By Charlie Davies

As the utility-scale solar market continues to mature, an unprecedented number of solar assets are reaching the end of their warranty coverage. This significant milestone presents both challenges and opportunities for solar site owners and operators. 

End of Warranty (EOW) equipment represents tens of billions of dollars in assets that can and should be safeguarded via warranty claims. Ultimately, a standardized strategy for claims — such as Raptor Solar Claims —  is necessary to mitigate financial risks and optimize portfolio performance during this crucial period. 

The Growing Challenge of End-of-Warranty Coverage

Roughly 684 million solar modules are now approaching EOW in the United States, collectively holding an estimated financial value of nearly $69 billion. This situation calls for a proactive approach to manage the warranty claims process effectively in order to retain as much value as possible in these assets.

A common scenario that can erode the value of EOW equipment is a lack of data and reporting on the health of solar modules through the equipment lifecycle. Solar asset owners can plan ahead for the EOW period by maintaining a comprehensive record of equipment performance; software solutions, such as a digital twin acting as a repository for this record, can alert owners to changes in production output and thus mitigate a potential loss in value if remediation is not sought before a warranty period elapses. 

Diverse OEM Warranty Periods and Increased Complexity

One of the critical challenges during the EOW phase is the varying warranty periods offered by different OEMs. As the solar market has expanded, an increasing number of OEMs have entered the fray, leading to a lack of standardization in warranty terms and conditions. Consequently, owners of utility-scale solar sites are faced with the task of navigating complex and diverse warranty requirements, which can include different levels of in-field verification, mapped serial numbers, and temperature delta calculations.

Moreover, some solar modules were produced by OEMs that are no longer in business, making the claims process even more complicated. To ensure smooth operations and optimal portfolio performance, owners must devise a strategy to defer financial costs and hold OEMs accountable for warrantable defects.

RELATED WEBINAR: “Safeguard your PV Investments with Smarter Claims Strategies"

The Rise of Non-Standardized Data and Processes

In the wake of the industry's rapid expansion, there has been a 111% increase in Tier 1 module manufacturers globally since 2019. This proliferation has led to a fragmented warranty landscape, with some solar site owners managing portfolios containing modules from over 30 different OEMs. Each OEM may have its unique set of requirements and warranty standards, making the claims processes labor-intensive, time-consuming, and costly. 

Further, due to the supply chain constraints of the last several years, owners and developers are forced to purchase equipment from whichever OEMs have inventory, rather than their potentially preferred manufacturers. This leads to an increase in the number of OEMs across site portfolios.

Standardizing Warranty Claims to Mitigate Financial Risks

In the face of the challenges presented by the EOW phase, it becomes imperative for solar site owners to establish a standardized strategy for warranty claims. Doing so will enable them to streamline the claims process, mitigate financial risks, and optimize their portfolio's overall performance. Here are some essential steps that can be taken:

1. Robust Data Management: Adopting a comprehensive data management system is crucial to collate and organize warranty-related information for all solar modules. This includes warranty periods, terms, and conditions, enabling owners to track EOW status accurately.

2. Collaboration with OEMs: Engaging in open communication with OEMs is essential to understanding their warranty processes and requirements. Developing strong partnerships will facilitate smoother claims processes and ensure prompt resolution of warrantable defects.

3. Third-Party Audits: Engaging third-party auditors can help validate warranty claims, providing an unbiased assessment of module defects and performance. This external expertise can be valuable in substantiating claims and maximizing recovery.

4. Insurance and Risk Mitigation: Exploring insurance options specifically designed for warranty claims can offer an additional layer of financial protection for solar site owners. Understanding the potential risks and addressing them proactively can significantly impact the overall profitability of the portfolio

As the utility-scale solar market continues to mature, the challenges associated with warranty claims for solar assets reaching their EOW phase are becoming more pronounced. The lack of standardization, coupled with the diverse array of OEMs in the market, demands a proactive and systematic approach from solar site owners. 

RELATED: Download our warranty claims one-sheet

How Standardizing Solar Warranty Claims Can Save Time and Money

By adopting a standardized strategy, backed by robust data management, collaboration with OEMs, third-party audits, and risk mitigation measures, owners can navigate the EOW phase successfully. Such an approach will safeguard their investments and optimize portfolio performance, contributing to a sustainable and efficient solar energy future.

Raptor Solar Claims creates a comprehensive data model based on digital twins to overlay data sources, and provide customers with the data they need to support claims submissions.  Raptor Solar’s warranty claims feature lets you auto-generate a claims package, submit it, and track its progress — all within one platform. By expediting what has historically been a drawn-out process, sites can quickly return to full power production and profitability.