Introduction
When discussing solar panels, second-hand PV panels are becoming more important as solar adoption grows. There are often two considerations for households and businesses interested in renewable energy before deciding to use new systems, such as the cost of new systems against the savings from buying second-hand solar panels. The panel resale market has grown as the technology improves, and older units are replaced. Some owners sell the items because of affordability, while others sell to reduce waste and make use of an efficient system. To indulge in a little more than the motivation to resell, buyers should also understand the risk.
Why Do People Sell Second-Hand PV Panels?
There are various reasons the owners decide to sell off their panels when they no longer require them. One common reason is the advancement of technology. The newer panels are better, more efficient, and denser, often much more costly to buy; the older power systems can be a cost-effective and reliable decision. Other reasons can include a change of property/locations.
Owners will prefer reselling the solar panels rather than throwing them away or leaving them as it is. Another reason can be selling solar panels. The reselling trend is more prevalent in underdeveloped or developing areas. There are several solar panels on sale in parts of Asia and Africa. These areas are not very rich, and every business is concerned about the cost of establishing the business, especially small businesses, and even for houses situated in rural areas in these underdeveloped countries.
The residential systems that are cheap and available for sale do not have the potential to be used throughout the day for a large house in a developed country. But in contrast to that, they can produce energy most of the time in a non-urban system situated in these places. Even if the solar system in these areas, such as China and Africa, fails after a certain period, it can be repaired by the house dwellers, from their own money, so recycling solar panels also helps in sustainability and thus reduces electronic waste.
How Much Are Used Solar Panels Worth?
Used solar panels are worth significantly less than their new models, depending on the outputs. The outputs can be dependent on their brand, efficiency, and the condition. On average, the resale price of a used solar panel lies between 40%-70% of its original price. When users think about how much are used solar panels are worth relative to new panels, the answers can vary based on a couple of factors.
The most crucial factor to keep in mind is that the solar panels tend to lose efficiency as they get older. Once a solar panel doesn’t have any warranty left. Its value on the market deteriorates, regardless of its usage or future output. Such as a Longi 300W panel that was made in 2015 has lost around 10%-15% of its original efficiency due to normal degradation.
Now, such a panel will sell for $40-$60 in the used panel market, no matter how good its condition. On the other hand, the average market price of a brand-new Longi 550W panel in 2024 is around $140-$180, which is 2-3 times more than a used panel. Moreover, the new panel will provide over a decade of better efficiency, better heat resistance, and a new 25-year warranty.
Pros of Buying Used Solar Panels
One benefit to buying used solar panels is that they are affordable. For households or small commercial uses that do not have the money to spend, buying used can make renewable energy affordable. In rural or off-grid areas, you can find cheap solar panels for sale to create electricity where new systems would be too expensive.
Another benefit is that it’s an environmental benefit. Reusing old panels keeps them out of the disposing or putting in a junkyard and thus reduces electronic waste through means of extending the life of a valuable product. Using old and new solar panels together can make a combination of sustainability and solar panel recycling, combined into sustainable energy plans. This helps max energy production of each panel over its entire life.
Another reason the whole solar panel system was for sale was due to practical applications. Used modules can provide electricity to small projects coming in low wattage, like simple stuff like water pumps, sheds, and useful agricultural tools. For instance, an Indian farmer purchased 5 used panels for the franchise, which operate an irrigation pump, averted the cost of diesel for water extraction, and irrigated the farm. For this case, panels used not only have the right rate of operating cost but also help to reuse the panel.
Cons and Risks of Buying Used Solar Panels
While the upfront costs of second-hand solar panels are lower, purchasing them comes with many risks. The most common problem is the panel having hidden defects. Microcracks, hot spots, and burned bypass diodes are not always visible upon inspection. However, the damaged areas can result in lower output and increased chances of a breakdown in the future. Moreover, such defects tend to worsen over time, decreasing the overall system’s stability.
Reduced efficiency is another concern. An average quality panel has an annual degradation rate of 0.5–0.8%. Therefore, within a decade, the module may produce up to 10-15% less than its full capacity. This loss is permanent and reduces the long-term yield of energy. Solar panels often do not come with warranties, and manufacturing defects are less frequent. However, considering the absence of transferrable warranties in the resale market, the buyer has to do the repair or replacement themselves. Buying second-hand solar panels might seem like a save now, spend more later scenario.
The regional market adds to the complexity. In underdeveloped areas, second-hand PV panels are on sale, with many sellers selling counterfeit products. Therefore, as a consumer, one should be careful, as the counterfeit or uncertified panel is likely to have low output or electrical hazards.
The case resulted in decreasing the firm’s costs. However, the cost of repair turned out to be higher than the new panels’ price and thus led to the same expenses.
Second Hand PV Panels vs New Solar Panels(Comparison)
When comparing second-hand PV panels to new solar panels, the performance and long-term benefits or returns hold utmost importance. The solar power costs have been consistently dropping due to the discovery of newer technology, including new solar panel prices. According to the International Renewable Energy Agency (IRENA), solar panel prices have fallen by 80% over the last decade. The rapid decline of prices in solar systems has made new systems more affordable than ever. Therefore, the value of the older modules has been reduced.
For instance, a residential 10kW system built with second-hand panels may cost 40% less to buy but could require replacements within a decade. Comparatively, a new 10kW installation, although more expensive to install upfront, enjoys the benefits of predictable performance and warranty protection.
