What Should I Look For in a Solar Panel Warranty?
Did you know that even solar panels come with a warranty? It turns out that a solar panel warranty is important, and as a homeowner considering solar energy, you should definitely care about it. Why? The warranty acts as a safety net, protecting your investment in solar technology.
Solar panels are a long-term commitment, typically designed to last 25 years or more. However, like any other product, they can come with manufacturing defects or performance issues over time. A solid warranty guarantees that if anything goes wrong—whether it is a material failure or a significant drop in energy output—you won’t be left shouldering the costs of repairs or replacements.
Yes, a good warranty means that you will save thousands of dollars in the long run. How much really depends on the type of warranty you have and how well your chosen solar company stands up to it. Be picky when it comes to signing that contract.
On the other hand, some might argue that a warranty should not be needed if you are purchasing from a highly reputable brand known for durable products. However, even the best products can occasionally fail, and without a warranty, you would have to pay for the repair of the solar equipment. When you look at it from another perspective, warranties often reflect the manufacturer’s confidence in their products; a strong warranty is usually a sign that the company stands behind the quality of its panels. This requires some confidence, as the equipment is meant to perform for over two decades.
What is a solar panel warranty?
Warranty is a word spelled a lot when it comes to consumer products, and for good reason—it represents the promise of quality and protection that consumers seek when making a purchase. Whether you are buying electronics, appliances, or solar equipment, understanding the details of a warranty leads to a long-term satisfaction with your investment, even if the product has to be eventually exchanged due to a defect.
So, what is a solar panel warranty? It is a document that provides protection against defects and performance issues over the lifespan of solar panels. The lifespan is quite substantial when compared to most consumer products – we talk about more than 20 years.
Typically, solar panel warranties are split into two categories: the product warranty and the performance warranty.
The product warranty covers any defects in materials or workmanship. It guarantees that the solar panels are free from manufacturing defects and will function properly under normal conditions. The duration of a product warranty for solar panels generally ranges from 10 to 25 years, depending on the manufacturer.
This warranty usually excludes damage caused by external factors such as severe weather conditions (e.g. hail, wind), improper installation, or lack of recommended seasonal maintenance. It is important to read the warranty details to understand what is and what isn’t covered.
If you find a defect within the warranty period, the manufacturer should repair or replace the faulty panels at no cost. That is only in case when the claim meets the conditions specifically listed in the document, which is a reason why you need to be familiar with them.
On the other hand, the performance warranty guarantees that your panels will maintain a certain level of power output over a specified period, typically 25 years. For example, a common performance warranty might guarantee 90% output after 10 years and 80% after 25 years.
Solar panels degrade at a rate of about 0.5% to 1% per year. The performance warranty specifies the maximum annual degradation rate the manufacturer expects. If your panels degrade faster than the listed rate, the manufacturer should repair or replace the damaged panels, or compensate you for the underperformance.
You should know that all solar panels naturally degrade over time, leading to a decrease in how much electricity they produce. The level of annual degradation should stay within acceptable limits, otherwise your solar system may be a faulty one. The duration of a performance warranty is usually 25 years, as well as the lifespan of solar panels.
Important considerations
You should be aware that not all warranties are created equal. You always need to carefully review the terms before making a decision. Some warranties offer extensive coverage but with conditions that might limit your ability to make a claim, such as, for example, requiring regular professional maintenance or specific installation procedures.
Additionally, the longevity and reputation of the manufacturer play a key role in the reliability of the warranty. A solid warranty from a trusted company can give you real peace of mind, knowing your solar panels will keep working well for years to come.
As you look into solar energy options, remember that a good warranty isn’t just another document coming along with your solar panels—it is an important part of protecting your investment in solar power.
What should I look for in a solar panel warranty?
If you will not read the warranty and it doesn’t offer the coverage you need, you could run into some big problems. For starters, you might end up paying out of pocket for repairs or replacements if the warranty doesn’t cover certain parts or types of damage. What does that mean?
