Do Solar Panel Warranties Account for Efficiency Loss?
Yes, solar panel performance warranties account for efficiency loss and provide a maximum power loss per year throughout the warranty term. The average degradation is 2.5% in the first year and then 0.5% per year after that. That means you’re guaranteed to retain 97.5% efficiency after one year and 85.5% after 25 years.
Since panels typically pay for themselves in around 12 years, the 25-year warranty should be plenty to ensure you come out positive over time. Most homeowners pay for their panels with energy savings and then save an additional $22,000+, and the standard 25-year production warranty should be enough to reach these savings yourself.
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