Everything You Need to Know About Your Solar Panel System's Warranty

Going solar is a big investment, and you'll want to make sure your solar panels are protected and will last for years to come. That's where a solar panel warranty comes into play.

Your warranty can cover the cost of things like replacement panels, repairs and labor. It can also cover the performance of the solar panel system. The ideal warranty will ensure your system stays up and running for decades, choosing an installer with a solid warranty should be an important consideration during your solar journey. 

This guide will help you understand everything you need to know about solar panel warranties, what's covered, what's not covered and some red flags to watch out for as you evaluate your options. 

What is a solar panel warranty?

A solar panel warranty is a guarantee from a solar installer that it'll repair or replace your system if certain issues arise within a specified time period after the system has been installed. Some warranties will even cover the cost of workmanship during the installation process, ensuring the quality of the installation. If your installer says your solar system doesn't come with a warranty, that's a red flag.  

It's also important to note that not every warranty is the same. Some solar warranties might last 20 years and only cover the product and labor costs, while other warranties might last 25 years and cover the product, system performance and labor costs. Don't be afraid to shop around to see who's offering the best deal.

What's covered under a solar panel warranty?

There are three different kinds of solar warranties you'll want to be on the look out for: product, performance and labor warranties. If you're buying a solar panel system, the ideal warranty package should contain all three. Let's take a deep dive into what each type of warranty covers.

Solar panel product warranty

The product warranty covers the physical equipment of your solar panel system. It "guarantees the physical integrity of the panels and inverters," Ben Delman, senior communications director at Solar United Neighbors, told CNET. "For example, if a connection on a panel fails, that panel would be replaced under the product warranty." 

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Solar panels and microinverters are typically covered under the product warranty for up to 25 years. Central inverters are typically covered for up to 10 years. Product warranties are offered by the company that produces the solar panels, not the installer. And if you plan to get a solar battery with your solar panel system, the battery is covered under a different warranty. The average battery warranty is 10 years. 

Solar panel performance warranty

Your solar panel's performance warranty guarantees that your panels will produce a certain amount of electricity over the term of the warranty. The performance of your panels -- their total capacity to produce electricity -- degrades over time. A performance warranty guarantees that your system's capacity won't drop more than a certain amount each year, or that it will perform up to a certain capacity at the end of a longer period. 

"Performance warranties will usually guarantee up to 80% of capacity at the end of 25 years, but each warranty will vary," Delman said. 

Just like the product warranty, performance warranties are between you and the panel manufacturer, not the installer. 

Are labor and shipping costs included? 

Solar panel warranties don't necessarily cover "soft costs," which are things like labor, shipping and permitting. If you want these types of costs covered, you'll likely need a separate labor warranty. This is offered by your installer, not the panel or equipment manufacturer. 

"Labor warranties cover the workmanship, including wiring and any roof penetrations that the installer would make," Delman said. 

Are there extended warranty options?

If you'd like to buy coverage for a longer period than the standard 20 to 25 years, you can consider an extended warranty for your solar panels. This additional warranty typically adds $350 to $500 to the cost of your system for an extra 5 to 15 years of coverage, according to SaveonEnergy. 

An extended warranty could result in savings on repairs to your system in the future, but you'll want to consider your solar payback period before making a decision. Your solar payback period is the amount of time it takes to see a return on your solar investment.

"If you live in an area where you may have a seven- to 10-year payback, it may not be worth it to get the longer warranty, because your panels have already paid for themselves by then," Delman said. "But in an area where payback is longer, you might find it financially sensible to invest in a long warranty, because you're still working on recouping your investment."

Limitations of solar panel warranties

As with any investment in your home, it pays to review your warranty's fine print. As you're considering proposals from different installers, look for red flags in the warranty that may limit your coverage in certain situations. For example, solar warranties may not cover damage caused by extreme weather events or limit your ability to transfer the warranty to a new owner if you sell your home. 

And since some warranties don't cover soft costs like labor, you might want to consider a labor warranty as well to ensure that your system is protected from hefty repair or maintenance costs in the future. 

"Talk it through with your installer to make sure that the panels, the production and labor all have a warranty," Delman said. "It could differ from proposal to proposal, so you'll want to make sure that the warranty for these various elements are included." 

Can you insure your solar panel system?

In addition to making sure you've got a warranty for your solar panels, it's also worth making sure your system is insured. Many homeowner insurers will cover roof-mounted solar panels as part of a regular homeowners insurance policy, though ground-mounted or carport systems may require supplemental insurance, according to a report from the National Renewable Energy Laboratory. Before you move forward with the installation, talk to your insurance company to get a better understanding of whether adding solar might raise, or even lower, your premiums.

"Some insurers will offer credits to their customers for going green, but installing solar panels may increase your premiums because you're adding another item to your policy," Delman said. "Before you go solar, check with your insurer on what impact that would have on your home insurance cost."

If your current policy doesn't offer coverage, it might time to shop for a new policy that does or look for a new insurer entirely. 

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