Finally, the geographic issue puts it all into a broader perspective. Buying second-hand solar panels can make economic sense for small systems, if affordability is the main barrier in regions with lower buying power. Meanwhile, in developed markets and homes and businesses, an insistence on buying second-hand panes/conventional panels makes less sense since long-term returns directly relate to the efficiency and warranty factors of the new system.
How to Inspect and Test Used Solar Panels Before Buying
Used solar panels should be inspected with great care to prevent mistakes when testing. Start by getting a good look at the panels. Crack on the glass, visual hotspots, and uncommon discoloration are the defects you should look out for. In the future, even the minor fissures can develop and slowly disturb the system.
The next stage involves testing of this product. You can often do this by using a multimeter to test the voltage and current output of the panel in the presence of sunlight. With your class, compare the readings to check if the recorded readings match the rated specification of the panels. A noticeable difference in the power output when compared to your last test specifies that the panel is dead or at least degraded. Otherwise, there may be hidden defects within them.
The diodes within the junction box and the bypass diodes need to be closely observed. Burnt or absent diodes are a common issue in an older panel. It might lead to a short power failure or even overheat the system. Although missing or burnt diodes build up a clue about what could possibly fail or is stressed. They are repairable. Corrosion or dirty contacts and any damage on the connectors or the wiring can add resistance and reduce the performance of the system to a significant level.
Suppose you bought several used modules for a shed and figured out that two of the power perfect modules that were being installed provided you with only 70% of the rated power. There were faulty diodes attached to them. A simple re-soldering of the diode led to the revival of the modules at a fraction cost you need to spend on the same basic product. So, even the simplest of the methods, when used for testing solar panels, can make a difference and provide you with a very practical and low-cost energy solution.
Regulations, Warranties, and Safety Considerations
There are differences in regulations of second-hand PV panels, warranties, and safety considerations.
There are different standards in different regions regarding the resale of second-hand PV panels. In the European Union, reshipment has to agree with the original electrical safety directives. For instance, used PV panels in the United States have to qualify under the standard UL certifications (or equivalent) if they are to be reinstalled in a grid-connected solar power system. In parts of Asia and Africa, there is usually regulatory body oversight, leading to a larger secondary market but also a larger risk of missed certification.
Most PV warranties are not transferable, so a buyer of a used PV module receives no protection from the manufacturer in case of module failure; hence, the customer or owner of the panel is made responsible for any loss in case it gets blown by the wind (dysfunctional). Also, if the manufacturer does not repair the module properly, it might overheat to a dangerous temperature and create electric shock hazards.
A buyer should avoid these risks by purchasing from a reputable seller. HBOWA provides details on tier 1 solar panels and second-hand panels that are certified and comply with all requirements.
Alternative Uses for Second Hand PV Panels
2nd-hand PV panels are a great choice for smaller applications. Many uses do not require maximum efficiency. Lights in a garden are a great example. Even if the panels do not give a good output, they can easily meet the basic energy requirement.
Older panels can also supply power to cabins in remote areas or storage sheds for those who wish to have electricity but do not want to invest an amount that is too heavy on their pockets.
Older panels can also serve the purpose in mobile applications. Sometimes, when the homeowners have a tight budget for estimating solar system installation costs, they use the older panels for the auxiliary loads on their boats and RVs.
Educational projects can also benefit from 2nd hand panels. Most schools and universities have second-hand modules in their practical sets or experimental setups.
A university research team utilizing the scrap panels to start a greenhouse farming project was one of the ways to use old panels. The system was not very reliable or efficient, but the low cost of the project helped provide the students with hands-on training. The students got to use the solar energy produced to run solar-cell lights, sensors, and also for ventilation.
When It Makes Sense to Buy Used Panels – and When It Doesn’t
A lot depends on whether the decision is about installing the new or second-hand solar panels. For instance, the question that arises before most individuals has a fair share of households as to whether they should go for the used solar panel or the new ones.
As always, the decision on buying used solar panels largely depends on the size and the purpose of the installation. For individual or community-based DIY setups, they can be practical and cost-efficient. As a matter of preference, a lot of rural households with less power demands, small farms, or can be taken as temporary installations always reap the benefits of lower costs, even if efficiency has fallen.
However, on the other hand, larger residential or commercial systems are different. The payback from these systems is based on consistent long terms, which range between 10-20 years. Due to the likes of these simple working procedures, used solar panel modules are not generally suitable. The reason is that, besides the already degraded efficiency, they have no warranties. A 20-year payback on solar power is best served with output guarantees of the panels.
Although the suppliers of the used solar panels depend on different ends, mostly the various economies are more powerful too. In developing markets across Africa and Asia, affordability especially supersedes constraints of performance as well as resale trade.
Contrarily, the United States and Europe will always choose efficiency and warranty coverage. These kinds of suppliers find the resale trade to be a tricky one. For the best deal, engaged with reliable suppliers, HBOWA is the best resource for both new Tier-1 modules from brands such as Risen, Longi, Trina, JA, and Jinko, as well as certified second-hand options. Moreover, for the affordability drawn down by the business set parameters, HBOWA has always been the best solution. The company also offers inverters and LiFePO4 batteries.
Conclusion
Buying second hand PV panels can be a good idea, but you need to assess them properly before buying. Lower cost, old components, may not guarantee proper performance. It’s essential to know whether the money you save is worth the hassle you may end up with. Once you understand this, proceed further. It is crucial to check its condition, replace and repair parts if necessary, and know what can and can’t be done with it as per local regulations and the warranty limitations of used solar panels. Depending on the certification or otherwise, you can either choose a new Tier 1 or a second-hand module from HBOWA.
