Financial Stability: The Foundation of Our 30-Year Solar Warranty

At Solar Insure, we’re proud to offer industry-leading solar warranty coverage that reflects our confidence in the longevity and reliability of solar and battery technology. 

Our approach is built on four robust pillars that ensure we can confidently honor our long-term commitments. 

Industry Context: Long-Term Reliability of Solar and Battery Technology

Before we dive into our four pillars, let’s look at some encouraging industry data:

• The IEA Global Outlook 2024 reports that well-built EV batteries can last for 15 years or more, with life cycle analyses projecting significant emissions benefits over this period.
• NREL reports that Solar panel technology has shown remarkable durability, with many systems performing well beyond their initial 25-year warranty periods.
• Battery technology for stationary storage, similar to that used in EVs, has rapidly advanced in terms of longevity and performance.

These trends support our confidence in offering warranties, including our SI-30 Total warranty for solar homeowners with battery systems.

SI-30 Total – Our 30-Year Solar and Battery Warranty

We’re excited to offer SI-30 Total for solar homeowners who include battery storage in their systems. This expanded coverage includes:

• Solar panels: Product and equipment warranty for 30 years
• Inverters: 30-year coverage, often exceeding manufacturer warranties
• Battery systems: 30-year warranty covering capacity retention up to 50% and one replacement.

This expanded coverage reflects our belief in the long-term viability of solar and battery technology and our commitment to supporting homeowners throughout their clean energy journey.

The Four Pillars of Solar Insure’s Warranty Strength

A robust framework built on four key pillars is at the core of our industry-leading 30-year solar warranty, SI-30 Total. These pillars represent the foundation of our ability to offer and maintain such comprehensive, long-term coverage. 

Each pillar is essential, working in harmony with the others to ensure we can confidently stand behind your solar investment for decades. Let’s explore how these pillars support our unparalleled warranty offering:

1. Comprehensive Actuarial Data

We leverage cutting-edge actuarial expertise to ensure our warranty is built on a solid statistical foundation:

• Partnership with an AM Best A+ rated global insurance leader for comprehensive actuarial studies
• Incorporation of long-term performance data from solar and battery installations worldwide
• Continuous refinement of our warranty models based on the latest industry data and technological advancements

Solar panels, inverters, and battery storage systems generally have higher infant mortality rates and end-of-life failure rates and follow the principles of the bathtub curve. 

When these solar components are installed, you have a higher risk of failure. That risk comes down rapidly. Solar Panels and inverters have a very low failure rate after 300 days. At the end of life, because of wear-out, the probability of failure increases.

2. Extensive Manufacturer Insights and Component Monitoring Data

Our deep relationships with manufacturers, combined with our fleet monitoring software Daybreak, give us unparalleled insights into product performance:

a) Manufacturer Evaluation: A Rigorous 7-Step Process

In partnership with our insurer, we employ a comprehensive evaluation process for all solar components (panels, inverters, and batteries):

1. Testing Lab Certifications: We verify all relevant industry certifications.
2. Product Track Record & Field Reliability: We analyze long-term performance data.
3. Manufacturer Financial Health Assessment: We ensure manufacturers have the stability to honor their commitments.
4. RMA/Claims Data Analysis: We scrutinize historical claims to identify potential issues.
5. Warranty Policy Review: We assess the comprehensiveness of manufacturer warranties.
6. Testing & Quality Protocols: We evaluate the rigor of the manufacturer’s quality control processes.
7. Vertical Integration Risk Analysis: We consider the risks and benefits of a manufacturer’s supply chain integration.

This thorough vetting process allows us to confidently stand behind the products we cover, knowing they meet the highest standards of quality and reliability.

b) Installer Vetting: Ensuring Excellence in Installation

We apply equally stringent criteria when evaluating solar installers:

• Financial Stability: We aim to work with installers in it for long-term growth.
• Online Reputation: We assess customer feedback and ratings.
• Years in Business: We prioritize experienced installers with a proven track record.
• Quality of Installation Work: We review past projects and installation practices.
• Insurance Claims History: We analyze past claims to identify any concerning patterns.
• OSHA Violations: We check for any safety violations or concerns.

By carefully selecting our installation partners, we minimize the risk of installation-related issues that could affect system performance or longevity.

c) Ongoing Monitoring and Analysis

• We continuously gather data on product performance and installation quality.
• This allows us to anticipate potential issues and adapt our warranty coverage as needed.
• Our insights inform product recommendations, ensuring customers receive the most reliable systems.

