5 things you need to know before buying solar panels

Whether you're a project developer, local installer or a homeowner, the biggest concern before designing a solar project will be solar panels. They take up roughly 50% of all project costs and could have a further cost impact on the overall lifespan of a project (~25 years).

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Life can be overwhelming when there are hundreds of suppliers with so many different technologies to choose from. So I interviewed Tier-1 panel suppliers and asked what would be the top 5 things to consider before choosing which panel to buy.

I would like to extend my thanks to guest authors Frank Cestero, CFO at Solartech Universal, Crystal Liu, Senior Sales Manager at Talesun Solar Technologies and Indira Sanchez, Distributed Generation Sales Manager- Mexico at Jinko Solar for sharing the insight and expertise!

1. What are my top motivating factors?

Frank (Solartech Universal): Lowest cost of entry? Long term ROI? Environmental impact? Utility offset? Power concentration (i.e. limited real estate)? Location of manufacture (ex. US v. China)? Structural integrity (i.e. Snow load or Wind load)?

These factors and many more could point you in a variety of different directions. Although there may be hundreds of manufacturers who make a 300-watt module, each module has distinguishing characteristics that may make it the best fit for you.

*Photo credit: https://news.energysage.com/understanding-your-solar-panel-payback-period/

2. What type/ size of modules do I need?

Frank (Solartech Universal): The 2 most common sizes are 60 cell (or equivalent) and 72 cell. Typically the 60 cell module (panel) is preferable for residential and rooftop commercial/ industrial jobs. Why? There are many reasons, but the greatest reason tends to be the size and weight. The smaller modules are more easily configured on rooftops where designers often need to work around the building or home's mechanical systems. For installers, the weight and dimensions make them easier to handle with just one person.

*Photo credit: https://www.wholesalesolar.com/blog/60-cell-vs-72-cell-solar-panels/

3. Quality and brand

Indira (Jinko Solar): I would say that you need to consider the quality and brand of the panel. When you buy panels from a brand that has a reputation for timely delivery and quality assurance, you can expect the same type of service every single time. It might be worthwhile to consider the local support network post-purchasing. Not all solar panel companies have the local sales and technical support teams in the country you live in. These teams might also provide training at free-of-cost to help install the panels for your projects. It's also important to feel at ease when you are expecting a delivery of panels. If your project's construction is set to begin at a certain date and the panels arrive late, you might incur postponement fees from the off-take customer.

Crystal (Talesun Solar): It's important to know the financial status of the vendor. What happens if the company supplying panels goes bankrupt? Is there a warranty pass-through in place? You might want to go with a company that has good financial health and has the potential to grow even bigger. Another thing to consider is the company's total capacity. Is the company you are thinking of buying from capped in terms of manufacturing capacity? Check with the sales rep from the company to verify the overall supply they own before placing an order. Sometimes the current capacity and the manufacturing plans could be an indicator of their financial health!

4. How long am I keeping this property/ investment?

Frank (Solartech Universal): If I&#;m flipping the home or selling the PPA, maybe I can get away with a low-cost option. If I plan on keeping the property beyond the federally mandated minimum to collect the tax credit, I probably want to spend a little more on the front end to maximize my ROI over time. Premium panels tend to fail less often, operate more efficiently and degrade less year-over-year during the life of the panel.

The state of California maintains a listing of modules based on PTC (Photovoltaics for Utility-Scale Applications Test Conditions), which rates expected performance in &#;real-world applications&#; as opposed to laboratory or factory conditions. The higher the rating, the better the performance. These ratings can be found at https://www.gosolarcalifornia.org/equipment/pv_modules.php. (Hint: Look for Solartech near the top.)

5. What is the price per watt and payment terms provided by the supplier?

Crytal (Talesun Solar Technologies): Price of a panel changes almost every week. With the industry being impacted daily by policy changes and market forces, the quoted price for a solar panel could increase or decrease anytime. It is important to negotiate good payment terms with the supplier. Will you be out of cash when it's time to actually pay for the panels because the payments haven't arrived from your customers? Do you know your projected cash cycle? These are all important questions that you need to ask yourself before deciding to buy panels in bulk.

