What are Tier 1 solar panels?

What defines Tier 1 solar panels

There is no official ranking system for types of solar panels. Instead, the term Tier 1 is an industry shorthand created by BloombergNEF (BNEF). It’s sometimes used by solar companies to distinguish their equipment from other solar products that might be considered off-brand.

BNEF is a top research company that studies clean energy, digital technology and global markets. Tier 1 solar manufacturers are long-standing companies with a proven track record of producing dependable photovoltaic (PV) equipment.

What makes Tier 1 solar panels special?

Tier 1 doesn’t mean the panels are the highest in quality. Rather, it refers to manufacturers that are financially stable, trusted by banks and considered a safer investment compared to less-established companies. 

The Tier 1 label is about money risk, not how well the panel works.

In reality, though, Tier 1 panels are usually the most reliable and most efficient. They can be expected to last 25 years or more, thanks to their high-quality, weather-resistant materials and construction.

What about Tier 2 and Tier 3 manufacturers?

A Tier 2 or Tier 3 company can still make great solar panels. But these companies might be smaller, newer or less well-known than Tier 1 companies. Production is often on a smaller scale with less testing and shorter track records.

Most solar panels, regardless of tier, are made from polycrystalline or monocrystalline. Both types are usually rated for at least 300 watts of potential power production.

Tier 1 solar panel benefits

Tier 1 solar panels have two main benefits: they work better and last longer. You can also expect good help from the company if you have problems.

Higher power and better electricity production

Tier 1 panels generally come with higher wattage ratings (250 watts vs. 400 watts) and more efficient solar cells than panels made by lower-tier manufacturers. This means Tier 1 solar panels can make the most solar power when the sun shines on them.

As a result, Tier 1 solar panels with high-performance ratings can be expected to generate more hourly, daily and yearly solar power than equipment from a less reputable manufacturer. This should lead to lower electric bills and, in turn, a greater return on investment.

Durable materials and guaranteed performance

Tier 1 companies make panels with strong, high-quality parts. These parts are made to last outside for many years. Tier 1 companies spend more time and money researching how to make better panels. This means Tier 1 panels can better handle rain, hail, strong winds and other bad weather that might damage cheaper panels.

Bankability and extended warranties

More than anything, the best indicators of a Tier 1 manufacturer are their extended warranties and performance guarantees. For homeowners, Tier 1 panels are often a safer bet because the manufacturer is more likely to honor warranties over 20 to 25 years.

While lower-quality panels may only be under warranty for a handful of years, Tier 1 panels are generally rated for specific levels of efficiency that slowly decline over two decades or more.

Leading Tier 1 solar panel brands (2025)

It’s fairly easy to find Tier 1 solar panels by working with a reputable installer. You can also source them from an online retailer or directly from the manufacturer.

• LONGi
• JinkoSolar
• Trina Solar
• JA Solar
• Canadian Solar
• Hanwha Q Cells
• First Solar

» MORE: Where to buy solar panels

How much do Tier 1 solar panels cost?

You can generally expect to pay between $300 and $900 for each Tier 1 panel, depending on the manufacturer, how many you’re buying and other factors.

In a lot of cases, you’ll need to order at least a certain number of Tier 1 solar panels to make a purchase, such as a six-, eight- or 12-piece system, with the price per panel being lower for bulk orders. If you’re buying Tier 1 solar panels on your own (i.e., not with the help of a professional installer), you can also incur significant freight shipping costs.

How much does a Tier 1 solar panel system cost?

The average residential solar energy system using Tier 1 solar panels costs between $10,000 and $30,000, but that’s because you’re paying for much more than solar panels when you convert your home to run off solar power.

John Striebel of Apollo Energy in Denver explained to us: “In terms of total system price, the cost of solar panels is only a drop in the bucket. You will also have to pay for the inverter, permits, labor and other overhead.”

For an estimate of how much a Tier 1 solar panel system will cost you, you can start by contacting solar energy companies in your area.

Cost example

Basically, while solar panels from a Tier 1 manufacturer may be more expensive, that doesn’t mean your overall costs will go up by the same relative amount. Let’s say that you purchase 20 Tier 1 solar panels at $300 each for a total cost of $6,000.

You can also expect to pay a few thousand dollars more for a high-powered inverter system and labor, as well as several hundred dollars for things like wiring and permitting. Some of those costs, like labor, will be about the same whether you go with Tier 1 solar panels or not.

Are Tier 1 solar panels worth it?

Tier 1 solar panels are almost always worth it for residential PV installations.

It may be tempting to purchase a cheaper system, But solar panels from a Tier 1 supplier are more likely to last longer and deliver more power than lower-cost equipment.

Because they usually offer more solar power production over a longer lifetime, Tier 1 solar panels are a good way to make the most out of your renewable energy investment.