By the PPA Funding team Last updated
Commercial solar comes with several warranties — typically a product warranty on the panels, a separate performance warranty guaranteeing minimum output over ~25 years, and shorter warranties on inverters. Systems should also be insured. Under a PPA, the provider owns the system and carries the warranty and insurance risk for you.
The warranties involved
Panels usually carry a product warranty (against defects) and a performance warranty (guaranteeing they still produce a set percentage of output after around 25 years). Inverters have their own, shorter warranties and may be replaced once during the system’s life.
Insurance
A commercial system should be insured against damage and, where relevant, loss of generation. This protects the investment and, on financed or owned systems, the savings you depend on.
Who carries the risk
Under a PPA the provider owns, insures and maintains the system, so the warranty and performance risk sits with them, not you — you simply benefit from the power. If you buy the system, you take on managing warranties and insurance (or we can provide O&M).
This guide is general information, not financial or tax advice. Your circumstances determine what applies — please confirm with your accountant or advisor. Get a tailored proposal →
Frequently asked questions
Do I manage warranties and insurance under a PPA?
No. Under a PPA the provider owns the system and carries the warranty, performance and insurance risk. You just pay for the clean power you use.
How long are solar panel warranties?
Product warranties are commonly 10–25 years and performance warranties typically guarantee output for around 25 years. Inverters carry shorter warranties. We specify well-warranted equipment as part of your proposal.
Related guides
- Commercial solar inverters explained
- kWp vs kWh: solar terms explained for business
- Solar carports and canopies for business
See our funding options, commercial solar and solar by industry pages.