How to Start a Solar Panel Business
You may have already heard that renewable energy is the future and that is most likely why you have landed on this page – How to Start a Solar Panel Business.
After doing some research, you have most likely realized what a great opportunity getting into the renewable energy business is, especially a solar power business.
Solar energy is available to most homeowners and many businesses, small and large, are adding solar technology to their locations.
Consumers are drawn to solar panels for a variety of reasons including:
- There is an unlimited amount of solar energy
- Solar energy is clean compared to fossil fuels which damage the environment
- In the majority of markets, solar energy is cheaper compared to fossil fuels
There is an increasing demand from consumers looking to conserve energy and lighten their financial burden while doing so, it is a win-win for everyone.
If you have been bouncing around the idea of Starting a Solar Panel business, here are some tips to help you bring your business idea to fruition.
Write a Business Plan
Most successful businesses that make it through the initial market entry phase are more likely to succeed if they create a solid business plan.
A business plan helps set a track for your business that identifies what it needs to succeed.
A good business plan should answer some if not all of the following questions:
- What is the vision and mission of the company?
- What products and services will we provide?
- What is the cost to provide this product and/or service?
- Where do I purchase inventory from (i.e. solar panels to be installed in customer homes and businesses)
- What are the startup costs?
- What physical location and equipment is needed?
- What ongoing costs will there be?
- Who is my target market?
- How will my solar panel business make money?
- What will I charge my customers?
- Do I need financing?
- What is the sales and marketing plan?
- Who is the competition?
- How will success be measured?
- What are the short and long-term goals?
Business plans are vital for running and growing your solar panel business.
Opening a solar panel business usually requires a significant initial investment.
You will need to acquire an inventory of panels to be installed in customer homes and businesses and they are not cheap.
From the research we have done, the initial average investment to enter the solar market strong is around 500,000.
This includes solar panel equipment to perform your first round of installations for about a year, marketing costs, and any costs associated with hiring staff.
Purchasing panels from distributors in larger bundles will bring the cost down per unit.
Some ongoing expenses include ordering panels from distributors, payroll, rent/lease of your location, paying energy companies on behalf of leased customer accounts, maintaining licenses, business insurance, etc.
A solar panel business can make money in a few different ways:
- From the successful installation of solar units which can be a retail rate paid up front for connecting their panels to their home and the power grid – for a residential installation, the price usually ranges from 15,000 – 50,000.
- Leasing programs which often include the cost of the panel installation and any power customers are using from the grid – leases can run between 25/month – 200/month
- Sub-contracting for larger solar panel contractors and companies
Providing the option to install solar units or lease is a great business model as it provides two types of revenue streams for your business and more options for your customer.
Sub-contracting for larger solar panel contractors and companies can help you gain experience installing larger projects and help you create another revenue stream.
Because getting into a solar panel business requires a large initial investment, you may need to reach out to lenders or investors for some capital.
As you can see, a business plan will help you identify key aspects of your business and what you need to do to have a strong start.
Having a solid business plan will also help you increase your chances of raising capital, as lenders and investors can see what your vision for the business is as well as how you plan on making money.
Choose a Business Name
When choosing a business name, you always want make sure the following items are true:
It is always a good idea to select a name that is easy for customers to remember so that they can refer you without having to look up the spelling of your name because it is too complicated.
You will then want to check if the business name you want is available and not already in use by another business.
You can check name availability at your local Secretary of State website.
There are lots of business naming resources that you can use like Neamcheap here:
Find a domain starting at
Form your Business
Before officially opening your doors and installing your first solar panel project, you will need to legally form your business.
To do this you need to register your business with your local secretary of state by selecting a business structure.
There are several business structures to choose from including sole proprietorship, limited liability company (LLC), Corporation, etc.
You will want to consult an attorney if you are not sure which business structure to choose.
You can also use a formation service to help you setup your business.
Some of them are free State Fee!
Many business owners choose an LLC (limited liability company) because it provides limited liability protection to you as the owner(s) and it benefits from pass-through taxation.
