The growth of the renewable energy market is undeniable. It brings numerous benefits to society and users, but also poses some challenges. One of these challenges is the need to classify and evaluate the quality of solar modules. Such a ranking provides investors with a tool to make rational decisions about the materials they purchase. In this context, could the Bloomberg Tier 1 ranking be helpful?
What is Bloomberg Tier 1?
Bloomberg New Energy Finance (BNEF) is a renowned research firm that provides data, analysis, and forecasts on energy markets, including renewable energy. BNEF is the author of the globally respected Bloomberg Tier 1 ranking, which aims to assess solar panel manufacturers in terms of their credibility and financial stability. It does not focus on the technology or parameters of photovoltaic (PV) panels but rather on the trustworthiness of the manufacturers. Companies included in the list have established reputations, stable market positions, and strong backing in the form of factories or research and development teams. Being listed in the ranking means that the company’s products have been used in numerous projects, and the risk of the brand becoming insolvent in the coming years is minimal.
Criteria for Qualifying for Bloomberg Tier 1
To qualify for Tier 1, a company must meet a set of stringent criteria. The main ones include:
- Financial credibility – The manufacturer must demonstrate solid financial foundations. BNEF analyzes financial statements, profitability indicators, debt servicing ability, and collaboration history with banks. One of the criteria for inclusion in the ranking is financing by at least six different banks on a non-recourse basis.
- Production scale – Significant market share is also necessary for qualification. Solar modules must be produced on a large scale. This helps eliminate small, unstable companies that may have problems maintaining supply continuity and fulfilling warranty obligations.
- Sales performance – The ranking includes only organizations that have been registered and actively operating in the market for over five years. Additionally, in the past two years, they must have completed at least six different projects with a capacity of over 5 MW.
- Production potential – Production capacity and investments in research and development are also evaluated.
The Bloomberg Tier 1 list is updated quarterly.
Does Bloomberg Tier 1 Guarantee High-Quality Solar Modules?
As mentioned earlier, the Bloomberg Tier 1 ranking is a listing of panel manufacturers. It does not take into account specific types of modules or technologies. However, the very strict and measurable criteria set by banks and significant investors (who prioritize safe and durable solutions) ensure that devices manufactured by companies on the list are a reliable choice. These panels are characterized by very low failure rates, optimal price-to-quality ratios, modernity, and certainty of warranty claims being honored. In other words, purchasing PV panels from a brand listed in Bloomberg Tier 1 ensures a reliable and quality product.
The Importance of the Bloomberg Tier 1 Ranking
The Bloomberg Tier 1 ranking is of great importance to manufacturers, installers, and individual customers. Investors seeking stable and reliable partners for financing photovoltaic projects can rely on BNEF’s evaluation as an indicator of the manufacturer’s credibility. Companies included in the ranking are perceived as less risky, making it easier to obtain project financing. The widespread acceptance of Bloomberg’s results also means that panels from listed manufacturers are viewed as high-quality devices with long lifespans. In many cases, they are even considered prestigious solutions. It’s also worth mentioning that modules from this list typically have:
- Longer warranties,
- Better service availability,
- Higher residual value.
Is It Worth Relying on the Tier 1 Ranking?
The Bloomberg Tier 1 ranking includes the names of 40 manufacturers from around the world. This represents only about 2% of all companies involved in producing solar modules. At the same time, there is no other ranking on the market that can serve as an alternative to the BNEF list. Therefore, it serves as a valuable source of information for installers and individuals seeking high-quality materials.
However, it’s important to remember that being listed in the ranking is not the only factor to consider when making a purchasing decision. It’s also essential to compare the technical parameters of the modules, such as their efficiency, temperature coefficients, or warranty. At 7SUN’s wholesale store, you can purchase modules from manufacturers regularly featured in the Bloomberg Tier 1 ranking. Examples include Jinko, Trina Solar, Ja Solar and Longi.
