Performance warranty insurance for solar panel
Solar panel warranty offers protection to the solar investment. It is also a crucial part of the entire solar installation set-up. There are different types of warranties and performance warranty is one among them. Understanding it in detail will benefit from choosing an optimum warranty program that suits the solar energy system.
As stated earlier, performance warranty is one among the different warranties available for solar energy system. Under this warranty program, a certain percentage of the panel’s capacity is covered as a guarantee and offered to the insurer at different intervals. Although solar panels have a long life span, losing their ability is possible over time due to environmental changes and improper maintenance.
According to statistics, solar panels lose about 10-30% of their capacity over several decades. As manufacturers predict the loss easily, they set up benchmarks for the performance of the boards. A typical panel warranty covers a particular percentage of the original production capacity for a 20/25-year timeline.
A performance warranty output does not cover structural integrity of the solar energy system. Furthermore, it excludes claim when the loss is due to a structural issue. The output warranty provides protection to the panels alone while the structure is intact. Usually, there is a calculated depreciation of the panels. For instance, most of the insurance companies set the first depreciation value to 90% after completion of the first 10 years and to 80% after 25 years.
In most of the scenarios, solar panels perform trouble-free for years. However, there may be a few occasions where the boards experience problems. Depending on the kind of the problem, a failed panel can cause trouble to the adjacent panels. In either of the cases, it is the performance warranty that offers protection.
A few manufacturers offer third-party warranty insurance. Third party insurance comes into effect when the manufacturer goes bankrupt or the warranty period ended. However, such insurance policies may not suit the interest of the buyer because of the different conditions. Knowing the terms and conditions, and understanding the policy wording is helpful to know what a performance warranty covers. The policy schedule delivers complete details related to the warranty, the limitations, the coverage action, and the deductibles. A careful approach before buying is by comparing and understanding the policy wordings or contacting a reputed insurance agent.