It provides a flexible business structure and is fairly simple to set up.
Why business owners choose an LLC:
- Business owners are not liable for the company’s debts and can choose their own management structure.
- They qualify for pass-through taxation – meaning that profits are only taxed once.
For example, if your LLC declares bankruptcy or is sued, your personal assets such as your vehicle, personal bank accounts, and house are safe.
Each business structure has its own advantages and features but for the majority of small businesses, an LLC is going to be the best choice.
If your business begings to grow and you wish to bring on sharehlders and other investors, you can always change to a C Corporation down the road, but an LLC is your best option when starting out.
LLC’s are simple, flexible and protect your personal assets.
- Select a business entity type: we recommend an LLC.
- Obtain an EIN (Employer Identification Number) from the IRS – once your application is completed online, you will receive an EIN instantly.
- Register your business locally in the State in which you will be conducting business. This is done with the Secretary of State in the state where you will be doing business.
- Obtain any business licenses or permits required in your State to operate a solar panel business. These can also be found at your local Secretary of State website. Most states require some sort of licenses or permits so you will want to do a quick google search on this one.
Certain state permits and licenses may be needed to operate a solar panel business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.
This helps you identify available domain names before you register which can be helpful in determining general name availability.
You are not required to reserve a name before starting your business, but if you are afraid someone else might use the name, then you may want to consider doing a name reservation, especially if you don’t plan on forming your business right away.
A name reservation costs around 25, depending on your state, and they give you name exclusivity for 30 – 90 days so that you have time to form your business without worrying about the name you’ve already chosen being taken by someone else.
You can also choose to trademark your business name so that someone else doesn’t use it – learn more about that here.
Solar business ideas
Solar installation isn’t only about setting up panels. There’s a lot more to it. There’s sales, repair, maintenance, contracting, consultation. A significant amount of money is required if someone decides to become a manufacturer of a solar panel or solar inverter company. Before launching a solar business, many factors must be considered.
Here are some examples of solar businesses that can be started:-
- Solar Installation
- Solar Consultant
- Solar Sales
- Solar Parts
- Solar Manufacturing
- Solar Maintenance
Understanding leading solar technologies
To develop a solar business, one must first become familiar with the most common solar technologies used nowadays. Today’s solar technology allows us to use the sun’s energy in numerous ways, allowing organizations to use both the sun’s light and heat.
For more such amazing content, do follow our LinkedIn page.
There are three key technologies to concentrate on, according to current trends:
(i)Solar Heating Cooling:-Thermal energy can be generated with this solar technology. This is primarily used for water heating. Cooling can also be accomplished with solar heating cooling technology. The best part is that customers in a range of climates can afford solar heating cooling technologies.
(ii)Solar Photovoltaic:-We can generate electricity directly with this solar technology. Solar panels transform the energy of photons (light particles) into electricity. Produced electricity can then be used, stored, or converted for long-distance transmission. An inverter is used to convert DC electricity to AC electricity. PV panels can be made out of a wide range of materials and methods. This technology is used all over the world.
(iii)Concentrating Solar Power:-It is based on the method of concentrated sunlight. By concentrating sunlight at a single spot and converting it to high-temperature heat using various reflecting materials such as mirrors and lenses. It is used to produce thermal energy, which is then converted into electricity. CSP plants range in the size of hundreds of megawatts (MW).
Based on the budget and other factors required, technology must be determined.
Research Business Plan
To flourish, businesses must be built on a sound plan. Market research is essential for this type of business. Coming up with a proper plan is the first step in launching a solar business. Regardless of the industry in which the project operates, it should solve several issues in other sectors. People tend to do business without a good business plan or market research, which leads to a higher failure rate. Hence, having a sound plan is always beneficial.
The first stage is to identify the industry’s major competitors. We might use data about the industry that is currently available. Detailed information on competitors, such as the number of employees, items sold, and major strengths, could also be obtained through research.
