Leslie Massey
Solar panels are becoming increasingly popular in Australia, with the country having the highest uptake of solar in the world. However, despite this, there are very few Australian-made solar panels on the market. In fact, as of March 2022, there were only two companies manufacturing solar panels in Australia: Tindo Solar and MSquare Solar Panels. Tindo Solar, based in Adelaide, is the only commercial-scale solar module manufacturer in Australia, importing components and assembling them into modules. On the other hand, MSquare Solar Panels are made and tested in Girraween, Western Sydney, using some imported parts. The lack of Australian-made solar panels can be attributed to various factors, including the dominance of Chinese manufacturing and the decline of Australia's solar manufacturing industry over the past two decades. However, the Australian government has recently announced a $1 billion Solar SunShot scheme to boost the development of solar panel manufacturing in the country. This initiative aims to capture more of the global solar manufacturing supply chain and create jobs in the renewable energy sector.
| Characteristics | Values |
|---|---|
| Government support | $1 billion Solar SunShot scheme |
| Companies manufacturing solar panels in Australia | Tindo Solar, MSquare Solar Panels |
| Tindo Solar location | Adelaide, South Australia |
| Tindo Solar warranty | 12-year manufacturer's product warranty, 25-year warranty |
| Tindo Solar panel failure rate | 1 in every 200,000 |
| MSquare Solar Panels location | Girraween, Western Sydney, Australia |
| MSquare Solar Panels warranty | 25-year product and performance warranty |
| MSquare Solar Panels degradation rate | 0.5% each year after the first year |
| MSquare Solar Panels Clean Energy Council certification | 350W solar panel (MSEA-350W-MH60) |
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What You'll Learn
Australian-made solar panels: Tindo and MSquare
Australia has announced a $1 billion Solar SunShot scheme to encourage the development of solar panel manufacturing in the country. However, as of 2024, Tindo Solar in Adelaide is the only company manufacturing solar panels in Australia. While other companies assemble imported panels into value-added products, Tindo Solar is the only Australian company designing and making modules from imported components.
Tindo Solar manufactures high-quality solar panels in Australia and offers solar solutions for all types of homes and businesses. The company has been in operation for over a decade, refining its processes and implementing strict quality control measures. Their panels are more expensive than other brands, but their durability and performance have received positive reviews. Tindo's panels are also the first produced in Australia featuring N-Type cells, which have a lower efficiency as the panel gets hotter.
MSquare Energy, a Sydney-based company, previously claimed to be Australia's largest solar panel manufacturer. However, in 2021, the Clean Energy Council (CEC) de-listed MSquare Energy solar panels due to their failure to meet the specified power rating and other issues. As of 2022, all MSquare Energy modules have been de-listed by the CEC for breaches of terms and conditions.
MSquare Energy offers a 25-year performance and product warranty on their solar panels. While their panels are efficient, with an 18-23% efficiency rate, they have faced issues with compliance and certification.
Australian-made solar panels are a desirable option for many Australians who wish to support local manufacturing and have peace of mind regarding quality and durability. With the Solar SunShot scheme, Australia aims to increase its solar panel manufacturing capabilities and capture a larger share of the global solar manufacturing supply chain.
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Australia's solar manufacturing industry
However, Australia's solar manufacturing industry used to be more prominent. Two decades ago, the country appeared poised to become a significant player in the solar panel manufacturing industry. Unfortunately, Australia's involvement in this industry dwindled, and it now relies heavily on solar panel imports, particularly from China. In 2024, the federal government announced a $1 billion Solar SunShot scheme, aiming to boost local solar panel manufacturing and secure Australia's role in the global solar supply chain. This initiative is expected to create jobs and attract investment to support the industry's growth.
Despite this recent push, Australia faces challenges in reviving its solar manufacturing sector. China, a dominant player in the global market, has invested heavily in research and development, giving them a technological edge. Additionally, Australia's solar manufacturers struggle to compete on price, and their production capacity pales in comparison to massive factories abroad. However, there is a demand for Australian-made products, and companies like Tindo Solar are determined to nurture the entire supply chain and make solar panel manufacturing a reality in the country once again.
Another Australian company, MSquare, produces solar panels in Girraween, Western Sydney. Their panels are known for their affordability, efficiency, and slower degradation rate compared to some competitors. MSquare assembles its panels using some imported parts but ensures they are not sourced from China. Their panels undergo independent testing and are certified by the Clean Energy Council, offering customers a reliable and quality option.
While Australia's solar manufacturing industry faces competition and obstacles, there is a growing awareness among Australians about the benefits of supporting local manufacturers. The country's high uptake of solar energy and its abundance of raw materials used in solar panels present opportunities for expansion in the industry. With government initiatives and a push for energy independence, Australia is striving to reclaim its place in the solar panel manufacturing sector.
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Solar SunShot scheme
On 28 March 2024, the Australian federal government announced a $1 billion Solar SunShot scheme in association with the NSW government. The Solar SunShot program aims to support innovative solar PV manufacturing facilities in Australia across the solar supply chain. The Solar SunShot scheme will help Australia capture more of the global solar manufacturing supply chain through support, including production subsidies and grants.
The Solar SunShot program seeks to support the commercialisation of Australian solar photovoltaic (PV) innovations and to enhance solar PV supply chains in Australia. The total funding allocated for the program is up to $1 billion. The amount of funding allocated for a funding round will be specified in the relevant funding announcement. Two funding rounds have been announced under the program, and each round has its own outcomes.
