Renewable Energy, Solar & Wind Manufacturing worked example

Solar Warranty Exposure at 1.73% expected field failure rate: a worked example

This scenario runs the solar warranty exposure calculation on the strong side: 1.73% expected field failure rate, with every other input held at its documented default. A solar manufacturer sizing the warranty reserve before booking a utility-scale module order.

The inputs for this scenario

  • Modules shipped under warranty: 50,000 modules (unchanged)
  • Average claim cost per module: 180 $/module (unchanged)
  • Expected field failure rate: 1.73 % (raised for this scenario; the documented default is 1.5)
  • Fixed warranty program administration cost: 25,000 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Total exposure = modules x claim cost per module x failure rate% + fixed admin cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 180,700 $ for total solar warranty exposure cost, the number this scenario is built around.
  • At this operating point the engine returns 3.61 $ / piece for solar warranty exposure cost per unit.
  • At this operating point the engine returns 155,700 $ for variable solar warranty exposure cost.
  • At this operating point the engine returns 25,000 $ for fixed solar warranty exposure adder.

How this compares with the baseline

  • Against the tool's baseline example, where expected field failure rate sits at 1.5% and the headline result is 160,000 $, this scenario comes in 12.94% above the baseline at 180,700 $.
  • Use it when setting warranty reserves, pricing a new module SKU, or evaluating how a field-failure-rate change moves your liability. Treat this as a target state: the delta against the baseline quantifies what the improvement is worth before you commit to chasing it.

Results at a glance

  • Total solar warranty exposure cost: 180,700 $ (headline result)
  • Solar warranty exposure cost per unit: 3.61 $ / piece
  • Variable solar warranty exposure cost: 155,700 $
  • Fixed solar warranty exposure adder: 25,000 $

Run it with your numbers

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

Last reviewed 2026-05-12.