Why do higher quality solar panels with longer product warranties get you better financial payback?
Synopsis
The increasing awareness of climate change and its impact on the environment has led people to consider alternative energy sources, such as solar power. Solar energy offers the opportunity to turn your roof into a mini power plant, producing and consuming renewable energy. This is a great way to make a positive environmental contribution and reduce your carbon footprint.
While many people are focused on the financial benefits of installing solar panels, they are still contributing to the environment by producing renewable energy. The payback period for a mid-range system is typically around three years, making it a wise investment for both your wallet and the planet. It's important to consider the warranty of the panel, with the construction warranty being more significant than the performance warranty. Choosing a panel with a 25-year warranty ensures longevity and productivity, while a 10-year warranty panel may only offer a decade of full productivity.
Video Transcript
I think climate change has definitely shifted people's thinking, as have the bush fires of late. People are thinking right, our government isn't doing all that much, so maybe it's my time or my turn to step up. And solar is a great way to do that because you are turning your roof into a mini generation plant. So if you can produce and consume your own renewable energy, then why would you not do that? And that's a great way to make a really positive environmental contribution. I think people who are worried about their hip pocket, are probably the ones who are going to benefit the most from installing solar.
It's funny when I first got into the industry, I was very idealistic and I thought, surely everyone's going to want to get solar for the same reasons as me. Which is to help the planet which clearly does need quite a lot of help, but it wasn't the case. I was quite shocked actually. And I realised that most people were all about the hip pocket. Which is fine because you install solar, you get the financial benefit but the environmental benefit is there anyway A lot of people are focused on payback and that's reasonable. You want to make sure that you're getting a good return on your investment.
I usually say to people and we actually show people how it's achievable, that you'll probably get around about a three-year payback, over two and a half to three payback with a good quality mid range system. So for the difference of 12 months, if you're going to be in your home even for six or seven years, you'd be mad not to install the good stuff.
The performance warranty is a bit of a fluffy warranty, it's quite hard to claim. All panels that pass Australian standards have to offer a 25 year performance warranty. The construction warranty is much more important. Called the Product Warranty, that guarantees that the panel won't crack or warp or corrode, and that's much more likely to happen. So the warranty is generally in line with the longevity of the panel. So if you get a panel or a manufacturer that's prepared to offer 25 year warranty on its panel, you can expect it's going to last at least 25 years. Whereas if you go with a panel that only offers a 10 year warranty, that's probably about as long as you can expect to get full productivity out of it.