Product Warranty and Performance Warranty Explained

There are two types of solar power warranties available: the product warranty and the performance warranty. Both are important to know about to protect your investment. Most basically, a performance warranty is for if a panel is performing poorly, and a product warranty is if an element of your system stops working altogether.

Let’s consider each in a little more detail.

What Is a Product Warranty?

A solar product warranty guarantees the design and construction of the solar panel itself. It covers manufacturing issues, environmental damage and early wear and tear of the solar panel. Usually the warranty for solar panels is 10–25 years, with a few manufacturers offering a 30-year product warranty. The longer the warranty is, the better for you.

Most of the time, solar panels do not have issues, and even if one panel fails, your system will keep running, giving you time to take advantage of your product warranty. If you have a problem while under warranty, the manufacturer will ship you a free replacement panel. In most cases you must pay for shipping and installation charges, but not always. Sunpower, for example, comes with a warranty that includes parts and installation labor costs.

What Is a Performance Warranty?

All solar panels experience some decline in electricity production over time. A solar performance warranty guarantees that the solar panel will not degrade at an unreasonable rate. The normal amount of production decline is about 10% reduction in 10 years and 20% reduction in 25 years, and you can ask about the degradation rate of your specific panels. If your panel declines at a higher rate than normal, the manufacturer will fix it at no cost or ship you a free solar panel replacement. In some cases you may have to pay for panel shipping.

Learn more about Panel Degradation and Lifespan

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Which Solar Panel Warranty Do I Need?

It’s good to be covered by both types of warranty and in most cases it is standard to receive both a production warranty and a performance warranty on your array. It’s good to be familiar with your monitoring system so that if your system is performing differently than expected you can contact your EnergyPal rep and they can investigate what to do next.

It’s important to look at your warranty with your rep so you can be prepared, but it’s important to note that solar panel malfunctions are extremely rare.

Learn more about Panel Monitoring Systems

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How Much Should Warranty Coverage Affect my Choice of Solar Panel?

Your solar photovoltaic system is a long-term investment that can free you from high electricity bills. To pay back your investment, the system must work at the expected capacity for several years and the warranty ensures they do. Remember that if a company goes out of business, the warranty will likely become void. Choose a reputable, financially-solid solar panel manufacturer and solar installation company that has been around for a while and has good customer reviews.

How Likely is it that I'll have to Use my Solar Warranty?

Less than 1% of solar panels experience any malfunction or defects, and the majority of issues are caught before installation is complete, so the likelihood that you will ever have to use your warranty is very low.

Panels are most likely to get damaged during shipping and transport, when they are moving, so once they are installed on your roof they are past the riskiest stage of their journey. Solar panels have no moving parts and are extremely resilient to natural forces like weather.

Panels are an investment in your home, and you want to make sure you are protected. While it’s important to have a warranty for those just-in-case scenarios, it’s a safety net you’re unlikely to ever use.

EnergyPal can help you understand solar panel warranties and compare solar system costs, benefits and performance and has pre-screened products and lots of experience with installation. Let us know. We’re here to help you make the right decision about solar!