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Complete Guide On How To Start A Solar Business

Akshay VR. 03 Mar 2022

Rising energy demand is one of the most pressing issues that mankind faces today. With fossil fuels rapidly depleting, renewable energy is on its way to becoming the primary source of energy. Solar power is the most crucial component of the renewable energy sector. The world is moving away from fossil fuels and towards renewable energy sources. This paradigm shift has created a fantastic opportunity for anyone interested in starting a solar business.

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.

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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.

Renewable energy startups

People often use renewable, clean, and green energy as synonyms, but they are not the same. Renewable energy refers to energy sources that are infinite or quick to replenish. Those include:

• Solar power.
• Wind energy.
• Geothermal sources.
• Hydroelectricity.
• Biomass (wood and plant products, solid waste, biogas, landfill gas, and such).
• Biofuel, made from biomass (biodiesel, biogas, ethanol, and so on).
• Tidal energy, and so forth.

So with that out of mind, here are the top renewable energy startups.

Enpal

Location: Berlin, Germany

Funding: 708.9M

Enpal is one of the fastest-growing sustainable energy startups, having seen a 4900% increase over 5 years. The company offers solar energy as a service. It produces solar cells, installs them for consumers, and maintains the panels for 20 years. Enpal is now a market leader with more than 14K completed renewable energy projects.

Enernet

Location: New York, USA

Funding: 8M

Enernet is an American startup developing microgrids – local electric networks with independent energy sources. The company integrates a mix of renewables that fits a particular location – wind turbines, solar panels, hydro, and so on. These power plants are supplanted by onsite battery storage and digital energy management systems. The startup aims to provide cheap and sustainable energy for remote areas like the Caribbean, sub-Saharan Africa, and Australia.

An optimal balance of power generation and storage during a day in a microgrid. Source: enernetglobal.com

Siqens Gmbh

Location: Munich, Germany

Funding: 5000.8M

Siqens is an innovative biotech startup from Germany. In 2012, it received the prestigious F-cell award for the development of hydrogen and fuel cells. The company mainly targets developing markets. 1.3 billion people there have to rely on the dirtiest sources of power like diesel generators.

The company’s fuel cells use an electrochemical reaction to convert methanol into energy. They are quiet, clean, and sturdy. The cells are quick to fill and use less fuel – 0.3-0.6L of methanol vs 1-3L of diesel. The use of regenerative methanol cuts almost 70% of costs and reduces greenhouse gasses (GHG) emissions.

Green energy startups

Green energy is a subset of renewable energy, which comes from natural sources that don’t harm the environment. Only those renewables that emit zero pollution or greenhouse gasses (GHG) can be considered green. That’s why wood collected from sustainable forests is seen as renewable but not green.

Renewable Properties

Location: San Francisco, United States

Funding: 42.5M

Renewable Properties is a startup that focuses on solar energy. It deals with limited-scale commercial and communal projects in the US. The company works with solar farm developers, proprietors, FinTechs, and grid operators. Renewable Properties help customers select optimal locations, assess risks, negotiate power purchasing agreements, and sign development contracts. The startup manages the entire project lifecycle, monitors power production, crafts reports, and keeps up the solar plants. Their plan is to build 100 MW of new solar capacities a year.

Cherry Street Energy

Location: Atlanta, USA

Funding: 5000.7M

Cherry Street Energy is an American startup that builds solar plants tailored to individual clients. It already provides 23% of Atlanta’s power supply during the peak demand.

The installation of solar panels is 100% free. The company analyzes locations, sorts out the legal matters, constructs and maintains the power plants. The business also helps consumers by providing them with Environmental, Social, and Governance reporting software. By the way, we’ve developed a similar solution for one of our clients from Norway – a corporate social responsibility system with an ESG module.

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Ecosia

Location: Berlin, Germany

Funding: 21.4K

Ecosia is a search engine that turns its ad revenue into trees. So far it has planted almost 150M trees in 30 countries. The company also diverts a portion of profits towards funding green energy startups, namely, a €350 million WorldFund incubator for eco startups.

Most of the company’s current efforts are aimed at the German industry and its dependence on Russian gas. Ecosia strives to mitigate the new European energy crisis and facilitate sustainability on the Old Continent. One of its largest achievements is providing 23M of funding to a Berlini startup Zolar that connects residents and solar plant installers.

Clean energy startups

Clean energy is any energy that produces no GHG emissions. It can come from non-renewable sources (like nuclear) or affect the environment in other ways than GHG pollution (like producing radioactive waste).

