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How to Start a Solar Business – Your Complete Guide
The solar industry is booming, and its sun is just starting to rise. Solar power was the leading new renewable energy by capacity in 2020, making it the cornerstone of the emerging renewable energy market. In the U.S., solar has consistently ranked first or second in new energy capacity installed each year back to at least 2010.
Likewise, solar installers are among the fastest growing professions in the United States. The trade is projected to enjoy a 52 percent 2019-2029 growth rate and a median income of $44,890 per year, offering a promising prospect for contractors looking to cut their teeth in this exciting sector. If you’re wondering what it takes to start your own solar business, this post is for you.
How to Start a Solar Business – Beginnings
There’s more to solar installation than slapping up panels: there’s general contracting, roofing, metal fabrication, sales, repair and maintenance, consultation, landscape design, and so much more. Find a niche in your market that isn’t saturated, play to your skills, and set yourself apart as the industry expert in your particular field.
What to Know Before You Get Started
Becoming an expert means more than knowing your product. It requires having your finger on the pulse of the various rebates and incentives available, an important differentiator for companies looking to get ahead of the pack. Businesses that do the research to save their customers time and money get the contracts.
Regardless of whether you specialize in sales, installation, or both, it’s imperative to become a pro at navigating financial incentives, working with utilities and regulations that might not be immediately apparent in the planning process.
The best place to start a new solar business is between the cracks of large, over-saturated markets. Find out what solar professionals are doing in your area by checking in with local SEIA chapters and chambers of commerce, and conducting internet searches. Maybe you could specialize in aesthetically-pleasing solar and landscape design . Perhaps your market could use a regulation and financing ninja. It’s highly likely that even if your market is saturated with traditional solar businesses, you will find a niche that only you can fill.
Starting a solar business doesn’t necessarily mean you’ll need a crew up on roofs installing panels. If sales is your thing, there are many businesses that focus on just that.
These companies do all the work of selling solar systems: getting leads, qualifying them, doing in-home or virtual consultations, and getting the customer to sign. Once a customer has signed on, these organizations then work with a contractor that takes care of the rest of the installation process.
Solar installers are usually the most saturated business in the market. If you’re wondering how to start a solar installation business, you might want to start at the basics: Roofing. If you’re a roofer, solar installation could be a great option to add to your business.
The solar and roofing industries are starting to converge , and for good reason. Solar panels and roofs have about the same lifespan (approximately 25 years), and savvy roofers are realizing the one-two punch of installing a new roof and solar system simultaneously. Whether you’re a roofing contractor or solar installer, there’s a lot of overlap between the two, and plenty of untapped market opportunities for incorporating roofing and solar into your business plan.
What is a PV system?
Before we move on, let’s take a quick look at how a PV system works to get a better idea of how you can make money building one.
How Does a Solar Photovoltaic System Work?
Solar panels convert the energy of photons (light particles) into electricity, a process called the photovoltaic effect. When a photon hits a photovoltaic (PV) device, its energy knocks electrons in the material. These excited electrons begin to flow, producing an electric current.
At a high level, the process of how solar panels works involves three primary steps:
- Solar cells within solar panels absorb light from the sun, which causes electric current to begin flowing.
- An inverter converts DC electricity to AC electricity .
- This electricity is used to supply current energy demands in the customer’s building and excess electricity beyond what the customer can use is exported to the grid.
The photovoltaic process occurs on the cell level. Solar panels are composed of multiple cells, and PV systems are a series of solar panels wired together (called “ stringing ”) to provide appropriate voltage to the system’s inverter.
After a PV system is installed , there’s nothing standing between a customer and free, green energy.
Solar Company Licensing & Certifications
Not every state requires solar licensing, but some do. Keep in mind that if you’re planning on working outside of your home state, you’ll need licenses for any state you want to work in. For states requiring licenses, you’ll often need a plumbing or electrician license, or both. Some states require a specialized solar contractor license.
Check here to confirm whether you need licensing in your state, region, or municipality
Even if you don’t need a license to operate in your area, earning a solar certification is a great idea. Solar certifications are an important way to promote customer confidence, putting you ahead of the average uncertified business.
Certification can also lead to more income, with certified solar professionals earning an average $11,000 more annually. Getting certified may also allow you to operate in more than one municipality or state, increasing your competitiveness.
North American Board of Certified Energy Practitioners (NABCEP) voluntary certifications provide national standards for PV professionals, certifying they have the skills, experience, and competency to set themselves apart. NABCEP’s certifications include :
- PV Installation Professional (PVIP)
- PV Design Specialist (PVDS)
- PV Technical Sales Professional (PVTS)
- PV Installer Specialist (PVIS)
- PV Commissioning & Maintenance Specialist (PVCMS)
- PV System Inspector (PVSI)
Set Up Your Solar Business
You’ve nailed down your niche, identified solar certifications and licenses, and are ready to make the jump. Let’s take a dive into how to start a solar business from the ground up, starting with the legal stuff first.
Establish an LLC
An LLC, or limited liability company, is a business structure set up by state statute. LLCs provide several benefits, including liability protection, flexible structure, and tax advantages. They provide the same limited liability as a corporation but are much cheaper and easier to form and operate.
In most states, getting an LLC entails choosing a name, selecting members (which can include just you), creating articles of organization and operating agreements, and getting an EIN (employer identification number). You’ll then need to obtain any seller’s permits and licensing required by your state.
Check your state’s LLC requirements for more information.
Protecting your personal assets from litigation isn’t enough: You’re going to need insurance for your solar business. Businesses need insurance to cover costs associated with property damage and liability claims. Without it, you may have to fork over cash out-of-pocket, which could be a death blow to your business.
The right insurance coverage is essential to mitigate potential risks and liabilities. Every contracting business must meet general insurance requirements, but there are a few considerations specific to the solar industry. Here’s your solar business insurance checklist:
- General liability insurance
- Workers’ compensation
- Automobile liability insurance
- Excess/umbrella liability insurance
Most contractor general liability insurances provide a minimum of $500,000 coverage. Keep track of your inventory, equipment, and properties, and get the right insurance that would cover the worst-case scenario. Do yourself a favor and get the right insurance before you even land your first contract. Click here for an in-depth look into the right solar business insurance .
Establishing a Solar Team
1. how to find salespeople.
Salespeople are the backbone of most solar businesses. Regardless of your niche, chances are that someone on your team is making at least part of their paycheck knocking on doors and making phone calls.
When seeking out a salesperson, here are three elements to consider when vetting your candidate pool:
- Knowledge about your niche
- Passion and persistence
- Familiarity with questions and concerns that customers have about solar
It’s crucial that you foster a culture of customer satisfaction in all of your employees, but salespeople in particular. They are usually the folks leading your conversion process and are often the face of your business. Make sure they wear it well with world-class customer support.
If an in-house sales team isn’t feasible, there are several options available for sales outsourcing. Many businesses exist specializing in outsourcing solar sales for installers, consultants, and retailers. A quick internet search will point you in the right direction.
2. Ramping up a team
- Start out with nothing but the best right from the gate. Find team members that are NABCEP certified (see above). If your team isn’t certified, give them the time and resources to do so.
- Make sure your salespeople, installers, marketing team, and others know the ins and outs of your product. Give everybody on your team the time and resources to learn about your product and services.
- Your dream team doesn’t have to be all employees. Network with other solar experts outside of your niche. They will become invaluable sources of help and referrals if you keep at it.
3. Setting up compensation structures
Solar salespeople are usually paid by commission. Commission payouts are usually paid as a percentage of the total contract price or as a cut of the base contract price.
Commissions have various pros and cons. On one hand, they can motivate your teams to work hard. On the other hand, commissions may encourage your salespeople to sell more than a customer needs, take on cost-prohibitive projects, and inflate project costs above market rates.
Read more on common commission structures in the solar sales industry today.
Pro Tips: Avoid These Solar Sales Barriers
Incorrect or inefficient designs.
It’s all too easy to under-or over-engineer a solar system. An incorrect or inefficient design is a surefire way to sink your business. Aurora Solar’s sophisticated solar design software generates complete engineering designs and sales proposals with just an address and an electric bill, meaning you can deliver the best design, every time.
Electric quotes from customers
Customers are often wary of providing their electricity bills. Just a few days can mean the difference between landing a new customer and losing them, so make this process as seamless as possible for your customers.
Most electric customers receive a bill in the mail every month. If they don’t, they can likely access it online from their utility. Either way, Aurora can provide a forecast of year-round energy usage from just one month’s bill — taking into account factors like weather, HVAC, and more. If the bill isn’t available, get the kWh from your customer’s meter. Next, divide the kWh by the number of days that have elapsed since that billing cycle (usually every month), and multiply the result by 30 to get a rough energy use estimate.
Take this opportunity to remind your customer that making efficiency upgrades in the home could drastically improve energy efficiency.
And don’t forget to study up on the net metering rules for your state. Being able to sell excess power back to the grid can be a huge selling point for solar installations.
Flawed designs can lead you straight back to the drawing board. If a solar design isn’t compliant with state or local regulations, your plans will be rejected. Collecting and reporting permit-related project data constitutes up to 30% of total solar project costs , owed largely to installers’ mistakes and regulatory bottlenecks .
Aurora has many features that can cut down on potential licensing and permitting delays. Any design created in Aurora’s platform is permit-ready and approvable . Our shading analysis is also validated by NREL — so you can save a trip to the site on every install — and you can directly export our shade reports to many rebate authorities for incentive approval.
Your team’s professionalism, courtesy, knowledge, and service will lead to more conversions through referrals . A Nielsen study revealed that 83% of consumers trust referrals from friends and families above all other marketing methods, and referrals come when customers are impressed.
Salespeople end up becoming your marketing team if they’re doing their jobs right, leading to less time cold-calling, boosted employee morale, and greater conversions. If there’s ever been a case for karma, the customer service/referral connection is it.
Starting a solar business takes research, investment, time, and leadership. But, it can be worth the effort, providing a great career in a growing and fulfilling industry.
When you do start your business, make sure you have a software solution that sets you up for success. Aurora Solar has solar companies covered, increasing sales conversions by 15%!
Schedule a free demo today to see how Aurora can help you get started in the solar industry.
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Solar Panel Business Plan Template & Guidebook
Are you looking to make a name for yourself in the solar industry? Developing and launching a successful solar panel business can be a daunting task. But with the right business plan, your journey to success can be made easier. The #1 Solar Panel Business Plan Template & Guidebook provides you with the essential tools and resources to help create an effective roadmap for your business. Find out how this comprehensive guidebook can help get your business off the ground.
Get worry-free services and support to launch your business starting at $0 plus state fees.
- How to Start a Profitable Solar Panel Business [11+ Steps]
- 10+ Best & Profitable Solar Panel Business Ideas in 2023
How to Write a Solar Panel Business Plan in 7 Steps:
1. describe the purpose of your solar panel business..
The first step to writing your business plan is to describe the purpose of your solar panel business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.
It also helps to include a vision statement so that readers can understand what type of company you want to build.
Here is an example of a purpose mission statement for a solar panel business:
Our mission at Solar Panels is to provide efficient, affordable solar energy solutions to our customers that enable them to reduce their carbon footprint, reduce their electricity costs, and take advantage of the many environmental and economic benefits of renewable energy sources.
2. Products & Services Offered by Your Solar Panel Business.
The next step is to outline your products and services for your solar panel business.
When you think about the products and services that you offer, it's helpful to ask yourself the following questions:
- What is my business?
- What are the products and/or services that I offer?
- Why am I offering these particular products and/or services?
- How do I differentiate myself from competitors with similar offerings?
- How will I market my products and services?
You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.
3. Build a Creative Marketing Stratgey.
If you don't have a marketing plan for your solar panel business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals.
A good marketing plan for your solar panel business includes the following elements:
- Who is your target market?
- What do these customers have in common?
- How many of them are there?
- How can you best reach them with your message or product?
- Who are your current customers?
- Where did they come from (i.e., referrals)?
- How can their experience with your solar panel business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?
Product or service description
- How does it work, what features does it have, and what are its benefits?
- Can anyone use this product or service regardless of age or gender?
- Can anyone visually see themselves using this product or service?
- How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?
- Which companies are competing with yours today (and why)?
- Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
- What specific advantages does each competitor offer over yours currently?
- Which marketing channel do you intend to leverage to attract new customers?
- What is your estimated marketing budget needed?
- What is the projected cost to acquire a new customer?
- How many of your customers do you instead will return?
Form an LLC in your state!
4. Write Your Operational Plan.
Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations.
