Used Solar Panels: Costs, Savings and Risks

If you’re looking for a cheaper way to get started with solar energy, used solar panels are one way to stretch your budget. Used solar panels generally cost less than new ones, but the price depends on several factors, such as age and condition. Purchasing used solar equipment also means your equipment is likely to wear out more quickly, might need repairs sooner than new solar panels and is unlikely to perform like top-of-the-market models.

How much are used solar panels?

The average price of a used solar panel is between $0.05 and $0.60 per watt. That would be around $20 for a well-used 200-watt solar panel on the low end and as high as $300 for a used 500-watt solar panel that’s in much better condition. Used solar panels typically run 50% to 70% of the price of new solar panels. However, the actual price depends on which solar panels you choose — and like most things, the cheaper the price, the less you should expect out of them.

For example, a search on Sunhub, an online solar equipment reseller, shows a used SunPower 327-watt solar panel panel with a rated efficiency of 20% that’s more than 10 years old. At the asking price of $85, the solar panel is priced at $0.26 per watt.

Compare this to a Panasonic 325-watt solar panel that’s only a year old with a rated efficiency of 19.4%; it’s priced at nearly $0.49 per watt, selling for $159. Despite a slightly lower efficiency, the Panasonic panel can produce more energy and is likely to lose efficiency at a slower rate than the SunPower panel because it’s newer.

What factors affect the price of used solar panels?

The good news is that you have a variety of conditions and prices to consider if you’re looking for used solar panels.

When pricing used solar panels, pay attention to several factors that can affect the price of used solar panels. These include:

• Age. The older the equipment is, the cheaper it is likely to be.

• Condition. Solar panels that are in better shape will generally be more expensive than ones that are in worse condition.

• Efficiency. Used solar panels that can produce more power are likely to cost more than those that produce less power.

• Brand. Some brands are more expensive than others, even with used equipment.

When used solar panels make sense

Going with used solar panels instead of new ones isn’t always the best option, but there are a few scenarios where it might be worth it. Used solar panels may be a good option if you’re:

• On a tight budget. Used equipment will almost always be cheaper than when it was new, but keep in mind that solar energy systems are likely to be costly regardless if you buy used panels.

• Not worried about getting top efficiency. Older solar panels are likely to be less efficient than the newest models, so purchasing older solar panels means you won’t be getting the best performance on the market.

• Comfortable replacing your equipment sooner. Used solar panels have already started to degrade; the longer they were in use, the more efficiency they’ve lost. Used panels that have lower efficiency will need to be replaced sooner than new equipment.  

• Replacing a panel in your current system. If you need to replace a damaged panel and want to find one that matches or is close to the panels you have, buying a used solar panel could keep your array consistent.

Pros of used solar panels

The benefits of buying used solar panels include:

• Cheaper purchase price. Used solar panels are usually cheaper than new ones, which can save you money.

• Less environmental impact. Buying used solar panels helps reduce manufacturers’ environmental impact and extends the life of the solar panels by keeping them in use.

• Ability to match older systems. If you need to replace a panel or find ones that work with older equipment, buying used might give you more options.

Cons of used solar panels

The downside of going with used solar panels includes:

• Less efficiency. Because used solar panels might be less efficient, you might not get as much energy out of them as if you bought brand new panels.

• Hidden damage. You might not be able to see all types of damage without certain equipment. If you purchase used solar panels without knowing all of the potential problems they have, it could end up costing you more in the long run.

• Missing maintenance information. Not all used solar panels will have a detailed maintenance history. If you buy used panels that were poorly maintained, their efficiency might begin to decline sooner than you expect.

• Limited warranties. Unlike new solar panels, used equipment might not come with warranties, which means you’ll be on the hook for certain repairs. This is especially true for used solar panels that you purchase from an online marketplace.

What to look for when buying used solar panels

Compatibility. Not all solar panels work with the same equipment. Check that the solar panels you’re looking at are compatible with any existing equipment you have or equipment you are planning to buy. Requirements you will want to compare include types of connectors, voltage ratings and how the system must be mounted to your roof.

Condition. Look for signs that solar panels are damaged, including cracks in the cell or frame, bubbles or blisters between the panel’s layers, dark or discolored streaks in direct sunlight and burn marks called hotspots. Keep in mind that some issues can’t be identified easily without testing the panels or certain equipment.

Age. Older solar panels may not be compatible with newer equipment and might not be as powerful as new panels. Ask about the panels’ manufacture date, when they were originally installed and any maintenance issues they’ve had.

Usage. How long previous owners used the solar panels will affect the equipment’s performance as well. Be sure to ask how long they were previously installed and used and the climate in which they were installed. For example, hotter temperatures, humidity and dusty environments can cause solar panels to degrade more quickly, so panels that have been used in these climates are likely to degrade faster than other solar panels.

Warranty. Find out if any warranties will transfer with the solar panels.

What to look for when finding a reseller

Read customer reviews. Most businesses will have some bad reviews, but look for trends in customer reviews that point to a persistent problem with a company. You can find consumer reviews for companies on websites including SolarReviews, ConsumerAffairs and Better Business Bureau.

Look for key information. A reseller should provide you with information about the equipment, such as condition, age, performance and previous maintenance. Ask the reseller to provide this information if it’s missing, and consider it a red flag if the company refuses to provide it.

Pay attention to the warranties. A credible reseller will explain the terms and conditions of a warranty and answer your questions about coverage. If the company isn’t clear about when a warranty applies or what it covers, consider looking elsewhere for used solar panels.

Ask about return policies. Understanding a reseller’s return policies can come in handy if you discover an issue with the panels later on.