What the Guru says
Which warranty is better for solar panels, the product warranty or the performance warranty.
So the warranty is important, but I'm gonna say the product warranty is the most black and white. It's about whether the product has been made well, and if something physically goes wrong, that's the warranty that's gonna help you.
The performance warranty is also valuable. It's about how much energy the product is gonna deliver over its life, but that makes it a bit trickier to prove a fault. Look for a really good product warranty.
What’s the best warranty?
Theoretically and on paper, both the product and performance warranties are important considerations when evaluating the quality and reliability of solar panels. But in reality, the issue can look a little different. Let’s look at each of these 2 solar panel warranties.
The Product Warranty
The product warranty covers the solar panels against defects in manufacturing, materials, or workmanship. It’s the same key warranty as with your car or fridge. It typically protects for a specific period, ranging from 12 to 25 years, for solar panels.
If any issues arise during this period, such as a panel malfunction, the manufacturer will have to repair or replace the defective panels at no additional cost to the customer. As solar panels can not be repaired very easily, in most cases, we talk about a panel replacement. The product warranty should indicate the manufacturer’s confidence in their product’s quality and commitment to long-term support. The issue arises when a solar panel manufacturer decides to abandon Australia and leave, which has happened.
Then the product warranty responsibility moves to the distributor or installer. If neither of those 2 is still in business, the warranty is, unfortunately, null and void.
The Performance Warranty
The Performance Warranty, on paper, guarantees that the solar panels will maintain a certain level of power output over a specified period. It ensures that the panels will continue to generate electricity at an acceptable efficiency throughout their lifespan. Performance Warranties typically go for 25 years, but the terms of annual degradation can vary between manufacturers and panel models.
If the panels’ performance falls below a predetermined threshold, like 90% after ten years, let’s say the manufacturer, if we go by the warranty document, may compensate the customer for the loss of energy production. As there is limited capacity in the current solar technology to repair a panel to restore the panel’s efficiency, a panel replacement is the most viable solution.
The downside of the performance warranty is that in the fine print, the panel manufacturers need to have clear proof of the lower performance. So how does a layperson deliver such proof?
This type of clear demonstration is often only possible via a specific flash test. Unfortunately, uninstalling the panel, shipping, and testing will cost more than the value of a solar panel. So in cases of an underperforming panel, many homeowners will not proceed with a claim when they realise the financial realities.
One would hope in the future, panel manufacturers will accept annual or monthly monitoring data, especially from micro-inverters or optimisers on individual panels, as sufficient proof to enact the Performance Warranty.
When comparing the two warranties, the Product Warranty from an established solar panel brand in Australia is much stronger. For more information regarding warranties, you can have a look at Canstar Blue’s article on it here:
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