Solar Panel Tiers
Learn about the different tiers of solar panels and
find the best option for your home or business.
3 Tiers of Solar Panels

Tier 1 Solar Panels
- Most basic and least expensive.
- They may not work as well in certain conditions, like when it’s cloudy or hot outside.
- Systems less than or equal to 10 kW

Tier 2 Solar Panels
- Tier 2 solar panels are a step up from Tier 1.
- They are a bit more expensive, but they work better in different weather conditions.
- Most popular among Residential Homeowners.
- Larger than 10 kW up to 100 kW

Tier 3 Solar Panels
- Tier 3 solar panels are the best quality and most expensive.
- They are the most efficient at converting sunlight into electricity, and they work well in all weather conditions.
- Typically used in Commercial Building.
- Larger than 100kW
Most Commonly Used Solar Panel Tier
Residential buildings are the most frequent users of Tier 2 solar panels. They offer a nice compromise between price and effectiveness. Compared to Tier 3 panels, they are more cost-effective and more effective than Tier 1 panels. They are strong enough to last for many years and can withstand a variety of weather situations. Homeowners frequently choose these because they are thought to be smart investments that offer a good return over time.

Tier 2 PLP Insurance Requirement:
It is becoming increasingly common for homeowners to install a Tier 2 solar system, which typically ranges from 10 kW and above, in order to meet their energy needs. However, to install a system of this size, it is typically required to provide proof of a Personal Liability Policy (PLP) that offers at least $1 million in coverage. Additionally, utility companies may also require financial statements and supporting documentation to verify the value and size of the proposed solar system and associated insurance.

What is PLP Insurance?
The insurance is called a Personal Liability Policy (PLP) and it costs about $200 annually. It’s like an extra insurance policy that covers more than just your house and car. If someone gets hurt or killed because of your solar system, this policy will help pay for it. The utility companies are worried that they will be blamed if something bad happens, so they want people to get this insurance. Furthermore, homeowners will still be able to save money on their electricity bills even with the PLP insurance from their Tier 2 system. Additionally, solar installers will enjoy vast property value booms amongst other benefits such as Federal Tax Credits.
Do I Need PLP Insurance?
The utility companies seek to shield themselves from liability in the event that a customer’s solar system is shown to be the cause of an unfortunate event. They advocate for consumers to purchase insurance to assist cover any harm or injuries brought on by the solar system. Some people disagree with this notion and believe it is unnecessary. But in Florida, homeowners must obtain this insurance in order to use solar energy.

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