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Most solar panels in Australia come with a 25-year performance warranty guaranteeing around 80 percent of their original output after that period. However, well-made panels can often continue producing electricity for 30 to 40 years. Solar panels gradually lose efficiency due to normal degradation, usually around 0.5 percent per year. Choosing quality panels and a skilled installer helps ensure the system delivers reliable performance for decades.
How Long Do Solar Panels Typically Last?
Most solar panels installed on Australian homes come with a 25-year performance warranty. This warranty guarantees that the panels will still produce a significant portion of their original output after 25 years of operation.
In many cases, manufacturers promise that the panels will still generate around 80 percent of their original rated capacity after that period. However, this does not mean the panels stop working once the warranty ends.
High-quality solar panels can often continue generating electricity for 30 to 40 years. They simply produce slightly less power each year as they gradually age.
Why Do Solar Panels Lose Efficiency Over Time?
Solar panels slowly lose efficiency due to a process known as degradation. This is a normal ageing process caused by exposure to sunlight, temperature changes and environmental conditions.
Quality panels typically degrade at around 0.5 percent per year. Lower-quality panels may degrade more quickly, sometimes reaching 1 percent per year or higher.
Over time, this gradual decline means the panels still work reliably but produce slightly less electricity than when they were new. Performance warranties exist to ensure that this degradation does not occur too quickly.
What Is the Difference Between Product and Performance Warranties?
Solar panels normally include two types of warranty protection.
The performance warranty guarantees how much electricity the panel will still produce after a certain number of years. This is typically the well-known 25-year performance guarantee.
The product warranty covers physical defects in the panel itself. This includes problems with the frame, glass, junction box or manufacturing faults.
Many older panels only had product warranties of around 10 to 12 years. Today, higher-quality manufacturers increasingly offer 25-year product warranties that match the performance warranty, which indicates greater confidence in the panel’s build quality.
What Causes Solar Panels to Fail Early?
Most solar panels do not fail because they simply become old. Premature failures are more commonly caused by manufacturing defects or poor installation practices.
Panels that are not properly sealed can suffer internal corrosion in humid conditions. Incorrect installation can also cause damage, such as small micro-cracks in the solar cells that slowly worsen over time.
It is also important to remember that solar panels are only one component of the system. The inverter, which converts solar electricity into usable household power, typically has a shorter lifespan and may need replacement after around 10 to 15 years.
