TIER 1 Solar Panels: Complete Guide for Distributors and Installers
Summary
In the world of solar energy, choosing the right components is critical to the success of any PV project. Among the various factors to consider, the TIER 1 rating of solar panels emerges as a crucial indicator of quality and reliability. In this in-depth article, we will explore what it really means to be a TIER 1 solar panel manufacturer, how this classification is awarded, and which leading companies are part of this PV industry elite.
What does TIER 1 mean in the photovoltaic industry?
The term TIER 1, in the context of solar panels, refers to an unofficial but widely recognized industry classification that identifies PV module manufacturers considered to be of high quality, reliability, and financial stability. This classification has become an important benchmark for distributors, installers, and investors in the solar energy industry.
The term TIER 1, in the context of solar panels, refers to an unofficial but widely recognized industry classification that identifies PV module manufacturers considered to be of high quality, reliability, and financial stability. This classification has become an important benchmark for distributors, installers and investors in the solar energy industry.
Key characteristics of TIER 1 manufacturers:
TIER 1 solar panel manufacturers are distinguished by a number of features that make them industry leaders. Let’s delve into each of these characteristics:
1. Financial soundness
- Solid budgets with good profit margins
- Ability to withstand market fluctuations
- Low risk of bankruptcy or insolvency
- Ability to obtain financing for expansion projects
- History of stable financial performance over time
2. Significant production capacity
- Large-scale generation plants, typically with a capacity exceeding 1 GW per year
- Ability to fulfill large orders for utility-scale projects
- Presence of economies of scale that allow competitive pricing
- Highly automated and efficient production process
- Ability to rapidly scale production in response to market demand
3. Investment in research and development
- Significant budgets devoted to RD, often exceeding 2 to 3 percent of annual sales
- Research teams dedicated to the development of new technologies
- Collaborations with universities and research institutes
- Patent portfolio continues to grow
- Regular introduction of technological innovations in products
4. Product quality and performance
- Strict quality controls throughout the production process
- International quality certifications (e.g., ISO 9001)
- Low defect rate and high product reliability
- Superior performance in terms of efficiency and degradation over time
- Compliance with the most stringent international standards
5. Reputation in the market
- Established presence in the industry, often for more than a decade
- Positive references from clients of large projects
- Industry recognition and awards
- Transparency in corporate communications and financial dealings
- Commitment to sustainability and corporate social responsibility
6. Bankability
- Ability to obtain non-recourse financing for projects using their panels
- Established relationships with major international financial institutions
- Track record of successfully funded projects
- Product and performance guarantees accepted by banks as reliable
- Financial stability reassuring investors about the company's longevity
These characteristics not only define what it means to be a TIER 1 manufacturer, but also offer important advantages for distributors, installers, and end customers. Financial strength and production capacity ensure continuity of supply and long-term support. Investment in RD ensures access to the latest technological innovations. Superior product quality and performance result in more efficient and durable solar systems. Market reputation and bankability facilitate access to financing and increase customer confidence.
It is important to note that while these characteristics are typical of TIER 1 manufacturers, there can be variations among companies. In addition, the TIER 1 classification is not static; companies can move into or out of this category based on their performance and market situation. For this reason, it is always advisable to check a manufacturer’s current status and not rely solely on the TIER 1 classification for purchasing decisions.
How is the TIER 1 classification awarded?
The TIER 1 rating is not assigned by a single central authority, but is the result of assessments conducted by several solar market research and analysis organizations. Among them, Bloomberg New Energy Finance (BNEF) is considered one of the most authoritative sources.
The Role of BloombergNEF (BNEF).
BloombergNEF (BNEF) is a research organization and a subsidiary of Bloomberg LP, a global finance, software, data and media company. BNEF specializes in analyzing and providing insights into the renewable energy, energy storage and sustainable transportation sectors.
BNEF presents itself as an entity that aims to provide a range of valuable resources to support companies, investors, policymakers and other stakeholders in understanding and navigating the complexities of the transition to a low-carbon and sustainable economy.
Main criteria for TIER 1 classification:
1. Bankability
Manufacturers must have provided solar panels for at least six projects financed by six different banks in the past two years. Bloomberg focuses on projects financed with non-recourse financing, which means the bank takes the risk of the panels' performance rather than the company's balance sheet.
2. Production capacity
Companies must demonstrate significant generation capacity, generally exceeding 1 GW per year.
3. Verticalization
Vertical integration of manufacturing, from solar cell production to module assembly, is valued.
4. Longevity
The company must have been active in the photovoltaic industry for at least 5 years.
5. Financial soundness:
The company's financial stability is assessed, including its profitability and ability to invest in RD.
