Recently, the team at Greenfield Energy has been asked a critical question…
What exactly is a Tier 1 Bloomberg Panel?
You may notice plenty of ads for solar products referring to the term “Tier 1.” But what does that actually mean?
The Tier rating is a classification system developed by the Bloomberg New Energy Finance Corporation. Bloomberg New Energy Finance was launched by American businessman, Michael Bloomberg. His Tier 1 classification is frequently associated with quality. However, this is not strictly speaking, the case. It is more complex and the association with quality arises from the criteria these manufacturers have been judged by to earn the Tier 1 classification. Simply put, the Tier 1 classification refers to a solar panel manufacturer that has demonstrated financial stability from having projects financed by at least five banks and has their own manufacturing facilities. Now why is this important?
Firstly, banks, as most of you would appreciate are fickle with their financing. They want to ensure that they can be repaid. As a result, a bank is not likely to fund large scale projects for a manufacturer if the products used in the project are likely to fail shortly after installation. Hence Tier 1 Panels are often accompanied by intergenerational warranties of 25 years. Another criteria for Bloomberg Tier 1 is for solar panel manufacturers to have their own manufacturing facility. Investing in a manufacturing facility means manufacturers are able to implement strict QC guidelines. This results in more reliable products for the end consumer, that is, you. Manufacturers with their own facilities are also likely to invest in research and development in an effort to be more competitive in the market. It is with this trifecta of financial stability, stringent QC processes and investment in R&D, which aligns the Bloomberg Tier 1 Panels to quality. In short, our Tier 1 solar panels, which are the highest (and only recognized) tier, are panels made by a manufacturer that has been rated by a reputable independent PV industry analyst on the basis of financial viability and control over the manufacturing process.
As a side note, the Tier 1 classification was originally developed to help banks identify which manufacturers are likely to be legitimate and trustworthy. Now, Bloomberg does not actually audit the product or its manufacturing facilities and only produces a financial assessment. This is performed quarterly so the lists are dynamic. Therefore, the Tier 1 label does not necessarily stay with the product for life. This is an important distinction to make. However, often manufacturers have an incentive to maintain this rating. An example of such a manufacturer is Jinko which uses the highest grade of silicon to produce solar cells that are better and are more durable.
So Why Do We Work with Tier 1 Solar Panel Manufacturers?
Apart from different brands, there is generally no universal consensus to differentiate solar modules. They can be monocrystalline or polycrystalline or thin film and unless you go into specifications, it can be difficult to distinguish one from another. So, one method the industry has been able to distinguish different products is by using the Bloomberg classification system. Ultimately most manufacturers who want their solar module to be better than a competitor’s solar module, are willing to provide support, R&D and stringent QC. Those that are committed become Tier 1 panels and because of our position in the industry, we accept nothing less than the best for our clients.
We hope this gives you more confidence in choosing the best solar system for your home. If so, complete the form below.