find us on facbook

LG Electronics Exiting The Solar Market

In a move that has blindsided the solar industry, LG Electronics have decided to pull out of the solar panel market after 12 years citing both poor sales and an ever increasing competitive market. The move has left both consumers and suppliers reeling with concerns about warranties and support rising.

The Korean electronics giant has stated that it aims to be fully shut down by June 30 with the process of winding down already underway. As of publishing this article there is no concrete information regarding continued support other than a statement by the company that it would provide support for their solar panels for “years to come”.

Why Is LG Leaving The Solar Power Industry?

There are a few angles that need to be considered when looking to understand why such a global player would leave a market such as solar. The first is the lacklustre market share LG has managed to accumulate since their entry. With all of their resources, supply chains and distribution networks they had only managed to capture a 1% market share which is surprising to say the least.

Another aspect is the size of LG; as a major global player they have an interest in many different sectors and they are looking to cut the fat. About a year ago they pulled out of the mobile phone market to better focus on more profitable sectors and leaving the solar market is another part of this restructure. As solar accounts for only 1.5% of LG Electronics revenue it means little to the company to cut that stream.

lg electronics solar panel plant

The reduction in sales within the solar industry also played a role in this decision. When LG entered the market it was booming and there was plenty to go around. Just like with any emerging market, after a time of rapid growth there is a reduction because with every installation the potential sales base reduces. With a small market share and bigger markets to focus on it makes sense in the long term.

When you combine these factors with an increase in low-cost Chinese suppliers and massive increases to the prices of raw materials it all starts to fall apart. There is a good chance you have experienced the global shortages in regard to electronics and other products that rely on these raw materials for manufacture and you can begin to understand why LG might just not find the trouble worth it.

Who Is Affected By LG Electronics Leaving Solar?

In terms of those most affected by this decision there are both the customers and those companies who have built their business on distributing LG solar products. LG has massive brand recognition and their reputation for manufacturing quality components makes them a great choice for those looking for a supplier they can market around.

With a market full of manufacturers that no one has heard of, that kind of bankability is tremendously helpful in convincing clients that your products are reliable. There are a few major solar installers across Australia that sell LG solar panels exclusively and we can only imagine the reality of this move is sinking in as their customers start to call and ask about warranties and support going forward.

There is something to be said about not putting all your eggs into one basket in regards to this situation. Having said that, the move is completely unexpected and our primary concern is the customers that are now left wondering what support they will be able to receive in the future. Those making bank on the back of LG’s reputation will need to find a way to support these clients lest they end up under the gaze of watchdogs and fair trading commissions.

lg solar panel install

We Understand Brand Name Isn’t Everything

Global Solar Solutions has never carried out an installation that includes LG solar panels so we are completely unaffected by this situation. While the temptation to trade on the LG brand was a big one the reality is we value specialist brands that are heavily invested into the solar market.

These companies often produce valuable innovations as they look to separate themselves from the competition. This drive results in quality products with performance and reliability being the key points of difference between those succeeding and those that are not. We have thrown around a few sayings in this article but another that we see that is applicable to this situation is “jack of all trades, master of none”.

From solar panels to inverters and now to the booming solar battery market, Global Solar Solutions has chosen to partner with suppliers that are in it for the long haul. This decision has proved fruitful as we are yet to carry out an installation using any components from a defunct supplier or manufacturer.

We can’t really stand up and say “I told you so” because the move is a surprising one but we can take some comfort that our decision to work with dedicated partners was worth the extra work it required. Our expanding customer base is not earned through brand names but rather our approach to support, quality installations and reliable, well performing products.

What Should You Do If You Have LG Solar Panels?

The first step is to contact the company that carried out the sale and installation of your solar power system. They are likely aware of this situation and may already have plans for the future although they will need to know more from LG in the coming weeks regarding continued support. While LG leaving is a bit of a shock the idea that they will not support their legacy solar panels is not worth investing in.

We understand this may be a stressful time for those who have chosen to invest in solar systems using LG products and realise that this may likely cause some installers to go out of business. In these times the need for stability is key and we are dedicated to providing this within the solar market. We are not here to pump and dump, we are here to create a leading solar power supplier that will be here for decades to come.

If you are looking to expand or upgrade your LG Electronics solar power system we recommend you give us a call on 1800 255 474 to talk with one of our solar consultants regarding what panels would be the best for your needs. All of our consultants understand every aspect of the solar industry and their invaluable advice is worth listening to in this time of uncertainty.

Should you wish for us to get back to you via email at a time that suits you please fill in our online contact form on this page and we will get back to you with any information you might need. All of our advice, quotes and insights are obligation free so even if you are feeling a bit uneasy about this development you are more than welcome to get in touch to talk with a dedicated solar professional.

Want To Know More About Solar?