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How to start a solar business — the basics

Note: This blog was originally published in February 2021. It was updated October 25, 2023 to reflect recent information. If you have any questions, please contact us .

The solar industry is growing, and its sun is still just starting to rise. Solar power continues to lead the way when it comes to renewable energy — and arguably energy in general. According to SEIA data, in the first half of 2023, 45% of all new electric capacity added to the US grid was from solar. 

Likewise, solar installation professionals is among the fastest growing professions in the United States. The trade is projected to enjoy a 22 percent growth rate between 2022-2032, and the 2022 median income was $45,230 per year. 

This data represents a promising prospect for contractors looking to cut their teeth in this exciting business. 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

Of course, there’s much 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.

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. It’s highly likely that even if your market is saturated with traditional solar businesses, you can find a niche that only you can fill.

Solar incentives

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 have a leg up when it comes to getting the contracts.

Solar sales

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.

With the recent improvements in solar sales software, it’s easier than ever to stand out from the crowd. Click through this Tourial to see how Aurora’s reimagined Sales Mode can help you sell with confidence and close more sales.

Solar installers

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 the sun into electricity through a process called the photovoltaic effect. When a photon hits a photovoltaic (PV) device, its energy knocks electrons in the material. These 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 (or used to charge a battery).

The photovoltaic process occurs at the solar 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 cheap, green energy.

how-do-solar-panels-work

Solar company licensing & certifications

Solar licensing.

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 check on what type of licensing you may need in your state, region, or municipality.

Solar certifications

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 of $11,000 more annually. Getting certified may also allow you to operate in more than one municipality or state, increasing your competitiveness.

The 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.

Business insurance

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.

If an in-house sales team isn’t feasible, there are several options available for sales outsourcing. Many businesses exist that specialize in outsourcing solar sales for installers, consultants, and retailers.

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

There are many barriers when it comes to getting a solar business off the ground. Here are three common ones that can be easily solved with the right solar software.

Incorrect or inefficient designs

It’s all too easy to under- or over-engineer a solar system. Incorrect or inefficient designs are a surefire way to sink your business. Aurora Solar’s sophisticated solar design software uses technology like LIDAR-based shade analysis and AI-assisted 3D modeling to give you a pixel perfect design almost instantly — without a truck roll.

solar panel system business plan

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.

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.

Permitting problems

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 8% of soft costs associated with solar, owed largely to mistakes and regulatory bottlenecks . 

Aurora’s Plan Sets Service expedites your post-sales permitting process. It’s also a great tool for new businesses looking to scale without the growing pains and backlogs of permitting — Aurora can handle any growing volume of plan sets you need.

See how it works in the Tourial below.

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. Schedule a free demo today to see how Aurora can help you get started in the solar industry.

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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 .

Solar Panel Business Image

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.

Want some help naming your solar panel business?

Business name generator, 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.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

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 BILL 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 .

Service Agreement

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.

TRUiC's Startup Podcast

Welcome to the Startup Savant podcast , where we interview real startup founders at every stage of the entrepreneurial journey, from launch to scale.

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!

Entrepreneurship Quiz

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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For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

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.

Useful Links

Truic resources.

  • TRUiC's Solar Panel Business Hiring Guide
  • TRUiC's Solar Panel Business Purchasing Guide

Industry Opportunities

  • Franchise opportunity
  • Solar Energy Industries Association

Real World Examples

  • Michigan Solar business
  • San Diego business
  • Irvine, CA business

Further Reading

  • List of kinds of opportunities in this sector
  • Tips for starting a solar panel business

Have a Question? Leave a Comment!

We earn commissions if you shop through the links below.  Read more

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.

Published on October 20, 2021 Updated on November 24, 2023

How to Start a Solar Panel Installation Business

Investment range

$45,000 - $140,000

Revenue potential

$400,000 - $1.5 million p.a.

Time to build

Profit potential

$40,000 - $150,000 p.a.

Industry trend

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/ ))

solar panel installation industry size and growth

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

solar panel installation Trends and Challenges

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 ))

solar panel installation industry demographics

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. 

solar panel installation earnings forecast

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.  

solar panel system business plan

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
  • Manufacturers
  • 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

solar panel installation business rating

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: Present a concise overview of your solar panel business, highlighting its focus on providing sustainable energy solutions through solar panel sales and installation services.
  • Business Overview: Describe the core business of selling and installing solar panels for residential, commercial, and industrial clients.
  • Product and Services: Detail the types of solar panels offered, along with additional services like site assessments, installation, and maintenance.
  • Market Analysis: Evaluate the demand for solar energy solutions, identifying key customer segments and regional solar incentives or regulations.
  • Competitive Analysis: Compare your business with other solar providers, focusing on your competitive advantages such as advanced technology, pricing, or customer service.
  • Sales and Marketing: Outline your strategy for attracting customers, which might include digital marketing, partnerships with builders, or attending trade shows.
  • Management Team: Highlight the expertise of your team, especially in areas like renewable energy technology, project management, and sales.
  • Operations Plan: Describe the process from customer acquisition to solar panel installation and after-sales service.
  • Financial Plan: Provide an overview of startup costs, pricing strategy, projected sales, and long-term financial viability.
  • Appendix: Include supporting documents such as product specifications, partnership agreements, or detailed market research to reinforce your business plan.

what to include in a business plan

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.

types of business structures

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

solar panel system business plan

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.

solar panel system business plan

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. 

jewelry store financing

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. 

