Discover the truth about Tier 1 and Tier 2 panels and whether it's worth paying the extra money.
A solar farm has a lifespan of more than 25 years, and the solar panel cost component is the single most expensive item in a solar installation, accounting for up to 40% of the total project cost. When investing in a solar farm, one must choose the right solar panels to ensure that the project produces the expected amount of power and energy.
So, how do you know which panels are right for you?
During your research, you may come across the terms tier 1, tier 2, or tier 3. Tier 1 panels are often thought to be superior, but this is not always the case. The use of tiers to describe the quality of panels has become somewhat abused in the solar energy industry.
To understand this, we must first examine the origins of the tiered ranking system. Here's what we'll talk about:
What Do Tier 1 Solar Panels Mean?
Tier 1 vs. Tier 2 Solar Panels
What to Look for When Purchasing Solar Panels
What Do Tier 1 Solar Panels Mean?
The Bloomberg New Energy Finance Corporation has the most prominent tiered system for solar manufacturers (BNEF). This tiered rating was developed by BNEF to communicate the bankability of solar panel manufacturers. Tier 1 solar panels are defined as "those that have provided products to six different projects that have been financed non-recourse by six different (non-development) banks in the last two years." These are large, utility-scale projects with a capacity of 1.5 megawatts (MW) or greater. In addition, to be considered Tier 1, manufacturers must own their production facilities and sell under their own brand.
Tier 1 manufacturers use the highest grade materials to manufacture solar panels, so the panels are much more expensive. A Tier 1 manufacturer's solar panels could be up to 30% more expensive than others.
Tier 1 solar panel manufacturers typically provide a 12 year product warranty and a 25 year linear performance warranty. They have a well-known industry reputation for quality and service and are either publicly traded on the stock exchange or have a strong and stable balance sheet. Jinko Solar, JA Solar, LONGi, Trina Solar, Risen, Amerisolar and Canadian Solar are examples of Tier 1 solar panels.
Tier 1 vs. Tier 2 Solar Panels
BNEF only publishes a tier 1 list, which includes only a small percentage of module manufacturers. However, during your research, you are likely to come across manufacturers classified as tier 2 or tier 3. There is no official BNEF classification for tier 2 and tier 3 panels.
When comparing panel manufacturers, tier 1 companies tend to charge a premium for their panels. Is it worthwhile to spend the extra money? Knowing that a PV module manufacturer has earned the trust of several banks is valuable. They are regarded as a financially sound and trustworthy company that will be around for several decades. However, there have been reports of tier 1 manufacturers experiencing quality issues or even going bankrupt.
Tier 2 manufacturers use partial robotics in their manufacturing process and rely more on manual labor via human production lines. There is a possibility of human error in the manufacturing process, which could result in lower solar panel performance. The goal for these manufacturers, however, is to produce high-quality solar panels at a reasonable price. They generally invest very little in research and development, and the companies are small to medium-sized, producing solar panels between 2 and 5 years.
Tier 2 manufacturers also offer product and linear performance warranties on their solar panels, but they are considered inferior to Tier 1 solar panel warranties. Tier 2 solar panel examples include Bluesun, GSUN, Tidesolar, and Huge-Solar.
If you choose a tier 1 solar panel manufacturer, that does not necessarily imply that the solar panels are of the highest quality or the best available. It means that a significant number of financial institutions are confident enough in the manufacturer to purchase their panels. If you choose a tier 2 solar panel, it does not imply that it is of poor quality; however, there have not been enough banks willing to invest in projects using their panels. Overall, the tier ranking of the manufacturer should be one of several factors you consider when selecting solar panels.
What to Look for When Purchasing Solar Panels
From warranties and guarantees to the products they provide, here is a list of factors to consider when deciding which solar panel is best for you.
Warranties
Solar energy is a long-term investment that can last for more than 30 years. Solar panel warranties assist in ensuring that long-term investment. Manufacturers usually provide two types of warranties: performance warranties and product warranties. A performance warranty guarantees that your solar panels will continue to produce electricity as they age - or that they will remain above a certain degradation rate. Product warranties protect you from manufacturing flaws.
Module Efficiency
The efficiency of your solar panels is the amount of electricity produced in comparison to the amount of energy from the sun. Higher efficiency panels are often more expensive, but they allow you to produce the same amount of electricity with fewer panels.
Panel Type, Size, Color, & etc
When it comes to solar panels, there are several options to consider. There are monocrystalline and polycrystalline panels available. Backsheets in blue or black. 72 cells or 60 cells. Not every manufacturer provides every option.
Customer Reviews
While we shouldn't believe every hook, line, and sinker review, we should look into what people are saying about the manufacturers and their solar panels. To get the most accurate insight into the product, look for common themes, whether they are praise or criticism.
Conclusion
As a market leader in supply chain solutions with a solar division since 2004, we can assist and evaluate the best quality modules for each project. JOG International will be there every step of the way with a precise procedure that will meet all of your energy requirements.
Please contact us if you need assistance deciding on the best solar panels for your project (tier 1 or otherwise).
Comments