In it, you should list:
- The equipment and facilities needed
- Who will be involved in the business (employees, contractors)
- Financial requirements for each step
- Milestones & KPIs
- Location of your business
- Zoning & permits required for the business
What equipment, supplies, or permits are needed to run a solar panel business?
To run a Solar Panel business, you will need the following equipment, supplies, and permits:
- Solar Panels and Inverters
- Tools to install the panels (wrenches, ladders, drills, etc.)
- Cables for wiring and transfer of energy
- Safety equipment (helmets, gloves, etc.)
- License from local government to do business as a solar contractor
5. Management & Organization of Your Solar Panel Business.
The second part of your solar panel business plan is to develop a management and organization section.
This section will cover all of the following:
- How many employees you need in order to run your solar panel business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
- The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
- How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!
6. Solar Panel Business Startup Expenses & Captial Needed.
This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.
Typically, expenses for your business can be broken into a few basic categories:
Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a solar panel business varies based on many different variables, but below are a few different types of startup costs for a solar panel business.
Running & Operating Costs
Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.
Marketing & Sales Expenses
You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your solar panel business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.
7. Financial Plan & Projections
A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your solar panel business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses.
Here are some steps you can follow to devise a financial plan for your solar panel business plan:
- Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
- Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
- Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
- Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
- Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
- Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.
Frequently Asked Questions About Solar Panel Business Plans:
Why do you need a business plan for a solar panel business.
A business plan for a solar panel business helps you to map out the steps necessary to develop your business, identify sales goals and milestones, determine how much capital you need and how you will secure it, understand the competitive landscape for solar panel businesses, develop marketing strategies, and ultimately, create a successful business. It also helps you to assess potential risks and rewards associated with different decisions made throughout the life of your solar panel business.
Who should you ask for help with your solar panel business plan?
When creating a business plan for a solar panel business, it is advisable to seek professional advice from an accountant and/or lawyer, a business consultant, or a solar energy specialist. Additionally, it is beneficial to research successful solar panel businesses and reach out to the owners for advice.
Can you write a solar panel business plan yourself?
Yes, it is possible to write a solar panel business plan yourself. You will need to research the industry in your area, develop a market analysis, create a financial plan and craft a detailed business strategy. Additionally, you will need to consider industry regulations and legal requirements. Writing a business plan can be complicated and time-consuming; however, it can be done on your own with the right guidance.
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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.
Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.
From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.
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Solar Panel Installation Business
Back to All Business Ideas
How to Start a Solar Panel Installation Business
Written by: Howard Tillerman
Howard Tillerman is the Chief Marketing Officer for Step By Step Business and an award-winning marketing professional.
Edited by: David Lepeska
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Updated on May 16, 2023
$45,000 - $140,000
$400,000 - $1.5 million p.a.
Time to build
$40,000 - $150,000 p.a.
- Decide if the Business Is Right for You
- Hone Your Idea
- Brainstorm a Business Name
- Create a Business Plan
- Register Your Business
- Register for Taxes
- Fund Your Business
- Apply for Licenses/Permits
- Open a Business Bank Account
- Get Business Insurance
- Prepare to Launch
- Build Your Team
- Start Making Money!
Solar Panel Business FAQs
Solar is a growing industry with a bright future. The United States has installed 108.7 gigawatts-DC (GWdc) of solar PV capacity, enough to power 18.9 million homes. The cost of installing solar panels has also dropped by more than 70% over the last 10 years, contributing to the industry’s steady growth. With such impressive statistics, now is a great time to start a solar panel installation business.
However, like any business, building a commercial solar installation company from the ground up requires proper planning and preparation. Lucky for you, this step-by-step guide provides all the insight and information you need to get on the road to entrepreneurial success!
Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.
Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .
Step 1: Decide if the Business Is Right for You
The first step is to determine if starting a solar panel installation business is a viable idea. Think of it as a way to test the idea’s true potential.
Pros and cons
- Strong chance of success due to growing demand
- Easy access to government grants and assistance
- You’ll be helping to save the environment!
- Complex operations and labor-intensive fieldwork
- Large upfront investment
Solar panel installation industry trends
In 2020, the solar industry recorded robust growth of 43%, adding 19.3 gigawatts per year to the national grid.(( https://www.seia.org/research-resources/solar-market-insight-report-2020-year-review )) The exceptional growth occurred amid a pandemic that crippled most industries.
What’s more, the industry is expected to quadruple from 2020 to 2030. The driving force behind this is the government’s clean energy initiatives and growing concerns about climate change.
For instance, the government has initiated the Investment Tax Credit (ITC) scheme . Through this plan, consumers get a tax credit equivalent to 26% of the cost of installing a solar panel system from 2020 to 2022 and 22% in 2023.
Industry size and growth
- Industry size and past growth – The US solar panel installation industry has been stable in the past five years and is worth at least $11 billion as of 2022.(( https://www.ibisworld.com/industry-statistics/market-size/solar-panel-installation-united-states/ ))
- Growth forecast – The US solar energy market is predicted to grow at least 17% per year through 2027, according to Mordor Intelligence.(( https://www.mordorintelligence.com/industry-reports/united-states-solar-energy-market ))
- Number of businesses – There are more than 13,000 solar panel installation businesses in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/solar-panel-installation-united-states/ ))
- Number of people employed – The industry employs around 55,000 people.(( https://www.ibisworld.com/industry-statistics/employment/solar-panel-installation-united-states/ ))
Trends and challenges
Trends in the solar panel installation industry include:
- Adoption of government policies supportive of the solar energy industry
- Growing concern about climate change
- Increasing demand for clean, renewable energy
- Declining cost of solar photovoltaic cells
Challenges in the solar panel installation industry include:
- Supply chain problems
- Competitive landscape
What kind of people work in solar?
- Gender – 95% of solar installers in the US are male, while 5% are female.(( https://www.zippia.com/solar-installer-jobs/demographics/#gender-statistics ))
- Average level of education – 40% of solar installers hold a high school diploma and 20% have a bachelor’s degree.(( https://www.zippia.com/solar-installer-jobs/education/ ))
- Average age – The average age of a solar installer is 33 years old.(( https://www.zippia.com/solar-installer-jobs/demographics/#age-statistics ))
How much does it cost to start a solar panel installation business?
You will need between $45,000 and $140,000 to start a solar panel installation company. Startups in this sector spend around $92,500 on average to get things up and running. Most of this money goes toward buying equipment, a business truck, insurance, and marketing.
How much can you earn from a solar panel installation business?
Residential solar panel installation projects average at $16,800, including the cost of the solar panels and installation. The average profit margin for a solar business is about 10%.
In your first year or two, working part-time you could do two installations per month for $17,000 per installation and make about $400,000 in annual revenue. This would give you about $40,000 in profit, assuming that 10% margin. As your business grows you might make five $25,000 installations each month, which would give you annual revenue of $1.5 million and a tidy profit of $150,000.
What barriers to entry are there?
Barriers to entry for a solar panel installation company are relatively moderate. Significant challenges for new entrants include:
- High initial investment required: Startup investment for a solar company is relatively high since most of the money goes toward buying the initial solar panel inventory.
- Lack of product differentiation: Solar panel installation services are quite standard, leaving little room for creativity and innovation. The ripple effect is that it is challenging to stand out from your competition.
- No switching costs : The industry lacks switching costs, making it easy for customers to switch from one company to another.
- Learning and experience : You must know how to install solar panels to thrive in this industry. You also need a few months of hands-on experience to get started. These two factors could determine how soon you can win a client as a new entrant.
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Step 2: hone your idea.
Now that you know what’s involved in starting a solar panel business, it’s a good idea to hone your concept in preparation to enter a competitive market.
Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.
Why? Identify an opportunity
Research solar panel businesses in your area to examine their products and services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a solar panel firm that does rapid installation.
You might consider targeting a niche market by specializing in a certain aspect of your industry, such as selling excess energy back to the grid.
This could jumpstart your word-of-mouth marketing and attract clients right away.
Operating a solar panel installation business in the top five states mentioned above could be profitable thanks to the high demand.
What? Determine your products or services
In a business world where your competitor often claims to be #1, it is crucial to differentiate and build your own identity. There are three models you can adopt to help the solar panel business stand out as explained below:
Model 1: Offer specialized installation services
Under this model, you will not stock solar panels. However, you will provide specialized solar installation services in partnership with companies that stock and sell solar panels.
Offering specialized installation services is the most cost-effective way to start. Further, this model enables you to gain the installation experience required to help you find your footing.
Model 2: Focus on product sales
Under this model, you will stock and sell solar panels. You will subcontract installation services in collaboration with companies that stock and sell solar panels.
Focusing on product sales is ideal if you want to simplify operations by outsourcing fieldwork from the get-go. That way, you can concentrate on the sales side of your business. Plus, you can develop a full-time team once your startup begins to generate substantial revenue.
Model 3: All-inclusive
Under this model, you will stock and sell solar panels. You’ll also offer installation services through in-house solar photovoltaic installers.
The all-inclusive model will require a significant amount of investment to enable you to purchase inventory and employ a team of reliable fieldworkers. You can also expect to incur high operating expenses, so go for this model only if you have considerable capital.
Apart from selling and installing solar panels, you can also offer auxiliary services such as consultation, repair, and maintenance. While such services may not generate much revenue, they could ensure a stream of steady customers and help build brand loyalty.
How much should you charge for solar panel installation?
The low and high-end prices of solar panels range from $5,000 to $40,000. These figures represent the cost of panels and don’t include labor and the cost of equipment such as the inverter.
An inverter can account for up to 10% of the cost of the solar panel . As a result, you can expect to generate $1,200 by selling the inverter for an average solar panel installation project.
The labor cost of installing a solar panel system can range from 20 to 40% of the system cost depending on the project and size of your solar system. You can expect to incur labor costs of about $3,600 for a $12,000 solar panel. Overall, a solar installation project generates an average of $16,800 in revenue.
Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.
Who? Identify your target market
To build a solid foundation for your solar panel installation startup, you must identify your ideal customer to enable you to customize your marketing appropriately. There’s a growing demand for solar panels in every consumer segment. Your target market should include:
- Independent homeowners
- Homeowners associations
- Retailers – Target is a perfect example. The giant retailer has installed 500 solar panels systems on their store’s rooftop and plans to go 100% solar by 2030.
- Nonprofit organizations and hospitals – A good example is Massachusetts General Hospital Boston. The hospital installed a 476kW solar energy system, enabling the institution to save $95,000 annually .
Where? Choose your business premises
The type of commercial space you need primarily depends on your startup strategy.
For instance, you can run your business from home if you don’t want to stock solar panels. Your business can also be home-based if you’re offering specialized installation services. But you will need to rent a warehouse and a physical storefront if you intend to sell solar panels and offer installation services.
You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices . When choosing a commercial space, you may want to follow these rules of thumb:
- Central location accessible via public transport
- Ventilated and spacious, with good natural light
- Flexible lease that can be extended as your business grows
- Ready-to-use space with no major renovations or repairs needed
Step 3: Brainstorm a Business Name
Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.
Here are some ideas for brainstorming your business name:
- Short, unique, and catchy names tend to stand out
- Names that are easy to say and spell tend to do better
- Name should be relevant to your product or service offerings
- Ask around — family, friends, colleagues, social media — for suggestions
- Including keywords, such as “solar panels” or “solar installation”, boosts SEO
- Name should allow for expansion, for ex: “SolarTech Installations” over “Commercial Solar Panel Installations”
- Avoid location-based names that might hinder future expansion
- Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.
Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.
Find a Domain
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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.
Step 4: Create a Business Plan
Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:
- Executive Summary: Brief overview of the entire business plan; should be written after the plan is complete.
- Business Overview: Overview of the company, vision, mission, ownership, and corporate goals.
- Product and Services: Describe your offerings in detail.
- Market Analysis: Assess market trends such as variations in demand and prospects for growth, and do a SWOT analysis .
- Competitive Analysis: Analyze main competitors, assessing their strengths and weaknesses, and create a list of the advantages of your services.
- Sales and Marketing: Examine your companies’ unique selling propositions (USPs) and develop sales, marketing, and promotional strategies.
- Management Team: Overview of management team, detailing their roles and professional background, along with a corporate hierarchy.
- Operations Plan: Your company’s operational plan includes procurement, office location, key assets and equipment, and other logistical details.
- Financial Plan: Three years of financial planning, including startup costs, break-even analysis, profit and loss estimates, cash flow, and balance sheet.
- Appendix: Include any additional financial or business-related documents.
If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.
Step 5: Register Your Business
Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.
Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!
Choose where to register your company
Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to solar panels.
If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.
