How Much Are Used Solar Panels Worth?

With solar energy growing in popularity, there is an increasing number of used solar panels available on the market. Finding affordable and high-quality used solar equipment can help homeowners and businesses save money on their renewable energy systems. However, it’s important to understand what factors into the value and pricing of used solar panels in order to get the best deal. This article will examine the unique aspects of the used solar panel market and provide helpful knowledge for determining fair prices when buying or selling pre-owned solar photovoltaic modules.

Used panels can provide great value, but you need to understand their condition, age, and specs in order to determine if the price is right. Understanding the used solar panel market will help you make informed purchasing decisions and get the most out of your solar investment.

Current Solar Panel Prices

Since 2002, the average price of residential solar panels in the U.S. has dropped from $12.2 per watt to $3.82 per watt, a decrease of almost 70% (Source: https://www.saveonenergy.com/solar-energy/solar-cost-over-time/). The main factors driving this steep decline have been improvements in solar panel manufacturing and increased competition, especially from Chinese manufacturers. Manufacturing innovations like thinner silicon wafers have reduced raw material costs, while economies of scale have enabled higher volumes and lower unit costs. Chinese companies now account for over 70% of global solar panel production, which has intensified price competition and made solar power more affordable. The average price per watt is projected to continue falling as technology advances. However, recent supply chain issues and import tariffs have caused some price volatility. Overall though, increased manufacturing scale and competition have been the key drivers reducing solar panel prices over the past two decades.

Solar Panel Lifespans

The typical lifespan of solar panels is 25-30 years, though many can last longer with proper maintenance and minimal degradation (Forbes). Over decades of operation, solar panels experience gradual degradation that reduces their efficiency and power output. Most solar panels come with a 25-year power warranty that guarantees they’ll produce at least 80% of their original capacity after 25 years of use (GreenBiz).

There are several factors that impact the degradation rate and lifespan of solar panels:

• Temperature – Solar panels exposed to high temperatures degrade faster. Proper airflow and cooling helps minimize heat buildup.
• UV exposure – Constant sunlight breaks down materials over time. Newer panels use more UV-resistant components.
• Physical damage – Cracked panels or broken connectors will reduce power output and accelerate wear.
• Inconsistent maintenance – Regular inspections and cleanings maximize efficiency.

While most solar panels will experience some degradation, modern panels are built to withstand decades of outdoor operation. With proper installation in a cool climate and routine maintenance, panels can potentially last 35-40 years before needing replacement (Forbes).

Factors That Impact Used Price

There are several key factors that impact the price of used solar panels, including age, brand, warranty, and condition.

Age is one of the most important factors. Solar panels lose some efficiency over time, with an average degradation rate of around 0.5% per year (1). Older panels will produce less energy and be worth less. Most used panels for sale are 5-10 years old.

Brand also matters, as tier 1 panels from companies like LG, Panasonic and SunPower tend to be higher quality and retain value better than cheaper brands (2). Their more robust warranties also add value.

Speaking of warranties, used panels with any remaining manufacturer’s warranty intact will command higher prices than those without. Transferable warranties of 10 years or more are ideal.

Physical condition affects price as well. Cosmetic blemishes may not impact performance but lower resale value. Cracked cells or connections, on the other hand, can severely degrade output. Carefully inspecting panels before purchase is advised.

Other factors like panel wattage, frame type and inverter compatibility can also sway pricing. Generally, higher wattage, all-black panels paired with microinverters fetch higher used prices (3).

Average Used Solar Panel Prices

The average price for used solar panels ranges from $0.10 to $0.75 per watt, depending on the age and condition of the panels (Used Solar Panels: Are They A Good Idea? | EnergySage). New panels typically cost around $2.86 per watt, so used panels offer significant savings (Used Solar Panels: Are They A Good Idea? | EnergySage).

More specifically:

• Panels less than 5 years old: $0.50 – $0.75 per watt
• Panels 5-10 years old: $0.25 – $0.50 per watt
• Panels 10-15 years old: $0.15 – $0.30 per watt
• Panels 15-20 years old: $0.10 – $0.20 per watt

As panels age, their efficiency decreases slightly each year. After around 20-25 years, output can decrease by up to 30%. So older panels will produce less energy, but can still provide good value if purchased at the right price (All about used solar panels: everything you need to know | Solar Reviews).

