Why Does Homi Insist on Only Tier-1?

Price wars are constant in the solar market. Clients often ask us: “Boss, another company quoted RM3,000 less for the same 550W spec. Why are you more expensive?”

The answer is simple: The Specs are the same, but the Quality is worlds apart.

Solar is a 25-year investment. For the first 3 years, Tier-1 and Tier-2 panels might perform similarly. But the brutal truth usually reveals itself after Year 5.

What is Tier-1? (Bloomberg NEF Standard)

“Tier-1” isn’t a marketing term created by factories; it’s a classification by Bloomberg NEF. It measures a manufacturer’s “Bankability.” Simply put: Only brands with their own production facilities, strong R&D, and solid financial backing recognized by major banks (like Jinko, Longi, JA Solar, Trina) make the Tier-1 list.

The “Performance Divide” After 5 Years

Tier-2 or no-brand (OEM) panels often lack rigorous quality control. Here are the most common differences after 5 years:

1. Degradation Rate

• Tier-1: Guarantees “Linear Degradation.” <2% in the 1st year, and <0.55% annually thereafter. After 25 years, efficiency remains above 84.8%.

• Tier-2: Often suffers from “Cliff-edge Degradation.” It might work fine initially, but due to material aging, output can plummet below 80% by Year 5. Over 25 years, the cumulative yield loss can be 20% – 30% compared to Tier-1.

2. Micro-cracks & Hotspots

• Tier-1: Uses high-standard encapsulation and Anti-PID (Potential Induced Degradation) materials.

• Tier-2: To cut costs, they use inferior backsheets or EVA films. Under Malaysia’s intense heat, micro-cracks often appear after 5 years. This not only drops output but causes “Hotspots”, leading to burn marks or fire risks.

3. Orphaned Warranty

• Tier-1: Major manufacturers are unlikely to go bankrupt, securing your 25-year warranty.

• Tier-2: Many small factories have shorter lifespans than the panels they make. If a panel fails in Year 5, the factory might be long gone, turning your “25-year warranty” into waste paper.

The Long-Term Math

Suppose a Tier-2 system saves you RM3,000 upfront. However, due to faster degradation, the value of the lost electricity generation over the next 20 years could exceed RM15,000. Adding the risk of repair or replacement, that RM3,000 “saving” is a high-risk gamble.

Conclusion: At Homi, we refuse to use Tier-2 products to win price wars. We know that solar panels must work for you for 25 years. Only Tier-1 quality is worthy of your investment in the future.