Choose your business structure
Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your solar panel business will shape your taxes, personal liability, and business registration requirements, so choose wisely.
Here are the main options:
- Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
- General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
- Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
- C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
- S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.
We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.
Form Your LLC
Choose Your State
We recommend ZenBusiness as the Best LLC Service for 2023
Step 6: Register for Taxes
The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.
Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.
The IRS website also offers a tax-payers checklist , and taxes can be filed online.
It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.
Step 7: Fund Your Business
Securing financing is your next step and there are plenty of ways to raise capital:
- Bank loans : This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
- SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
- Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
- Angel investors: Reach out to your entire network in search of people interested in investing in early-stage startups in exchange for a stake. Established angel investors are always looking for good opportunities.
- Friends and Family : Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
- Crowdfunding : Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
- Personal : Self-fund your business via your savings or the sale of property or other assets.
Bank and SBA loans are probably the best options, other than friends and family, for funding a solar panel business. You might also try crowdfunding if you have an innovative concept.
Step 8: Apply for Licenses/Permits
You’ll need relevant local, state, and federal government licenses and permits to be allowed to operate a solar panel installation business.
Some licenses and permits associated with solar installation include:
- Doing Business As (DBA)
- OSHA Health License and Permit
- Other intellectual properties (IPS)
You may also need additional permits by your state to enable your startup to operate legally, including:
- General business permit
- Basic business license
- Solar/general contractor license
- Residential/home improvement contractor license
You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.
You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.
This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.
If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.
Step 9: Open a Business Bank Account
Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .
Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your solar panel business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.
Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.
Step 10: Get Business Insurance
Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.
Here are some types of insurance to consider:
- General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
- Business Property: Provides coverage for your equipment and supplies.
- Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
- Worker’s compensation: Provides compensation to employees injured on the job.
- Property: Covers your physical space, whether it is a cart, storefront, or office.
- Commercial auto: Protection for your company-owned vehicle.
- Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
- Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.
Step 11: Prepare to Launch
As opening day nears, prepare for launch by reviewing and improving some key elements of your business.
Essential software and tools
Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.
Field service management software, such as ServiceTitan , Jobber , or Field Nation , will enable you to manage your field service crew and oversee client management, scheduling, invoicing, task allocations, payroll, and re-organizing.
- Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero .
- If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.
Some of your business will come from the casual passerby or online visitors, but you should still invest in digital marketing! Getting the word out is especially important for new businesses, as it’ll boost customer and brand awareness.
Once your website is up and running, link it to your social media accounts and vice versa. Social media is a great tool for promoting your business because you can create engaging posts that advertise your products:
- Facebook: Great platform for paid advertising, allows you to target specific demographics, like men under age 50 in the Cleveland area.
- Instagram: Same benefits as Facebook but with different target audiences.
- Website: SEO will help your website appear closer to the top in relevant search results, a crucial element for increasing sales. Make sure that you optimize calls to action on your website. Experiment with text, color, size, and position of calls to action such as “Install Now”. This can sharply increase purchases.
- Google and Yelp: For businesses that rely on local clientele, getting listed on Yelp and Google My Business can be crucial to generating awareness and customers.
Take advantage of your website, social media presence, and real-life activities to increase awareness of your offerings and build your brand. Some suggestions include:
- Competitions and giveaways – Generate interest by offering prizes for customers who complete a certain action, such as free installation for every purchase of 20 solar panels.
- Signage – Put up eye-catching signage at your store and website.
- Flyering – Distribute flyers in your neighborhood and at industry events.
- In-Person Sales – Offer your solar panels at local markets and trade shows.
- Post a video – Post a video about your solar panels. Use humor and maybe it will go viral!
- Seek out referrals – Offer incentives to generate customer referrals to new clients.
- Paid ads on social media – Choose sites that will reach your target market and do targeted ads.
- Make a podcast – This allows you to make a personal connection with your customers
- Do a webinar – Share your solar panel expertise online with a video seminar.
- Create infographics – Post infographics and include them in your content.
Develop your website
Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism. They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google.
You can create your own website using services like WordPress , Wix , or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.
Focus on USPs
Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your solar panels meet their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.
Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your solar panel business could be:
- Save the world — install solar panels today!
- Fast, affordable solar panel installation for your home
- From purchase through maintenance, we cover all your solar panel dreams
You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a solar panel business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in renewable energy for years and can offer invaluable insight and industry connections.
The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in solar panels. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.
Step 12: Build Your Team
You may not need to hire any employees if your business involves subcontracting fieldwork since your operations are simple. However, as your business grows, you’ll likely need to hire full-time employees for various job roles. Some potential employees for a solar installation business include:
- Solar photovoltaic installer: Responsible for setting up and maintaining solar panels.
- Sales Manager: Responsible for leading your sales team to reach targets.
- Marketing Lead: SEO strategies, social media promotions
- General Manager: Oversees operations, hiring and firing, and budgeting
At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.
Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.
Step 13: Start Making Money!
As the price of solar and the cost to install it continue to fall, more Americans are becoming aware of the benefits of tapping clean renewable energy. That’s why the solar market is expanding rapidly across the US, and demand is exploding in many states, especially in California and Texas. Other states leading in solar energy installation are Florida, Virginia, and North Carolina.
Now that you’ve gained all of the necessary business knowledge, you should get out there and roll up your sleeves. With proper planning and hard work, you should be on your way to becoming a successful solar panel entrepreneur.
The first way solar panel installers make money is through installing solar panels. You can also make money by stocking and selling solar panels while subcontracting installation to independent operators.
Yes, it is. If you only deal with installing panels for clients who pay the entire sum at a go, you can make a profit of up to $54,000 a year.
It is important to mention, though, that you’ll need a steady stream of contracts. If you’re handling high-ticket commercial installation projects you can make as much as $490,000 in profit per year.
There are several types of solar panel systems you can install, including grid-tied systems, off-grid systems, and hybrid systems. When choosing a system, factors to consider include energy needs, available space for installation, budget, local regulations and incentives, and the solar panel efficiency and durability.
To differentiate your solar panel installation business from competitors, you can focus on several strategies. This includes offering exceptional customer service, providing personalized consultations and tailored solutions, using high-quality and reliable solar panels and equipment, staying updated with the latest industry trends and technologies, offering competitive pricing and financing options, and showcasing your expertise and track record through customer testimonials and case studies.
To attract customers and effectively promote your solar panel installation services, you can employ various marketing tactics. This includes creating a professional website that highlights your services, benefits, and testimonials, utilizing search engine optimization (SEO) techniques to improve online visibility, leveraging social media platforms to engage with your target audience and share educational content, participating in local community events and trade shows, collaborating with other businesses or influencers in related industries, offering referral programs or discounts, and leveraging customer reviews and word-of-mouth recommendations.
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How to Start a Solar Panel Business
A solar panel business will conduct on-site surveys of potential installations, create a solar plan for the location, work with the owner on financing and install the units. Maintenance positions within the company provide support for the new owners repairing and maintaining panels to ensure greatest productivity and return on the investment. This business requires a structured staff with skills in construction, electrical, and basic understanding of science and solar energy.
Learn how to start your own Solar Panel Business and whether it is the right fit for you.
Ready to form your LLC? Check out the Top LLC Formation Services .
Start a solar panel business by following these 10 steps:
- Plan your Solar Panel Business
- Form your Solar Panel Business into a Legal Entity
- Register your Solar Panel Business for Taxes
- Open a Business Bank Account & Credit Card
- Set up Accounting for your Solar Panel Business
- Get the Necessary Permits & Licenses for your Solar Panel Business
- Get Solar Panel Business Insurance
- Define your Solar Panel Business Brand
- Create your Solar Panel Business Website
- Set up your Business Phone System
We have put together this simple guide to starting your solar panel business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
Exploring your options? Check out other small business ideas .
STEP 1: Plan your business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
What will you name your business?
- What are the startup and ongoing costs?
- Who is your target market?
How much can you charge customers?
Luckily we have done a lot of this research for you.
Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Solar Panel Business Name Generator
If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.
When registering a business name , we recommend researching your business name by checking:
- Your state's business records
- Federal and state trademark records
- Social media platforms
- Web domain availability .
It's very important to secure your domain name before someone else does.
Find a Domain Now
Powered by godaddy.com, what are the costs involved in opening a solar panel business.
There will be a significant investment required in order to obtain your first shipments of panels to be installed in a home or business. If you are looking at franchise opportunities, they require a minimum payment of between $100,000 to $350,000 just to gain access to their assigned region. Without a franchise, expecting to invest up to $500,000 will enable you to initially market, hire a crew, and perform the first round of installations over the course of one year.
Read our solar panel business purchasing guide to learn about the materials and equipment you'll need to start a solar panel business, how much to budget, and where to make purchases.
What are the ongoing expenses for a solar panel business?
You will be responsible for payroll, ordering panels from a distributor for each job, marketing, and paying the energy company on behalf of leased customer accounts. You will likely have an office space, delivery vehicles, and ongoing training to maintain licenses. You will need significant business insurance coverage as well.
Who is the target market?
With ever evolving solar technologies, solar energy is now available to most homeowners with a clear roof line. Homeowner Associations sometimes collaborate for entire neighborhood solar installations. Businesses small and large are adding solar to their energy programs and may be ready to invest in sizable rooftop or field farms.
How does a solar panel business make money?
Whether you work with a franchise or wholesaler, your installation business makes money through the successful installation of solar units. Some leasing programs generate regular income by charging their customers a monthly bill, which includes the cost of the panel installation and any extra power the customers are using from the grid. Otherwise, the customer pays a retail rate upfront for their panels and appropriate labor costs for connecting their panels to their home and the power grid.
A residential installation can be priced anywhere from $15,000 to $50,000, depending on the size and type of panels installed. Leases with a zero dollar down payment can run anywhere between $25 - $200 monthly depending on the type of client and the size of the installation.
How much profit can a solar panel business make?
When you operate a leased solar panel business, your profit will depend entirely on the number of panels that you have installed. A typical return is about 6% per year, but this requires a long-term investment strategy as the company owner. For companies that only install panels for customers who pay all at once, you can see profits of $5,000 to $10,000 per job. However, this requires a steady stream of new contracts. If you’re working with a large industrial contract, you can see a profit in the hundreds of thousands for a year-long job.
How can you make your business more profitable?
Your largest costs will be purchasing the panels from the distributor and your payroll. You can control supply costs by purchasing large lots of panels and using them for multiple jobs, lowering your per unit cost.
Another way to increase profits is to reach out to other solar panel contractors to offer assistance as a sub-contractor. This way you can form strong professional relationships in your area, and also take on larger projects than your team might otherwise come across.
STEP 2: Form a legal entity
The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your solar panel business is sued.
Form Your LLC
Read our Guide to Form Your Own LLC
Have a Professional Service Form your LLC for You
Two such reliable services:
You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.
STEP 3: Register for taxes
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It's really easy and free!
You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?
There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.
STEP 4: Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .
Open a business bank account
Besides being a requirement when applying for business loans, opening a business bank account:
- Separates your personal assets from your company's assets, which is necessary for personal asset protection.
- Makes accounting and tax filing easier.
Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.
Get a business credit card
Getting a business credit card helps you:
- Separate personal and business expenses by putting your business' expenses all in one place.
- Build your company's credit history , which can be useful to raise money later on.
Recommended: Apply for an easy approval business credit card from Divvy and build your business credit quickly.
STEP 5: Set up business accounting
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
Make LLC accounting easy with our LLC Expenses Cheat Sheet.
STEP 6: Obtain necessary permits and licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
State & Local Business Licensing Requirements
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 .
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .
A solar panel installation business would need to create a services agreement, which should outline the parameters of installation, the price, and the expectations of the client. This is especially important with regards to ensuring the panels will provide enough energy for the home or business. Here is an example service agreement.
Recommended: Rocket Lawyer makes it easy to create a professional service agreement for your solar panel installation business when you sign up for their premium membership. For $39.95 per month, members receive access to hundreds of legal agreements and on call attorneys to get complimentary legal advice.
Certificate of Occupancy
A solar panel business is often run out of an office. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.
- If you plan to lease office space :
- It is generally the landlord’s responsibility to obtain a CO.
- Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a solar panel business.
- After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
- If you plan to purchase or build office space :
- You will be responsible for obtaining a valid CO from a local government authority.
- Review all building codes and zoning requirements for you business’ location to ensure your solar panel business will be in compliance and able to obtain a CO.
STEP 7: Get business insurance
Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.
Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.
FInd out what types of insurance your Solar Panel Business needs and how much it will cost you by reading our guide Business Insurance for Solar Panel Business.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.
Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .
If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.
How to promote & market a solar panel business
Attend home shows as a vendor, purchase on-air and print ads, and join your local chamber of commerce to get your name out in the community. Ask at the city hall what requirements they have in order to consider your company for municipal projects.
How to keep customers coming back
Solar panels are a highly visible product. Consider installing panels on a home or business in a high-traffic area for free or at a promotional rate. Your reputation will grow with each job completed on-budget and on-time. You could also consider donating a panel to local park or school as a goodwill gesture.
Make sure you or someone on your team knows the ins and outs of government incentives and tax cuts for people who choose to install residential solar panels. This will help potential customers place greater faith in your company’s expertise in the industry, and it will also help them feel better about investing in your products.
STEP 9: Create your business website
After defining your brand and creating your logo the next step is to create a website for your business .
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
- All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
- Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
- Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.
Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .
Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .
STEP 10: Set up your business phone system
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.
Recommended Business Phone Service: Phone.com
Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.
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Is this Business Right For You?
A motivated individual with excellent business skills, knowledge of electrical contract work, a background in construction, and an eager marketing plan can make a success out of this rapidly expanding industry.
Want to know if you are cut out to be an entrepreneur?
Take our Entrepreneurship Quiz to find out!
What happens during a typical day at a solar panel business?
As owner, your day’s activities will vary depending on what jobs you have lined up. Typical duties might include:
- Installing solar panels, back-up battery systems, and connections to main power grid
- Contacting potential customers for initial survey
- Working with customers to find grants, rebates, and special financing available to those entering the solar program
- Calculating the amount of potential solar energy a particular location could generate with a variety of products
- Scheduling installation crews and delivery of panels to site
- Conducting a final survey and checklist of a completed installation
- Maintaining proper accounting and payroll procedures
- Hiring staff for a multitude of responsibilities
- Developing potential commercial and municipal customers for large installations and projects
- Providing maintenance and repair for existing solar panels, possibly including previous customers
What are some skills and experiences that will help you build a successful solar panel business?
The successful solar panel business owner will have solid understanding of marketing and use it to the greatest effect, generating new contracts for their new company and brand. They will have shrewd personnel skills, taking the time to hire reputable technicians with all the proper licensing and training. Good managerial skills will keep the crews busy, completing jobs on time as promised, while keeping payroll expenses under control. They must also work to stay current with changing technologies, as solar is still a developing industry.
What is the growth potential for a solar panel business?
As more people, cities, and states turn to renewable energy sources, the solar panel industry is seeing a healthy growth of 15% annually, according to IBISWorld.com . With ongoing technological improvements and reducing costs of materials, solar power is becoming more affordable and appealing to both residential and commercial clients.
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Take the Next Step
Find a business mentor.
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Learn from other business owners
Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
What are some insider tips for jump starting a solar panel business?
You must hit the ground running as soon as you find your first customer. Before that, take the time to develop your knowledge of the entire solar industry, emerging technologies, and installation options. Research the various government rebates and work with a financing institution to provide payment options for your clients. You will need to be able to offer something unique to your clients that other companies cannot provide. Make sure your company is properly insured, as accidents will happen that can pose hazards to your crews and your customer's property.
How and when to build a team
As soon as your business loan is in place, you must start building your sales, survey, installation, and maintenance team. Unless you are an experienced installer, it is wise to include an industry expert as one of your first team members who can help guide you in building the best staff. You may require an executive assistant as your schedule gets crowded with meetings, marketing, and social events.
Read our solar panel business hiring guide to learn about the different roles a solar panel business typically fills, how much to budget for employee salaries, and how to build your team exactly how you want it.
- TRUiC's Solar Panel Business Hiring Guide
- TRUiC's Solar Panel Business Purchasing Guide
- Franchise opportunity
- Solar Energy Industries Association
Real World Examples
- Michigan Solar business
- San Diego business
- Irvine, CA business
- List of kinds of opportunities in this sector
- Tips for starting a solar panel business
Have a Question? Leave a Comment!
Starting Solar Installation Business Plan (PDF)
Solar energy has become a buzzword in the energy industry as more people become environmentally conscious and look for alternative energy sources. Solar energy is a popular choice among individuals and businesses as it is clean, renewable and easily accessible. The demand for solar energy has been increasing and shows no signs of slowing down. This has created a lucrative opportunity for entrepreneurs to start solar installation businesses. The International Energy Agency has predicted that by 2050, solar energy will be the largest source of electricity globally. Many governments provide financial incentives that encourage individuals and companies to install solar systems, further pushing up the demand of solar. The cost of solar panels has been declining over the years, thus many households and companies are opting for solar as it is becoming more affordable. As more businesses and homeowners become aware of the benefits of solar energy, the demand for solar installations will continue to increase, creating a growing market for solar installation businesses. This article will outline how to start a solar company business, and the solar installation business plan (PDF, Word & Excel).
The solar industry is not the same in every place you go to. The dynamics vary greatly so you must research about the solar industry for your context. You must find out the general trajectory of the solar industry. As in, what are the demand areas? Which solar-related areas is your respective government taking keen interest in? Which solar products and services are people developing a rising interest in? What are the solar industry trends, forecasts, and projections? Find out about the applicable laws and regulations governing the solar space. Then find out who the key players in the solar installation space are.
Dig into the types of services and possibly products they offer. Find out the types of customers they serve and how big their customer pools are. Research on where they source their solar supplies from. What are their business and pricing models? The insights you draw from all these aspects will help you build a successful solar installation business. You will be better positioned to come up with a superior and unique value proposition. This is important because the solar industry is becoming more competitive as more players enter the space.
Location And Premises
The solar panels installation business involves lots of movement to and fro clients. Choice of location depends on the type of clients you will be serving. It could be residential, commercial, or industrial clients. When choosing a location for your solar installation you need to consider proximity to clients. It is ideal to be close to your prospects. That way you can deliver your services faster. Plus it will reduce transportation costs. You also have to consider proximity to your supplies or suppliers.This is also to avoid delays and to minimize operating costs. Your business premises should be spacious considering the nature of the solar installation business. You will need storage space, parking space, waiting area, working area, and the like. Your business premises should be easy to access and secure. It is also strategic to make your premises alluring so as to lure prospects. Work with designers to make your outlet(s) unique and attractive. The cost of purchasing or leasing the premises should be included in your solar installation business plan.
The bulk of your capital goes to sourcing the equipment you need for doing solar installations. That will largely depend on the types of solar systems you will be specializing in. Some of the examples of equipment needed are solar panels, hybrid inverters, solar charge control units, batteries, ladders, solar cables, drills, solar switches, wire strippers, solar breakers, racking systems, screwdrivers, accumulators, and lights, amongst others. You will also need personal protective clothing and applicable hand and power tools. Storage equipment will be necessary. Office equipment will be needed for your base of operations. Having a vehicle for your solar panels installation company is crucial. This business involves a lot of travelling; from your offices to clients places for things such as site assessments, installations, and maintenance, thus having a vehicle is a must. The vehicle should be suitable for transporting staff, tools as well as the solar products. You can purchase a van or a truck for your solar installation business. The solar panel installation business plan should cater for the costs of purchasing the vehicle and equipment.
Products And Services
Most solar installation companies do both solar sales and installations. Solar panels are the main product sold by solar installations companies, and they come in various sizes and types to fit different applications. The products that you can sell include solar panels, invertors, batteries, charge controllers, solar geysers, solar lights and other components necessary for the installation and maintenance of a solar system. The services offered by solar panel installation companies include site assessments, design of solar systems, installation of solar systems, solar maintenance and repairs, consultancy and r etrofitting services . Furthermore, some solar installation companies offer education and training services to help customers understand how to choose and use their solar systems effectively and efficiently. Your solar company business plan should clearly outline the products and services offered by your business.
Management And Staff
For a solar company to run efficiently, it requires a team of skilled employees with diverse expertise. The number of employees will depend on the scale of your operations. The solar installers are responsible for conducting site assessments and installing the solar systems. A manager is required to oversee project and staff management, as well as the day-to-day operations of the solar business. Sales and marketing staff are necessary for promoting the business and selling its products and services to customers. Additionally, accounting and finance staff are essential for managing the finances of the solar installation business. The salaries of all your staff should be included in your solar panels installation business plan.
Your market research will guide you on which customer pools you should target. The truth is that the demand for solar products and services is bound to increase. Any household, commercial property or industrial property is a candidate for solar installation (and more). You just have to empirically target the right prospects. The market is broad because it spans from recently constructed properties to ones that have existed for years.
In the solar installation business you need to employ modern marketing techniques. Some of those marketing techniques include digital marketing, influencer marketing, brand ambassadorships, and the use of foot agents. Have alluring, active, and up to date social media accounts and a website. Use every solar installation gig as a basis for social proofs that you will use to lure more customers. Take high definition visuals such as photos and videos of your work. A proper marketing strategy should be included in your solar company business plan.
Pre-Written Solar Installation Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements
For an in-depth analysis of the solar installation business, we encourage you to purchase our well-researched and comprehensive solar installation business plan. We introduced the business plans after discovering that many were venturing into the solar shop business without enough knowledge and understanding of how to run the business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.
The StartupBiz Global solar panel installation business plan will make it easier for you to launch and run your solar company business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. This is a complete business plan for a solar installation business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the solar panels installation business.
Uses of the Solar Company Business Plan (PDF, Word And Excel)
The solar company business plan can be used for many purposes including:
- Raising capital from investors/friends/relatives
- Applying for a bank loan
- Start-up guide to launch your solar installation business
- As a solar panels installation business proposal
- Assessing profitability of the solar installation business
- Finding a business partner
- Assessing the initial start-up costs so that you know how much to save
- Manual for current business owners to help in business and strategy formulation
Contents of the Solar Panels Installation Business Plan (PDF, Word And Excel)
The business plan for a solar installation includes, but not limited to:
- Marketing Strategy
- Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
- Industry Analysis
- Market Analysis
- Risk Analysis
- SWOT & PEST Analysis
- Operational Requirements
- Operational Strategy
- Why some people in the solar installation business fail, so that you can avoid their mistakes
- Ways to raise capital to start your solar shop business
The solar company business plan package consists of 4 files
- Solar Installation Business Plan – PDF file (Comprehensive Version – 83 Pages)
- Solar Installation Business Plan – Editable Word File (Comprehensive Version – 83 Pages)
- Solar Installation Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 46 pages)
- Solar Installation Business Plan Automated Financial Statements – (Editable Excel File)
The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the costs, salaries etc, and all the other financial statements will automatically adjust to reflect the change.
Click below to download the Contents Page of the Solar Installation Business Plan (PDF)
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Get the Solar Installation Business Plan (PDF, Word And Excel)
Click Buy Now below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!
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The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.
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How to Start a Solar Panel Installation Business
- Last Updated: March 27, 2023
- By: Greg Bouhl
If you’re warming up to the idea of starting a solar installation business, your future may be bright. The push for going green is greater than ever before, with homeowners and corporations leveraging solar for many different purposes. Some see it as their civic duty to combat the ever-worsening climate crisis, while others see a personal benefit in a solar power investment like reducing their long-term cost of electricity or increasing the value of their home.
A solar installer evaluates the potential installation location before installing the panels. Additionally, managing staff and having a basic understanding of solar energy, construction, and electrical experience will help you stick out and be a better leader to your staff when they come to you for guidance.
Every second, the sun creates enough renewable energy to power the earth for 500,000 years. As of September 2021, there was 108.7 GWdc of total installed solar capacity , which is enough to power 18.9 million American homes. There have been 3 million installations in the United States, with most solar panels installed on residential properties.
Accounting for 1.6% of the total U.S. electricity generation , solar panels are a hot commodity. Not to mention, Solar panels could meet the demand for the United States’ electric needs by using a mere 21,250 square miles of solar panels. To put this into perspective: That’s approximately 50% of land leased by oil and gas and an estimated 0.5% of American land.
While tax incentives have been a positive force to incentivizing solar panel installations., states such as California are also helping drive solar panel installation growth through legislation. Beginning in 2020 the state required that all new single-family homes were required to include solar panels.
Gutter Cleaning Business Handyman Business HVAC Insulation Installation Roofing Business
The Solar Market Industries Association anticipates that the solar industry will continue to shatter glass ceilings and break installation records every year for the next three years, minimum. As more people are opting-in for solar, the solar industry is seeing an annual growth rate of 15% .
Home and business owners hit the sweet spot for the solar target market but don’t forget about the recent boost in digital nomads. Before 2020, the amount of American’s who worked from home was approximately 7% and has since increased to 49%, according to Stanford University . As 10.9 million Americans currently combine work and travel, many aim to be fiscal and choose to install solar panels to power their rigs off the grid and avoid having to paying fees at R.V. parks.
