LG Solar has announced it will no longer be producing any solar panels moving forward. So what does this closure mean for their customers and warranties?
Why did they close?
The solar game has become synonymous with business closures and reopening’s and has given the industry negative connotations. While these practices are common for smaller installation companies, why would a company of LG’s size and quality join this list?
The global Covid-19 pandemic has helped to create a “perfect storm” that has forced the closure of one of the solar industry’s largest names. Rising prices in manufacturing and shipping due to Covid and market instability has been sourced as the reason for their closure. The intensification of price competition brought about by these, and more manufacturers offering extended warranties are the most discernable factors for this sudden exit from solar.
“While exiting the solar panel business, LG is concentrating on products and services that can have an even greater impact,” said LG Electronics North America president and CEO Thomas Yoon.
This means that the LG home solar batteries, like the LG Chem will still be getting made.
What does this mean for warranties?
In a letter to their partners, which SEM Group Australia was honored to be part of, LG stated that their solar business in Australia would “conclude during the 2nd quarter this year to ensure the fulfilment of all existing product orders, and to maintain adequate inventory for future service support.”
In short, if you have been sold an LG solar system by us, or somebody else, you should have no trouble getting it installed.
As for warranties, the same letter says: “Beyond this period LG will continue to stand behind its brand and cover modules through the period of warranty. By continuing to provide after-sales service after closing down our business, we will strive to minimize consumer inconvenience and any negative impacts on our network of channel partners.”
This sentiment is reiterated on LG Energy Australia’s Website
We understand this has come as a bit of a shock, even to people who have been in the solar industry for decades, that’s why we want to make this transition as easy as possible. If you have been quoted on an LG system, have had one installed or have any questions regarding the future of their products and warranties, please do not hesitate to reach out to us via;