ARENA has allocated $500 million to Round 1A: Solar PV Manufacturing Innovation. Round 1A focuses on modules, inputs to modules (e.g. solar glass and frames), as well as deployment systems. Applicants who are successful at the EOI stage will be invited to submit a Full Application. Refer to the Program Guidelines for the full list of required attachments that must be included with the application.
The Solar SunShot scheme will help ensure more solar panels are made in Australia. Currently, panels come largely from China, which has ramped up production such that prices are falling fast, squeezing manufacturing outside China and forcing some out of business. The Solar SunShot scheme will help create tens of thousands of secure, high-quality, and highly skilled jobs in regional areas and generate billions more in investment and economic growth.
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Solar panel failure rates
Solar panels are designed to be durable and long-lasting, with many offering a lifespan of 25 to 30 years. However, it is important to understand the potential failure rates and factors that can impact the performance and longevity of solar panels.
Firstly, it is worth noting that solar panels have become more reliable over time. A study by the National Renewable Energy Laboratory (NREL) found that installations between 2000 and 2015 exhibited a median failure rate of 5 panels out of 10,000 annually, which is half the rate of panels installed between 1980 and 2000. This suggests that advancements in technology and quality control measures have contributed to lower failure rates.
Climate and weather conditions play a significant role in the performance and failure rates of solar panels. Panels in hot and humid climates tend to exhibit slightly higher failure rates, and extreme weather events, such as hurricanes or severe hail, can cause damage. However, it is important to note that solar panels are designed and tested to withstand inclement weather, and total failure due to weather is uncommon. For example, in a 2017 hailstorm in Denver, Colorado, out of 3,168 solar panels, only one was damaged by hail. Additionally, high temperatures can lead to the degradation of photovoltaic cells, reducing energy production efficiency.
Manufacturing defects and durability issues can also contribute to solar panel failures. A study by NREL estimated that approximately 0.05% of solar panels installed since 2000 will need replacement due to age, exposure to the elements, or manufacturing defects. While this failure rate is relatively low, it is important to consider when investing in solar panels. Most manufacturers offer equipment warranty coverage of up to 25 years, which covers the replacement of failed panels due to manufacturing defects or durability issues.
In Australia, the federal government has recognized the importance of solar panel manufacturing and has announced a $1 billion Solar SunShot scheme to support the development of solar panel manufacturing in the country. Currently, Tindo Solar in Adelaide is the only company that manufactures panels in Australia, while other companies assemble imported panels into value-added products. Australia aims to capture more of the global solar manufacturing supply chain and ensure a secure supply of solar panels, a critical energy resource for the country's renewable energy future.
Australian-made solar panels, such as those from Tindo and MSquare, offer good value for money and competitive warranties. MSquare's solar panels degrade at a rate of 0.5% each year after the first year, which is slightly better than the market standard. Tindo's Karra 360P and Karra 400P panels offer a maximum efficiency of around 20%, slightly better than average. With the government's support and initiatives, Australia is taking steps towards becoming a significant player in the solar panel manufacturing industry.
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Australian solar panel warranties
Solar panel warranties in Australia can be broadly classified into four types: performance, product, inverter, and workmanship warranties. Performance warranties are the most common, with most solar panels offering a 25-year performance warranty from the manufacturer. This warranty guarantees that the panels will generate a specific amount of energy, taking into account typical weather conditions and degradation rates. However, it is difficult to prove that inferior performance is solely due to the solar panel, making it arguably the least important warranty.
Product warranties, on the other hand, typically last for 10 years and cover manufacturing defects and issues with the panel's performance. Better-quality solar panels come with longer product warranties, with some offering up to 25 years or more. Inverters, which are crucial for the solar system to function, usually have shorter warranties, ranging from 5 to 10 years. Solar batteries also carry a product warranty, typically lasting 10 years, although this may be tied to the number of cycles or throughput.
Workmanship warranties usually cover issues arising from the installation of solar power components, such as a leaky roof caused by cracked tiles, and generally last for 5 years. It is important to note that warranties do not typically cover hail damage or other weather-related issues, although additional insurance coverage can be purchased for these events.
When considering solar panel warranties in Australia, it is essential to understand what is and isn't covered by the warranty and any associated insurance policies. For instance, common insured events include weather damage, vandalism, theft, and accidental damage. It is also crucial to ensure that the solar panels are approved by the Clean Energy Council and that the supplier has a local presence in Australia to provide after-sales service and warranty support.
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Frequently asked questions
Yes, there are solar panels made in Australia. Tindo Solar in Adelaide manufactures panels in Australia, although it imports almost all components from glass to frames and solar cells. MSquare is another Australian company that produces solar panels in Girraween, Western Sydney, using some imported parts.
Australia used to be set to be a global player in the solar panel manufacturing industry, but it lost its head start. There was a lack of government support, and China ramped up production, making it hard for other countries to compete on price.
The federal government has announced a $1 billion Solar SunShot scheme to support the development of solar panel manufacturing in Australia. This will include production subsidies and grants.
Australian-made solar panels can offer better after-sales service and warranty support. They are also built for Australian conditions, with tough solar panels that can withstand the country's extreme heat and cold.
