Making the switch to solar doesn’t have to be a technical challenge. Spending just a short time learning key industry terms is all it takes to make the smartest solar investment for your home or business. Deciding between Tier 1 vs. Tier 2 solar panels is one of the first decisions you’ll be faced with, and it can be the difference between easily meeting your long-term electric needs or leaving the door open to obstacles with long-term maintenance and overall system reliability.
So what’s the difference between Tier 1 and Tier 2 solar panels, and how do they affect product quality?
Tier 1 vs. Tier 2 Solar Panels: An Overview
Tier 1 Solar Panel Companies
It’s important to understand that the term “Tier 1” is actually used to describe solar panel manufacturers, not the panels themselves. However, high-quality manufacturers tend to produce high-quality solar panels, so these rankings are still a good indication of a panel’s performance and reliability.
Earning a Tier 1 ranking from the Bloomberg New Energy Finance Corporation indicates a high likelihood of long-term financial and operational viability for a solar panel company. This is important because you want to select a product that’s easily serviceable in the foreseeable future — and if the manufacturer goes out of business, you might be out of luck.
Unfortunately, the earliest solar panel owners often faced challenges around defunct manufacturers who couldn’t service their products, honor their warranties, or provide replacement parts. So as the solar industry took off, “Tier 1” became an important classification for those seeking the most financially sound investment. Over time, the classification became at least somewhat indicative of high-quality products, as quality manufacturers naturally became market leaders.
Tier 2 Solar Panel Companies
While Tier 1 is an official industry-sanctioned label, there is no criteria for “Tier 2”. Any solar manufacturer that does not meet Tier 1 criteria falls into the Tier 2 category. About 98% of all manufacturers are considered “Tier 2”. As you can imagine, this means there is a wide range of quality among Tier 2 manufacturers; some companies are just short of meeting Tier 1 standards, while others are quite a ways away.
If you’re considering using a Tier 2 manufacturer, you’ll need to conduct extensive research on your own to verify the long-term prospects of that company.
Comparing Tier 1 and Tier 2 Solar Panel Manufacturers
Tier 1 was created by BloombergNEF with specific criteria aimed at helping buyers and investors determine if a particular solar panel brand was a good investment. When you encounter a Tier 1 solar panel company, it means they have:
- At least five years of solar panel production
- Either (1) public stock exchange listing or (2) strong accounting practices
- A high level of vertical integration
- Fully automated production lines
- Greater material quality
- Higher annual production output
- Significant investments in brand marketing and product development
- A solid reputation for customer support and product quality
For the easiest time comparing Tier 1 and Tier 2 solar panel brands, we recommend consulting with an experienced solar panel installation company. They can help you more quickly determine the exact standards of a given solar panel company and provide greater insights into the effectiveness and reliability of each company’s products.
Optimizing Your Solar Power Investment
Solar Optimum has been providing premium solar solutions for California, Nevada, Arizona, and Florida residents since 2008. We only use premium, Tier 1 solar panels, battery storage devices, and roof integration systems to ensure you receive the maximum value from your solar investment.
Contact our knowledgeable Energy Consultants to get answers to your questions about Tier 1 vs. Tier 2 solar panels or to request a quote today.
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