If you’ve looked into solar or been part of a solar presentation before, you know firsthand that warranties are a huge part of the conversation. And why shouldn’t it be? Investing in a solar system for your home can be one of the larger purchases a homeowner will make, so it only makes sense to know what kind of protection you’ll be getting.
When it comes to levels of protection and what is needed, there are plenty of options… and just as many gray areas. Solar equipment comes with a manufacturer warranty, and solar providers often give a “workmanship” warranty. There’s also home insurance, but wouldn’t that cover the same things as the manufacturer’s warranty? What about independent warranties like those from TPO (third-party ownership, i.e., leases) and insurance-backed warranties like Solar Insure that come into play?
To help our customers understand, we have broken down warranties into three tiers:
- Effective Level
- Enhanced Level
- Engaged Level
Effective Level
The first tier of the warranty pyramid is the effective level, also known as tactical coverage. At this level, the warranties are generally the standard manufacturer warranties and minimum required workmanship warranties.
Solar panel manufacturers typically give 25-year warranties, and inverters usually come in the 10-12-year range. Every state has different requirements for workmanship warranties, but at this level, you could expect to be 5 years or less.
Service teams with effective-level warranties are rare, and companies with service teams likely aren’t maximizing their potential. Service issues are ad hoc and fixed once customers call in and ask about a problem they notice. The company providing service will more often than not eat the cost of that service rather than risk an unhappy customer or negative review.
Most companies start in this tier when they first start, but it’s not recommended to stay here because, at scale, service-related issues will bog down a business.
Enhanced Level
The second tier of solar warranties is the enhanced level, also known as the operational level. In this tier, companies begin to make warranties and enhanced consumer protection a more linchpin part of the offering and brand.
Enhanced warranty offerings will extend workmanship warranties beyond the minimum state requirements. If a manufacturer offers an extended warranty, enhanced providers will include the extensions as part of their standard offer to stand apart from the competition.
At this level, you often find third-party ownership (TPO) models and options for third-party non-transferable warranty providers. If service is done in-house, you’ll typically find the beginnings of a service department with some proactive customer support.
These service departments will still log into multiple portals to address their growing fleet, but their best attribute is their commitment to transparency with homeowners. An enhanced team will be sure to set proper expectations with their customers, explaining that equipment can fail and warranty replacements will still cost the homeowner labor expenses. While homeowners may not love added expenses, the customer experience is improved by the absence of surprises.
Engaged Level
Finally, at the top of the pyramid, we have the Engaged level. With an engaged warranty, the warranty and service offerings are a strategic part of an organization’s value.
Engaged companies leverage their warranty offerings and 5-star customer service to separate themselves from the competition offerings in either of the lower tiers. With an engaged warranty, homeowners have the ultimate peace of mind knowing that their chosen solar partner offers:
- Insurance-backed, transferrable, long-term warranties
- Labor cost coverage
- Proactive monitoring and issue resolution
Companies at the engaged level stay ahead of industry trends and best practices and position themselves for long-term business value by maintaining a strong balance sheet. Compared to other vendors, service is not a drag on the business. Instead, the engaged company will utilize service as a way to build brand value and generate additional revenue through returning customers and referrals.
Being in the engaged tier goes beyond just warranty offerings. An engaged installer prioritizes education over pushy sales tactics. By taking the time to educate consumers and solve their unique puzzles rather than jamming a corner piece into the middle, this installer turns into a solar partner and instills long-term confidence.
Trident Solar is an Engaged Level Warranty Provider
Our proactive insurance backed 30 year warranties set the new standard in the solar industry, solidifying Trident Solar as a committed Engaged Level Warranty Provider.