Commonwealth Fusion

Location: Cambridge, USA

Funding: 5000B

Commonwealth Fusion is one of the world’s fastest-growing fusion startups. The leading approach to this problem – tokamak reactors – were previously limited by huge sizes of the required magnets.

The American startup wants to overcome this problem using the recent breakthrough in high-temperature superconductors. These materials would allow building smaller and cheaper tokamak reactors. Starting at MIT’s Plasma Science and Fusion Center, the company has gathered a team of world-class engineers and scientists to deliver limitless energy to global consumers.

Source: Commonwealth Fusion

Fervo Energy

Location: California, United States

Funding: 39M

Fervo Energy seeks to produce clean geothermal power. This source of energy is especially promising as it provides energy regardless of weather or time of the day. The sector can also reuse the existing skills of people working in the gas and oil sectors. For example, Fervo Energy uses horizontal drilling and distributed fiber optic sensing pioneered by big oil. This allows the company to access the previously untappable resources, lowering the energy costs.

Kite Power Systems

Location: Glasgow, UK

Funding: 10,3M

The wind is one of the cleanest ways to generate power with a total market expected to reach 127 billion by 2027. Yet, this growth is limited by the costs of large wind turbines. That’s why dozens of innovative energy companies are coming up with designs for lighter wind generators.

Kite Power Systems offers a market-proven solution that looks like a regular kite. These kites soar high in the sky, where the wind is stronger. By moving the tether in 8-shaped patterns, you greatly increase the speed of a kite. This raises the power generation to 100KW/h. The entire power plant uses 1/10th of materials, fits in a single truck, and can be set up in just 4 hours.

Kite-like power generator. Source: thekitepower.com

Solar energy startups

Solar energy is now the fastest-growing source of electricity worldwide. Hundreds of startups are now racing to carve out a piece of the 369B market – both in terms of hardware and software.

Oxford Photovoltaics

Location: Oxford, UK

Funding: 152.2M

Traditional silicon cells used in solar panels are reaching their theoretical limit. Companies like Oxford Photovoltaics are using cutting-edge photovoltaic (PV) materials to break through this barrier. The company produces thin perovskite films that can be easily layered on top of regular solar panels. These so-called tandem cells have a 29.52% efficiency – already higher than the best silicon panels – with a theoretical limit of 43%.

The startup produced its first perovskite cells in a small lab at the University of Oxford. In 2021, the company completed its first mass production line in Brandenburg. It is now getting ready to build efficient low-cost solar cells.

Lab production of perovskite PV cells. Source: oxfordpv.com

Utilight

Location: Yavne, Israel

Funding: 5000.9M

Improving the manufacturing process can go a long way toward making renewables more affordable. Utilight came up with an innovative 3D printing technique for mass-producing solar panels. The company uses patented metallization tech to improve the efficiency of silicon panels, cut costs, and material expenditures:

• Proprietary light-induced deposition technology raises panel efficiency by decreasing shadowing effects with common industry pastes and procedures.
• 3D printing uses up to 70% less silver paste and thinner wafers, significantly cutting the cell costs.
• The printing process can be easily integrated into the existing production lines.

Inti-Tech

Location: La Reina, Chile

Funding: 5000M

Over time, dust tends to stain the surface of solar panels, decreasing their efficiency. Without regular cleanups, this loss of power can range from 3% to 45%. Inti-Tech is one of the fastest-growing green energy startups in Latin America that aims to address this challenge.

Inti-Tech developed robotic systems that remove dust from solar panels. These robots can fit any existing panels, don’t damage the cell surface, and do all the cleaning without water.

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.

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.

How To Start A Solar Panel Business (Step-By-Step Guide)

The best part is that you don’t need any special skills or experience to get started. You just have to know where to look for the right type of solar panels for your needs.

Read on to find out how to start a solar panel company.

So, you’ve nailed down your niche. You’re ready to make the jump by identifying solar certifications and licenses that you will need to obtain.

Let’s take a plunge into how to start a sun-powered business from the ground up.

Your business name should be easy to remember. Make sure that it is available. Check if there is any other business using the same name as yours.

Avoid names that are too long or hard to spell. You can search for available domains by price or length. You can also make reservations for certain domains.

Name reservations cost around 25, depending upon your state. You get name exclusivity for 30-90 days so that you have enough time to form your business.

You can also choose to trademark your business name so that others don’t use it.

