Customers invest ten thousand dollars or more when installing a solar system. Typically, the most expensive equipment on a photovoltaic (PV) system is the solar panels. But the job of a solar panel is not easy, so solar panel warranties are critical.
Solar PV modules are in the sun day after day, exposed to large temperature swings and extreme weather conditions. Depending on the climate, solar panels must endure hail, ice storms, blazing heat, and even hurricane-strength winds.
The solar panel warranty and homeowner’s insurance can help protect your customer’s investment in a rooftop solar system. Let’s explore this important topic so you can pass relevant information along to potential customers.
What Is A Solar Panel Warranty?
A solar panel warranty is a manufacturer's guarantee covering defects and performance issues. Typically lasting 10 to 25 years, it assures customers that the PV panels will meet specified standards and offers repair or replacement if problems arise during the warranty period.
Typically, premium PV panels offer longer product warranties and stronger power performance guarantees. Many solar companies sell both a value panel and a premium panel, so customers can choose which one they want. The biggest difference between value and premium panels is usually the solar panel efficiency and the warranties.
There are three different types of solar panel warranties. Homeowners insurance is also an option to cover damage from weather, fires, or vandalism.
Solar Panel Warranty: Performance Guarantees
PV modules are regularly exposed to environmental conditions, which can lead to decreased efficiency in converting sunlight into electricity over time due to light-induced degradation.
A solar panel warranty typically includes power performance guarantees that ensure panels maintain a certain percentage of their original capacity over specified periods. For instance, a common guarantee states that panels will generate at least 90% of their initial capacity for 10 years and 80% for 25 years, as the manufacturer specifies.
However, this solar panel warranty can differ among product lines from the same manufacturer. For example, the Jinko Tiger N-type panel boasts a lower rate of light-induced degradation, allowing for a power performance guarantee of 30 years instead of the usual 25 years, resulting in a higher warranty than that of other Jinko panels.
How Solar Performance Guarantees Work
Understanding how a performance guarantee for a solar panel warranty works can be a bit difficult to decipher. The guarantee is generally stated as a percentage of the nominal power in the first year and then a yearly decrease in power up to a certain percentage.
For example, Q Cells states 98% nominal power in the first year, and then the nominal decrease in output is not to exceed 0.5% annually from years 2 to 25. To calculate this, remember that the nominal power in year one is calculated differently than in years 2 to 25. Therefore, the minimum nominal power after 25 years is 86%. To calculate this: 0.86 = 0.98 - (24 x 0.005)
If you want to calculate the nominal power output after 11 years is: 0.93 = 0.98 - (10 x 0.005)
Keep in mind that sometimes solar panels underperform because they need to be cleaned. Heavily soiled modules can produce less electricity because the solar radiation is blocked.
Solar Panel Warranty: Product & Materials Warranties
These cover the integrity of the solar panels and protect against manufacturer defects. Although most major module manufacturers offer equipment warranties for at least 10 or 12 years, some premium panel manufacturers or lines have longer protection, such as 20- or even 25-year warranties.
Gradually, some manufacturers have been offering longer product warranties. Just ten years ago, few offered product warranties of 25 years. Now, it is relatively common. Beware that the warranty may not be consistent across various models from the same manufacturer. Often, the solar panel warranty varies and is longer for some panels than for others. Sometimes, high-performance models may have longer warranty periods.
Some solar module manufacturers offer the option to extend the warranty period. For example, Silfab offers a standard 12-year warranty on solar panels with the option to extend it to 25 years when using a registered and approved Silfab solar installer. Likewise, REC offers a 20-year solar panel warranty for all installers and a 25-year product warranty for REC-certified contractors.
Here are the solar panel warranties that major manufacturers offer:
PV Panel Manufacturer | Duration of Home Solar Panel Warranty (in Years) | Power Performance Guarantee Over 25 Years |
12 Years* | 84.8% | |
25 years | 83%* | |
25 Years | 87.0%* | |
25 Years | 90.8% | |
25 Years | 86.0% | |
20 Years / 25 Years | 80.7% | |
25 Years | 82.6% | |
25 Years | 86.0% | |
25 Years | 92.0% | |
25 Years | 80.7% |
* Minimum warranty period length or power performance guarantee varies by the series
Solar Panel Warranty: Labor Warranties
While most PV modules include solar panel warranties, these typically cover the equipment itself and often exclude labor costs associated with replacing malfunctioning modules. Solar panel repairs can be complex, requiring trained technicians to access rooftops, remove defective panels, and install new ones, making labor costs significant.
Many solar companies offer separate labor warranties, which can cover labor costs for a designated period, often ranging from 1 to 10 years. Both homeowners and businesses should consider labor warranties when purchasing solar panels, as they can mitigate unexpected repair expenses.
