Premium solar panels manufacturing brand LG have announced they are closing the solar module and production.
LG electronics Australia Pty. Ltd. (LG) issued a statement this morning to the companies Australian partner network.
Some may have seen this coming and others may not have. The statement included the following quote:
“After a careful review of all possible options, LG has announced it is closing the solar module production and sales business. The decision comes as uncertainties in the global solar power market continue to increase due to a variety of contributing factors, including the intensification of price competition and the rising cost of raw materials.”
The partner network includes business in Australia and New Zealand and production itself is said to conclude in the 2nd quarter of this year. LG has said they will fulfil existing product orders and maintain adequate inventory for future service support.
Given LG’s #1 reason as presented in the companies marketing documents was around LG solar offering strength, stability and reliability, LG customers may be shocked to hear the news.
LG has said they will stand behind the brand and cover modules through the warranty period. 25 years is a long time, and LG customers expect a good financial return over time.For example a 6.6kW LG solar system could save a home owner in Sydney an estimated $47,749 over the life of the system.
Financial Return Tables
The following assumptions apply:
– $600 electricity bill every 3 months.
– 27 c/kWh & $95 fixed charge per 3 months. • 11 cents Feed in Tariff (FIT).
– 60% of solar self-consumption.
– 40% of solar export.
– 2.5% annual increase in electricity price.
Where to next?
Despite the news of the LG’s departure, there are many other quality solar panel manufacturers that are expanding and managing growth in a very competitive environment. The fact is solar power generated from a solar system installed behind the meter is the most sustainable and lowest cost of electricity (LCOE) available.
Sure Solar offers tailored solutions
Sure Solar has a range of alternative options to LG and have established good working relationships with manufactures and panel suppliers. Some manufacturers offer even greater manufactures warranties. Panel brands such as 25 years from QCells, 30 years for Solarwatt and 40 years from SunPower Maxeon respectively.