What Are Tier 1 and Tier 2 Solar Systems?

One of the first home solar options you will encounter on your solar journey is choosing between a Tier 1 or Tier 2 solar system. Your home solar system will capture solar energy in a DC power format. Your solar system must convert captured energy from DC to AC for use in your home. How that energy is converted and at what ratio is determined by whether you have a Tier 1 or Tier 2 solar system. 

What are Tier 1 and Tier 2 solar systems? Tier 1 solar systems convert up to around 10,000 watts of AC power. The interconnection process with your utility company is streamlined, with lower or no connection fees and lower insurance requirements for your home solar system. Tier 2 solar systems are for homes with high energy demands. These systems convert over 10,000 watts of AC power but come with a connection fee of around $400 and a minimum $1 million personal liability insurance requirement. 

"For most homes, we recommend Tier 1 solar systems. There are fewer costs to connect and insure them, they're faster to install, and most homes don't need much more than a Tier 1 can offer. But, for homes with exceptional power use, Tier 2 will be the way."
Thomas Reed
CEO - Solarvironment

Tier 1 Solar Systems - The Economical Choice

Based on the DC rating, Tier 1 solar systems capture up to 11,764 watts. A system of this size typically has an AC output of about 10,000 watts, making it a convenient choice for many homeowners. The advantages of a Tier 1 system include a more straightforward interconnection process with the utility company, lower or no interconnection fees, and less stringent insurance requirements. This tier is often the most efficient and economical home solar option for homes with moderate energy needs. 

Tier 2 Solar Systems - The Power Up Choice

For homes with higher energy, Tier 2 solar systems start at 11,765 watts DC and go higher. These systems are more extensive and capable of providing more power, but they also involve additional considerations. There will be a one-time interconnection fee of approximately $400 and a $1 million personal liability insurance requirement. Tier 2 systems are ideal for homes with high energy consumption or those planning to seek home solar options that could accommodate expanded energy usage in the future. 

Which Home Solar Option is Best for You?

The key to choosing the best home solar option is understanding how much solar energy your home needs. Whether you are striving for energy independence or seeking to keep the lights on when the power goes out will determine your solar needs. The second step is to understand the environmental factors that impact how much energy your home solar system can capture. From there, you can choose if the streamlined Tier 1 solar system or the powered-up Tier 2 solar system is the best for your home. 

Choosing Between Tier 1 and Tier 2 Solar Systems

A free infographic to help you make the best decision.