What Does “Tier 1” Really Mean in Solar Panels? Facts You Should Know
In the solar industry, the term “Tier 1 solar panel” is often used as a shortcut to describe quality, reliability, or performance. Many buyers assume that choosing a Tier 1 panel automatically guarantees superior standards. However, the reality behind the Tier 1 label is far more nuanced—and often misunderstood. At Solar PPM, we believe that informed decisions start with clear facts. This article aims to clarify what Tier 1 truly means, what it does not mean, and how solar panel quality should actually be evaluated.
Tier 1 Solar Panels Do Not Exist as a Product Category
First and foremost, it is important to clarify a common misconception: there is no such thing as a “Tier 1 solar panel.” What actually exists is a list of Tier 1 solar panel manufacturers. This classification comes from Bloomberg New Energy Finance (BloombergNEF), published under the PV ModuleTech Bankability Ratings. The list evaluates manufacturers—not individual panels—and it is updated quarterly.
Bloomberg’s assessment focuses on whether a manufacturer is considered “bankable” for large-scale, utility-grade solar projects. In other words, Tier 1 status reflects financial credibility and production scale, not the physical quality or technical performance of a specific solar module.
Not Being Tier 1 Does Not Mean Lower Quality
Another widespread misunderstanding is the belief that manufacturers not listed as Tier 1 produce inferior solar panels. This is simply not true. Several globally respected brands with strong innovation, premium engineering, and excellent long-term performance are not included in Bloomberg’s Tier 1 list.
Manufacturers such as Panasonic, Solaria, Winaico, Solarwatt, Meyer Burger, Peimar, Tindo, Aleo, and Tesla are well known in the global solar market for their advanced technologies and high-quality products. Their absence from the Tier 1 list does not reflect poor performance or lower standards—it often reflects different business models, production volumes, or market focus.
Tier 1 Is Not a Measure of Panel Quality
Despite common assumptions, Tier 1 is not a technical quality rating. It does not evaluate efficiency, durability, resistance to heat, fire safety, or long-term degradation. Instead, Tier 1 is used primarily by banks and investors to assess financial risk when funding large solar projects. It indicates that a manufacturer has supplied panels to multiple large-scale projects financed by non-recourse lenders within a specific timeframe.
This makes Tier 1 relevant mainly for utility-scale developments, not necessarily for commercial rooftops, industrial systems, or residential installations.
Tier 1 Status Is Not Permanent
Tier 1 status is not a lifetime certification. Manufacturers are reassessed every quarter based on Bloomberg’s criteria. A company may appear on the list one quarter and drop off the next. This reinforces the fact that Tier 1 is not a formal certification, nor is it a guarantee of consistent product quality over time.
When Bloomberg Data Is Actually Useful
While Tier 1 should not be used as a quality benchmark, Bloomberg reports are valuable tools for evaluating the financial strength and production capacity of manufacturers. For large-scale projects that rely on project financing, this information helps investors and lenders assess long-term stability and supply reliability. In this context, Bloomberg data offers real value—but only for its intended purpose.
How Solar Panel Quality Should Really Be Evaluated
To assess the true quality and safety of solar panels, buyers should rely on technical testing and internationally recognized standards. Independent engineering and technical assessment firms such as RINA (formerly OST Energy), ATA Renewables, Wood Plc, and PVEL provide in-depth performance analysis, reliability testing, and long-term durability evaluations.
In addition, certified standards play a crucial role. International certifications such as IEC and UL verify that solar panels meet strict requirements for performance, safety, heat resistance, fire behavior, and electrical protection. In Thailand, compliance with TISI (Thai Industrial Standards) and “Made in Thailand” certification further ensures that products meet national quality and safety requirements.
Making Smarter Solar Decisions
Rather than relying solely on the Tier 1 label, buyers should consider a combination of technical certifications, independent test results, real-world performance data, and the credibility of the installer. Solar energy is a long-term investment, and choosing the right equipment requires a deeper understanding than a single label can provide.
At Solar PPM, we encourage customers to look beyond marketing terms and focus on proven standards, transparent data, and trusted expertise. Understanding what Tier 1 really means—and what it does not—helps ensure that every solar project delivers reliable, safe, and sustainable performance for years to come.