Additionally, Adtargeting.com reports that the words “solar panel” have an audience of 26,244,600 people on Facebook, with the major age group being between 25 and 34. Out of that audience, 66.8% are men, and 33.2% are women.
Skills, experience, and education useful in running a solar installation business
Being an expert in the solar niche is indispensable, as no one can take away your knowledge. Most workers in the solar industry hold a minimum of high school diplomas and will receive on-the-job training. Having experience in the following categories can help you stand out from your competitors:
Construction experience: Installation includes checking the roof and ensuring that there are no missing shingles or tiles. After ensuring the proper condition of the roof, an installer will complete wiring and then install racking to hold the panels in place.
Electrical experience: Connecting electrical wires is part of the installation process. Once the panels are situated, the installer will connect inverters to the panels. This allows the direct current energy to be converted into alternating current energy.
Knowledge of solar and science: A basic understanding of the science behind how solar panels can power homes is essential for explaining to customers and to make a sale. The solar P.V. system can work through what’s called the “photovoltaic effect.” This is where light particles are converted into energy. When a photon contacts a P.V. device like a solar panel, the energy knocks electrons in it. When the electrons begin flowing, it produces an electric current. In other words, solar cells located within solar panels act as an absorbent to the sun, which creates an electric current to begin flowing.
Attention to detail: It’s vital to imagine how the solar panels will look once completed, but it’s even more important to notice when something is out of place during the installation process.
Checklist for Starting a Solar Panel Installation Business
It isn’t a quick process to start a business from the ground up, especially when it involves solar installation. The following steps will point you in the right direction when deciding to pull the trigger on your business venture:
Step 1: Write your Business Plan
After coming up with the idea, the next step in starting your own roofing business should be to write a business plan. This is a document that will be requested by banks, potential partners, investors, and sometimes, employees. It will help you navigate where you want your business to go and help you to hold yourself to a high standard, and guide you to hit your targets.
Have your business plan established so that you can lay out in front of you your competition and see what sets you apart from them. Additionally, it will help with keeping track of your financial targets.
Related: H ow to write a business plan
Step 2: Name the Business
Deciding on a company name can greatly impact whether you achieve success or not. Choosing a good name that resonates with potential customers can help to build a recognizable brand. A few tips for choosing a name include it being easy for customers to spell and ensuring it isn’t being used elsewhere. It’s also beneficial to get feedback from outsiders on the name. Some business owners will conduct polls on their Instagram or Facebook stories once they’ve narrowed down their options to gain honest feedback from their followers.
Step 3: Form a Business Entity
A business entity refers to how a business is legally organized to operate. There are four primary business entities to choose from, which include the sole proprietorship, partnership, corporation, and Limited Liability Company (LLC). Each type of entity has its own pros and cons, such as liability exposure, costs, and administrative requirements.
When deciding on which business entity is best for a solar panel installation business, it normally comes down to the sole proprietorship and Limited Liability Company.
A partnership opens the owners up to unnecessary personal liability because if a partner does something to get the business sued, or runs off with cash from the business, the other partners are personally liable to repay. The corporation can be a good choice because it separates the business assets from the owner’s assets. If the corporation is sued or certain business debts can’t be paid back, the owners aren’t personally responsible to repay them. The downside to the corporation is that it is more complicated than all the other entities and requires more administration than the LLC. If you plan on raising a lot of investment though, the corporation is usually the better choice.
That leaves the sole proprietorship and LLC.
The sole proprietorship is the least expensive and easiest entity to start which is appealing. The downside is the owner is personally liable should anything happen to the business, which is an important consideration. The LLC offers the ability to operate as a sole proprietorship with the liability protection of a corporation. Depending on the state, the cost to form an LLC runs from $40 – $500, which is pretty inexpensive for protecting the owners from business-related lawsuits and certain debts.
Some popular LLC formation services include:
IncFile - $0 plus state fees & free registered agent for 1 year!
IncAuthority - $0 plus state fees & free registered agent the first year!
ZenBusiness - $49 plus state fees & free registered agent for 1 year!
Step 4: Select your Location
Since the work of installing solar panels is at the client’s home, a solar business can be a home-based business, or it can operate out of a storefront. In either case, having a secure location to store the company vehicle, tools, solar panels, etc., is important to protect from theft.
Having a physical storefront offers an established appearance and a place for customers to look at products and discuss the project. Lease costs will vary according to location and the size of the space available. If a storefront isn’t in the budget, or the business will initially operate as a part-time business, starting as a mobile installer may be the way to start.
Be sure to factor in utilities, property taxes, maintenance, and other related expenses.
Related: Choosing a business location
Step 5: Apply for Business Licenses and Permits
Several states require a plumbing, roofing, and/or electrician’s license to perform solar installation work. Before starting any work, it’s important to check both state and local regulations, as many cities will have different requirements for contractors.
Additionally, there are general requirements many for many new businesses such as obtaining a business license, sales tax permit, Employer Identification Number, among others.
Also, obtaining certification may be beneficial for a solar installation business to gain professional knowledge in addition to building the business’s credibility. The North American Board of Certified Energy Practitioners (NABCEP) is a recognized organization.
Related: Common business licenses, permits, and registrations by state
Step 6: Find Financing
How will you finance a solar installation business? Personal savings accounts or getting a small business loan are a couple of options for entrepreneurs to find funding. One finance option that many forget about is pulling cash out of the equity of their home. Mortgages come with low-interest rates in comparison to credit cards or personal loans. Just make sure you explore all options and list the pros and cons of each once you get quotes.
Related: Finding the money to start a business
Step 7: Open a Business Bank Account
Keeping your business and personal finances in separate business bank and credit card accounts makes it easier to track the income and expenses of the business. Documentation such as a business license, business tax number, owner’s driver’s licenses are typically a few requirements of opening a business bank account.
Step 8: Get your Marketing Plan in Place
Marketing is easier than ever now, with the internet right at everyone’s fingertips. Leveraging marketing for your business allows you the opportunity to create growth and skyrocket your sales. It keeps customers up to date or in the loop with the latest updates you have.
According to a study by Business News Daily , 86% of consumers said they are more enticed to pay more to shop at a small business, so don’t forget to put a face to your business so that you stick out and don’t seem like a large corporate robot. In addition to social media marketing, you may want to consider advertising in local newspapers and tv, in addition to sponsoring and being involved with local community events and partners like the local Chamber of Commerce.
Related: Low-cost ideas to market a new business
Every business is going to need a logo. Make a professional logo in no time with the free logo makers from BrandCrowd and Canva .
Step 9: Get Business Insurance
Property, liability, workers’ compensation, and auto are a few types of insurance policies that a company installing solar panels should consider. The type of coverage will be largely dependent on the state requirements, so just make sure you do your due diligence and research before providing services.
Related: Common types of insurance a business may need
Step 10: Hire Employees
There isn’t a shortage of people wanting to find work in the solar industry, as the U.S. has over 242,000 solar workers . That’s more employees than the oil, natural gas, and coal industries when you put them all together. Kansas has the fastest-growing solar market with a 66% growth rate from 2017 to 2018! Related: Hiring your first employee
Step 11: Set up an Accounting System
An accounting system for your business will help keep finances organized and give you visibility on the business profits. Not to mention, it keeps things easier for tax purposes. Considering a solar installation business is unlikely to have smooth operations with just the business owner doing everything, there will likely be several employees which makes an accounting system key for payroll purposes.
Related: Setting up the accounting for your business
How much does it cost to start a solar panel installation business?
While start-up costs can vary depending on the size and scope of your business, there are some basic expenses you’ll need to cover. Here’s a breakdown of what you can expect to spend.
However, generally speaking, it’s probably going to take you at least $50,000 and upwards of a year to build your business from the ground up – depending of course on how much you pay for your equipment and what kind of a building you set-up shop in.
How profitable is a solar panel installation business?
You shouldn’t go in expecting an immediate profit with this type of business. Consider it a long-term investment, especially when many customers will choose to finance and not pay all at once. The average purchase price for a residential solar system is $15,000 and based on the average profit margin for a business being 22% , the business owner should expect to see a profit of $3,000 from the average installation if the customer pays everything in one payment and it typically takes one to three days to complete it. So, hypothetically, if the customer pays for the P.V. installation in one payment and if your business completes two installations a week, you can expect to make $6,000 a week or $322,000 a year. It all depends on the staff, business costs, and how your customers are going to finance the cost of the installation.
Installing the panels is the most obvious way to make money, but what about different avenues to earn cash like from investors, tax credits, or when someone you previously installed panels for calls you and needs maintenance completed?
Are there grants to start a solar panel installation business?
It’s extremely rare to find a grant to start a solar panel installation business. If you search for business grants, you will come across a lot of scams and misinformation. Occasionally an organization will offer grants to start a business, however, be skeptical and don’t provide any sensitive personal information or pay money to get more information.
Legitimate federal grants can be found at Grants.gov and you can check on your state’s economic development office to see if they have any grants available.
What is the NAICS code for a solar panel installation business?
The NAICS code for a solar panel installation business is 238210, which falls under Electrical Contractors and Other Wiring Installation Contractors.
The NAICS code (North American Industry Classification System) is a federal system to classify different types of businesses for the collection and reporting of statistical data.
Related: What is a NAICS code and how to find yours
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Solar Panel Installation Business Plan Sample
Solar panel installation business plan guide.
Solar energy is one of the most trending businesses presently and with the growth in alternative energy, this trend is going to continue for long.
So, what do you need to know to start a solar company irrespective of your location? To start a solar company, there are lots of things that must be put in place and here they are:
Define your Niche in the Solar Market
There are many niches to choose from in the solar market. You need to conduct some research on the biggest needs in your environment before you start your solar company. The niches in the solar market include;
- Solar Installation
- Solar Manufacturing
- Solar Sales
- Solar Parts
- Solar Maintenance (Technicians)
- Solar Consultant
These are the niches that are available in the solar market and you can’t specialize in all. You can choose to focus your company on two at most. You can do research and see the one that the need is high and also profitable with a good profit margin.
- Become Certified
No matter your love for the solar business, you can’t just wake up one morning because you have the money and say you want to start a solar company. It doesn’t work like that. You need to be technically grounded in the field.
About your niche, you need to have technical knowledge of whatever solar niches you choose to build your company around. You need to go and learn about solar and be certified.
Most states in the US require certification before you will be allowed to start your solar company and the approval takes a lot of time. So, you need to know what you are getting into at first.
- Get licenses and Permit
This is needed before anyone can start a solar company. The licenses needed to start a solar company, vary from state to state. Check out for your state the needed license required to start a solar company and get them.
- Create a Solar Installation Business Plan
There is no successful company on planet earth that succeeded without a business plan. Create a business plan for your solar business so you can stay organized. The business plan will need to include financing options, operational cost , advertising and promotion strategies as well as where you will find customers at a minimum.
Aside from a business plan standing as a guide, the business plan will also help banks and financial institutions consider your request for a loan if you may need a loan in the future.
Investors also need solar company business plan before they can invest in your business. So, you can see why you need a business plan for your solar company?
- Choose a Suitable Location
This factor alone if not properly decided on has the potential to kill your company. You should not site your company in a location that does not have your ideal customers or where your customers can’t reach you.
Your location should be properly picked after you must have done your investigation about the environment.
Once you decided on starting a solar company, how you get the word out after launching is the next step. There are many traditional means of advertising, but these can be costly. For a business like this, the best and effective advertising channel to use is television, radio, and banners.
Facebook and LinkedIn ads will also go a long way in creating awareness about your company and possibly get you leads. You can open an account on these social platforms and just post updates about what you are doing and the progress your business is making.
Using a website as a marketing tool is also another thing to consider too. There is no way you can run a solar company without a website that won’t cost you much to build.
You can hire any web designer from any freelancing sites like Elance or Fiverr to help you create one for a very cheap fee. You can view another solar company website to have a clue on how to structure the layout of your company website.
- Build a Strong Customer Base
Doing this is very easy as it can be done using your marketing channels. You are not just out there to sell and make money, one of your duty is also to educate people on the benefits of using solar.
Explain the benefits in real, numeric terms. Provide analogies and examples that support and augment your claims.
Help them to see how they will help the planet. Explore with them the potential tax credits or benefits they can get by choosing solar. Make sure to explain that the longer they have solar power, the more they will save as well.
If you do this consistently as you also sell, you are building a customer/fan base that will end up buying whatever you are selling and return to buy more and even refer their friend and family members.
