Unveiling Solar Energy's Reliability: What You Need to Know

Meta, Apple, Amazon, Target, and Walmart—what do these tech revolutionaries and retail giants have in common? They run on solar energy. As the top four corporate solar leaders, these brands generate 5,099.89 MW of solar electricity combined. 

But does solar provide a reliable energy source for these companies, and can it be trusted to provide energy for your business or home? What happens if something goes wrong, and how likely are you to cash out on a solar investment?

If you’re considering using solar energy to power your home, business, or farm, you’re not going to want to do so without understanding the limits that solar energy will place on the electricity you have available. 

We’ll address these concerns, but here’s a quick spoiler: after several decades of use, solar has proved itself as a reliable alternative to fossil fuels, powering operations from the United States Military to your neighbor’s house. 

What Happens to Your Solar Power During an Outage?

When it comes down to it, as long as your system is tied to the electric grid, you will always have access to as much electricity as you need, given the grid is up and running. 

While solar panels can only produce electricity when the sun is shining, you still have full access to the electric grid. With net metering (available in most states) or New York’s Value Stack, you’ll be fully compensated for any electricity your system produces that you don’t use through a credit on your electricity bill. This means your solar energy system can produce extra, free electricity while the sun shines to use at night or in poor weather conditions.

However, a common misconception is that with solar, you’ll have electricity even when the grid goes down. Because your system is tied to the grid, it is required to shut off and stop producing until the grid is back up and running unless you invest in a battery or other energy storage system. 

How Do Solar Panels Stand Up to Years of Use?

Solar panels, in general, are very reliable. According to a study, only .05% of PV modules experience failure per year during their lifetime. 

Where does that number come from? In 2017, The National Renewable Energy Laboratory (NREL) monitored 54,500 solar panels over 15 years. They found that only five panels out of 10,000 failed yearly, or one in every 2,000 solar panels.

And that number represents a wide variety of solar panels in various environments. That number could be much less, depending on where you live and what you install. The study showed higher failure rates in hot and humid areas than in temperate and dry areas. If you live in the country's northeast or other cooler areas, that rate could be even less. 

Another thing to consider is the quality of the solar panels themselves. If you opt for solar panels made from high-quality, well-trusted producers, panel failures are likely to occur less often. 

And even if you’re one of the very unlucky solar owners with a solar panel that fails, you may be covered with the system’s warranty.

What Does Your Solar Panel Warranty Actually Cover?

If one or more of your solar panels fail, you’ll most likely be covered by the panels' warranties, which typically extend 25 to 30 years. Solar panels typically come with both a product warranty and a performance warranty. The product warranty covers defects in the panel's material or workmanship. The performance warranty guarantees that the panel's performance will stay above a specified degradation rate. 

As long as you did nothing to void the warranty (ie using a power washer to clean your panels), the failed panel will likely be replaced, though this may not include labor to remove the faulty panel and install the new one. 

Is there a way to monitor your solar system to ensure you don’t lose out on energy savings due to faulty equipment? You can check your solar system’s monitoring software or examine your electric bills. 

Many utilities break out how much electricity you use each month and how much you draw from the grid. If you purchase a lot more electricity from the grid in one month than you normally do, your solar system may be producing less electricity due to an issue. 

Just be sure this increase in your electricity bill wasn’t caused by an explainable increase in power you used, like Christmas lights or a new piece of equipment.

Are All Solar System Components Equally Reliable?

Solar panels aren’t the only thing you need to turn sunlight into electricity. Solar energy systems are comprised of a few different parts - the main ones including solar panels, inverters, racking, the distribution panel, and the electric meter.

The inverters - the part of your solar system that converts the DC electricity from your panels to usable AC electricity - are also backed by warranties, typically ranging from 10 to 25 years. While this may be the most likely part of the system to have issues, selecting a quality model from a trusted brand can save you plenty of time and headaches down the road. 

Batteries, an optional add-on for solar storage, typically have warranties of five to ten years. Batteries have a much shorter lifespan than other components of solar systems, depending on how frequently they are charged and discharged.

The racking (what mounts your panels to your roof or your land) normally comes with a 10 to 20-year warranty on workmanship and material defects.

All this to say that if anything goes wrong with your system, manufacturer warranties may be there to cover it. However, it’s also a good idea to partner with a solar installer who offers additional warranties/guarantees. 

At Paradise Energy, we offer a Triple Ten Guarantee for the first ten years, which covers any labor required for the replacement of warranty items, a workmanship guarantee for work that we did, system monitoring, and the crown jewel - a performance guarantee that backs up the total solar production of your system. If your system produces less than we guaranteed, we’ll send you a check for the difference. 

Is Investing in Solar Energy Really a Safe Financial Decision?

In the vast majority of cases, the truth is that solar is not a risky investment. In fact, for many, it’s the opposite. Solar power can be a very reliable and stable investment, as it is dependent on only a few factors that are somewhat predictable. 

Your solar investment is going to come down to two things: how much the price of electricity increases, and how much your system produces.

First and foremost, take a look at your proposal. Most solar installers will include a cash flow outlining the payback of your system, along with the ROI. These figures are important. 

While it’s impossible to tell the exact increase or decrease of electricity prices, it’s a fairly safe bet that they’ll rise over the 30+ year lifespan of your system. As demand increases, costly electricity infrastructure will need to expand to meet the growing need, driving up electricity prices from the grid.

In addition to electricity prices, the weather itself also has a significant impact on your system’s payback. Several extremely cloudy and snowy years may lead to less electricity produced by your system, which leads to a longer payback. However, bright and sunny weather will super-charge your system, leading to an above-average payback. 

Your solar installer will take average local weather patterns into account when sizing your system and determining its production. This will give you a fairly accurate estimate that won’t fluctuate much from year to year, regardless of whether you live in Miami or Seattle. That keeps the paybacks on your proposal pretty close to what your system will actually achieve.

Here's a look at the average ROIs and Paybacks for residential and commercial solar systems.