The following stage is to learn about the demographic. Before producing products to satisfy customer needs, it’s critical to figure out what they want. Phone surveys, mail surveys are the best ways to discover customer needs. The results are used to figure out the best features and for the products. Understanding the clients most likely to buy the company’s products is an important phase in the research process. It’s effectively cutting off the competition by doing so.
Did You Know? With Solar Labs, you can increase your solar sales conversion by a WHOPPING 300%.
One of the most crucial things to do when starting a business is to plan it out. The business will be complete proof if your business plan is full proof. A business strategy covers a wide range of topics. If there are any subsidies available, it must be understood how to apply for them. So these are the things one should be aware of.
What Is A Solar Panel Business?
Solar Installation is a very competitive business. There are many types of jobs you could do. You should specialize in what you know best.
Becoming an expert means more than knowing your product. You need to know how to navigate financial incentives, work with utilities and regulations, and understand what makes a customer tick.
Solar energy is becoming more popular every day.
People are starting new companies that sell solar energy products. There are many types of solar power systems available today.
Some people specialize in designing beautiful landscapes, while others specialize in helping homeowners get financing for solar panels.
This article helps people who want to be successful in the solar industry.
India has taken many steps toward reducing carbon emissions. Many companies are now investing in solar power.
Solar Business (सोलर बिज़नेस) | Best business ideas in india | Top business #2
Renewable energy is becoming more popular. Many large-scale companies gained heavy consumption during this period. Insurance, Pharmaceuticals, Online Education, OTT, Telecom, Healthcare, etc.
Many entrepreneurs started their own businesses but did not take calculated risks as they were not sure about their knowledge, experience, and skill set.
The solar business is growing rapidly because more and more people need electricity. Companies charge high for power.
Cities and towns are building rooftop solar panels to generate electricity. Smart cities are installing solar panels to reduce pollution.
As the shift to solar power is in its nascent stage, there is an opportunity for many years to come for many people to start a solar business.
There are many ways to start a solar business, but most of them require huge investments.
Solar Installers And Licensing
Roofing contractors should consider adding solar systems as part of their services. These companies are starting to merge together, and some roofing contractors are already offering solar installations.
Roofing contractors may also offer other types of services, such as energy efficiency upgrades.
Solar contractors must be licensed by the state. You may also need an electrical or plumbing license, depending on your location. States require different types of licenses.
Flawed designs can lead you straight to the drawing board. You’ll need to collect and report permit-related project data before you can get any permits approved.
Your projects will be rejected if they aren’t compliant with state or city regulations.
Solar design tools in Aurora make it easy to avoid costly mistakes. Every project gets verified by NREL before you submit it to the state or city.
You can easily export your project data to many rebate authorities for approval.
How Does The Solar Photovoltaic System Actually Work?
A solar panel converts sunlight into electricity. The electricity produced by the solar panel is then used to power devices inside the house or business.
The electricity generated by the solar panel is sent back to the power company when there is more than enough electricity being produced than needed by the customers.
Photovoltaic power generation is a method of generating electricity using sunlight. Solar panels use photovoltaics to convert light into electrical current.
A photovoltaic panel consists of multiple cells arranged in an array. The output of the solar panel is connected to an inverter which converts DC current to AC current to be used by the grid.
Installations of PV systems are often referred to as solar farms or solar fields.
When hiring employees, you should always try to take advantage of opportunities that arise during expansion periods.
Don’t wait until you’re desperate to hire someone. Hire people who are already doing something well, and then let them grow into positions that require more responsibility.
Make sure you hire people who have the skills you need, but also make sure they’ll be valuable to your organization.
Manufacturing Solar Products:
If you are not that good at selling products and you have knowledge about how to produce or manufacture them, it is the right time to start investing in your idea then. You can start producing solar panels, power grids, general products like mentioned above which will use the solar energy etc. It might seem a huge investment to start manufacturing business of solar products but in reality, the market is exponentially growing and the thus invested amount can be recovered real soon.
