BloombergNEF Tier 1 does not mean high quality

31 Jul 26

8 minute read

Lately, we’ve seen an increase in questions about Tier 1 status. But there is a massive misconception taking over the industry: Tier 1 does not mean high quality.

So, what does it actually mean?

In this blog article, we explore what it means to hold status, how it’s awarded and what else you should look for when shopping for renewable energy solutions.

Who and what is "Tier 1"?

In conversations across the solar and storage industry, this standard is frequently referred to simply as "Tier 1." However, the official designation is BloombergNEF Tier 1.

Bloomberg New Energy Finance (BNEF) is a research provider overseeing global commodity markets - including the world’s raw materials, like oil, gas, coal and electricity - and tracking technologies shaping the future (e.g. EV, solar power and advanced batteries).

A BloombergNEF Tier 1 listing evaluates the financial bankability rating of renewable energy manufacturers. It signifies a manufacturer's widespread acceptance by financial institutions.

BloombergNEF states: “The Tier 1 classification is purely a measure of industry acceptance and does not directly account for product quality or financial strength of manufacturers. There are many documented examples of quality issues or bankruptcy of tier 1 manufacturers.”

How does BNEF Tier 1 work?

BNEF lists companies whose products have been selected for use in projects that have closed nonrecourse debt finance. The manufacturer must demonstrate that the goods are their own brand and manufactured in-house.

To qualify, they must provide at least six different projects (over 10 MW each) that have been financed by six different commercial projects in the past two years. The following details must be in the public domain:

  • Project location
  • Capacity
  • Developer
  • Bank
  • Module Maker

Why does it matter?

  • Provides financial assurance, indicating they are reliable and established.
  • Reduced risk when purchasing from the manufacturer: strong bankability suggests a level of operational maturity and financial health.
  • Industry recognition: only 2% of global manufacturers achieve BloombergNEF Tier 1.

What to be mindful of:

Here’s what you’d need to be mindful of when referring to the BNEF Tier 1 list:

  • The BloombergNEF Tier 1 list is published quarterly; if a manufacturer is no longer Tier 1, the company will remain on the list until the next quarter.
  • The BloombergNEF Tier 1 list can only be accessed by Bloomberg subscribers. Whilst it’s uncommon and not allowed, it doesn’t stop some manufacturers from advertising themselves as BloombergNEF Tier 1. Unless you have a subscription, you won’t be able to check.
  • The status is a reflection of their historical health and not real-time information, as the research is based on a rolling two-year history of projects.
  • BloombergNEF Tier 2 & Tier 3 do not exist. BloombergNEF only publish Tier 1 lists, and anything labelled Tier 2 or 3 is a marketing term which some companies use if they fall short of making the list.

What else should you look for other than BloombergNEF Tier 1?

Whilst the BloombergNEF Tier 1 is a good indicator of an established company, it doesn’t measure the quality or the reliability of the goods. To ensure you are getting a high-quality product, evaluate these key technical specifications:

For Solar PV:

  • Look at both manufacturing and linear performance warranty terms.
  • Consider the cell technology, e.g. TOPCon, HJT, Back Contact.
  • Evaluate both first-year and annual degradation percentages.
  • Verify key regional standards, such as UK MCS rating.
  • Look for independent lab testing covering Thermal Cycling, Potential-Induced Degradation (PID), Light-Induced Degradation (LID/LeTID), Mechanical Stress Sequences, and Hail Durability.

For Battery Energy Storage Systems (BESS):

  • Consider the cell technology, e.g. LFP (Lithium Iron Phosphate).
  • Check if the unit uses liquid cooling or air-cooling thermal management.
  • Review the expected cycle life (e.g. 6,000-12,000 cycles and depth of discharge (DoD).
  • Review the quality of the Battery Management System (BMS) and compatibility with grid-scale Energy Management Systems (EMS).

For Inverters:

  • Review MPPT, inverter efficiency and consider multi-string/hybrid capabilities.
  • Check backup switching times for seamless changeover.
  • Look for integrated Surge Protection Devices (SPD) and integrated Arc Fault Circuit Interruption (AFCI).
  • Look for reliable communication protocols and smart monitoring platforms - consider finding companies holding ISO 27001 for information security management.
  • Verify enclosure ratings (e.g. IP65/IP66) and cooling mechanisms to ensure performance without severe thermal derating at peak ambient temperatures.

The bottom line

BloombergNEF Tier 1 status is a great starting point to verify a manufacturer’s financial health and market stability, but it shouldn't be the only factor in your decision. True system performance, reliability, and long-term ROI come down to technical specifications, comprehensive warranties, and third-party testing. Always look beyond the badge to ensure you’re investing in equipment built to last.

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