SOLAR PANEL INSTALLATION BUSINESS PLAN EXAMPLE
Here is a sample business plan for starting a solar panel installer company.
An important aspect of every business is the business plan and that is why it is better to follow a sample in writing your business plan to write a good plan that will aid the success of your business.
There are different types of solar businesses so I will be focusing on an alternative energy installation type.
Business Name: Comilad Solar Company
- Business Description
- Executive Summary
- Business Objectives
- Mission Statement
- Vision Statement
- Products and Services
- Competitive Analysis
- Marketing Strategy
- Management Team
Comilad is an energy installation business based in Lagos State which provides, sells and service alternative energy solution with a focus on the community of international business. The operation of this solar business will include the sale of inverters, batteries, solar panels, provision of technical service, and products used by these systems.
The Solar company will focus on a customer-centric service delivery system where continuous ongoing information will be provided to clients regularly especially during the early stage of use when clients still need support and information.
Comilad Solar Company is committed to providing high quality, success and excellence in the solar installation industry due to the recent emphasis on environmentalism and movement towards alternative energy. The company is ready to meet the demand for alternative energy in the country.
The following are the main objectives of Comilad Solar Company:
- Creating a service-based company whose main goal is to surpass customers’ expectations.
- Achieving healthy and good earnings in the first few years of operation.
- Developing a sustainable startup solar business that contributes to an increased employment rate in the community.
- An increasing number of customers through brilliant performance and word of mouth referrals.
The mission statement of Comilad Solar Company is to become the leading solar energy installation business in Lagos State and the whole of Nigeria by providing good product sales and services.
It also wants to provide Lagos business community with a solar energy installation business with a quality brand name, reliable and professional technical support, good customer service.
The company’s vision is to provide a one-stop location where high quality, convenient and reasonably priced solar energy installation solutions are provided at the best possible price.
PRODUCTS AND SERVICES
The company is ready and willing to offer several types of products of very good and high quality to customers and also provide good customer care and attendance to increase the level of patronage of the company.
Some of the products to be offered are inverters, batteries, solar panels among others.
The competitive analysis done indicates that the following are the major competitive advantages to Comilad Solar Company:
- Ability to install and do efficient maintenance and repair services in the fastest way and quickest possible time.
- Strategic alliances with manufacturers and other company-related business partners.
- Fair prices and best possible discount offers.
- Supply of best and good quality durable inverters, solar panels and related products.
- Superior and good customers’ attention.
One of the major ways of marketing of the company is a good and efficient delivery system in the hope of increasing the level of patronage by customers. To further help the marketing of the business, the following will be done or provided:
- Astute business sales.
- Professional and technical service will be provided.
- Sound and pro-active customer service will be provided.
- Staff will be trained to acquire operational, promotional and marketing skills of the business.
The company is very determined in employing the best people in the solar installation industry who are hard-working, ready to achieve the company’s goals and satisfy customers.
The board of directors will consist of four people, an investor, and two consultants. The reason why an investor will be part of the board of directors is that it gives easy access to securing capital. The consultants will be responsible for providing the company with a proper view of the target market and consumers.
Also, the consultants will provide a form of leadership for the company.
There will also be a board of advisors for the company which will consist of an attorney, a banker, an electrical supplier and an accountant. These are the people that will be consulted when an important and informed decision is to be made. They also give the company a sense of legitimacy and a firm legal status.
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Your Guide To Commercial Solar Panel Installation Companies And Costs
Table of Contents
What is commercial solar, where can commercial solar panels be installed, how much do commercial solar panels cost, factors that impact the cost of commercial solar panels, how to install commercial solar panels, commercial solar panel rebates, tax credits and other incentives, residential vs. commercial solar panels, best commercial solar companies, frequently asked questions (faqs).
Solar power generation has grown significantly over the past two decades and is, in part, fueled by a desire to both increase sustainability and take advantage of generous tax incentives that support the bottom lines of business owners. Just as solar panels can be added to the roofs of residential homes, commercial solar panels can be added to properties in the corporate, non-profit and government sectors to generate power.
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Though modern solar power has been around for decades, many commercial enterprises still rely on electricity. However, switching to solar power can not only save money for businesses, government agencies and nonprofit organizations, but it can also significantly reduce their carbon footprint.
Like residential solar options, commercial solar panels harness the power of sunlight , turning this renewable source of energy into electricity that powers office buildings, factories, warehouses and more.
Residential solar installations are almost always on the roofs of homes because that is the best, most expansive surface area where the panels can catch the sunlight. Roof installation is also a good option for commercial solar installation , especially since office buildings, warehouses, factories and other similar spaces often have vast, flat roofs that are ideal.
However, the roof is not the only place that commercial solar panels might be installed. Parking lots, for example, can be turned into solar carports, which are essentially open-air garages with solar paneled roofs. Other options include ground-mounted solar arrays ; there are even panels that have the ability to tilt and elevate during certain hours to catch the optimal amounts of sunlight.
Commercial solar panel installations can cost anywhere between $100,000 for a small business to $1,000,000 and higher for large buildings . It stands to reason that the larger a company is, in terms of both the size of the building and its energy needs, the more solar panels it will need to produce that power.
As with all construction or improvement projects, the price will depend on a variety of factors. And since commercial and industrial spaces can vary greatly in size, the price range is even greater.
If more solar panels are needed for a commercial installation, that will cost more, and the installation time will increase. If the structure of a building makes commercial solar installation more difficult, that will likely also cost more.
Keep in mind that generous tax incentives—not to mention the lower cost of energy in general—will also defray the cost of commercial solar installation. The savings, too, will depend on how much energy is created and the energy that is needed to power the business. In some cases, a business might be able to sell back the extra energy the commercial solar installation has created but doesn’t need.
The best way to determine the actual cost of commercial solar installation for your organization’s needs is to get estimates from various commercial solar contractors serving your region.
Commercial solar panels are generally installed on roofs in one of two ways: ballasted racking or attached racking.
Ballasted racking uses cement blocks or other heavy items to secure panels to a flat roof. Attached racking enables panels to be attached to sloping roofs by using roof-penetrating hardware.
While you might be able to DIY smaller-scale solar panels for residential use, commercial solar panel installation is best left up to the tools and the training of professionals. Not only could incorrect installation result in the solar panels generating low power levels, but it could pose a hazard if panels are not secured properly in place.
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The solar investment tax credit (ITC) is a federal initiative that incentivizes business owners for installing solar panels on their commercial properties.
The tax credit started at 30% for the total cost of solar photovoltaic (PV) systems installed in the current tax year. However, in December 2020, Congress passed an extension of the ITC, which would lower the tax credit over subsequent years. For system installations that were begun in 2020 through 2022, the credit is 26%; in 2023, it will decrease to 22%; and in 2024 and later, the credit will be 10%.
Best Solar Companies By States And Cities
Solar panels do the same thing for both residential and commercial applications—they absorb sunlight and transform it into clean energy. However, that is where their similarities likely end.
Due to the sheer size of some commercial properties, there are more ways and places to install panels. Since a commercial enterprise needs far more power than a typical residence, commercial panels will most often be larger and/or more powerful than those used in residential applications.
The average solar panel for a home will have 60 or 72 cells, while a commercial solar panel will have 96 cells or more.
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Solar power is still an emerging energy source. Some commercial contractors do offer their services in all 50 states, while some focus on particular regions of the country. The variety of options you will have may very well depend on the region where your commercial enterprise is located.
According to Solar Power World’s national ranking of solar contractors, here are the top 10 largest commercial solar companies in terms of the number of kilowatts they installed in 2021:
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How are commercial solar panels installed?
Commercial solar panels are typically installed using heavy weights (ballasted racking) to secure them on flat roofs or with roof-penetrating hardware (attached racking) on sloping roofs. Given the size and the nature of these installations, trained professionals are required to put them in place.
How do you size a commercial solar system?
Though commercial solar systems are complicated to install, figuring out how large a system you need is actually not too difficult. To do it, multiply your business’s hourly energy needs by the number of hours of peak sunlight in your area. Then, divide that number by a panel’s wattage to determine how many total watts you’ll need for your commercial solar system.
How many solar panels do I need for commercial use?
Once you figure out how large your commercial solar system needs to be, you can divide the total wattage by the wattage of the individual panels. Depending on the size of these panels, this will determine how many of each you will need.
Is there a difference between commercial and residential solar panels?
Commercial and residential solar panels are similar in that they both absorb sunlight that is transformed into energy. However, like most commercial products and applications, everything is done on a larger scale than those for residences. Commercial panels will likely be larger/have more wattage than residential solar panels.
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- Best Solar Panels
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- Solar Tax Credit By State
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- Pros And Cons Of Solar Energy
- Leasing Vs Buying Solar Panels
- How Many Solar Panels To Power A House
- monocrystalline vs polycrystalline Solar Panels
- Are Solar Panels Worth It?
- How Do Solar Panels Work
Elevation solar review 2023, green home systems review 2023, ask the contractor: things to know about portable energy sources: wind vs. solar, best cheap solar panels for your home in 2023, ask the contractor: things to know about flexible solar panels, the best and worst states for solar energy 2023.
Barbara Bellesi Zito is a freelance writer covering real estate investing and home improvement for Forbes Advisor, Millionacres, Apartment Therapy, and others. Barbara also writes fiction, and her debut novel is forthcoming in 2022.
Lowe is a lead editor, covering all things related to home improvement and good design. She previously worked in the decor and lifestyle spaces for digital publishers like Hunker and Ranker and has multiple years of experience creating design and DIY content.
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:
- The name is easy to remember
- The name is available
- The name is brandable
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 $0.88
powered by Namecheap
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.
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.
You can learn more about LLCs here.
- 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 .
Business insurance is a must in any industry, but even more-so when you have contractors and employees going onsite to customer property to provide a product and service.
Business insurance will protect your companies financial well-being should something go wrong like an on-the-job injury or any legal issues that could arise with your customers.
General liability insurance is a great place to start as it provides coverage for most scenarios that could come up.
Workers Compensation Insurance is another one to get if you plan on hiring employees – many states actually require Workers Compensation Insurance.
If you aren’t sure what additional insurance coverage you need, you can always contact your insurance agent for help.
Create a Website
Creating a website is key to helping with your branding and your marketing efforts.
Many customers will want to see work that you’ve done and learn more about your company, and pointing them to your website is a great place to do this!
Create a website that is easy to navigate and that is not cluttered.
Post high resolution images of solar panel projects you have done so customers can see your work.
Make your contact information obvious and clear and add a section with testimonials and customer reviews.
A solid website makes your business look more credible, so spend time on developing this key asset.
Advertising and Marketing
Now that you have the foundation of your business setup, you need to start getting the word out!
Solar panels are a highly visible product. Consider installing panels on a home or business in a high-traffic area for free or at a promotional rate.
If you want to gain more commercial clients, consider donating a panel to a local park or school and place your branding on the project.
Have a solid sales script that you and your sales team use so that they look knowledgeable and professional.
Your sales script should include information about government incentives and tax-cuts that are available for those who install solar panels.
The more you know, the more your potential customers will trust you for the job.
Another way to build your network is to attend seminars and conventions such as the Solar Power International convention in Las Vegas where you can network and connect with other industry leaders as well as potential clients.
Other advertising and marketing efforts should include direct mail campaigns, door to door appointment sales, call center, and social media marketing.
The solar panel industry is seeing a year over year growth of 15%, which makes it an industry that is worth getting into.
If you have knowledge in renewable energy sources and have the drive to get out there and make it happen, it can be a really successful business venture.
As you can see, setting your business up for success means building a strong foundation which includes a solid business plan, investing in solar panel equipment so that you can deliver to customers with no wait time, and focusing on advertising and marketing efforts.
Once your first customer comes on board, you will need to be ready to hit the ground running, so preparing in advance is going to set you up for success.
Solar Panel Installation Service Business Plan and SWOT Analysis
Solar Panel Installation Service Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Solar Panel Installation Service Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Solar Panel Installation Service business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
Your Business Planning Package will be available for download after your purchase.
Product Specifications (please see images below):
- Bank/Investor Ready!