Interstate Renewable Energy Council (IREC) has a solar licensing database for US states.

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.

types of business insurance

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.

Develop your website

Creating a website for your solar panel installation business is essential for establishing a professional online presence and reaching potential clients. You can opt for user-friendly website builders which offer customizable templates ideal for startups on a tight budget. Alternatively, hiring a professional web designer ensures a unique, fully optimized site, though at a higher cost. Your website should be clean, mobile-responsive, and feature clear call-to-actions (CTAs) like “Get a Free Quote,” enhancing user experience and conversion potential.

Optimizing your website for search engines, particularly local SEO, is crucial. Incorporate relevant keywords and register with Google My Business to appear in local searches. Include quality content about solar energy, customer testimonials, and contact information to establish credibility and authority. A well-developed, SEO-optimized website can significantly boost your business’s visibility and attract more customers.

Here are some effective marketing strategies to consider for a solar panel installation business:

  • Educational Content and Workshops : Create informative content about the benefits of solar energy and the specifics of solar farms. This can include blog posts, videos, and social media content. Hosting workshops or webinars can also be a great way to engage potential clients and establish your business as a knowledgeable leader in the field.
  • Local Partnerships and Networking : Partner with local businesses, non-profits, and community organizations. Attend local events and join relevant business networks to build relationships and gain referrals. Collaborating with local construction companies, real estate developers, or environmental groups can be particularly beneficial.
  • Targeted Digital Marketing : Use digital marketing strategies such as SEO (Search Engine Optimization), PPC (Pay-Per-Click) advertising, and social media campaigns. Focus on keywords related to solar energy, renewable energy, and solar farms. Tailor your message to appeal to those interested in large-scale solar installations, such as businesses, agricultural enterprises, and government entities.
  • Customer Testimonials and Case Studies : Showcase successful solar farm projects with testimonials and detailed case studies. This provides social proof and helps potential customers visualize the benefits and process of working with your company.
  • Government Incentives and Policies : Stay informed about local, state, and federal incentives for solar energy and communicate these to potential clients. Being a resource for information on subsidies, tax credits, and grants can make solar farm investment more attractive to your clients.
  • Collaborations with Energy Companies : Partner with energy companies or utility providers. This can open opportunities for larger projects and establish your business as a go-to for utility-scale solar farm installations.
  • Referral Programs : Implement a referral program to encourage current clients to refer new customers. This can be especially effective in industries where word-of-mouth is a major factor in decision-making.
  • Sustainability Events and Trade Shows : Participate in trade shows, sustainability expos, and renewable energy conferences. This provides an opportunity to network, learn about industry trends, and directly reach potential clients interested in large-scale solar solutions.
  • Online Presence and Branding : Develop a strong online presence with a professional website and active social media accounts. Highlight your expertise in solar farm installation and renewable energy solutions. Use your branding to convey a message of sustainability and innovation.
  • Customized Solutions : Offer tailored solutions to meet specific client needs. This could include varying scales of solar farm installations, innovative technology options, and flexible financing plans.

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 

unique selling proposition

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. 

  • Solar Panel Business FAQs

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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  • 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!

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Your guide to starting a successful solar company

Updated 04/17/2023

Your guide to starting a successful solar company

Residential solar panel installations are projected to grow exponentially, thanks to the passing of the Inflation Reduction Act , which extended the 30% tax credit homeowners can claim when installing solar for ten years.

Research conducted by SolarReviews found that solar installers plan to increase their workforce to accommodate the expected demand for solar installations. It’s clear that now is one of the best times to start a solar installation business.

We won’t pretend the road to owning and operating a business is easy, but we’ve outlined some steps for you to at least get started. If you start your business right, you could make millions as a solar installer, especially if you’re partnered with the right lead source.

Key takeaways

  • Starting a solar company is not easy, but now is the best time to do it, thanks to new clean energy laws on both the federal and state levels.
  • To begin a solar installation business, you need certain certifications and licenses, an LLC, and a great team by your side.
  • Building a customer base is key to success, and working with a solar leads company can help you achieve growth more quickly.

