About the Warranty Optimizer

Warranty optimisation compares the total cost of ownership under different module and inverter warranty structures — evaluating whether an extended warranty premium is justified given the probability of a claim, the cost of an out-of-warranty replacement, and the revenue at risk during unwarranted downtime.

How to calculate it

1. 1Map the standard warranty: module product warranty (typically 10–12 years) and linear power warranty (80% at 25 years). Inverter: 5-year standard, 5–10 year extended available.
2. 2Estimate failure probabilities: module failure rate ~0.1–0.3%/year; inverter failure ~2–5% at year 5, 10–20% at year 10.
3. 3Calculate expected out-of-warranty replacement cost: module ₹8,000–15,000 per panel; string inverter ₹25,000–60,000.
4. 4Cost an extended warranty: inverter 5-year extension typically ₹5,000–12,000 per unit.
5. 5Break-even: warranty premium ÷ (failure probability × replacement cost + downtime revenue loss). If < 1, the extended warranty is worth buying.

Worked example

A 5 kW system with a ₹30,000 string inverter: standard warranty 5 years, 5-year extension costs ₹7,000. Inverter failure probability in years 6–10: ~12%. Expected replacement cost: 0.12 × ₹30,000 + ₹3,000 downtime loss = ₹6,600. Extension cost ₹7,000 > expected loss ₹6,600 — marginal. With labour included (₹3,000 site visit), extension is worth buying.

What you can calculate

• Warranty MWh
• Max dispatch
• Revenue vs warranty
• Breach risk

Frequently asked questions