Solar PV: Not all panels are created equal

Solar PV: Not all panels are created equal

By Jack Ward, MD of Powermode

The spiralling cost of electricity and the search for alternative power sources have led many companies and individuals to opt for renewable energy and ultimately solar power. Roof-top solar PV(photovoltaic) systems are among the most practical. They’re in use the world over by those looking to act responsibly to boost their energy needs, take control of their carbon footprints in a world of finite resources, and save money in the long term.

At the core of any solar PV system are its solar panels or ‘modules’. Choosing an appropriate solar PV system to meet your needs can be a technically challenging exercise particularly when it comes to matching off-take with system capacity demands.

It is also challenging because there are so many differing standards of solar PV modules on the market, ranging from the ‘cheap-and-nasty’ all the way up to high quality, specialised panels.

If you’re about to make a sizable investment in a system that you hope will last some 25 to 30 years, it’s important to secure the best quality, the most efficient and appropriate solar PV modules with the best technical backup for your budget.

This is where the ‘tiered’ systems of solar panel graduation comes into play. Thanks to the Bloomberg New Energy Finance (BNEF) organisation in the US, its classification system has created transparent differentiation between the hundreds of manufacturers of solar modules on the market.

The system was developed after an avalanche of requests from finance companies for a list of major or 'bankable' suppliers. ‘Bankability' as defined by Bloomberg is whether projects using solar products are likely to be offered non-recourse debt financing by banks.

What does ‘non-recourse’ debt financing entail? It’s usually associated with projects characterised by high capital expenditures, long loan periods and uncertain revenue streams. According to the experts, analysing them requires a sound knowledge of the underlying technical domain as well as financial modelling skills. 

In this light, Tier One manufacturers represent the top 2% of PV module manufactures – the cream of the industry - with at least five years’ of manufacturing history behind them. These companies produce some of the highest efficiency PV modules due to their design excellence and use of the best grade materials, including silicon, ensuring durability and longevity.

Tier One module manufacturers are obliged to have a fully-integrated manufacturing process – they cannot sub-contract the manufacture of any element – and meet stringent management and quality standards. For example, Tier One panels are required to deliver at least 80% of their stated capacity after 25 years of operation.

They are also required to meet the requirements of production insurance policies backed by finance houses independent of the manufacturer. A BNEF classification is normally mandatory for all utility-scale projects undertaken.

Tier Two module manufacturers must have contributed products to major global projects which have been underwritten by leading finance houses; while Tier Three manufacturers make up the rest, who most likely have little in the way of a history to promote. With this group, you simply take your chances....

To cut through the clutter and ensure you are getting the best deal – the best ‘bang for your buck’ – it’s a good idea to first consult a specialist solar PV systems supplier, preferably at the design phase, before committing to any solution, building-integrated or rooftop configuration, brand name or complex quotation.

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