Microgrid & Distributed Energy Equipment worked example

Warranty Reserve at 92% expected claim rate: a worked example in microgrid & distributed energy equipment

What does the result look like when expected claim rate reaches 92%? The full calculation is worked below with real intermediate numbers. Use it when warranty reserve on a microgrid and distributed energy fleet needs a defensible number for pricing or financial reporting.

The inputs for this scenario

  • Units under warranty: 100 units (unchanged)
  • Warranty cost per unit: 45 $ / unit (unchanged)
  • Expected claim rate: 92 % (raised for this scenario; the documented default is 80)
  • Fixed program reserve: 250 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable warranty reserve = units under warranty × warranty cost per unit × expected claim rate) to the inputs above produces each figure below.
  • At this operating point the engine returns 4,390 $ for total warranty reserve, the number this scenario is built around.
  • At this operating point the engine returns 43.9 $ / piece for warranty reserve per unit.
  • At this operating point the engine returns 4,140 $ for variable warranty reserve.
  • At this operating point the engine returns 250 $ for fixed program reserve.

How this compares with the baseline

  • Against the tool's baseline example, where expected claim rate sits at 80% and the headline result is 3,850 $, this scenario comes in 14.03% above the baseline at 4,390 $.
  • A figure at this level is achievable when expected claim rate is genuinely sustained, not just peaked for a shift. It assumes one blended claim rate and cost per unit; real DER fleets have failure curves that rise with thermal cycling and firmware age, so revisit the rate as field data lands.

Results at a glance

  • Total warranty reserve: 4,390 $ (headline result)
  • Warranty reserve per unit: 43.9 $ / piece
  • Variable warranty reserve: 4,140 $
  • Fixed program reserve: 250 $

Run it with your numbers

  • Every input above is editable in the live Warranty Reserve calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.