The part is covered. The lift and the crew are on you.
A microinverter fails on a system you installed four years ago. The manufacturer ships the replacement and you eat two guys, a lift, and a day.
No other trade gives its customer a live telemetry feed pointed at its own workmanship. A homeowner can't see a drywall seam degrade, but a solar customer watches a per-panel production graph on his phone every morning and calls when one tile turns yellow. Twenty-five years of that, against hardware coverage that pays for the part and nothing else, is a labor liability nobody put on the balance sheet.
The size of it
Each service call runs $300 to $900 in loaded cost with zero revenue against it, on jobs you closed years ago. At a 3 to 5 percent annual callback rate across a 1,500-system fleet, that's 45 to 75 unpaid truck rolls a year, and almost nobody reserves for them.
Your workmanship warranty runs ten to twenty-five years and the manufacturer's warranty pays for hardware only. Step warranties at 25 years for product and performance and inverter warranties at 10 to 25 years replace the box, and labor, lift, and truck roll are yours for the life of the system. Your customer also has a monitoring app, so every production dip and every single failed microinverter generates a phone call the same week it happens. Roof penetration leak warranties commonly run ten years and come due seasonally, at the first heavy rain or the first snow load. When a step, inverter, or battery manufacturer goes insolvent, which happens regularly in this industry, the entire warranty obligation falls to you with nobody to bill.
Three moves, in order
Step 03: Overhead calculation
What indirect cost really comes to at your size, and the rate your estimating template should be carrying.
What else costs solar contractors money
The same mechanism in other trades
What solar owners ask
How do i budget for solar warranty service calls?
A microinverter fails on a system you installed four years ago. The manufacturer ships the replacement and you eat two guys, a lift, and a day.
What does it cost?
Each service call runs $300 to $900 in loaded cost with zero revenue against it, on jobs you closed years ago. At a 3 to 5 percent annual callback rate across a 1,500-system fleet, that's 45 to 75 unpaid truck rolls a year, and almost nobody reserves for them.
What do I do first?
Pull last twelve months of warranty and service calls, cost them at a loaded rate, and divide by systems in the field to get your real per-system annual number.
What are solar contractors supposed to be making?
Solar runs 22% gross margin, 15% overhead and 7% net profit before taxes at $1M–$5M. The all-trade average is 7%, so this trade sits right on it. The CFOS target is 10%.
Which part of the system fixes it?
The step is number 03, overhead calculation. What indirect cost really comes to at your size, and the rate your estimating template should be carrying. It comes from chapter 3 of CONTROL: The Construction Financial Operating System.
