Solar PV Module Tiering



PV Module Tiering


Tiering system for PV module makers:

 Bloomberg New Energy Finance has developed a tiering system for PV module makers based on bankability, to create a transparent differentiation between the hundreds of manufacturers of solar modules on the market. Since this basic categorization has been used as an advertisement by certain manufacturers, but should never replace a proper due diligence process in product selection, this document explains the tiering criteria and its limitations

Definition of “Bankability”: whether projects using the solar products are likely to be offered non-recourse debt financing by banks is the key criterion for tiering.
•      Banks, and their technical due diligence providers, are extremely unwilling to disclose their white lists of acceptable products.
•      Bloomberg New Energy Finance therefore bases its criteria in what deals have been closed in the past, as tracked by our database, which includes 4,800 solar financings worldwide as of November 2012.
•       Since the market is evolving, BNEF reserve the right to change these criteria at any time particularly by requiring more information to consider a manufacturer tier 1. These tiers will be reviewed every quarter based on information added to Bloomberg New Energy Finance's database


The Bloomberg New Energy Finance has developed following criteria to evaluate the Solar PV manufacturers based on the bankability as Tier 1, Tier 2, Tier 3 as below.

v  Tier 1- manufacturers produce some of the highest efficiency solar panels. This is due to their use of the best grade of silicon in production, which ensures the longevity of the panels themselves.

Tier 1 manufacturers are those which have provided products to at least three different projects in the past 2 years which have all been financed non-recourse by three different banks, essentially requiring that the manufacturer be bankable.  

 Bankability refers to whether the projects using the solar products are likely to be offer a non-recourse debt financing by Banks, In fact this is the key criterion for determining a suppliers tier within the field







v  Tier 2 - Module makers which have supplied product to some projects with bank financing, and have some industry reputation, are considered tier 2.

v  Tier 3 - Module makers where there is little data on the deployment of their products, or which have filed for insolvency protection, are considered tier 3.

Tier 1 includes the top 2 percent of solar PV manufacturers, and have been manufacturing panels for at least 5 years.  They control each stage of the manufacturing process.


Please note that a tier 1 or 2 categorization is not any form of recommendation for the company or its products




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