Research Your Market

Before you even think about starting a solar panel business, it’s important to do some market research.

What kind of people will be interested in buying your products? Who else sells similar products? What is their target audience?

Once you understand who your potential customers are, you’ll be able to create an effective marketing strategy.

For example, if you sell solar panels to companies, you might consider advertising online and targeting professional websites such as LinkedIn or Google and target keywords.

Or, if you sell solar equipment to homeowners, you could advertise in more consumer based websites such as

Solar energy is becoming more popular every day. People are starting to use solar energy instead of traditional sources.

people are using solar energy because they want to help save the environment. Distributors act as middlemen between manufacturers and retailers.

Installation specialists help install solar panels, solar water heaters, pool heaters, and other equipment.

Maintenance specialists check the functionality of solar panels, batteries, and other equipment.

Solar power is an environmentally friendly technology that makes use of the sun’s rays to generate electricity.

When planning a solar energy company, you should first consider the demographic of the area in which your business operates.

You should also study the competition in the industry and your target market.

Choose The Right Solar Panel Manufacturer

After conducting your market research, you should choose a manufacturer. There are many types of solar panels available today.

Some manufacturers specialize in making high-quality panels, while others FOCUS mainly on low-cost models.

You may also want to consider whether you want to go with a brand name or a private label model.

A brand-name product usually costs more than a private label one, but it comes with better customer service and warranties.

If you decide to go with a brand, make sure to choose a reputable manufacturer.

Look up reviews online to see what other customers have to say about them. Also, check out their website to learn more about the company.

Create A Business Plan

Now that you’ve chosen a manufacturer, it’s time to write a business plan. Your business plan should include information such as:

Your mission statement. The type of solar panels business. An estimate of revenue you expect to make. An estimate of how much expenses you have.

Business plans help you identify what you need to do to succeed as a business. You want to be sure that you know how much money you need to get started, and what you’ll need to do to earn that money.

This includes things like creating a website, hiring employees, or buying inventory.

Solar energy is an effective source of power for people who want to use electricity but don’t want to pay high utility bills.

Startups usually require large amounts of capital. A physical location is needed for your business.

You may need to buy or rent office space. You’ll also need to hire employees to install solar panels, and maintain them.

Your business will generate revenue by selling solar energy products to households and businesses. Solar panels are very expensive.

A typical residential installation can cost thousands of dollars. To start a solar energy company, you must spend a lot of money on panels.

Marketing costs are also high.

Find Investors

After creating your business plan, you’re ready to raise capital. To do this, you’ll first need investors.

Steps to Start a Solar Energy Business

Before venturing out in any field it is the very basic and preliminary task to ensure the well-being, healthy growth and dedicated financial flow of a business. Planning the course of a business includes managing the investment sectors, arranging truly to source raw materials, business strategies, arranging teams, providing training, gathering experience, contacting manufacturers, lactating the perfectly suited property, assembling required equipment, strategizing marketing, and sales techniques, and many more.

Starting a business requires a lot of capital funding in its initial stages which in turn will require external financial support. To ensure the steady flow of finance and in a calculated method, it is best to take business loans. There are several financial institutions, both private and public, banks, NBFCs, Small and Micro Finance Banks, Rural and Regional Banks, MSME loans, and more that provide an almost tailor-made loaning scheme with suitable tenures and interest rates to new businesses, entrepreneurs, and even old businesses looking for renewals. LendingKart offers all the details necessary to avail of the perfect loan, check more to find more.

Flawless research ensures a successful venture. Researching all the aspects of the particular field of business, in this case, the companies associated, the source of materials, the best deals, the offers proposed by the government, the legalities, the competitors, the marketing strategies and the targeted sectors and customers, all play a very crucial role in giving a proper shape to the business and also introduces the owner to all the risks and problems associated to the business, if any.

Under the Companies Act, 2013, a business needs to be registered as a company under the following forms:

• Private Company
• Public Company
• One- Person Company
• Proprietorship
• Limited Liability Partnership
• Partnership

It is important to be aware of the limitations and functionalities of each form. Before registering a business, it is very important to select a name of the same. A business name should link the idea/ motto of the business with the service it provides. In today’s date, a brand name holds a huge value in terms of marketing, sales and modus operandi. The name should be unique and lucrative to the customers.

