Your Warranty - Who Will Pay For Parts & Labor?
One of the most confusing things about going solar is trying to understand the tremendous disparity in solar warranties. There are three very different types of solar warranties, and solar companies have become extremely adept (sneaky?) at disguising the flaws in the warranty they're offering. Truth be told, most solar warranties are just about useless. You really need to know what you're getting.
On that note, whatever you do, don't go with a company which doesn't have its own comprehensive warranty. If they're too cheap to cover their own repairs, they're not a good fit for your home & family. Companies which defer to the manufacturer's warranty won't send out a repair crew, they'll instead mail you a warranty card. That's the same as saying, "Good luck, buddy."
This May Save You Weeks Of Shopping.
If I can save you a weekend or two while gathering quotes, the next 3 minutes will prove invaluable. But regardless of where you are in your solar decision, I most strongly recommend that you get a 15 to 20 year bumper to bumper warranty, issued directly from the Solar company. Anything else might prove to be a very costly mistake, and leave you paying for expensive parts & labor which should have been covered.
And if you think plumbers and electricians are expensive, you haven't seen anything yet. Solar techs often charge upwards of $300 for a 45 minute visit. And you'll have no choice; any kind of outside technician will void your warranty. Believe me; they've thought this through. They win, and you lose. So get a real warranty.
Why Wait For The Prices To Go Up?
I also recommend that once you get a fair quote from someone you find to be knowledgeable and nice, that you begin the process right away. People just love to fool themselves. They're sure they'll find something better, or maybe they'll be less busy "next month." Truth is, while you sit on your hands, you're costing yourself money that you'll never, ever get back. Is it a fair price, with a strong warranty, from a company with proven longevity? Then get moving!
Where's The Catch, Right?
I'm going to tell you what to watch for; and if you follow my advice, you'll quickly find the right Solar System for you. You will be thrilled once it's up and running!
But listen, it's a 3 month process, so if you let another season go by, then you've lost half a year of Solar savings. And in most cases, that can run from the price of a great weekend getaway, to a nice down payment on that Electric Vehicle you've been thinking about. Which, by the way, you're going to be able to charge for pennies on the dollar with your new Solar System.
Warning: Don't buy from a company which doesn't Have Their Own Warranty!
One of the most common complaints in solar is from consumers who believed they were covered for 25 years, only to find out that they have virtually no warranty at all, and that their service call will be costing them $300 or more. When the customer objects, the typical answer is, "It's in the contract."
Five Quick Tips:
1.) Choose a company with an ACTUAL warranty of their own.
2.) Choose a company who uses their own installers. You'll avoid disaster.
3.) Ignore reviews on Google, Yelp!, etc. They're probably fake, and placed there by solar salespeople working for small companies who can't compete.
4.) Read reviews at BestCompany.com. All REAL reviews will say "Verified Customer" in the upper left corner. Anything else is probably a fake review. It will give you an idea of just how desperate those little companies are to malign the established companies who grew by doing the job right. Quality isn't always cheap, but I can guarantee that out-of-warranty repairs are very, very expensive. You can lose a whole year of solar savings from just one service call which isn't covered!
5.) Avoid Microinverters. They're old technology, from back in 1989. Almost no one uses them anymore. That's because they burn out, and require two service calls; one to come out and remove them, and another to install the new parts, when the manufacturer mails them out to you in 6 to 8 weeks. You know, at the very end of the Summer! I think you get the idea...
Buying Vs. Leasing - What's The Difference?
The main difference between buying & leasing a system, is how the Federal Tax Credit is handled. The Federal Tax Credit benefits you only if you've got enough Federal Tax Liability to cover 30% of the system price over the first 18 months. If you're able to pay cash, you can claim the tax credit over a longer period of time.
With a lease, the Solar company takes the Federal Tax Credit, and then discounts your system. This makes it possible to install Solar with no loan, and no money out of pocket.
One notable exception is if there are batteries involved; then you need the lease. Batteries are never covered in a purchase, and you'll lose all of your savings replacing them. They are very expensive, and could leave you in a financial bind.
Additionally, a PPA makes it much easier to sell your home. There's no loan to satisfy, and you just sign the remaining agreement & warranty over to the new owner. And it will make your home much more in demand; there's a shortage of Solar homes on the market.
