Your guide to starting a successful solar company
Residential solar panel installations are projected to grow exponentially, thanks to the passing of the Inflation Reduction Act, which extended the 30% tax credit homeowners can claim when installing solar for ten years.
Research conducted by SolarReviews found that solar installers plan to increase their workforce to accommodate the expected demand for solar installations. It’s clear that now is one of the best times to start a solar installation business.
We won’t pretend the road to owning and operating a business is easy, but we’ve outlined some steps for you to at least get started. If you start your business right, you could make millions as a solar installer, especially if you’re partnered with the right lead source.
Key takeaways
- Starting a solar company is not easy, but now is the best time to do it, thanks to new clean energy laws on both the federal and state levels.
- To begin a solar installation business, you need certain certifications and licenses, an LLC, and a great team by your side.
- Building a customer base is key to success, and working with a solar leads company can help you achieve growth more quickly.
What you need to know before getting started
No matter the business, there are a few key things to get in order before launching it. Starting a solar company is no different.
Monetary capital
First things first, can you afford to start a solar business? Starting a solar company will likely cost a minimum of tens of thousands of dollars.
Taking out loans to start a business often makes sense, which can take years to pay back. Work with a bank and a financial advisor to determine if you need to borrow money to start your business and how to get the best loan rate.
Once you have these numbers, build a business plan to see how profitable your business needs to be to pay back the money in healthy increments. Your business plan should include how much you expect to pay on overhead costs like employee salaries, equipment, truck maintenance, and other soft costs like website management.
A business can survive for a bit breaking even, but that will not be sustainable in the long run. Having a business plan can help you keep track of the costs of your business to get you profitable more quickly.
Market and industry research
It seems obvious, but you must research the industry you plan to enter, especially if you haven’t worked in it before. Check if your state has a local Solar Energy Industry Association – they’ll be a great resource to keep you in the loop about what’s happening with solar near you. Attending meetings, watching webinars, and becoming more knowledgeable in the solar industry will go a long way in operating a successful business.
If you are completely new to the industry, as in you’ve never installed a solar panel in your life, signing up for classes through Solar Energy International (SEI) gives you a good head start while providing accreditations to enhance your legitimacy as an installer.
Think about your own work history, too. Having a background in construction or as an electrician can help when starting a solar business. Of course, you can hire these specialties, but having that foundation can help elevate your team and manage projects more efficiently.
It will also help to research the competition in your area! If your area is saturated with solar installers, opening a business might be more of a challenge.
Things to research in your market:
- Local incentives and demand for solar panels
- The number of solar installer businesses already within that location
- Competitor’s websites, pricing, and offerings. you can get a quote from competitors to see how they quote projects in your area to make sure you are competitive.
You can use SolarReviews to scope out the competition in your state, take note of their location, and check out things like their website design. Finding ways to set yourself apart from the competition can be as basic as creating a more intuitive website to offering more friendly customer service.
The SolarReviews calculator can also give you a better idea of solar savings and incentives that are available in the area you will operate. Installers can also use this tool to better understand how to size a solar system and the various inputs that can change the cost of a system.
What certifications do you need to start a solar company?
Many businesses need specific certifications or licenses to be deemed legal; in many states, solar is one of them. Licenses are in place to ensure that solar contractors install panels correctly and safely on residential homes.
The licensing requirements for solar installers vary from state to state. Many states require you to have a licensed electrical contractor working for your company, while other states have licensing options that are more specific to the solar industry. In California, for example, you need a C-46 Solar Contractor’s license.
On the other hand, certifications aren’t usually required by state law. But, having certified workers at your company sets you apart from the competition by giving you credibility and making you more trustworthy to homeowners.
The North American Board of Certified Energy Practitioners (NABCEP) is the most well-known and respected certification program for solar. NABCEP provides courses and continuing education for solar professionals to maintain and enhance their knowledge.
A NAPCEB certification can increase your earning potential by thousands of dollars a year because more homeowners are likely to choose your company over one that is not certified.
What Do I Need To Know Before Starting A Solar Panel Business?
You don’t need to invest millions of dollars into building a solar farm to reap the benefits of renewable energy.
All you need is a simple solar panel system that can generate enough electricity to meet your daily needs. Here are some tips for how to start a solar panel installation company:
Panel Types
Find out what kind of solar panels will work best in your area. There are many types of solar panels available today. Some are made of metal, while others are plastic.
You should also consider whether you want to use photovoltaic (PV) panels or concentrated solar power (CSP).
Both options have their pros and cons, but PV panels are generally cheaper than CSP.
Financial Options
Learn about the various financing options available for solar panel installations. Solar systems come in all sizes and shapes.
Financing options include leasing, buying, renting, and selling back the generated energy.
Each option comes with its own set of advantages and disadvantages.
For example, leasing requires upfront payments, whereas purchasing allows you to avoid paying any monthly fees.
However, if you sell the energy back to the utility companies, you may not be able to make as much money as you could by using other financing options.
Suppliers
High-quality, low-cost operating equipment, such as solar panels, should be used to make money.
Advanced technology should be used to save money. Vans and trucks should be used to transport equipment and teams.
Partnerships with established engineering firms should be made to design the solar panel system.
A good supplier of high-quality solar panels and inverters should be chosen. Fair should be paid for mounting equipment.
A good supplier should be competent, located close to you, offer value for money, provide quality products and services, charge fair prices, be stable and responsive, and have extensive experience.