- Complete Industry Research
- 3 Year Excel Financial Model
- Business Plan (26 to 30 pages)
- Marketing Plan (24 to 28 pages)
- 425+ Page Funding Directory
- PowerPoint Presentation
- Loan Amortization and ROI Tools
- Three SWOT Analysis Templates
- Easy to Use Instructions
- All Documents Delivered in Word, Excel, and PowerPoint Format
- Meets SBA Requirements
With constant volatility in the energy markets, many people and businesses have turned to installing solar panels on their homes and business properties in order to produce electricity that is clean and free. It should be noted that over the past two years there have been significant improvements in the quality of solar panel efficiency. As such, the return on investment for companies and individuals that play solar panels on their properties is significant. It should also be noted that there are a number of both federal and state programs that provide significant tax credits to people that shift their energy consumption to solar panel usage. This trend is expected in to continue in perpetuity given, again, the continued volatility in the energy markets and the demand among consumers for clean we produce electricity. One of the primary benefits to having solar panels installed is that excess energy can be sold into the electrical grid at a profit. This makes the installation of photovoltaic cells very popular among both homeowners as well as business owners.
Banks and lenders look to place money with solar panel installation businesses given the fact that they are a tangible asset that can’t currently increase the value of homes and commercial properties. Many companies are able to recoup their investment within the first year. If an entrepreneur is looking to raise capital for their solar panel installation business than it is imperative that a business plan is developed. This business plan should include a profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. Typically, a financial model should cover a three-year timeframe. One of the focuses within the business plan should be on the large tangible inventory base that will be acquired with the funds sought. It should be noted that most solar panel installation businesses usually require about $100,000 to $300,000 of startup capital. Primarily, these funds are used for truck acquisitions, photovoltaic cell acquisitions, and working capital. The gross margins generated by a solar panel installation business are considered moderate. The revenue consists of both labor costs relating to the installation of the panels as well as the actual sale of the panels themselves.
Given the ongoing demand for solar panels, a number of competitors have entered this market. Competition is faced by both other solar panel installation businesses as well as electricians that are able to render the services to customers. As such, it is very important that a marketing plan is developed to work in conjunction with the business plan. One of the ways that solar panel installation companies market their services to the general public is through a massive online campaign. This includes not only a proprietary website but also a presence on popular social media pages as well including FaceBook, Twitter, Google, and Instagram. As many people now find local service providers online, it is imperative that the solar panel installation business maintain a profile that showcases not only the costs but also a portfolio of previous work completed. Many of these websites also contain a blog which provide substantial information regarding the energy markets, the benefits of solar energy, and the underlying costs that are normally associated with installing panels in a home or on a commercial property. Beyond
Beyond the marketing plan and business plan, a solar panel installation business SWOT analysis should also be completed. As it relates to the strengths of these companies, they are generally able to produce moderate gross margin revenue was on a highly predictable basis. For weaknesses, these companies often have very high operating expenses given that highly specialized professionals need to be hired as it relates to the installation of photovoltaic cells. For opportunities, many of these companies look to develop satellite locations in other markets. Given the strong demand for photovoltaic cells, it is very easy for these companies to expand once they have established a strong brand name. For threats, one of the ongoing issues that is faced by the solar panel installation industry is that there are continually changing regulations as well as legislation pertaining to the tax credits that people and companies receive for installing panels on their properties. As such, it is important that an entrepreneur closely monitor this industry so that these panels can be installed for customers while maintaining economic viability of the business.
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How to Start a Solar Business
Last Updated: November 8, 2021 Approved
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Are you looking to start your own business in the growing solar field? Solar is one of the hottest businesses around and with the growth in alternative energy, this permanent trend is going to continue. Alternative energy sources are on the minds of everyone today and this trend is going to continue. Oil prices are going to continue to go higher and saving the environment is being tackled by lawmakers and entrepreneurs alike. Two of the biggest venture capital firms have recently shifted most of their funding to businesses that specialize in finding ways to save the environment and make money at the same time and solar is at the forefront of this revolution.
- Costs is pretty self explanatory. They will include money to start your business as well as how you are going to collect from your customers and in what time frame these will happen.
- Customers is also pretty straight forward. Without customers, you have no business, and you need to figure out which customers you are going to target as well as how you are going to get those customers. There are several target markets for your solar business. Are you going to target residential or commercial customers? Will you be selling to the high end or going after middle class? These are questions you must answer because you can't just open your business and think the customers will come, you have to target a specific market and then go after them.
- Contacts refers to several different types of people. These will include companies you will turn to that will help you start your business including capital and training sources. There are many capital sources including venture investors, banks, angel investors and friends and family.
- Contracts. One of the most overlooked part of any business is having proper contracts in place. Contracts do cost a little money to get done, but not doing them can cause your business to fail from no fault of your own. We aren't suggesting that you have to have all your contracts written up before you start your solar business, but you need to have a good idea of the contracts you will need and how you will get these contracts written and executed.
- Solar Installation Business - Installation of the entire solar system
- Solar Sales Business - Market the systems to homeowners and business and get paid a commission on each sale after installation
- Solar Manufacturing Business - Manufacture the panels and all other associated parts including racks, inverters, etc.
- Solar Parts Business - Sell solar systems and parts purchased from wholesalers and manufacturing companies
- Solar Tax Credit Expert - Help mostly business figure out the solar tax credit maze to make sure they get the proper tax credits
- Solar Consultant - Knows all parts of the business and helps individuals and companies understand the business and how they can helped by going solar
- Solar Maintenance Business - Offer an annual maintenance check on installed systems to make sure they are working properly and look for other ways to cut down on electricity usage
- Energy Consultant - Focuses on all types of alternative energies and other ways to conserve energy and sells their services to both homeowners and businesses
- Meeting potential customers can be done in a variety of different ways. You will be mostly marketing to the affluent in your community, so you need to figure out where these people spend their time and what activities they like to do. Maybe there is a home show in your area where you could set up a small table advertising your services. Or, you could visit some of the local clubs and pass out some brochures or sponsor an event. The local Chamber of Commerce is a really great way to get customers for your installation business. You will not only meet business owners in the area, but will get some press coverage. Don't forget about the press when you start your installation business. They are always looking for great stories and there aren't many solar businesses out there and many would love to do a story about your business, giving you a good name and a lot of free advertising.
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Things You'll Need
- A few of the basic tools you will need to do the installation will be:
- Long Safety Ladder
- Power Drill
- Stud Finder
- Roofing Tar
- Laser Sight
- Plenty of Duct Tape
- Reflective Roof Coating
- Normal Tools (Hammer, Screwdriver Set, Wire Cutters, Pliers, etc.)
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Solar Power Business Opportunity & Profitable Business Plan
Solar Energy is the prime topic which is being discussed by the scientist in the recent past due to the present condition of the coal and other non-renewable resources of energy being on the verge of extinction. In India, the condition is worse because of the over and every growing population whose demands is many times more than the supply of the power in the country.
So in a country where 72% of the population living under the rural belt with half of these population living without any electricity due to the below level production of energy or political biases or even due to the geographical locations, the need for solar energy is there and it is there with a lot of importance. Solar energy can actually change the scenario of India and highlights its core potential.
Present and Future of Solar Energy In India
Almost 3000 hours of sun rays are received in India because of its strategic location on the earth and it can serve to light up the whole of the country if used properly. These sunshine hours can produce up to 5 thousands trillion kilowatt hours of electricity which is enough to run the country on a whole. The country is a tropical one, there is the huge scope of producing solar energy and the ones who are thinking of setting up a business out of this notion must understand that the source and the resource are in abundance but the usage is to be wise.
The most important parts of the country which can contribute to the most of the solar energy production are the states of West Bengal, Andhra Pradesh, Gujarat, Bihar, Maharashtra, Orissa, Rajasthan, MP, and Punjab. The rural areas in these states can be used to produce the huge amount of solar energy which can not only light up those areas but remaining parts of the country as well.
The future of solar energy production and businesses in India seems very bright as there are already many projects which are being implemented or in the pipeline. The Thar Desert is estimated to produce near about seven hundred to twenty-one hundred GW of electricity from the solar energy and it is because of the few best and top solar power projects being built in that area.
In Gujarat, there is the largest solar power plant project which has been started since 2014. There are various government proposals and initiatives such as rebate on solar energy for building a nation with solar energy and producing many more watts of solar energy by the next five to ten years. Gujarat is one of the most important states which is giving goals to other states in producing solar energy and it individually aims at producing thousands of watts of this energy from the largest solar plant.
By 2020, there is a plan of producing 20GW of solar energy and this project started in the year 2009 with an investment of nineteen billion dollars. There are different other aspects of this as well which are like the applications or the products for the use of solar energy like solar pumps for water, lanterns of solar energy and even the street lights can run on this energy.
Opportunities in the field of Solar Business
Solar energy is not just a business that you can make a profit out of it but it is an initiative to make India bright and to enlighten Indian cities and the population. So, here are some of the major business opportunities which are discussed in brief which one can invest their money into if they want to get into this industry of solar power.
1. Selling Solar Products:
There are lots of solar products which are already in the market or going to be launch in the market real soon with the development of the solar energy projects. So, if you want to start your own solar business, the first idea is to sell products which are required for the use of solar energy or production.
For example, solar attic fans, solar PV, solar thermal systems, solar pumps, solar lights, even solar chargers and many other solar products are there which you can sell in retail market or take the dealership and distribute amongst the retail businesses.
2. 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.
3. Invest in the Solar Projects or Develop your Own:
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.
4. Sell Information about Solar Products:
Manufacturing and selling products are two different things and the one thing which comes in between these two is selling information about these products. SO, with the help of the internet, you can sell the information of these products and earn a commission.
5. Provide Consultation on Solar Energy Usage:
If you have studied and have deep knowledge of the solar energy usages or production, you can encash your knowledge.
6. 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.
Solar panel installation business
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
- License: You would need to obtain a license for setting up a manufacturing unit of the solar panels in India.
- Certification: There is state-wide certification of the solar panels businesses which you need to acquire for the production and sale of the panels.
- A Proper eye-catching business model: It is the key to get investment from the investor to start your solar panel or plates manufacturing company. It will also help you get the government aids.
- Training and Recruitments: You need to hire and recruit solar energy experts, workers and others. The workers have to be trained for the job duly so that there is no hassle at work.
- Advertise Solar Plates: Finally, once the production starts and even before it, start advertising the solar panels online and offline to grab the market.
Government subsidies in the solar business
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.”
1. 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.
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Be the Solar Expert & Start Your Own Solar Business
A small investment may help in an income over Rs 1 lakh in a month*
There have been increased global discussions on climate change & sustainability that are gaining momentum with many countries & organisations confirming a reduction in carbon footprint.
Lots of actions around harnessing renewable energy have been piloted and research in many cases is in mid to advanced stages
In 2020, an unprecedented scenario because of Covid 19 played a significant role, impacting many businesses and acted as catalyst for many too. The Aatmanirbhar Bharat campaign also picked up many folds with many new & innovative businesses gaining real momentum.
Besides pharma, insurance, online education, OTT, telecom, healthcare etc.; many large-scale businesses gained heavy consumption. During the same time the subject of ESG (Environmental, Social & Governance) also became a much-voiced subject across all strategic interactions nationally or internationally.
The amalgamation of the global pandemic & the call for Atmanirbhar Bharat also fast tracked and created many avenues for many people who were wanting to start their own business but were not so sure, however in 2020 few took calculated risks and began with smaller investments and within limitations of their knowledge, experience and skills.
While there have been many opportunities for people who want to step up and are thinking of starting their own, solar business is one which has been one of the preferred choices.
Solar business is here to stay as the demand of energy consumption per person is going to increase and at the same time the per unit charges by the electrical energy companies are continuing to increase. Further, many cities esp. the smart cities and the next level cities and towns are also looking at utilizing the rooftops solar energy generation and there are related policies in place. These further create very large scope for the solar business.
As the shift to solar energy as the primary source of electricity is in its nascent stage in India, the opportunity is indeed very big for many years to come. One can judge from the scope of its installation on the rooftops of independent residences, residential societies, factories, institutions, schools, commercial buildings, religious places, hospitals, malls, hotels etc.
How to Start Solar Business?
Prior to starting, you need to understand the various opportunities within the Solar business:
- Start as a Solar Dealer
- Upgrade to Solar Distributor
Start as Solar Installer / system integrator/ EPC contractor
- Initiate as Solar Service Centre
- Begin Solar Panel Manufacturing
- Be a Project Developer
- Be a Solar Influencer
While you may explore more underneath, on each of the above opportunities, some basic knowledge and understanding needs to be gained:
Basic working Technical knowledge
Loom Solar conducts a online learning session for this on every Saturday at 10-11 AM. You can join via mobile phone / laptop through this link: https://www.loomsolar.com/blogs/collections/learn-solar-with-loom-solar
Acquire right set of skills or have skilled team
Either you must have basic understanding of electrical connectivity or have an electrician to be part of your business
An installer to ascertain the surface, roof, wall, factory shed, ground etc and the use of appropriate structure + alignment of solar panels and other equipment etc.