What a Solar Panel Warranty Covers
A solar panel warranty typically covers manufacturer defects and premature light-induced degradation. If issues arise, manufacturers often address warranty claims by either repairing the defect, replacing the faulty panel, or refunding the original purchase price of the module. This coverage ensures that consumers are protected against unforeseen problems that could affect the performance of their solar investment.
However, proper installation plays a vital role in maintaining warranty coverage. For instance, ensuring that the racking system is adequate for the wind load of the project site can help prevent damage to the solar panels. Additionally, it's essential to diagnose whether the issue lies with the solar panel itself or if it stems from other components, such as the inverter or power optimizer.
What Can Void a Solar Panel Warranty
Several factors can potentially void warranties on solar panels, leaving consumers unprotected against defects or performance issues.
Here are some common reasons:
Improper Installation: Modules not installed according to the manufacturer's specifications can void solar panel warranties. This includes failure to use the recommended mounting equipment or improper wiring.
Neglecting Maintenance: Lack of regular maintenance, such as cleaning the panels or inspecting for damage, can lead to issues that may not be covered under the warranty. Neglecting to maintain the system could decrease efficiency and void the warranty.
Environmental Damage: Damage caused by extreme weather events, such as hurricanes, hail, or floods, may also void solar panel warranties if the installation is not adequately protected or reinforced.
Modifications or Repairs: Unauthorized modifications or repairs to the solar system can void the warranty. For instance, if a third-party technician attempts to repair or alter the solar panels, this action could invalidate the warranty.
Failure to Register the Warranty: Some manufacturers require that customers register their warranties on solar panels within a certain timeframe. Failing to do so may result in the warranty being voided.
Vandalism: Damage caused by vandalism or malicious acts typically falls outside the warranty coverage. This includes any intentional damage inflicted on the solar panels.
Solar Panel Warranty Costs
Warranties are included in the cost of purchasing the solar panels. The only exception is the option of extending the warranty, which is relatively rare with solar panels but more common with inverters.
A more likely scenario is that your clients will need to increase the coverage on their homeowner’s insurance policy which could have a modest impact on their insurance premiums. If your customers do file a homeowner’s insurance claim, they will likely first need to meet the deductible for the homeowner's insurance.
For example, if their deductible is $500 and their solar PV system incurred $3,000 in hail damage, their insurance could cover $2,500 of that total.
FAQs on Solar Panel Warranties
Get answers to your most common questions on PV module warranties.
Does Homeowner’s Insurance Cover Solar Panels?
Typically, warranties on solar panels don’t protect your clients fully from the unexpected. Thankfully, most homeowners' policies cover solar power systems, but clients should confirm this with their agent. Also, it might be necessary to increase the policy’s limit to ensure that the PV system is adequately covered.
Likewise, commercial property insurance can cover commercial solar installations. Your clients must ensure that the solar installation is covered and that the policy has adequate coverage.
Do Home Warranties Cover Solar Panels?
Basic home warranties do not cover solar panel systems because they are considered permanent home attachments and part of the structure. However, PV installers and solar panel manufacturers typically offer warranties, and most homeowners insurance covers solar energy systems from the unexpected, like fire, hail, or storm damage.
What Isn't Covered by a Solar Panel Warranty?
Solar panel warranties generally do not cover damage from extreme weather events like hurricanes and tornadoes, improper installation or maintenance, or damage from fire, flooding, or other natural disasters. Accidental damage or vandalism is also typically excluded. It's essential to review the specific terms of the warranty to understand all exclusions.
What Solar Panels Have the Best Warranties?
SunPower has the best solar panel warranties, with a 25-year product warranty and a power performance guarantee of 92% after 25 years. However, Panasonic also offers some of the best solar panel warranties in the PV industry, with a power performance guarantee of 90.8% after 25 years.
What Solar Panels Have a 25-year warranty?
Numerous solar module manufacturers offer a 25-year product warranty, including CertainTeed, Hanwha Q CELLS, LG, Panasonic, Solaria, SunPower, and Trina Solar. In addition, REC and Silfab offer a 25-year solar panel warranty when installed by a manufacturer-approved PV contractor.
Why Solar Installation Warranties Are Important
Investing in solar panel systems typically costs thousands or even tens of thousands of dollars. While these systems can lead to substantial savings over time, those benefits can be jeopardized if the system malfunctions. A warranty on solar panels provides customers with peace of mind, assuring them that their investment is protected against potential defects and performance issues.
Also, offering a labor and workmanship warranty for several years is essential. This coverage protects customers from additional costs associated with installation errors and helps ensure that necessary repairs are handled promptly.
Educating customers about solar panel warranties can facilitate closing deals and enhance their understanding of what they are purchasing. When designing photovoltaic (PV) systems, consider warranty options as a critical factor before finalizing equipment choices. Collaborating with companies like GreenLancer can further streamline the process by providing expertise in PV design, permitting, and engineering support.
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