Solar Panel Product and Performance Warranties
Lack of Transparency and What You Should Know
“Warranty” and “guarantee” are words that are interchangeably used throughout the solar industry but mean the same thing. Warranties are very relevant for homeowners who decide to own their panels instead of getting a lease or PPA. Solar manufacturers that create the solar panels always have two warranties that come with the panels that solar installers, full-service companies, and dealers sell: the product warranty and performance warranty. And while these two warranties come with every single solar system, many solar companies are surprisingly silent about their product warranties, and make their performance warranties sound more fantastic than they actually are.
Product (Panel) Warranties
The product (or panel) warranty covers you against any manufacturing defects and problems your solar panels might face from the elements. Depending on what kind of inverter setup you have, one faulty panel could dramatically reduce the production of your entire system. And with panels costing anywhere from $150 to $450 per panel, you don’t want to be stuck paying for a replacement because of a defect from the manufacturer. This is why it’s important to take a close look at your product warranty before you sign.
What you need to understand about the product warranty is that it’s the one guarantee that clearly determines whether one company is selling better panels than another. Essentially, the product warranty is a statement from the manufacturer for how long their panels will last. If your system is meant to last upwards of 20 years but the manufacturer offers a warranty on its panels for only half of that then you’ll be coughing up a good chunk of change if any of the panels break after the warranty expires.
Unfortunately, hardly any solar companies own up to their product warranty upfront — especially the ones that sell lower-quality panels. To get this information, you have to go directly to the panel manufacturer:
As the table suggests, the typical length for a product warranty is about 10–12 years, though some solar companies give you the option to increase the warranty length for an additional cost. Meanwhile, SunPower is the only manufacturer to offer a whopping 25-year product warranty — more than double what every other manufacturer offers. SunPower is able to offer such a great warranty because of its quality of panels through Maxeon Technology. SunPower exclusively sells its panels through hundreds of dealers throughout the country like Legend Solar, Namaste Solar, and SunPower by Green Convergence just to name a few.
Given what we know about SunPower’s panels, it’s no surprise why companies that sell panels from other manufacturers are less forthcoming about what their product warranty online. In many cases, solar companies won’t even disclose their manufacturer, or at least, they’ll make that information very hard to track down.
Performance Warranties
Due to natural degradation, as well as exposure to the elements over time, a solar panel’s power output becomes slightly weaker and weaker each year. Solar sales reps will likely boast that their company’s solar panels can produce somewhere between 80 and 90 percent of their maximum power output rating after 25 years. If at any time during those 25 years, your panels aren’t producing the power output that you were guaranteed, the performance warranty will require the manufacturer to repair or replace the panel, hopefully, at no cost to you. But while a 25-year warranty sounds like an amazing deal, keep in mind that almost every company offers a 25-year performance warranty — even for the lowest quality panels.
We compared the performances warranties of the same companies listed above, and wouldn’t you know it, the project output after 25 years is between 80 and 90 percent for each company:
So, if the solar company is claiming its performance warranty is one of the best warranties in the industry, it’s not; a 25-year performance warranty is the industry standard. Certainly be skeptical of a company offering anything less than 25 years. While the product warranty doesn’t necessarily apply if you are leasing your solar system or financing it through a PPA, owning the equipment makes these warranties even more important.
Don’t get lured in by a solar company claiming to be better than it really is. Websites and sales reps could be using tactics and wording to make their product and service seem better than everyone else when in reality, they’re the same as everyone else. Deciding to go solar is a huge decision, and we at BestCompany.com know that education is key. To help you in your decision, we’ve reviewed and ranked the top solar providers in your area. Take a look for yourself, and get solar empowered.