If you have found this article helpful, please let me know in the comments below!

Justin Jeehoon Park is a Business Analyst at Targray focusing on Solar and Energy Storage. Graduated with an M.B.A. from McGill University- specialization in Business Analytics and a B.A. in Political Science from UCLA, he helps solar companies to maximize working capital by structuring more flexible payment terms with suppliers and customers. In addition, he is a returned Peace Corps volunteer (Cameroon -) and worked with Syrian refugee youth in Canada.

Many of the most successful solar panel manufacturers in the world come from China, including LONGi, Jinko, Trina, and Canadian Solar (despite the name). These brands produce a sizable portion of the solar panels used in the United States, and are used in everything from huge utility-scale solar installations to small home rooftop solar panel systems.

To be clear up front, solar panels from the companies listed below are excellent performers with at least 25 years of expected life. As a rule, Chinese solar panels are as good as any others on the market. China produces around 80% of all solar panels, so like any product, there are cheaper offerings from less well-known companies.

The key is making sure you choose a great solar installation company who can offer you excellent service and products, including the best Chinese solar panels.

There&#;s more to learn about Chinese solar panels, so read on!

Key takeaways

• About 80% of all solar panels and materials are produced in China.

• Many solar companies from around the world either manufacture in or source parts from China.

• Determining a solar panel&#;s country of origin can be tricky! Some American brands. manufacture overseas, while some Chinese brands (such as Jinko Solar) have big factories here in the U.S.

• Chinese solar panels tend to be slightly cheaper than other brands of solar panels.

• Chinese solar brands were affected by solar tariffs imposed in and , but still maintain significant market share.

Understanding the Chinese solar industry

At present, about 80% of all solar panels and their source materials are produced in China. Chinese solar panels reached this dominant position through a combination of factors.

First, China made a bet big on renewable energy. Years of massive investment in clean energy in general, and solar in particular, propelled China into becoming the world&#;s biggest solar power producer.

China alone now accounts for nearly a third of global solar module demand; much of it used for mega-sized solar power plants and even giant floating solar farms.

Second, China benefited (and continues to benefit) from its huge manufacturing base and low production costs. As with most electronics and industrial equipment, China is also a cost leader in the solar industry.

Third, Chinese solar panel manufacturers leveraged their domestic solar energy boom and massive government support to dramatically increase their scale. This growth partially coincided with the - financial crisis, which left American companies struggling to compete. Chinese government backing during this time allowed its homegrown companies to capture global market share.

Now, Chinese solar panel manufacturers supply companies all around the world. It&#;s not unusual for solar companies in the United States to source parts from China. These companies will assess the products according to their own quality standards and sometimes sell them via their own (American) brand names.

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It is also common in the solar industry for companies to be headquartered in one country but have manufacturing facilities in another.

Figuring out where solar panels are from can be complicated

The emergence of the global solar module supply chain (described above) means that identifying where exactly solar panels are from is not always straightforward.

Let&#;s look at American solar panel brand Solaria, for instance. They are headquartered in Fremont, California, and offer consumers sleek black solar panels backed by an excellent 25-year warranty. However, it only has limited manufacturing capacity here in the U.S., as the majority of its solar panels are produced over in South Korea.

Then there&#;s Canadian Solar. Its name suggests it's from the Great White North, but ironically enough, it&#;s very much a Chinese company, with nearly all of its modules manufactured in China!

If you're trying to get high-quality panels, look for a brand that meets the standards you expect from domestic companies. That doesn't mean that they can't or won't be made in China.

Chinese solar panels and the U.S. market

Not every product made by a Chinese brand is going to be cheaper than domestic ones. However, despite being subject to extra import duties and tariffs designed to prevent China from flooding the market with ultra-low-cost options, Chinese solar brands still generally offer more competitive prices.