1. Solar Dealership Business
If you are looking at higher returns on lesser investment, you may look at starting a solar dealership business from your home or from shop
2. Solar Distributor Business
In case you are already into some other business and are still interested in picking up another business opportunity, you may choose, to take either the dealership or distributorship to start a new venture
3. Solar Installer / System Integrator/ EPC Contractor
In case you are an electrician and know the house wiring, AC connectivity, have the knowledge of Inverters and batteries, then you may opt for Solar Installer / system integrator/ EPC contractor .
4. Solar Service Center
In case you are more inclined towards servicing only, you may get suitable understanding by associating with a solar company. Remember with the pace at which the installations are happening, though there is limited care needed, but with the volume, this is going to be an interesting earning opportunity.
5. Solar Panel Manufacturer
Solar Power System installation needs many components like solar panel, inverter battery, panel stand, wire, DC distribution box etc. In case you are interested in B2B business, you may start manufacturing solar panels. To install a solar panel manufacturing plant, you may need an investment of Rs 4 to 5 crores (minimum) and to have the business as profitable, you need to have about 10 customers with whom the business operations can run smoothly.
6. Solar Project Developer
Within the solar industry there are interesting opportunities of turnkey and bigger projects that include private & government projects or tenders. This opportunity needs a deeper understanding of managing the end-to-end project working capabilities.
7. Solar Influencer
This gives the opportunity to be a solar influencer without having any direct investment in solar business. However, it needs an understanding of solar business and more importantly the knowledge and working understanding of digital & social engagement.
How to Choose the Solar Company for doing Business?
As illustrated above, there are various opportunities to explore. Loom Solar is one such organization that has been introducing the latest and best technology products to the Indian market. Innovation and simplification is at its core when it comes to solar technology. Loom Solar is Faridabad, Haryana based organization, that started its India operations in the year 2018 and has been pioneering the home solar category needs with the latest technologically advanced products also ensuring the home delivery with simplified installation practices. With over 60,000 households across India and over 2500 resellers, Loom Solar is the best choice in solar powered energy systems.
Some more interesting facts
The solar business in India is growing at more than 3 times the pace. Many of the resellers who initiated the engagement with Loom Solar as dealer have now upgraded to distributor of their district and many who initiated their journey as influencers have now taken the installer practice and have started earning more than double.
It's time to shake hands with Loom Solar and step into the solar powered world.
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Faroque Ahmed May 27, 2023 at 00:56am
I want to start this business…
Navnath rambhau zine April 27, 2023 at 16:13pm
I want to start dealership business in this field,so please give me information about solar industry
Srinibash Mohapatra September 30, 2022 at 12:26pm
Pranam! Jay hind! I am a marine Ch. Engr/ Superintendent from Bhubaneswar, Odisha. Would like to request your advices/ guidances-how to go ahead, to start with a minimum investment & later to xpand. Would be grateful to have a detailed discussions with your rep. Namaskar! My contact no. +919937839499. Jay Bharat!
Sampathkumar September 27, 2022 at 17:22pm
I am salem I am interested pls share details
N K Batta September 08, 2022 at 10:41am
I am an electrical engineer and worked in senior position in major oil& gas psu. Now I am interested in starting my own business/ consultancy in solar power system in Ahmedabad. I need your assistance in exploring the best opportunities in this sector in Gujarat.
Sede jax September 04, 2022 at 22:06pm
I’m from Nagaland I would like to open a franchise here. Share me complete information on 9862409855
Shubham Sharma August 11, 2022 at 17:16pm
Hello this is Shubham Sharma From Madhya Pradesh India, Mobile No. +918878757173, +919144384334, I also want to start work with you, if there is some requirment like district co-ordinator or block lavel distributor You Can Call me.
mohammad moin July 12, 2022 at 18:40pm
am interested in this business am from vijawada,AP. call me 9000392514
Jersey D. Gomid July 04, 2022 at 17:49pm
Hi! I was reading you article and I’m interested in doing Solar Panel Business with you. However I’m in the Philippines. Will it be possible?
Javed Siddiqui June 09, 2022 at 12:23pm
Hello, I’m from Prayagraj, Uttarpradesh, I am interested in this business, can you please guide me, thank you. My Mobile number – 9323098126
Navneet Gaur May 23, 2022 at 00:32am
Myself a Delhi University official looking for my elder son dynamic future in business knowing well my childhood chum as land developer & cement dump holder are far better than, as compared to me. I want my son with dynamic groth and golden future.Hoping your precious time & direction.
M Ramana May 07, 2022 at 13:30pm
Hi I am Basically Electrician, and i have group of electricians to work in the business, let details please, I am from Hyderabad, Isnapur region, my ph-9490758635
Raghuveer T February 22, 2022 at 20:18pm
Hi Iam from Hyderabad, I am interested in this business, can you please guide me, thank you.
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Tikayat Ray February 11, 2022 at 13:25pm
Appreciate your web page. Interested in starting franchise in solar panel/ accessories. Would like to know relevant information pertaining to same including but not limited to minimum investment, your guidance etc. Do please send me your reply in my email.
Nitish Kumar January 25, 2022 at 23:40pm
I want dealership. Please guide us. Contacts number -9993827275
Narendra Kumar Ahuja January 08, 2022 at 21:33pm
I have knowledge of solar panels and provide training on it. How can I start a solar business without any investment but with only my efforts?
JYOTISH . S. BHATTACHARYA January 02, 2022 at 12:23pm
I am residing at Virar , Maharashtra. Basically i am interested in Dealership. Needs trainning for that. Maximum i can invest 1 lack only. please advise. jsb 7574858110 7021387959
Goutam Das December 25, 2021 at 23:32pm
Interesting. I am from West Bengal and wish to start a business on Solar Pannel. Would like to be associated.
CHANDAN P December 04, 2021 at 16:58pm
Sriranga Damodar November 28, 2021 at 08:34am
Good morning sir I’m Sriranga Damodar from Trichy Tamilnadu Interested in solar system business I want to start business Regards
Mangharam Choudhary November 18, 2021 at 21:29pm
Buisness for distribution
sidhanta November 02, 2021 at 06:51am
Hi, I am from Odisha. This article is very helpful brother. so nice Grate Job bro
Jaikishan Rai October 17, 2021 at 23:25pm
Hi, I want to become a EPC contractor in Delhi NCR region. Kindly assist me. 8285045031
Amidu hameed October 14, 2021 at 21:58pm
I have a lot of land here in Nigeria where you can set your business and earn a lot because of the bad electricity here
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jithin.u October 07, 2021 at 15:12pm
intrested instalation becuase i am an elecrician how to start
Sujit Rajan October 01, 2021 at 09:13am
Sir, I want to start a solar business in Kerala. Kindly advise.
Madhusudan Kabra September 20, 2021 at 09:27am
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Interested in solar dealership business
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I am completely new to this, but I am interested in solar technology. I am more over interested in manufacturing or distributorship
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Rajendra thosar September 02, 2021 at 17:53pm
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I am interested in solar business and want to know more about it.
Uvan Suresh Kumar August 31, 2021 at 16:56pm
Pls send me details to contact officials in Chennai . Regarding set up and installation of commercial solar project , dealership and distribution .
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Interested in dealership
PRASHANT SHELKE August 26, 2021 at 18:57pm
UTKARSH YADAV August 23, 2021 at 00:41am
Want to start solar business. Please contact 9208617320
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i want to set up my own business,i man electronics engg. in electro mechanical field and industrial automation. Nagpur 9923528903
Vivek Jindal August 15, 2021 at 13:54pm
Interested in Discussing business possibilities. Contact us at 9417206568
Antony August 13, 2021 at 22:45pm
I would like to start a loom solar business as a dealer can you explain how to start the business
Aman Deep August 12, 2021 at 17:04pm
I am intrested in solar business, pleasw guide me. I want to start this. 9264242820
Jaswant Singh August 09, 2021 at 19:56pm
Basically I am mechanical engineer having interest in solar energy field just want to start my own solar business as a dealer please guide & suggest me about eligibility & how much investment & space own/ rental/lease & government certification required etc. Please call or send your reply on my above email id or contact number 9410956396. Jaswant Singh. Tri Vihar, west canal road, Sewla kalan. Dehradun- 248002 (Uttrakhand)
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Basically I am mechanical engineer having interest to start my own solar business as a dealer please adv
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If you're wondering how to start a solar installation business, you might want to start at the basics: Roofing. If you're a roofer, solar installation could be a great option to add to your business. The solar and roofing industries are starting to converge, and for good reason.
1. Describe the Purpose of Your Solar Panel Business. The first step to writing your business plan is to describe the purpose of your solar panel business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers' problems.
$40,000 - $150,000 p.a. Industry trend Growing Commitment Full-time Solar is a growing industry with a bright future. The United States has installed 108.7 gigawatts-DC (GWdc) of solar PV capacity, enough to power 18.9 million homes.
A solar panel business will conduct on-site surveys of potential installations, create a solar plan for the location, work with the owner on financing and install the units. Maintenance positions within the company provide support for the new owners repairing and maintaining panels to ensure greatest productivity and return on the investment.
Start Now 12,210 reviews Starting a new solar business can seem like a daunting task. This is true of any new challenge you decide to overcome. However, the great thing about establishing your own solar industry business is that you'll be your own boss and you'll get to learn a lot along the way. Plus make really good money on your own terms.
This article will outline how to start a solar company business, and the solar installation business plan (PDF, Word & Excel). Market Research The solar industry is not the same in every place you go to. The dynamics vary greatly so you must research about the solar industry for your context.
Last Updated: March 27, 2023 Created By: Greg Bouhl How to Start a Solar Panel Installation Business If you're warming up to the idea of starting a solar installation business, your future may be bright. The push for going green is greater than ever before, with homeowners and corporations leveraging solar for many different purposes.
1. Industry Overview Solar panel is rapidly gaining huge market acceptance all over the globe simply because of how effective and useful it has become to most people. Solar panel is simply a device that helps convert sunlight into electrical energy and stores it for use.
1. Understand the Industry Alternative energy sources are on the minds of everyone today and this trend is going to continue. Oil prices are going to continue to go higher and saving the environment is being tackled by lawmakers and entrepreneurs alike.
You need to be technically grounded in the field. About your niche, you need to have technical knowledge of whatever solar niches you choose to build your company around. You need to go and learn about solar and be certified.
Use your business plan and strategy to calculate the capital you need to fire up your business. Weigh the capital in terms of solar panel and installation accessories, transport, labor, and ads. So, how much does a solar energy startup cost? The total capital you need to start your solar power business ranges between $90,000 and $290,000 ...
Panels come in an array of sizes and power levels. Most residential rooftop solar panels are about 3-1/2 feet by 5-1/2 feet, and produce about 250 to 300 watts per hour of sunlight. A 300-watt panel exposed to five hours of sunlight would produce 1,500 watts, or 1.5 kilowatts (kW). Solar panel systems are described by their total hourly ...
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October 7, 2021 6:06 am According to the International Energy Agency, between 2015 to 2020, solar panels will be responsible for adding two-thirds of the power capacity in the globe. This makes it a very profitable business venture to tap from.
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. ... setting your business up for success means building a strong foundation which includes a solid business ...
The Solar Panel Installation Service Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Solar Panel Installation Service business.
Make sure you know what you're getting into prior to anything else. 2. Create your business plan. The business plan will need to include financing options as well as where you will find customers at a minimum. 3. Include Costs, Customers, Contacts and Contracts in your business plan. Costs is pretty self explanatory.
Wood Mackenzie also anticipated that solar panel installations would reach up to 3 million in 2021, and 1 million more installations by 2023. By 2024, they predict a potential one solar panel installation per minute ratio. Corporations today like Target are also starting to invest and procure solar panels and other solar products today.
1. Selling Solar Products: There are lots of solar products which are already in the market or going to be launch in the market real soon with the development of the solar energy projects. So, if you want to start your own solar business, the first idea is to sell products which are required for the use of solar energy or production.
1. Solar Dealership Business If you are looking at higher returns on lesser investment, you may look at starting a solar dealership business from your home or from shop 2.
To meet 280GW solar panels by 2030, the government offers subsidies as under. System Capacity (kW) Solar Subsidy (in %) 1kW to 3kW. 4kW to 10kW. To get this subsidy, the cost of rooftop solar installation has to be around ₹60,000₹70,000. To receive an energy generation based subsidy, one has to generate 1100 kWh to 1500 kWh.