Through these vetting processes and ongoing analysis, we ensure that only the highest quality products and installation services are covered by our warranty. This rigorous approach allows us to confidently offer our industry-leading 30-year coverage, knowing that the systems we warrant are built on a foundation of excellence.

3. Robust Financial Framework

We’ve developed a strong financial structure to ensure we can meet our warranty obligations over the full 30-year period:

a) Actuarial Modeling:

• We employ stochastic models to project future claims and expenses.
• These models are regularly updated to reflect the latest industry data and technological advancements.
• Key factors such as equipment reliability, degradation rates, and replacement costs are carefully considered.

b) Conservative Reserve Strategy:

• We maintain a conservative reserve philosophy, targeting a reserve ratio above industry standards.
• This approach ensures we have ample funds to cover potential claims, even in unexpected scenarios.
• Reserves are calculated based on rigorous actuarial analysis and historical performance data.

c) Prudent Investment Portfolio:

• Our portfolio primarily consists of government and municipal bonds.
• This low-risk strategy prioritizes stability and predictable returns, aligning with our long-term warranty commitments.
• We continually monitor market conditions to optimize our portfolio while maintaining a conservative approach.

d) Stress Testing:

• We conduct annual stress tests to evaluate our financial resilience.
• These tests consider various scenarios, including economic downturns and technological disruptions.
• Results from these stress tests inform our risk management strategies and financial planning.

e) Regulatory Compliance and Oversight:

• Our products are regulated by the Federal Trade Commission (FTC), ensuring adherence to federal consumer protection standards.
• We are audited and regulated by several state insurance departments, including Florida’s Office of Insurance Regulation, adding an extra layer of oversight and accountability.
• This multi-tiered regulatory framework reinforces the integrity of our financial practices and consumer protections.

By combining these financial strategies with our other pillars, we create a robust foundation that supports our ability to honor long-term warranty commitments. Our conservative approach, coupled with rigorous modeling and regulatory compliance, provides you with the assurance that we’ll be here to support your solar investment for the full 30-year warranty period.

4. Forward-Looking Industry Trends

We don’t just look at today’s technology – we plan for the future using advanced forecasting methods like Wright’s Law:

• Wright’s Law, which predates Moore’s Law, forecasts technology cost declines as a function of cumulative production rather than time.
• This approach is more accurate across various technologies, including solar panels and batteries.
• Wright’s Law helps us anticipate cost reductions and performance improvements over the long term, supporting our 30-year warranty commitments.

Key insights from Wright’s Law that inform our approach:

a) Cumulative Production: We track the total historical production of solar panels and batteries to forecast future cost declines.

b) Learning Rate: We calculate the consistent cost decline percentage for every doubling of cumulative production in the solar and battery industries.

c) Demand Forecasting: We analyze how demand will respond to future price declines, considering potential tipping points for mass market adoption.

d) Technology Crossovers: We monitor when technologies cross critical demand thresholds, potentially leading to re-accelerated cost declines.

By applying Wright’s Law to solar and battery technologies, we can:

• More accurately predict long-term cost trajectories
• Anticipate potential disruptions or accelerations in cost reductions
• Adjust our warranty models to reflect realistic future replacement costs

This forward-looking approach, combined with our other pillars, ensures that our SI-30 warranty remains financially sound and beneficial to our customers throughout its duration.

How These Pillars Support Your 30-Year Solar Warranty

Our four pillars come together to provide you with unparalleled peace of mind:

1. Data-Driven Coverage: We use a Replacement Cost Index (RCI) based on a 5-year average of replacement costs to ensure fair valuation over time.
2. Annual Updates: We recalculate this average yearly to stay current with market trends.
3. Fair and Predictable Payouts: Your coverage is based on this flat rate, providing clarity and consistency over the 30 years.

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Our Commitment to You

By building our warranty on these four pillars and staying abreast of the latest industry research, we ensure:

1. Reliability: We focus on high-quality, certified components to minimize failure rates.
2. Stability: Our approach smooths out short-term market fluctuations.
3. Fairness: We reflect medium-term market trends without overreacting to short-term changes.
4. Consistency: Our extended view aligns with long-term product life cycles.
5. Predictability: We can confidently plan, knowing our warranty will perform over three decades.

We’re committed to transparency and financial soundness in honoring our 30-year warranty. If you have any questions about our four pillars or how they support your long-term coverage, please don’t hesitate to contact our team.

Thank you for choosing Solar Insure. We’re here to support your solar and battery investment for the long haul.