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Should I be cautious of solar power systems that offer a 'Performance Warranty'?

Transcript

There is a difference between the product warranty and the performance warranty. The performance warranty, many years ago it was actually called a performance guide, and a very smart marketing guy one day decided to call it a warranty. Now customers only hear warranty and 25 years. The performance warranty is next to impossible to claim because the cost for claiming it is usually more than the payout. So people, when they realize what's going on, will not climb it. But it is always mentioned in the cheap solar ads that it's got a 25 year performance warranty. Worth very little, disregard it.

What you have to look for is the product warranty. Now the product warranty is the real one that you get for your car and for other products, that's the one that consumer law looks at. Now, the product warranty with LG involves labor, transport, and the replace panel, and the shipping of the replace panel. So the customer, if there's a normal warranty claim, should not be out of pocket.

Now we're LG, we've been in Australia for over 20 years. We have a warehouse in Eastern Creek which is still full of panels that we're waiting, one day maybe they've needed for warranty. Every model we sold in Australia, we have replacement models available right now. That is a difference between us and smaller companies who might work out of virtual offices and, I don't know where they keep their warranty stuff.

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