6. Reputation
Factors such as warranty offered, customer service and global presence are considered.
7. Size of projects
To qualify as Tier One, a solar panel manufacturer must have a track record of supplying products for significant installations exceeding 1.5 megawatts.
Advantages of TIER 1 solar panels
Choosing TIER 1 solar panels offers numerous advantages for distributors, installers and end customers:
Top quality
TIER 1 manufacturers are known for producing high-quality solar panels with high performance and durability.
Reliability
These panels tend to have lower degradation rates and greater resistance to adverse environmental conditions.
Extended warranties
They often offer longer and more comprehensive warranties, both on production and performance.
Technological innovation
They constantly invest in RD, offering cutting-edge products.
Technical Support
They provide superior technical support and a global service network.
Ease of funding
Projects using TIER 1 panels are generally easier to finance, as they are considered less risky by banks and investors
Major TIER 1 companies in the photovoltaic industry.
The list of companies classified as TIER 1 is updated regularly and may change over time. However, here are some of the companies recognized as TIER 1 in Q3 of 2024 (the list does not represent a ranking):
- ZNShine
- Yingli
- Waaree
- VSUN
- Vikram Solar
- Trina
- Tongwei
- Taoistic Solar
- Sunpro Power/YH Solar
- Sunova Solar/Thornova
- Sumec/Phono Solar
- Solarspace
- Seraphim
- Runergy/Hyperion
- Risen Energy
- Renew Photovoltaics
- ReneSola
- Osda Solar
- New East Solar
- Neo Solar Power/URECO
- Maxeon
- Luxen Solar
- Longi Green
- Leapton Energy
- Jolywood
- Jinko Solar
- Jetion
- JA Solar
- HT-SAAE
- Hanwha Qcells
- Hanersun
- GCL System
- First Solar
- ET Solar Inc/Elite Solar
- Eging
- DMEGC (Hengdian Magnetics)
- DAS Solar
- Chint/Astronergy
- Canadian Solar
- Boviet Solar
- Anhui Huashun
- Anhui Daheng (DAH Solar)
- Aiko Solar
- AESolar
- Adani/Mundra
- Trina
- Tongwei
- Suntech
- Sunpro Power
- Sumec / Phono Solar
- SolarSpace
- Seraphim
- Risen Energy
- Renesola
- Longi Solar
- Leapton Energy
- Jolywood
- JA Solar
- HT-SAAE
- Hanwha Q-Cells
- GCI-System
- First Solar
- ET Solar Inc. / EliTe Solar
- Eging
- DMEGC
- Chint/ Astronergy
- Canadian Solar
- Anhui Daheng (DAH Solar)
In the list above you can find direct links to panels that we can help you import directly from the manufacturer.
Considerations for distributors and installers
For distributors and installers working with Pvclick, choosing TIER 1 solar panels offers several advantages, but it is also important to consider factors other than TIER 1 rating:
1. Cost:
TIER 1 panels are generally more expensive than other brands. The cost of TIER 1 panels can range from 0.20 to 0.40 euros per watt, without considering shipping costs, taxes, customs, etc. It is important to weigh the initial cost against the long-term savings.
2. Efficiency
TIER 1 panels typically have efficiencies ranging from 19% to 23%. Higher efficiencies can allow you to get more power from your solar system.
3. Durability
TIER 1 panels are produced by companies that adhere to high quality standards and rigorous testing processes. Typically, these panels come with warranties ranging from 20 to 25 years.
4. Brand reputation
Choosing a reputable brand for solar panels can offer several benefits. Established and well-known brands often have a proven track record of providing high-quality products and reliable customer support.
5. Technical specifications of the panels
Power, efficiency and temperature coefficient determine the panel's performance under different conditions.
6. Availability and delivery times
Crucial for efficient project planning and timely customer response.
7. Compatibility with other system components
Essential to ensure optimal performance and longevity of the entire photovoltaic system.
Conclusion
The TIER 1 classification represents an important indicator of quality and reliability in the solar panel sector. For distributors and installers who work with Pvclick, understanding the meaning and importance of this classification is essential to making informed choices and offering high-quality solutions to their customers.
However, it is essential to remember that TIER 1 is only one of many factors to consider when choosing solar panels. A holistic approach, taking into account the specific needs of the project, the budget and the local conditions, remains the key to the success of every photovoltaic installation.
Pvclick, with its experience in the sector and direct relationships with manufacturers, is the ideal partner to guide distributors and installers in choosing the best TIER 1 and non-TIER 1 solar panels, ensuring successful photovoltaic projects and satisfied customers.
