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What you should know about LG exiting the solar industry

In February 2022, Korean electronic manufacturer LG Solar announced its plans to stop solar panel production at its 550 megawatt (MW) assembly plant in Huntsville, Alabama. Production at this facility began in 2018 and it’s currently one of the largest crystalline silicon solar panel manufacturing facilities in the U.S. While the news has shocked some in the industry, others say they’ve seen it coming – but why is LG Solar making this change? And what does it mean for you if you have LG solar panels?

Key takeaways

  1. In June 2022, LG Solar will exit the solar industry.

  2. LG’s exit comes amid continuing supply chain constraints and rising manufacturing costs.

  3. LG will continue to manufacture storage systems and plans to expand its offerings to energy management as well.

  4. If you already have LG solar panels, your warranty will still be upheld.

  5. You can still purchase LG solar panels while supplies last – visit the EnergySage Marketplace to start your solar journey today.

Why is LG Solar no longer manufacturing solar panels?

We can’t exactly attribute LG Solar’s decision to one factor – rather, it seems like a variety of circumstances led to them exiting the industry. According to LG Solar, the decision “follows a comprehensive review of the impact of increasing material and logistics costs, as well as severe supply constraints, on the solar business.” EnergySage Marketplace data supports this claim: according to our most recent Intel Report, the median quoted price of solar increased for the first time in seven years (since we started releasing these reports):

LG Solar remains the fifth most quoted panel brand on EnergySage; however, the company has steadily lost Marketplace share since the second half of 2018, when it had 21 percent share. Our latest Intel Report showed LG Solar at 8 percent share: the first time it’s dropped below 10 percent share on our Marketplace:

Part of LG’s decision also probably stems from Congress’ failure so far to pass the Build Back Better Act, as well as President Biden’s recent four-year extension of the solar tariffs.

Will LG still manufacture solar batteries?

Yes! In fact, another reason LG Solar cited for ceasing solar panel manufacturing is a desire to focus more on other energy products, including energy storage systems and energy management. This also follows LG’s March 2021 announcement that it would be investing over $4.5 billion by the end of 2025 to expand battery production in the U.S, as well as its March 2022 announcement that it would invest $1.4 billion to construct a cylindrical battery manufacturing facility in Arizona for electric vehicles (EVs) and electric tools. According to its recent press release, LG plans to “leverage its renewable energy expertise to unlock value for customers in new ways” in the future; these products will also complement LG’s existing suite of products, from Energy Star home appliances, to heat pump water heaters.

What if you already have LG solar panels installed?

Hearing this announcement may come as a shock if you already have LG solar panels installed on your property – what if something goes wrong with your system? Based on our warranty comparison ranking system, LG Solar came in at third for the quality of its warranty, so you want to make sure it’s being upheld! Fortunately, according to LG’s press release, you’ll still reap the benefits of this warranty: the company stated that it will “continue to support its U.S. solar customers for years to come. LG stands behind its brand and will honor the limited warranty with each product sold.” LG is also continuing its solar panel production into the second quarter of 2022 (ceasing all operations in June), which they will use to maintain a supply of panels for any future service support.

What does this mean for LG Solar employees?

LG’s exit from solar panel manufacturing will impact about 160 employees and 60 contract workers at their campus in Huntsville, Alabama. LG has stated that it hopes to retain many of its employees and is working to identify new opportunities for employees of LG Solar within LG’s other business units. However, for those who aren’t transitioning to new roles within the company, they’ll receive severance packages commensurate with their tenure with the company.

This is not the same situation as Panasonic

You may remember Panasonic announcing in February 2022 that they would stop manufacturing solar panels – it’s important to point out that LG Solar’s announcement is very different from Panasonic’s. While LG Solar will completely stop manufacturing and selling all solar panels, Panasonic still continues to sell outsourced solar panels under the Evervolt™ brand.

Can you still purchase LG solar panels?

If you’re still interested in purchasing LG solar panels, we’re not surprised! The company has a great reputation, their panels are some of the most efficient on the market, and they come with an extremely competitive warranty. The good news is that you can continue to purchase LG Solar products while supplies last – so if you’re hoping to install them before they’re gone, make sure to ask your installer!

Start your solar journey today on EnergySage

Ready to start shopping for a solar system? On the EnergySage Marketplace, you’ll receive free, custom quotes from solar installers. By comparing quotes, you’ll be able to find a system that meets your needs at the right price. Just looking for a ballpark estimate on cost? Check out our Solar Calculator, which offers upfront cost and long-term savings estimates based on your location and roof type.


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