ECONNEX

Shedding Light on The Tiers of Solar Panel Manufacturers

Decode the Tier system that ranks Solar Panel Manufacturers into Tiers 1, 2, & 3, and cut through the complexities of going Solar with Econnex.

Solar Panel Tier System

Published on 16/04/2024

By Shweta Mittal

Solar Comparison

With greenhouse gas emissions raising climate concerns, going Solar is a conscious choice responsible citizens make to do their part for the environment. However, there is a lot more to factor in than just the price while at it.  

One such factor is scouting for a respectable and reliable solar panel manufacturer from which to buy your module. That's simply because there is no point in splurging your hard-earned bucks if you can't rest assured of the longevity and financial stability of the solar company in return. 

 

Don't scratch your head already! We understand that you're not necessarily a solar expert. The good news is that you don't even have to be one since the Solar Panel Tier system does all the complicated work for you. Under this, top manufacturers are classified into different groups, the foremost being the category of Tier 1 Solar Panel providers, succeeded by Tier 2 and Tier 3 upon being judged across the various parameters of credibility and feasibility.  

Let us help you navigate the difference between these three to make a well-informed choice.

Tiered Classification of Solar Panel Manufacturers

A Solar Panel Tier System assists Australian customers in deciding on the best manufacturer for their solar system. Speaking more precisely, it helps you tell the difference between the most reliable solar panel manufacturers (belonging to Tier 1) and those not held in as much high regard (belonging to Tier 2 and 3).  

The most trusted Solar Research groups in Australia that rank manufacturers into tiers are PIKE Research and BloombergNEF. However, that's only the tip of the iceberg. It's vital to understand the grounds on which the tiers differ.  

The tiers differ from one another in terms of their manufacturing process and financial reliability. In a nutshell, these ranking parameters are: 

  • Bankability 
  • Vertical Integration 
  • Experience 
  • Financial backing 
  • Geographic coverage 
  • Panel Quality 
  • Performance 
  • Sustainability 
  • Global Presence 

Explore Top 10 Solar Panels in Australia

An Introduction to Tier 1 Solar Panel Manufacturers 

These are the premium, most credible, and vetted solar manufacturers that have made their way to the top 2%. Wondering what sets them apart? Well, it's difficult to single out one feature (because there isn't just one!). However, we can help you with a list of their multiple traits that several research groups acknowledge: 

  • Quality: The Tier 1 Solar Panel providers employ the best grade of silicon to manufacture solar cells. That naturally reflects in the solar panel efficiency, which means that their performance is better than that of the rest (hence, the high-end prices). 
  • Vertical Integration: The term suggests that Tier 1 providers take care of all the stages of the supply chain, right from raw material sourcing to module assembly. Consider this their attempt to ensure zero drop in manufacturing components' quality.   
  • Bankability: Most importantly, they stay ahead of other tiers with their commendable bankability. This emphasises the fact that the manufacturer is financially stable and possesses a strong financial track record of fulfilling warranties as well as an impressive balance sheet.  
  • Automation: To do away with all kinds of human errors (or minimise them, for that matter), they streamline production using advanced robotic processes. This, in turn, helps enhance the overall product quality. 
  • Research & Innovation: The long hours and huge bucks put into the research and development of these modules are the secrets behind their premium quality. 
  • Experience: They have a long history of supplying solar panels for over five years. 
  • Reputation: Tier 1 Solar providers have made quite a name for themselves by consistently delivering high-quality solar modules. 
  • Production Capacity: Generally, they possess an annual production capacity of over 1GW. 
  • Scale: Most of them are large-scale companies that have been publicly listed. 

If you’re on the lookout for the best quality Solar Panel Manufacturers, it is a point to be noted that the market leaves you spoiled for options. There is a world of Solar manufacturers out there, which can also put you into a state of dilemma regarding which one to opt for.

To cut through the complexities of it all to an extent, we can help you with a list of solar manufacturers that are held in high regard in the market. However, remember that it is for reference purposes only (and doesn’t necessarily guarantee of having the best options for you).

It is just as important for you to do your research, take your personal priorities into consideration, and then make any decision. Below are some of the Tier 1 Solar Panel manufacturers:

  • Sunpower/Maxeon 
  • QCells 
  • Canadian Solar 
  • LG Solar 
  • REC Group 
  • Trina Solar 
  • Jinko 
  • LONGi 
  • Risen Energy  
  • JA Solar 

An Introduction to Tier 2 Solar Panel Manufacturers 

Tier 2 Solar providers come second to Tier 1 manufacturers, so naturally, they are less efficient when judged across the same parameters. Let's walk you through an overview: 

  • Experience: They have been around significantly less time as a business, i.e., two to five years. 
  • Manufacturing Process: Unlike Tier 1 solar module manufacturers, those belonging to Tier 2 only partially automate their processes. They are more likely to rely on manual work, so human error is always possible. 
  • Research: They invest less money in research, so the scope for innovation is quite slim. 
  • Reputation: They are relatively new to the market and are only building their reputation. 
  • Scale: They generally operate on a smaller scale. 
  • Product Price: Since they don't promise quality akin to that of Tier 1 providers, their product price is relatively lower.  

Although most research groups don't rank Tier 2 providers, some standard examples of solar manufacturers that belong here are RenewSys Solar, Luxor Solar, and Axitec Solar. 

Learn Types of Solar Panels

An Introduction to Tier 3 Solar Panel Manufacturers 

As you move the lowest down the Tier grade, you'll find Tier 3 Solar providers. It is pretty self-evident that they score the lowest when judged across the same parameters. Let's discuss: 

  • Experience: They are often the newest in the market, with less than a year of experience as a consolidated business. 
  • Assembler: They are more of an assembler than a manufacturer. 
  • Process: They usually resort to manual labour, using human production lines for the soldering of solar cells. This can mean that the quality largely relies on the operator's skill set. 
  • Scale: Their operations are generally small-scale. 
  • Research and Development: They invest less in R&D. 

Examples of classic Tier 3 solar manufacturers are Tanfon Solar, Dongson Solar, and Lovsun Solar.  

Tier 1 vs Tier 2 vs Tier 3: A Comparative Analysis 

Let us help you break down the difference between Tier 1, 2, and 3 Solar manufacturers in a nutshell: 

Feature  Tier 1 Solar Panel Manufacturers  Tier 2 Solar Panel Manufacturers  Tier 3 Solar Panel Manufacturers 
Experience  More than five years  Between 2 to 5 years  Less than one year 

Quality 

Premium quality 

Moderate quality 

Lowest quality 

Vertical Integration 

High vertical integration 

Partial vertical integration 

Lowest vertical integration 

Module Price 

Most expensive 

Moderate prices 

Lowest prices 

Automation 

Complete automation or employment of robotic processes 

Partial automation  

Partial to zero automation 

Materials 

Best grade materials 

Moderate quality materials 

Moderate to low-quality materials 

Switch to a Credible Energy Provider with Econnex 

Are you looking to make the environment-friendly choice of moving to a renewable energy source without the risk of impulsively deciding on a low-tier provider? Let us come to the rescue! Econnex simplifies the gruelling process of finding a solar system that matches your household energy needs in the most transparent manner.  

We offer you the power of choice between the solar array options from a panel of vetted retailers with experience and demonstrated longevity in the solar market. Luckily, you just have to sit back, compare your best available options, and decide on the one you find most worthwhile!  

Solar Comparison
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