The documents required, based on the form of company one is applying/ registering for are:

• Business’s Registration Certificate
• Current Bank Account Number and PAN
• Registered Office Proof
• Aadhaar Card
• Digital Signature Certificate (DSC)
• Director Identification Number (DIN)
• Memorandum of Association (MoA) and Articles of Association (AoA)
• Consent of Director as an Affidavit
• Certificate of Commencement
• TIN and Sales Tax information
• Shop and Establishment Act License

• Coming in terms with the Electricity Department

As the government is already making tremendous efforts to indulge as many customers as possible in availing the solar energy sources, it is important to stay updated with the state government’s electricity departments which will save a lot of effort and money. Alongside, various lucrative schemes that profit both sellers and customers are something one should always be on the lookout for. Nevertheless, it is needless to mention that having good connections with the authorities will always benefit the business with faster processing times in several complex issues when the need arises.

The location of the business is prima facie of its substantial growth. Connectivity plays the most important role in terms of recognition, accessibility and faster service. over, in areas with higher rainfall, solar energy businesses might not reach their prime. The environment plays a very important role in the success of these businesses. Therefore, one must find a location affluent with sunlight all throughout the year for current and future electricity generation.

The financial aspects of a business are the most decisive factor of its growth. Having a clear estimation of the expenditures, incomes, outcomes and profit/ loss generation is how a business can flourish or gush down the river. Here are the primary factors that need prime attention:

• Infrastructural expenditures
• Land/ Space/ Peripheral Expenditures and Taxes
• Equipment/ Machinery expenditures
• Availability of tools
• Employee/ Workers/ Laborer’s expenditures
• Maintenance expenditure
• Advertising and Marketing expenditures
• Educational Programs and Training expenditures
• Raw Materials and purchase expenditures
• Commissionable and company benefits aspects
• Legal Expenditures

Engineering Elements in Solar Energy Business

The solar energy business is a booming industry and has got many scopes and opportunities. As a cherry on top of it all, there is a heavy demand for it in agricultural and industrial sectors as power cuts and frequent load-shedding are potentially threatening and pose huge damage. Keeping everything aside, this renewable energy source is not only beneficial for the human race but also for nature. In these difficult times when the world is going through an economic crisis and natural non-renewable resources are at threat, it is upon us, humans, to make it a better place for ourselves, our future generations, and every living creature in this world.

To know more about the schemes, offers, discounts, loans, and business ideas, visit our official webpage and select a plan that suits you best and fits your needs first.

How to Start Solar Energy Business in India FAQs:

What are the divisions in solar energy businesses?

There are multiple factors that need to be taken care of in a solar energy business. Here’s a list of the most common requirements- Financier, Manufacturing, Distribution, Consultation, Sales, Installation, Availability and production of spare parts and tools, Contractor, Training, RD

What should be the key objectives of the business?

The key objectives should be- Providing customized service at reasonable rates, Faster, efficient service and better performance than the competitors, Increase in the growth of sales, Educating the population, Appreciating the employees for their hard work, Turning good profits for a secured growth, Being true to cause

What are the types of solar panels?

There are primarily three types of panels, used popularly Multi-Crystalline, Mono-Crystalline, Poly-Crystalline.

What should be the primary target markets for the business?

Here’s a list of the markets that highly need solar energy sources: Food outlets, Retail, Educational Institutes, Roadways and Railways, Real-estate industry, Construction sites, Residential complexes, Health-care Facilities, Spiritual Centers.

What are the top government programs in the solar energy business?

The top initiatives include: The National Solar Mission, One Sun One World Grid, International Solar Alliance.

Is the Maintenance and Cleaning of solar equipment a profitable business in India?

Absolutely yes, the panels are generally placed over the top at a height where sun rays reach them almost throughout the day. Therefore, they are often found to be difficult for cleaning. Cleaning and maintenance play a huge role in the longevity and durability of the project and is a tender task that is not the job of a layman. Therefore, it can be a potentially profitable business. However, there are certain limitations depending on the use of solar panels in the area.

Is manufacturing solar accessories a profitable business?

Yes, it is very much a profitable business with very few limitations. There are still a lot of places where electricity isn’t easily accessible and isn’t as flexible as the megacities. People traveling there would, at very least, require charging accessories and components that work on solar energy and also store it for nighttime usage.

How is the market condition in India?

India holds an open market with very few tariff charges on solar products which have, in turn, encouraged a lot of foreign investments and ventures in providing a strong backbone of the industry. The industry has been able to educate and create awareness in the rarest corners of the countries with its benefits and lesser expenditure costs from the customer point of view. The market is at its peak as the need and demand rise.