Websites
Create an attractive website that showcases your services. Make sure it includes information about the products and services you offer, testimonials from satisfied customers, and contact details.
Also, add links to social media pages where people can learn more about your company.
A website is an important tool for any business. Customers need to be able to easily get information about your company and products.
Your website should not be cluttered or confusing. High-resolution pictures of your work are important because customers need to know what you’re capable of.
Add a section with testimonials and customer reviews. Your website should be a solid asset. You need to invest some time into it.
Advertising
Start advertising online. Advertise your services on websites such as Google. LinkedIn. YouTube, and
You can also advertise through local newspapers, magazines, radio stations, and television channels.
With solar panels, there is a lot of visibility. You should install them on homes and businesses in high traffic areas.
Donate a panel to a local community park or school to get more customers. Make sure you have a strong sales pitch and training program for your sales team.
Your sales script should include information on government incentives and tax breaks available for those who install Solar Panels.
You can also use these incentives to attract new customers. Networking events such as the Solar Power Convention in Las Vegas are another great way to meet people and make connections.
Direct Mail, Door-to-Door Appointment Sales, Call centers, and Social Media Marketing are some ways to advertise your business.
Web Designers
Hire a professional web designer who specializes in creating high-quality websites. They can help you create a clean and user-friendly design that attracts visitors.
Promoting
Promote your website on social networking sites. Use free tools such as Google, and Instagram to share photos and videos of your product line.
Discounts
Offer discounts and special promotions to attract new clients. People love getting deals, so they might just sign up with you.
Businesses should be aware of the competition and know what other companies are charging.
The price must be calculated based on market conditions. Low may attract customers, but may also put you in debt. High may scare away customers.
Solar installations vary in price depending on factors such as location, size, and energy needs.
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.
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.
Pros and Cons of Solar Farm
Check this post to learn more about the pros and cons of a Solar Farm environmentally
A solar project can be a large-scale project requiring a lot of lands. There are different aspects of the land needed for a solar farm and what a company needs to consider when choosing a site for a solar farm.
A solar farm typically requires 100 square feet of space to install 1kW of solar panels. Although, this is just in terms of solar panels, and more space is needed for solar equipment.
than 500,000 square feet of land is required to install a 5MW solar energy power plant. The panels take up the majority of the space. But mainly, the land required depends on the project.
What is the cost of land for a solar plant farm?
The land cost is the highest in building a solar plant farm. In the case of a solar plant farm, the land will be a plot of land that is fenced in. The solar panels will be mounted on the ground, and you should include the construction of this in the cost of land.
It is essential to check the price of the land so that you have a good idea of how much money you will have to spend on the ground.
The cost of land for constructing a solar plant farm is affected by various factors. One of the most important factors is the location of the solar plant farm. The site is of paramount importance because it determines the distance of the plant to be covered. There are many other factors too.
The cost of land of a solar plant farm also depends on solar potential, access to roads, solar technology to be installed, land type, etc. But generally, it may cost between 450 and 5/Watt for developed plots of land as per Solar Energy Industries Association.
The real cost of a solar power plant is the lifetime cost of its energy, which can be seen as the return on an investment per kW. It can vary between 2 to 5 per kW.
How much money/profit does 1 acre land of solar panels make?
Solar panel farm revenues depend on the country in which it is situated, and the climate has a significant effect on the revenue generated. Solar panels on an acre produce around 350 MWh of power each year.
Solar farms are usually rated in mW. It means that per installed mW, solar farms make around 32.000 to 400,000, and solar farms make between 14000 and 16,000 per acre. Solar farms are profitable.
Net Zero Home In Charleston, South Carolina
The term ‘net zero home’ refers to a house that produces all or more of the energy it requires to operate. This 6.72 kW solar panel install in Charleston, South Carolina is just one of many net zero homes we’ve developed throughout the state. The solar energy system uses 24 280-watt LG solar panels. 100% of the customer’s power bill will be offset by solar, with approximately 450,300 dollars in cumulative energy savings delivered each year!
Solar Powered Beach House On Isle Of Palms, South Carolina
We all know South Carolina has some of the best beaches, some of the best sunshine in America. But have you ever thought about putting the sunshine to work for your benefit (other than a golden bronze tan)?
This 13.20 kW solar powered beach house designed by Southern Current is located on Isle of Palms, South Carolina. The system uses 300W LG solar panels and will offset approximately 60% of our customer’s annual power costs. The solar roofs will deliver approximately 112,000 dollars in electricity over the 30 year system lifetime!!
Rooftop Solar Deck In Charleston, South Carolina
This 7.13 kW solar panel install in Charleston, South Carolina is just one of many homes we’ve helped go solar around the Palmetto State. The solar energy system uses 25 285-watt Suniva solar panels, an American solar manufacturer, installed on three separate solar arrays. 70% of the customer’s power bill will be offset by solar.
Here’s a more detailed look at the rooftop solar deck we completed on the home:
If you have an unused rooftop deck at your property, what’s stopping you from doing the same?!
Learn About Solar Power In South Carolina
Southern Current is proud to be one of the top solar installers throughout the state of South Carolina. Thanks to the numerous solar rebates incentives that are currently available, there’s never been a more affordable time to create your own energy! Contact us to request information about a solar panel installation for your home or business and see how much you can save with solar.
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