar panels are known for their high quality, high efficiency, long-lasting performance, and durability. They can withstand harsh weather and extreme temperatures, which means they can be costly.&nbsp;<\/p>\n\n\n\n<p>Tier 1 solar panels are the best choice for large-scale projects such as solar farms and commercial buildings. They&#8217;re also an option for higher-budget residential projects requiring premium quality.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Should I consider Tier 2 or Tier 3 solar panels?<\/strong><\/h2>\n\n\n\n<p>When considering solar panel options, it&#8217;s essential to understand what type of system will best suit your needs. Tier 2 and tier 3 solar panels are appropriate for specific situations.&nbsp;<\/p>\n\n\n\n<p>Tier 2 panels are a step down from tier 1 but provide reliable energy output. These may be a good choice for smaller applications such as residential or commercial buildings with less energy demand. You can expect lower efficiency and may have a higher degradation rate than tier 1, but you should still be pleased with your purchase.&nbsp;<\/p>\n\n\n\n<p>Tier 3 panels are the most budget-friendly option but may operate at a lower or unpredictable efficiency level. Recall that these are lesser established companies, so we may not know what we&#8217;re getting in the first place. These may be suitable for projects with limited funding or locations with lower average sunlight hours.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Ultimately, selecting the right solar panel tier depends on the project&#8217;s specific requirements and the system owner&#8217;s goals.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How to choose the right tier for my project<\/h2>\n\n\n\n<p>When choosing the proper manufacturer for your needs, there are a few key factors to consider. One of the most important is your budget, as different tiered manufacturers will come at various price points. Much as you when you consider purchasing a car or clothing, you&#8217;ll need to consider the quality you need.&nbsp;<\/p>\n\n\n\n<p>A higher tier might be the way to go if you&#8217;re looking for a product that can stand up to heavy use over a long period.&nbsp;<\/p>\n\n\n\n<p>It&#8217;s also important to remember the warranty each manufacturer offers. You don&#8217;t want to be caught without protection if something goes wrong.&nbsp;<\/p>\n\n\n\n<p>By weighing these factors carefully, you can decide which tier is right for you.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The bright idea<\/h2>\n\n\n\n<p>The tier rating of the brand you decide to purchase will be <a href=\"https:\/\/www.sunhub.com\/blog\/six-factors-that-affect-solar-project-costs\/\">directly related to your system&#8217;s cost<\/a>, efficiency, and quality.<\/p>\n\n\n\n<p>Now that you understand what goes into the solar tiering system, you can make a more informed buying decision.<\/p>\n\n\n\n<p>With all this in mind, exploring all options is vital to achieving long-term success with your solar system.<\/p>\n\n\n\n<p>When in doubt, it&#8217;s always best to consult a professional who can answer any questions about selecting the right tier for your project.&nbsp;<br>If you need assistance making this decision or want additional information on tier ratings, <a href=\"https:\/\/www.sunhub.com\/contact-us\">contact our team of experts<\/a>. We can help walk you through every step so that you choose the best option\u2013 one that will ensure a quality experience along the way and save you money over time.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Have you come across the term &#8216;Tier 1 solar panels&#8217; as you work on your solar project? What about Tiers 2 and 3?&nbsp; Tiering is a challenging concept to keep track of for those of us in the solar industry, so it might be a tough one for you as well.&nbsp;&nbsp; If the solar tiering [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":3749,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-3748","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-solar-business"],"post_priority":"0","_links":{"self":[{"href":"https:\/\/www.sunhub.com\/blog\/wp-json\/wp\/v2\/posts\/3748","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sunhub.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sunhub.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sunhub.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sunhub.com\/blog\/wp-json\/wp\/v2\/comments?post=3748"}],"version-history":[{"count":8,"href":"https:\/\/www.sunhub.com\/blog\/wp-json\/wp\/v2\/posts\/3748\/revisions"}],"predecessor-version":[{"id":5561,"href":"https:\/\/www.sunhub.com\/blog\/wp-json\/wp\/v2\/posts\/3748\/revisions\/5561"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sunhub.com\/blog\/wp-json\/wp\/v2\/media\/3749"}],"wp:attachment":[{"href":"https:\/\/www.sunhub.com\/blog\/wp-json\/wp\/v2\/media?parent=3748"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sunhub.com\/blog\/wp-json\/wp\/v2\/categories?post=3748"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sunhub.com\/blog\/wp-json\/wp\/v2\/tags?post=3748"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}