Are Cheap Solar Panels Really Good Value for Money?

Solar panels are gaining popularity in Australia, and around the world, as an alternative to other sources of energy for many reasons. In many cases, using solar energy can be helpful to the environment, it can lower the cost of energy in your home, and you can even receive benefits from the Australian government.

If you’re considering purchasing a solar energy system for your home, you may have been overwhelmed by the number of options that are available to you, both from Australia and abroad. So, how do you sort through your options and make a decision?

The Cost vs. Quality Debate

One of the big reasons that solar panels are growing in popularity is because they offer cost saving and financial benefits. But, the initial investment of purchasing, installing, and setting up a solar panel system can be costly, so is a solar panel system really worth it? Is it better to buy cheap solar panels, or to spend the money on higher quality solar panels?

It is important to remember that truly cheap solar panels are not only inexpensive, but they are usually not made of the inferior quality materials. Many solar energy system installers are much more concerned with installing as many cheap systems as possible without paying much attention to the quality or durability of those systems or the way they’re installed.

According to an article in The Sydney Morning Herald, there is an “increasing prevalence of cheap, shoddy rooftop solar systems that are failing inside five years.” The same article states that “Problems reported include silicon that cannot stand up to the Australian sun, water egress in panels, fires, and defective inverters. The term ‘landfill solar’ is used in the industry to describe dodgy solar systems…”

The dilemma begins here. Higher quality systems are likely to take more time to pay for themselves than cheap solar panels, and the least expensive solar systems may not last long enough to pay for themselves. But, cost is not the only consideration when selecting solar panels for your home.

The cost of solar panels – from the highest quality to the lowest – has decreased dramatically in the last several years due to increasing demand and ongoing research. You can select a system to supplement a percentage of your energy use, or you can select a full blown solar panel system to produce enough energy to not have to purchase energy from the grid at all. These bigger systems will let you sell surplus energy back to the grid, too.

Cost can vary greatly depending on what you choose, but your solar panel selection shouldn’t be based solely on cost.

A solar system is an investment in your home and the old saying “good things aren’t cheap and cheap things aren’t good” rings very true in this instance. Consider these factors when you are selecting the right solar panel system for your home.

Solar Panel Quality from Manufacture to Installation

When it comes to solar panel quality, there are three tiers used to standardise the quality of the materials used, the manufacturing process, and the installation.

Tier 1

The top tier includes around two percent of solar panel manufacturers. In order to be considered tier one, a manufacturer must be vertically integrated. This means that the manufacturer controls every step of the manufacturing process, from research and development to construction, and they have done so for a minimum of five years. Tier one manufacturers use advanced robotic processes in the construction of some of the highest quality solar panels in the world.

Tier 2

A tier two manufacturer is generally a slightly smaller operation; they invest less in development and research and they may combine robotic processes with manual labour in the construction of their solar panels. Most second tier manufacturers have been in the manufacturing business for two to five years.

Tier 3

Most new solar manufacturers fall under the tier three category. These manufacturers don’t construct the parts of a solar panel. They assemble pieces they have purchased from other manufacturers. This means that tier three manufacturers cannot control the quality of the pieces they assemble, and they may be able to offer cheaper solar panels because haven’t put their money or energy into researching and developing better solar systems. Usually, tier three manufacturers use manual labour in the assembly of panels, leaving room for human error, and they haven’t been in the industry for more than a year or two.

PV Panel Quality

In addition to choosing high quality silicon solar panels, the design and installation needs to be completed by an experienced team. It’s important not to overlook the quality of the other components- these being the inverter and mounting system. If the quality of the pieces is poor combined with the wrong roof orientation where the solar system will operate can lead to decreased functioning, lower output, lower cost savings, and a need for full replacement or costly repairs. Along with the quality of the system components themselves, the quality of the warranty, the lifespan of the company, and the customer service can vary between the tiers.

How Long Will Solar Panels Last in the Australian Climate?

Solar panels are meant to convert the sun’s energy into useable energy for your home. However, the intense and harsh Australian climate can wear on cheap solar panels that aren’t designed to withstand the intense sun, heat, wind, salt, and the changing of the seasons.

Look for the following when you purchase your solar system.

• Power Tolerance -- In perfect conditions, your solar panel may be able to produce a set wattage of electricity. Quality control on cheap solar panels may not be great, meaning a panel meant to generate 200 watts may only generate 190 watts. Higher quality panels may produce over 200 in perfect conditions, but only 200 in action. Higher tolerance will create more energy, and save you more.
• Potential Induced Degradation (PID) Resistance -- Some climate conditions can harm the solar panel, causing a reduction in the amount of power produced. Little to no PID is best.
• Light Induced Degradation (LID) -- In the first few months after installation, LID can cause a reduction in the amount of power your solar panel produces. Look for one with little or no LID.
• Temperature Coefficient -- The solar panel is meant to endure sunlight, but the heat from the sun can degrade your system. A lower temperature coefficient will mean you have a more durable panel that requires fewer costly repairs.
• Conversion Efficiency -- This will let you know how well your solar panel converts sunlight into useable electrical energy, and how much power your solar system will create. A higher conversion efficiency means more energy, and more energy savings for you.

Lastly, compare the cost of the panel to its value. How much value does your solar system add to your home? How long will it take you to save what you spent on your solar system in energy costs?

But I have a warranty, she’ll be right!

Most high quality solar panels will come with a 25 year warranty. So, what if you buy a cheap solar panel system and need to use the warranty?

• If you need to use the warranty, there needs to be something wrong with your system. While you’re waiting to have it repaired, you are losing money by paying for the energy that you should be getting from your solar panels.
• A warranty only lasts as long as the company that supports it. How long will an unethical retail company, or tier three manufacturer that makes cheap quality solar panels, last?
• What if you purchase your solar panel system from a panel manufacturer abroad? Many cheap solar panels come from China. How can you ensure that a foreign company will stand by its warranty?

Long Term Cost of Cheap Solar Panels

When you’re selecting your solar panels, consider the quality of the materials and the manufacturers. The bitterness of poor quality remains long after the sweetness of low price is forgotten. Solar power is not cheap. It may help to understand the “value versus cost” concept to be able to make the right decision. The “cost” of something is its price in dollars. The “value” of that same thing is what it is worth to you. Cheap solar panels may cost you less up front, but they can lead to less value though poorly functioning panels and costly repairs.

If you would like to talk to one of our friendly sales consultants about a quality solar power system please contact us.