Solar panels have three different warranties covering three different things. You need all three to be solid. Most people find out too late that they only have one of them backed by a company that's still in business.
The Three Warranties Explained
1. Product Warranty (Also Called the Manufacturer Warranty)
This covers defects in the panel itself — cracking, delamination, cell failure, water ingress. Standard product warranties run 10–15 years, though premium brands (SunPower, REC, Maxeon) now offer 25 years.
The catch: this warranty is only as good as the manufacturer still being in business. Several panel brands have promised 25-year warranties and gone under within a decade. When evaluating panels, look for major, established manufacturers — Tier 1 rated by BNEF (Bloomberg New Energy Finance) — not obscure brands promising the world.
2. Performance Warranty
In Australia, it's actually mandated that solar panels must come with a minimum 25-year performance warranty. This guarantees that after 25 years, the panel will still produce at least 80% of its original rated output. Premium panels often guarantee 85–87% at year 25.
Panels naturally degrade about 0.3–0.5% per year in output. A panel rated at 400W today might produce 380W in 10 years. The performance warranty sets the floor — if it drops faster than guaranteed, you have a claim.
Again: this is only enforceable if the manufacturer is still operating. That 25-year warranty needs a 25-year company behind it.
3. Workmanship Warranty (Also Called the Installation Warranty)
This is the one most people ignore — and the one that matters most in the first 10 years. It covers faults in the installation itself: wiring errors, mounting issues, roof penetration leaks, inverter connection problems. If water gets into your roof because the installer didn't seal the mounting correctly, this is the warranty that covers it.
The legal minimum for CEC Approved Solar Retailers is 5 years. A good installer will offer 10 years. Some offer longer. If you're choosing between two similar quotes, the workmanship warranty length is a meaningful differentiator.
What Good Looks Like
You want to see:
- Product warranty: 12–25 years from a Tier 1, financially stable manufacturer
- Performance warranty: 25 years, 80%+ output guaranteed (85%+ for premium brands)
- Workmanship warranty: Minimum 10 years from the installer
All three should be in writing in the contract — not just on a brochure.
What Happens When Something Goes Wrong
Panel claims go to the manufacturer. Workmanship claims go to the installer. If the installer has gone out of business (which happens regularly in this industry), you're relying on the manufacturer or your consumer protection rights under Australian Consumer Law.
This is another reason CEC accreditation and a track record matter. A company that's been around for 10+ years is more likely to still be around when you need to make a claim in year 8.
Inverter Warranties Are Separate
The inverter has its own warranty — typically 5–10 years standard, with extensions available for most premium brands (Fronius, SMA, SolarEdge offer up to 20-year extended warranties). Inverters are the component most likely to need replacement within the life of your system. Ask specifically what the inverter warranty is and whether an extended warranty is included or available.
Understanding what you're covered for is as important as the install itself. If you want to know what system makes financial sense for your home, start with your bill.
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