Mike Dolt Enterprises Logo Mike Dolt Enterprises

Topic: PV System O&M/service work

User: solarken, Location: Hudson, OH, USA

Asked on: Wednesday, April 2, 2025 at 9:57 am EDT
Answered on: Wednesday, April 2, 2025 at 10:06 am EDT

Question: I'm hoping to get some feedback on structure of charges for onsite service work on existing PV Systems, such as diagnosing and replacing failed inverters, replacing MLPE, diagnosing communication issues, etc. This would be for working on systems not covered under any warranty I provide with an installed system, and typically working on a system installed by a different company that is no longer around. I lately have adopted a trip charge with addl hrly charge structure. $225 trip charge (within 50mile 1-way drive) includes the 1st hr, and then $100/hr for addl hrs. Anyone have thoughts on this? Thanks.

Your structure seems reasonable, especially for a market where other installers have disappeared, leaving customers stranded. Here's a breakdown of my thoughts and some suggestions

What's Good:
Trip Charge

This is crucial. It covers your time, fuel, vehicle wear and tear, and initial overhead, even if the problem turns out to be a quick fix. $225 is on the higher end, but justifiable if you're providing a valuable service in a niche market.


Hourly Rate

$100/hr is within a reasonable range for specialized electrical/solar work. It's high enough to compensate for your expertise and business expenses but doesn't feel overly exploitative to the customer.

Clarity

Combining the trip charge with the first hour makes it easy for customers to understand the minimum cost they'll incur.

Things to Consider and Potential Improvements



Mileage Beyond 50 Miles

What happens if the service call is further than 50 miles (one-way)? You need a clear policy for additional mileage charges. Some options:

Tiered Trip Charges

e.g., $225 (0-50 miles), $300 (51-75 miles), $400 (76-100 miles), etc.


Per-Mile Charge

After 50 miles, add a per-mile charge (e.g., $1.00/mile). This can be easier to calculate for longer distances.

Minimum Charge (Even with Trip Charge)

Consider if you need a separate minimum charge if the onsite work can be completed in less than an hour. The trip charge could be considered the minimum but is worth thinking about.


On-site Assessment/Diagnostics

Consider offering a separate, lower-cost "assessment" or "diagnostic visit." This could involve a quick inspection, a discussion of the issues, and a written estimate. This can be useful if the customer isn't ready to commit to the full trip charge and hourly rate upfront, and you might consider the cost to be waived if the repair work goes through.

Emergency Service (After Hours/Weekends)

If you offer emergency service outside of normal business hours, you absolutely need a higher rate. 1.5x or 2x your standard hourly rate is common. Be very clear about the conditions that qualify as an emergency.


Heavy Equipment

If the job requires a boom lift, scissor lift, or other specialized equipment, factor in the rental cost and labor for operating it. This is likely separate from your hourly rate. Be upfront about this in your estimate.

Payment Terms

Clearly define your payment terms (e.g., due upon completion, deposit required, etc.). Consider accepting credit cards for convenience.


Estimate Before Starting

ALWAYS provide an estimate before starting work. Be clear that it's an estimate and that the final cost may vary depending on unforeseen issues. A written estimate protects you and builds trust.

Parts and Materials

Obviously, the cost of parts and materials is separate from your labor charges. Mark them up reasonably, but be transparent about it.


Liability and Insurance

Ensure your insurance covers service work on existing systems. Discuss liability with your insurance provider.

Guarantees

Consider if you offer a limited guarantee on the work you perform. This can give customers peace of mind.


Competitor Research

Do some discreet research on what other companies in your area are charging for similar services.

Target Market

Consider your target market. Are they high-end homeowners, businesses, or lower-income residents? Adjust your pricing accordingly, but always justify your value.

Example Scenario

Let's say a customer calls with a failed inverter that's 60 miles away:1.

Initial Conversation

Explain your trip charge of $225 (covers 0-50 miles, including the first hour) and your hourly rate of $100/hr. Explain your mileage policy beyond 50 miles (e.g., $1/mile, meaning an additional $10 for the 10 miles beyond 50). Total for the trip = $2352.

On-Site Assessment

You arrive and diagnose the inverter issue. It takes 30 minutes.3.

Estimate

You provide a written estimate to replace the inverter:
Trip Charge (including first hour): $235 Inverter Cost: $X Labor (additional time beyond the first hour, if any): $Y Total Estimate: $Z

Key Considerations for Your Specific Situation



Reputation

Since you're often dealing with systems installed by defunct companies, your reputation is everything. Excellent service and transparent pricing will be crucial to your success.

Experience

Highlight your experience with different brands of inverters and MLPE.


Licensing and Certifications

Make sure your licensing and certifications are up-to-date and prominently displayed.

In summary, your pricing structure is a good starting point. By addressing the potential improvements, being transparent with customers, and focusing on excellent service, you can build a successful and reputable service business.
Flag for review

Previous Question Next Question