Some warranties exclude common issues like wear and tear or weather-related damage, which could leave you with hefty bills. Plus, if the warranty period is shorter than you expected or has extra conditions like professional maintenance, not following those rules could void the warranty entirely.
There are a few important things to keep in mind to make sure you are making a smart choice of going with your chosen solar installer. First, take a look at how long the product warranty lasts. Most well-known manufacturers offer warranties that range from 10 to 25 years. Since solar panels are built to last about 25 to 30 years, a longer warranty is usually better because it gives you more protection against any defects in materials or workmanship.
Next, take a good look at the performance warranty. Usually, solar panels come with a performance guarantee that promises they will still produce a certain percentage of their original power output after 25 years—typically around 80% to 90%. For instance, if a panel starts with a 300-watt output, the performance warranty should ensure it will still be producing at least 240 watts after 25 years. And a good quality solar panel will.
You should also pay attention to any specific conditions or limitations attached to the warranty. Some warranties might need you to do regular maintenance with certified professionals, or they could be voided if the installation isn’t up to certain standards. Another may not include labor costs or shipping costs of the equipment to be exchanged. Not all warranties cover these extra costs associated with replacing or repairing faulty panels.
Be careful: for panels that fail outside the warranty, replacement costs can be significant. A single panel can cost between $200 to $500, not even including labor.
Also, see if the warranty can be transferred to a new homeowner if you ever decide to sell your place—this can be a nice perk that adds value to your home.
Lastly, a warranty is only as reliable as the company backing it. It’s smart to choose a manufacturer with a strong track record in the solar industry. They are more likely to stick around and honor their promises.
But be careful, around 80% of large installers use local subcontractors for installations. If an issue arises, the responsibility often falls back on the manufacturer, who must find a suitable repair team. For your peace of mind, it is better to choose a company that has been in business for a longer time, as many small or new installers may not survive as long as your solar system.
What are the most common problems with solar panel warranties?
Unfortunately, we live in a world where you need to read between the lines in order to make the best out of your investment. And even like that with some products you simply get burnt due to unforeseen circumstances.
Well, let’s try to do our best to prevent that from happening with solar panels.
That being said, many solar panel warranties come with fine print that can be difficult to understand. Terms like “performance guarantee” and “product warranty” may have specific definitions that limit coverage. Some warranties might only cover certain components, while excluding other important ones that are likely to break earlier like inverters or batteries, and these can be really costly for most homeowners.
Similar problem is the cost of labor. Will the work be covered? If not, the whole ordeal can get quite expensive. During the first 10 years, many manufacturers fully support warranty claims, including labor and parts. Beyond this period, only parts might be covered, with other costs falling on the homeowner.
Additionally, warranties often include exclusions and limitations, such as damage from environmental factors, improper installation, or lack of regular maintenance, which, if not clearly communicated, can leave you without coverage.
You can also come across some smaller or newer solar companies that struggle to uphold their warranties due to financial instability or lack of experience. There are customers frustrated by delays in service or even outright denial of coverage, with some companies trying to blame environmental factors or installation errors to avoid honoring the warranty.
Do not forget that if the solar company goes out of business, which can happen in the solar industry, the warranty might even become worthless. Another thing is that not all warranties are transferable if you sell your home, which can reduce the value of your solar investment. Even when they are transferable, there might be fees or conditions that complicate the process.
The last issue you may encounter is that even when a warranty is honored, the service provided under warranty can sometimes be delayed due to slow customer service responses or long wait times for repair or replacement parts. You may remain with a solar system on your property but no energy produced by it for weeks. There are some solar owners who even mentioned waiting two months for the solar company to get back to them.
A few concluding words…
We know this may sound quite pessimistic but do not forget that this article just summarizes all possible scenarios that could happen. It doesn’t mean that you will be exposed to all these situations. It is written and researched to help you to be informed and have a good overview.
Get a few quotes from your selected solar companies, review the offers, ask questions and read the paperwork handed to you prior to agreeing to anything. Solar equipment in general has no moving parts, is sturdy and doesn’t really get damaged that easily.