You have enough Federal Tax liability. Which should you choose?
It depends upon the equipment. If you're including a battery, then you definitely want to lease. If you buy the system, whether Cash or Finance, it's only going to include one battery. The lease will provide batteries over the full term of your program. Do you really want to pay $12,000 out-of-pocket 10 years from now?
Apart from the batteries, choose the product which saves you the most money in the first 3 years; then you'll enjoy a better quality of life. And the savings add up.
The B2B Equipment Warranty (15 & 20 years)
The best warranty in the solar industry is, unfortunately, also the most rare. The "B2B," also known as the Bumper to Bumper warranty, is exactly as you would expect. It derives its name from the automobile industry, which warrants its vehicle's engine, transmission and drive train from defects for a defined term.
In the solar industry, a bumper to bumper warranty covers your system from all device or equipment failures caused through normal wear and tear, and excluding only "Acts of God," such as hurricanes and tornadoes. Companies which offer this premium warranty typically also offer substantially superior monitoring and maintenance.
Should your system suffer from device, equipment, or catastrophic failure, it's most likely that their monitoring station will be aware of the problem before you are, and will advise you of the need for attention. They will call to schedule a time to inspect, service or repair your equipment, at no cost to you for parts or labor. Since other companies charge $300 or more for a similar call, the cost savings are immediately apparent.
Additionally, should your solar company offer a 20-year B2B, this means that they intend to replace your inverter unit. Your inverter, which converts DC current to AC, has an anticipated lifespan of 12 to 14 years. With a B2B warranty of 20 years, you can expect that the unit will be replaced, free of charge, when it comes to the end of its functional life. As inverters typically cost anywhere from $2,500 to $3,000 and require $1,000 to $1,500 labor to R&R (remove and replace), this is a substantial savings to the homeowner, since parts and labor will very likely go up in price, and not down.
The Workmanship Warranty
Probably the worst warranty offered is the, "workmanship warranty." The term "workmanship" refers to the actual installation. With a workmanship warranty, you are agreeing that, so long as the solar system was installed correctly, that the installer is no longer responsible for any parts, labor or maintenance. Should a problem occur, you will be mailed a warranty card, with the information you'll need to contact the manufacturer, which is quite frequently overseas. Not very convenient, especially if you have to ship several 60 pound panels back to China.
The 25 Year Manufacturer's Warranty
This warranty is intentionally designed to be misleading. It capitalizes on the fact that most solar panels (just the panels, not the inverter, optimizers or even the microinverters) all come with a 25 year warranty which guarantees that they will perform for 25 years within normal production tolerances. And indeed, most of them will. However, the panels are not what you need to worry about.
Most people are quite satisfied with their solar systems for the first year or two. However, year three and beyond are an entirely different story. Electronics, like any other hard-working/functioning part, can fail mechanically at any moment.
Microinverters are highly susceptible to heat, and will begin to fail, completely without warning, and often 5 or more at a time. If the microinverter fails, so does the panel. And if you lose 5 or 10 panels during a heatwave, 1/3 of your solar production could be lost. Most companies take weeks/months to schedule repairs. If you have a substantial number of panels not functioning, you could lose many hundreds of dollars of production, and end up with a jaw dropping true-up bill at the end of the year. And some utilities are merciless; they'll charge solar customers 42 to 52 cents for every kilowatt of power you've used beyond what you've uploaded over your anniversary cycle.
Optimizers are far less prone to failure, but 10 or 12 years down the line, you might see them begin to fail. If you have a 20 year B2B, you're covered. If not, expect to pay for the parts and labor yourself.
The Inverter unit has an anticipated lifespan of 12 to 14 years.
As inverters typically cost anywhere from $2,500 to $3,000 and require $1,000 to $1,500 labor to R&R (remove and replace), this is a substantial expense which is passed on to the consumer who opted for a workmanship or manufacturer's warranty.
When it comes to warranties, the phrase "You get what you pay for" was never truer. If you're rich, you should opt for a B2B warranty. If you're not rich, opt for the B2B warranty. You'll have peace of mind, and a system that works 24/365.
Editor's Note: we sincerely hope that this article has been helpful. If so, please pass it along to your friends who are interested in going solar. - Tonya Robbie
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