Case Study: 6kW System

A 6kW solar system is a medium-sized residential system that can offset a significant portion of an average home’s electricity usage. According to Energysage https://www.energysage.com/solar/6kw-solar-system-compare-prices-installers/, a new 6kW solar system costs around $18,000 installed. This system would typically have 18-24 panels rated around 330W each.

Let’s calculate the potential resale value of a used 6kW system based on average used solar panel pricing. If we estimate an average used panel price around $100, and a 6kW system has 18 panels, the total used value would be around 18 * $100 = $1,800. This suggests a used 6kW solar system may be worth around $1,800 if the panels are in decent condition. The inverter, wiring, and other equipment would add additional value beyond just the solar panels themselves.

Of course, many factors impact used pricing, so this is just a rough estimate. But it gives a sense of the potential worth of a used residential solar system. Well-maintained systems can retain significant value on the secondary market.

Reselling Options

There are a few different options for reselling used solar panels:

eBay – Many people sell used solar panels directly to other homeowners through eBay. This allows you to get a fair market price by listing the panels for auction or buy-it-now.

Solar Installers – Some solar installation companies will buy back used panels, though often at a lower price than full retail value. This provides a convenient option for selling an entire used system.

Solar Recyclers – Companies like Solar Recycling specialize in buying and reselling used solar panels. They refurbish and resell functioning panels, while recycling non-working panels.

Direct to Consumers – Listing used solar panels for sale on Craigslist, Facebook Marketplace, or community bulletin boards allows selling directly to other homeowners or DIYers.

Solar Brokers – Brokers like EnergyBin connect sellers to wholesale buyers and recyclers to facilitate selling used panels.

Overall, homeowners have several options to resell used solar panels and recover some of the original investment.

Other Factors

Besides the age, condition, and efficiency of used solar panels, there are other considerations that impact their value when reselling or recycling (Restunang, 2022). These include:

• Removal costs – Removing solar panels from rooftops or ground mounts requires labor and equipment. This can add $200-500 or more to the total cost.
• Shipping costs – Shipping large, heavy solar panels long distances can be expensive. Local pickup is ideal.
• Warranties – Any remaining manufacturer warranty conveys additional value. Lack of warranty coverage for older systems decreases value.
• Recycling fees – In some areas, fees are charged for properly recycling old solar panels. This can further reduce net resale value.

Sellers need to factor in these other costs and considerations when pricing used solar panel inventory for resale. And buyers should account for these expenses when negotiating purchase offers. Proper valuation of all aspects is key to fair deals.

Future Value

Most experts project that used solar panels will retain a decent amount of value even as technology continues to improve. This is because solar panels are built to last 25-30 years or longer, and their efficiency only decreases slightly each year ^[1]. Newer panels may be 10-20% more efficient, but used panels can still generate a significant amount of electricity. As long as the used panels are still functional, there will be demand from cost-conscious consumers.

In addition, recycling technology is improving, making it easier to recover valuable materials from older panels. Silicon, silver, copper and aluminum can all be extracted and resold. Experts predict the recycled value of solar panels will help maintain a healthy used market. While used prices may dip slightly as newer technology is released, quality used panels are expected to retain 50-80% of original value over their lifetime.

The used solar market will also expand as more homes and businesses adopt panels. With greater product diversity and inventory, buyers will have more options to find well-maintained used panels that fit their needs and budget.

Conclusions

In summary, the value of used solar panels depends on several factors. The age, condition, and efficiency of the panels, as well as the current market prices for new panels and installation costs, all play a role. On average, used solar panels tend to be worth around 30-70% of their original price when new.

For those looking to sell their used solar panels, online marketplaces like Craigslist and eBay provide good options to find buyers. Selling to solar installers, local recyclers or dismantlers may also be possibilities. Get quotes from multiple buyers to find the best price.

For buyers of used panels, inspecting the panels thoroughly, verifying production guarantees and warranties, and calculating total system costs are important steps before purchasing. Buying panels that are less than 10 years old from reputable brands generally provides the best long-term value.

Useful online resources for buying and selling used solar panels include the Solar Reviews Used Solar Panel Marketplace, AltE Used Solar Panel Classifieds, and Texas Solar Markets Used Solar Marketplace.