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Solar panel warranty explained for Australian buyers: what each promise covers and where it falls short.

Solar panel warranty explained: product vs performance

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Solar panel warranty explained in one line: the product warranty covers faulty panels, and the performance warranty promises a minimum power output over time. They are two different promises, and most panels come with both.

Australia's government solar guide says the product warranty is the most important one to check. The performance warranty is useful, but it can be hard to enforce. Here is how each part works.

The product warranty covers faults

A product warranty covers a faulty panel. It is also called a manufacturer's warranty or a warranty against defects. The government guide says that for many panels it runs between 10 and 15 years, and that some makers now offer 25 years or more.

It will not cover everything. Most product warranties leave out hail damage, and damage you cause yourself is usually excluded too. Read the exclusions before you sign, and ask the installer to show you the actual warranty document, not a brochure.

Sources: energy.gov.au, Warranties and insurance (Solar Guide).

The performance warranty covers output

All solar panels lose a little power each year. This is called degradation. A performance warranty sets the most loss the maker will allow. The government guide gives a common example: at least 90 percent of rated output for the first 10 years, and at least 80 percent up to year 25.

The guide says almost all panels come with a 25-year performance warranty. It also warns that these warranties can be difficult to enforce. If a panel simply fails, it is often the product warranty that you can use.

A 2018 SolarQuotes article makes a similar point. It says a panel covered only by the performance promise may leave you leaning on consumer law. It also notes that some makers may offer one replacement panel to cover several weak ones, which may not fix the problem in practice.

Sources: energy.gov.au, Warranties and insurance; SolarQuotes, "Bad News: Your Solar Panel Performance Warranty Is Probably Crap" (June 27, 2018).

Workmanship and inverter warranties are separate

The installer gives a workmanship warranty. It covers problems caused by the installation, such as a leaky roof from cracked tiles. The government guide says it is usually 5 years.

The inverter has its own warranty. For a string inverter the common term is 5 to 10 years. The guide notes that most systems need a new inverter before the panels wear out, so this date matters too.

Sources: energy.gov.au, Warranties and insurance.

Your consumer guarantees sit on top

A warranty is an extra promise. It does not replace your rights under the Australian Consumer Law, which has applied since 1 January 2011. The ACCC says products must be safe, durable and free from defects. There is no fixed lifespan in the law. What counts as durable depends on the product, its price and what the seller said about it.

The business that sold you the product is your first contact. The ACCC says a seller cannot simply tell you to call the manufacturer. Depending on the problem, you may be able to ask for a repair, a replacement or a refund.

Sellers also cannot sell an extended warranty by claiming it gives you more rights than the law already does, if that is not true.

Sources: ACCC, Consumer guarantees (accc.gov.au); energy.gov.au, Warranties and insurance.

What if the maker or installer closes?

This is the biggest risk with a long warranty. A 25-year promise is only as good as the business behind it. The SolarQuotes article says that if the maker has no Australian office, the importer is responsible. If the importer is also gone, it argues the installer carries the duty, because retailers must make sure consumer guarantees are met. That is one commentator's view, not a court ruling, and a small installer may have few assets.

You can lower the risk before you buy. Choose panels that appear on the Clean Energy Council approved modules list, which is needed for the Small-scale Renewable Energy Scheme. Ask how long the maker and importer have operated in Australia. Keep your invoice, serial numbers and warranty papers. The government guide also suggests asking who pays for a claim and how to lodge one.

Warranties usually do not cover hail, so consider insurance for the system.

Sources: SolarQuotes (June 27, 2018); Clean Energy Council, approved PV modules list (cleanenergycouncil.org.au); energy.gov.au, Warranties and insurance.

A quick checklist before you sign

  • Product warranty length, and what it excludes.
  • Performance warranty percentages at year 10 and year 25.
  • Workmanship warranty length and who stands behind it.
  • Inverter warranty length.
  • Who the Australian importer is, and how to make a claim.

Our own limit: the editors read what public guides and regulators publish. We do not test panels, and this is general information, not legal advice.