{"id":56015,"date":"2021-11-29T10:54:17","date_gmt":"2021-11-29T00:24:17","guid":{"rendered":"https:\/\/www.solarquotes.com.au\/blog\/?p=56015"},"modified":"2024-01-25T13:12:50","modified_gmt":"2024-01-25T03:42:50","slug":"panels-25-year-warranties","status":"publish","type":"post","link":"https:\/\/www.solarquotes.com.au\/blog\/panels-25-year-warranties\/","title":{"rendered":"Why Now Is The Time To Buy Solar Panels With 25 Year Product Warranties"},"content":{"rendered":"
\"Solar

Many premium solar panels are now warranted until…2046.<\/p><\/div>\r\n

Solar panel prices have recently risen… except those with 25 year product warranties.\u00a0<\/strong><\/p>\r\n

The pandemic’s economic slowdown was severe. But it’s hard to keep humanity’s lust for stuff down, and the economy is bouncing back.\u00a0 The rebound caught many off guard, causing shortages and price rises across an array of industries.\u00a0 Solar is no exception.\u00a0<\/p>\r\n

But solar panel price rises have been uneven.\u00a0 The wholesale prices of reliable, lower-cost panels with 12 to 15 year product warranties have roughly doubled from their lows of two years ago, but the cost of higher quality solar panels<\/a> with 25 year product warranties — nearly all of which go on residential roofs — have held steady.<\/p>\r\n

The premium for 25 year product warranty panels can now be under $1,000 for a 10 kilowatt solar system<\/a>.\u00a0 The difference is so small I recommend paying it.<\/p>\r\n

What I don’t recommend is putting off purchasing solar in the hope prices will fall because:<\/p>\r\n

    \r\n
  1. Using panels with a 25 year product warranty is a good idea anyway.<\/li>\r\n
  2. A 10 kilowatt solar power system can provide $1,000 in savings and credit on electricity bills in under six months.\u00a0 This means you stand to lose a lot more than you can gain by waiting for solar prices<\/a> to fall.<\/li>\r\n<\/ol>\r\n

    Why Most Solar Panel Prices Are Up<\/h2>\r\n

    Rapid economic recovery has factories around the world scrambling for workers and materials.\u00a0 Competition for these resources has driven up prices. \u00a0<\/p>\r\n

    Many industries had a major downturn in 2020 and their output has still not recovered.\u00a0 Here’s what happened with world motor vehicle production over the past six years:<\/p>\r\n

    \"World<\/p>\r\n

    In 2019 vehicle production fell 4% from the year before, and in 2020 it fell another 15%.\u00a0 Because it’s hard to turn this decline around quickly, there’s now a long wait for new cars, and prices for second-hand ones are through the roof.\u00a0 (If anyone wants to pay $9,000 for a 2004 Hyundai Getz in Adelaide, let me know in the comments.)<\/p>\r\n

    But this didn’t happen to solar.\u00a0 Instead of decreasing, last year solar system installations soared:<\/p>\r\n

    \"Gigawatts

    Note PV installation estimates vary between organizations. The figures from 2012 to 2020 are from the International Renewable Energy Agency<\/a>.<\/p><\/div>\r\n

    World solar PV installation declined in 2019. \u00a0Installations only fell 1% from 2018 levels, but this was worse than it looks because, on average, solar installations increase 20% per year.\u00a0 I know that 20% figure looks it has been rounded up to seem more impressive, but that’s how rapidly solar capacity has been growing.\u00a0<\/p>\r\n

    In 2020, solar installation boomed with a 28% increase from 2019 levels. \u00a0In 2021, installs will be up another 29%, according to one estimate<\/a>.\u00a0<\/p>\r\n

    So, the solar industry was going gangbusters<\/a> all last year and is now having trouble meeting demand.\u00a0 This is why the price of many — but not all — solar panels have risen.\u00a0<\/p>\r\n

    Little Overall Effect On Australia<\/h2>\r\n

    If talk of shortages and price rises have you thinking we’re heading for an inflationary disaster, relax.\u00a0 Over two years, Australian inflation averaged under 1.4% but has ticked up since then and, over two quarters has averaged 3.4%.\u00a0 If you think 3.4% is dangerously high, I’m guessing you are younger than me. \u00a0The graph below shows the sort of inflation Australians old enough to have paid thousands of dollars to have wisdom teeth ripped out of their heads1<\/a><\/sup> are used to:<\/p>\r\n

    \"Australia's<\/p>\r\n

    So let me know when inflation goes over 10%, and I’ll consider worrying.\u00a0 Anyone trying to convince you we’re heading for hyperinflation is probably peddling their favourite cryptocurrency as an inflation hedge. Which it isn’t<\/a>.<\/p>\r\n

    Shortages Won’t Last Long<\/h2>\r\n

    The shortages and price hikes we’re seeing around the world won’t last long.\u00a0 It already looks as though prices are heading down<\/a> for many commodities.\u00a0 A strong point of market economies is they are very good at solving supply problems2<\/a><\/sup>.<\/p>\r\n

    History shows solar panel price rises don’t last long.\u00a0 The most prolonged increase was three years: 2004 -2006 when average prices rose 12%.<\/p>\r\n

    I suspect budget panels will soon fall in price and appear cheap before mid-2022.<\/p>\r\n

    Prices Higher For Solar Farm Panels<\/h2>\r\n

    It looks like demand from solar farms has pushed up prices of panels with 12-15 year product warranties.\u00a0 There’s no matching boom in residential installations, so prices of residential-only panels with longer warranties have not increased.\u00a0<\/p>\r\n

    This could change.\u00a0 There could be a surge in rooftop solar installations in the US or other rich countries.\u00a0 It’s also possible solar farms will decide to use them for big projects — but I doubt that will happen.<\/p>\r\n

    What Is A Product Warranty?<\/h2>\r\n

    After yammering on about product warranties for so long, I should explain what they are.\u00a0 Solar panels come with two warranty types:<\/p>\r\n