If you have the knowledge of the solar energy production or you have the money to hire the best solar consultants, you can start your own solar plant in which you will also receive government aids and grants. You can also invest in other’s solar project and earn a return on the same.
Servicing Solar Products:
The last but one of the most important solar business ideas within small investment horizon is setting up a business which will provide maintenance and repairing services to the solar products.
Spain’s solar energy crisis: 62,000 people bankrupt after investing in solar panels FRANCE 24
If you are planning to start solar panel installation business then here are the facts and figures:
- Total Investment Cost: It depends on the scale of your business but normally you can start with an investment of INR 5 lacs to 10 lacs.
- Types of Solar Panels: There are different types of solar panels from three to three hundred watts and the price of each varies accordingly.
- Franchise: If you want to sell the solar panels only, then you can take up a franchise of the big solar panel producing companies which is available against an amount of around 1 lac in India as of now.
- Marketing: Once you have taken the franchise of the solar panel manufacturing company now you can market your products and since you are taking a franchise of a renowned brand, people already might be aware of the solar products of this company so your marketing expenses won’t be much.
- Appointing Solar Panels and Power Consultant: For the installation purpose, you would need to appoint employees who are experienced in the installation of the solar panels. There must be consultant and workers who will do the field job according to the instructions provided by the consultant.
Solar plates manufacturing a business opportunity
In India, the main government aid or initiative was taken in the field of solar energy production and business is the “Jawaharlal Nehru National Solar Mission” (JNNSM) which aims at producing 20 thousands Megawatt of solar energy by the end of 2022. This can cover twenty million square meters of area for collecting solar energy. The initiative has been divided into three phases.
There is another scheme or Government Yojana – Solar Energy Subsidy Scheme which helps in increasing the reach of the use of the solar panel. It doesn’t help the manufacturers but the users of the solar panels. It subsidies the energy consumptions of the people who have solar panels installed in their home.
SECI Project is another one which is for the production of the rooftop solar panels on a large scale basis. It is for the channelization of the government aids in the right direction for the proper manufacturing and installation of the solar grids across the rooftops of the people who want them.
If you want to start a solar business, then this is the perfect time to invest the money in it as the market is growing every day and the demands are growing with the depleting non-renewable energy resources and growing importance of renewable energy resources.
There are many benefits to solar power, including that it is a renewable resource, it is carbon-neutral, and it does not produce any harmful emissions. Additionally, solar power can be used to generate electricity, which can then be used to power homes and businesses. Solar power is also relatively inexpensive, making it a great option for those looking to save money on their energy bills.
The key components of a solar power system are the solar panels, inverter, and batteries.
The cost of solar power varies depending on the size and type of system, as well as the location. Solar power systems can range in price from a few thousand dollars to tens of thousands of dollars.
The sun emits a type of energy known as light. When this light reaches the solar panels on your roof, the panels absorb some of this energy and convert it into electricity. When your solar panels are producing electricity, you have what is known as “net metering.”
The cost of solar panels and other equipment needed to harness solar power can be prohibitive for some people. 2. Solar power is not available at night, and cloudy days can also reduce the amount of power that can be generated. 3. Solar power plants can take up a lot of space, and they may not be able to be built in some locations due to land restrictio
The benefits of solar power for businesses are many, but include reducing or eliminating utility costs, saving money on energy bills, and offsetting carbon emissions. Solar power can also help businesses to be more sustainable and reduce their environmental impact. Solar power is a clean and renewable source of energy, and businesses can often take advantage of tax incentives and other financial incentives when they install solar panels.
Solar power is more expensive than traditional forms of energy. Solar panels may not work as well in cold weather. They may also not produce as much energy during the winter when there is less sunlight. Solar panels can be damaged by hail or high winds.
The main challenge of solar power for businesses is the high initial investment. Solar panels can be expensive, and businesses need to ensure that they will receive a return on their investment. Solar power can also be unreliable, as it is dependent on weather conditions.