# Commercial solar warranties and insurance explained

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).

## 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.

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Source: [Commercial solar warranties and insurance explained](https://ppafunding.com/guides/commercial-solar-warranties-and-insurance) · Author: PPA Funding team · Updated: 2026-07-30

PPA Funding is an independent introducer operated by DVC Group Ltd (Companies House 10462808), Shrewsbury — not the funder, the installer or the maintenance provider. The service is free to use; a commission may be earned from a partner at no extra cost. Content is educational and is not financial or tax advice.