The U.S. first approved anti-dumping and countervailing (AC/CVD) duties against imported Chinese solar cells (and modules that contain them) in . In response, many Chinese companies spent the rest of the decade moving manufacturing of these cells to other countries to avoid the duties.

In January , President Trump added a new 30% tariff on solar imports (on top of existing AC/CVD duties) that would step down over four years, and in , President Biden modified and extended those tariffs for another four years.

In mid-, the U.S. Department of Commerce launched a new AC/CVD investigation that would have added new tariffs to solar products from many of the countries Chinese companies now use as manufacturing bases. The investigation caused the companies to halt most of their imports of solar materials into the U.S., and President Biden responded by declaring a state of emergency and exempting imported solar products from possible new tariffs for 24 months.

The preliminary results of that investigation were released in December , with the Department of Commerce&#;s final determination to come later in . Once the 24-month exemption period ends, products from Chinese companies that operate in the four countries in question will be subject to new tariffs.

Also, in the summer of , the President signed the Inflation Reduction Act, which included new tax benefits to encourage domestic production of solar cells and modules and has already resulted in several announcements of new U.S. solar factories.

What a rollercoaster, eh?

What Chinese companies are doing now

Because of the tariffs, Chinese solar companies are now forced to sell their products at prices that are closer to companies that manufacture solar products in the United States.

Shortly after the tariffs were levied, Chinese company Jinko Solar announced it would build a manufacturing facility in Florida. The company now produces 400 megawatts (MW) of solar panels in the Jacksonville factory every year.

In early , LONGi Solar announced plans to build 5 gigawatts (GW) of solar manufacturing capacity in Ohio. When completed, the facility would be more than 11 times larger than the Jinko factory.

This new stateside manufacturing capacity will keep Chinese companies in the American solar marketplace for decades to come.

Get a cost estimate for the best Chinese and American-made solar panels

Which are the best Chinese solar panels?

Here at SolarReviews, we assess brands based on various performance and value metrics. If you check out our list of the top solar panel manufacturers for , you will see that four of the ten are Chinese companies. Here&#;s a rundown of the Chinese brands on the list:

• 2nd place: Canadian Solar

• 5th place: Jinko Solar

• 6th place: JA Solar

• 10th place: Phono Solar

Every one of these brands scores high for value, generally coming in at the low end of the pricing spectrum while offering products that compete with all but the most efficient, latest technologies.

Two other major Chinese brands&#;LONGi and Trina&#;were left out of our top brands ranking in because of concerns about another supply chain problem that arose in late . The brands&#; products were being held in U.S. ports while officials investigated whether any solar panels contained materials from China&#;s Xinjiang region. Import of these materials is prohibited under the Uyghur Forced Labor Protection Act (UFLPA) due to concerns that slave labor is being used to produce raw solar materials there.

By March of , U.S. Customs and Border Protection had cleared many of the shipments in question, and the companies have restarted shipping new solar products into the United States. LONGi and Trina will be eligible for the top solar manufacturers rankings and are expected to place within the top 10.

How to get the best solar panels for your home (regardless of where they were made)

Solar panels are a big investment, so it pays to do your research. But looking into every possible solar panel brand is usually not necessary.

The best first step is usually getting quotes from local solar installation companies and seeing which solar panel brands they carry.

All reputable solar installers in the United States will carry Tier 1 solar panels from reputable brands. Once you've seen the brands on offer, you can read customer reviews for solar panel brands.

With solar panels, there's no real correlation between quality and location

If you're buying a panel produced in China, you're dealing with a range in quality that has nothing to do with the location, but the big brands mentioned in this article offer very high-quality products as a rule.

You may want to choose American-made solar panels over ones made in China to help support American manufacturing jobs, but if your main concern is getting the best bang for your buck, keep an open mind and compare several brands regardless of their origin.

Based on their excellent value rankings, Chinese-made solar panels definitely deserve a look.

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