SolarEdge extended warranty poll

[bevo]

I’m debating whether a SolarEdge extended warranty on the inverter is a good idea. This warranty would be purchased directly from SolarEdge. The price sheet I have for a 7.6kW inverter is $200 for 20 years and $218 for 25 years. Not sure how old that price sheet is but let’s assume it’s accurate.

The purchase has to be made within 2 years of “ship date”. On the phone, SolarEdge mentioned that to be install date or PTO date.

Here are my pros and cons.

PROS:

Peace of mind for a small cost. It basically means there’s no extra cost on the solar system for 20 years. I’m no lawyer but if I read Tesla’s contract, they will cover labor costs for any defects for 20 years. Since the inverter is the only component not currently covered for at least 20 years, buying the warranty means all components are now covered.

If defect rate on SolarEdge inverter over 20 years is greater than 10%, then paying 10% of the replacement cost for extended warranty is statistically a good deal.

CONS:

Let’s face it, SolarEdge may not be around in 20 years. Every quote I got from EnergySage uses Enphase microinverters. If I was using anyone else besides Tesla, I would pick Enphase over SolarEdge. I picked Tesla because they have lowest price, and now, Tesla is no longer using SolarEdge. Dead Company Walking?

I may not be living in this house for the next 20 years. The average person moves every 5-8 years, depending on which research you are looking at.

 

[jjrandorin]

I dont have a solaredge, so I didnt vote in the poll, but here is my thoughts on extended warranties in general, not PV / Solar specific. (ask yourself these questions).

1. If the product fails under the warranty period, will I be able to afford to replace it?

As this question asks, will you be able to afford to replace whatever the item is, if it fails?

2. If the item fails and I need to execute on a warranty replacement, what does that process look like vs just buying a replacement?

Usually, warranty replacements of items require jumping through some hoops. How many hoops is different for different products. In this case, all we really need to look at is how long it is taking for people to get replacement stuff right now for failed SolarEdge inverters (how long they are down). I have seen people post here that they have been down weeks, waiting for the process to complete. Someone has to come out and verify the product is actually defective, then the item needs to be ordered, and then shipped and re installation scheduled.

Contrast that with what it normally looks like if you are not dealing with a warranty replacement, and its typically "call someone, spend some money they come out and replace said item".

This question to yourself looks back at question 1, as in, is it going to cause hardship to replace the item with cash, vs executing on a warranty.

3. What is the likelyhood I would want the version of the product a warranty would give me, vs some newer version of the product that is available?

This is sort of ties in more with electronics, but... if this product fails in 10 years, are you going to want this same product again, or some newer version of this same product?

This is the flowchart I use for myself, and it means that, in general, I dont buy extended warranties, which would also translate as "I self insure" on most things like this. If I had a solar edge inverter, and it failed the year after its included warranty expired (year 11?) would I want this product / model again or something better? Would the 2k inverter replacement cause me a hardship then? Would I even be in that home then, even though I plan NOW to not move? Is spending $200 now worth the the possibility of maybe avoiding a 2k spend 11 years from now?

Those are questions you have to answer for yourself.

 

[Electrph]

i will pass on the extended warranty on mine. Only because extended warrenties generally have deductibles etc they are money makers for the retailer / manufact not done as favor to consumer .. and due to the bathtub curve on new items.
thats just me

 

[h2ofun]

I bought for my first, and will be for my second also.

 

[nwdiver]

I’m debating whether a SolarEdge extended warranty on the inverter is a good idea. This warranty would be purchased directly from SolarEdge. The price sheet I have for a 7.6kW inverter is $200 for 20 years and $218 for 25 years. Not sure how old that price sheet is but let’s assume it’s accurate.

I would consider the time value of money. Put that $200 in an ETF and you'll probably have enough to buy a new inverter if you need one after the regular warranty expires.

 

[holeydonut]

I recommend this to anyone who is enticed by extended warranties and whatnot. Instead of buying a warranty, just set an amount aside in preparation of some extra costs when you buy your new gear. Make a brokerage account and instead of paying some third party warranty company your money, Invest in some index fund or whatever you're comfortable investing in.

For this green energy investment... In California, your solar contract must by law include an estimate for warranty/costs over the life of the system. I think it's called "Total Operations & Maintenance (O&M) Costs". You signed a lot of "solar rights" when you bought your system... this info should be buried in there somewhere.

Anyway, so if you...
Buy a refrigerator? put some funds in.
Buy a car? put some funds in
Buy a Solaredge? put some funds in
Remodel your bath? put some funds in
Feel kind of bored one day with some extra cash? put some funds in.

If you need to pay for some repairs, replacement parts, tools, etc. Use this fund.

Assuming you aren't a very unlucky person, the amount of money you end up saving will offset any maintenance/out-of-warranty costs over time.


PS, many years ago I did a deep dive financial analysis over the expected warranty expense costs over the life of major consumer assets. The amount of expected cost to support products outside of the warranty period was about 1/5 that people would pay for these silly extended warranties. Granted this was over a huge sample size; and one individual could end up with a lot of lemons/beaters. But for the most part, people average out and never come close to recouping extended warranties.

PSS, this approach doesn't work very well for health care, home, or auto insurance.

 

[miimura]

I don't have SolarEdge inverter, but I voted in the poll anyway.

My typical attitude is that normal products do not justify extended warranties. However, if there is anecdotal evidence that a generally good product has an abnormally high failure rate, an extended warranty could be worthwhile if the cost of the warranty is a small enough percentage of the replacement cost. My perception of the cost of the warranty and the failure rate of the SolarEdge inverters is such that I would buy their extended warranty if I was in that position.

I don't agree that SolarEdge is any more likely to go out of business than Enphase.

 

[boxgranch]

I have a Tesla SolarEdge system and did buy the warranty. I am not sure it was a good idea as I just tr8ied to contact SolarEdge and it appears to be impossible to do so. Tesla does not set your system up so you can have a SolarEdge account and SolarEdge appears to preclude dealing with them without an account. I am on my third SE failure and am unhappy with Tesla and SE. I have lost 5 out of 20 month of production and get nothing but finger pointing from Tesla to SE and platitudes. If it weren't for the fact the inverters are in stock at other dealers, I might not be as angry with Tesla. If it were me, I would have loaner inverters for this sort of thing. My car dealer does. Why can't Tesla?

 

[AlexP]

I have a SolarEdge inverter that failed miserably after about 1 1/2 years. It is being replaced under warranty but they are taking 4 to 6 weeks to ship a replacement (blaming the semiconductor shortage as every one else).