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How long do solar panels last?

Updated

General information, not a substitute for the advice of an attorney.

Short answer: Solar panels are generally expected to last 25 years or longer. Developers now plan utility-scale projects to run about 30 years or more. Inverters usually need repair or replacement well before the panels wear out.

How long do the panels last?

The EPA says crystalline-silicon modules are "expected to last for 25 years or longer" (EPA). The Department of Energy says the average panel lifespan rose from around 20 years in 2007 to 25 to 35 years in 2025 (U.S. DOE). Penn State Extension notes that many panels are under warranty for 25 years (Penn State Extension).

Panels do not stop on a set date. They slowly produce less power. NREL's review of 2,000 measured rates found a median degradation rate of 0.5 percent per year (NREL). At that rate, a panel would still make roughly 88 percent of its original output after 25 years (our arithmetic). Some products do worse: NREL says a long tail of lower-reliability products raises the average to 0.8 percent per year (NREL).

What usually fails first?

Inverters, which convert panel power for the grid, are the usual weak point. NREL's maintenance guide says maintenance plans should account for inverter failure, calling it "one of the most frequent causes of PV system performance loss" (NREL). In one 27-month study cited by NREL researchers, inverter failures caused 36 percent of lost energy, versus 5 percent for module failures (NREL). As of 2018, NREL reported that 10-year inverter warranties were common and 20-year extended warranties or service plans were gaining ground (NREL).

How long are projects designed to run, compared with leases?

  • Berkeley Lab surveyed developers, owners, and consultants. Their assumed project life rose from about 21.5 years in 2007 to about 32.5 years in 2019. Assumptions ranged from 25 to more than 35 years, and 17 of 19 organizations used 30 years or more (Berkeley Lab, 2020).
  • Texas A&M AgriLife says solar leases can last 20 to 30 years (Texas A&M AgriLife).
  • Penn State Extension says the most common lease term is 25 years. Leases may add 5- and 10-year extension options, typically for the developer, not the landowner (Penn State Extension).

Because projects are planned for 30 years or more, a developer may want extensions beyond the base lease term. Equipment can also be replaced, so a site can outlast its first set of panels. See what happens at the end of a solar farm's life.

What this means for you

  • Add up the longest possible term: the development period, the operating term, and every extension. Plan as if all of it could be used.
  • Ask whether the developer can replace panels or inverters (repower) and whether that extends the lease.
  • Ask what happens if the project stops producing before the lease ends, and how removal is guaranteed. Texas law covers leases signed on or after September 1, 2021, and requires removal security by the earlier of the lease ending or year 20 of commercial operation (Tex. Util. Code § 302.0005). See Texas decommissioning law.
  • Related: Can I get out of a solar lease?

General information from the sources linked above, not legal, tax, or financial advice.

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