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What you need to know before getting started

No matter the business, there are a few key things to get in order before launching it. Starting a solar company is no different.

Monetary capital

First things first, can you afford to start a solar business? Starting a solar company will likely cost a minimum of tens of thousands of dollars.

Taking out loans to start a business often makes sense, which can take years to pay back. Work with a bank and a financial advisor to determine if you need to borrow money to start your business and how to get the best loan rate.

Once you have these numbers, build a business plan to see how profitable your business needs to be to pay back the money in healthy increments. Your business plan should include how much you expect to pay on overhead costs like employee salaries, equipment, truck maintenance, and other soft costs like website management.

A business can survive for a bit breaking even, but that will not be sustainable in the long run. Having a business plan can help you keep track of the costs of your business to get you profitable more quickly.

Market and industry research

It seems obvious, but you must research the industry you plan to enter, especially if you haven’t worked in it before. Check if your state has a local Solar Energy Industry Association – they’ll be a great resource to keep you in the loop about what’s happening with solar near you. Attending meetings, watching webinars, and becoming more knowledgeable in the solar industry will go a long way in operating a successful business.

If you are completely new to the industry, as in you’ve never installed a solar panel in your life, signing up for classes through Solar Energy International (SEI) gives you a good head start while providing accreditations to enhance your legitimacy as an installer.

Think about your own work history, too. Having a background in construction or as an electrician can help when starting a solar business. Of course, you can hire these specialties, but having that foundation can help elevate your team and manage projects more efficiently.

It will also help to research the competition in your area! If your area is saturated with solar installers, opening a business might be more of a challenge.

Things to research in your market:

  • Local incentives and demand for solar panels
  • The number of solar installer businesses already within that location
  • Competitor's websites, pricing, and offerings - you can get a quote from competitors to see how they quote projects in your area to make sure you are competitive.

You can use SolarReviews to scope out the competition in your state, take note of their location, and check out things like their website design. Finding ways to set yourself apart from the competition can be as basic as creating a more intuitive website to offering more friendly customer service.

The SolarReviews calculator can also give you a better idea of solar savings and incentives that are available in the area you will operate. Installers can also use this tool to better understand how to size a solar system and the various inputs that can change the cost of a system.

What certifications do you need to start a solar company?

Many businesses need specific certifications or licenses to be deemed legal; in many states, solar is one of them. Licenses are in place to ensure that solar contractors install panels correctly and safely on residential homes.

The licensing requirements for solar installers vary from state to state . Many states require you to have a licensed electrical contractor working for your company, while other states have licensing options that are more specific to the solar industry. In California, for example, you need a C-46 Solar Contractor's license.

On the other hand, certifications aren't usually required by state law. But, having certified workers at your company sets you apart from the competition by giving you credibility and making you more trustworthy to homeowners.

The North American Board of Certified Energy Practitioners ( NABCEP ) is the most well-known and respected certification program for solar. NABCEP provides courses and continuing education for solar professionals to maintain and enhance their knowledge.

A NAPCEB certification can increase your earning potential by thousands of dollars a year because more homeowners are likely to choose your company over one that is not certified.

How to set up your solar business

To make your business legitimate, you need to establish a limited liability company (LLC). Being an LLC offers a level of protection, shielding it from certain lawsuits, and can enable you to submit taxes in a more business-friendly way versus just freelancing.

Each state has different requirements, but there are a few constants throughout . The first step is determining the name of your business, which needs to be unique from other companies in your state.

Then, you need to work with a Registered Agent to complete the necessary paperwork, like an operating agreement, to obtain the LLC. Once complete, you must apply for a tax ID number with the IRS. Remember that an LLC does need to remain active, so be conscious of timelines and the deadline dates of your state.

Another thing to consider is adding business insurance to cover things like property damage, equipment damage, worker injuries, and other potential liabilities that come with climbing on roofs with heavy equipment.

How to create a business plan

In terms of creating a business plan, starting a solar company is not that different from starting any other business. Your business plan should lay out or establish the following:

  • The business itself and who to hire
  • How to raise money
  • Where to source equipment
  • How to price equipment and labor
  • How to get your first job

Establishing your business and raising money

First, you need to figure out what kind of company you want to be. There are typically three types of solar companies: ones that install solar panels, ones that sell solar jobs to installers, or one that does both, like Energy Concepts in Fresno.

You can build your company around your own experience. If you're an electrician with experience installing solar panels, consider starting your business as installations only.

Once you decide on your business and what employees you need for success, the next step is securing the money. You can raise money in a few ways, either with a small business loan, a bank loan, or funding from investors, which could even be friends and family.

Sourcing equipment

Once your money is secured, establishing a relationship with solar panel installation equipment suppliers is essential. There are many ways to source solar equipment. You can get it straight from the manufacturer, be a certified installer for one brand like SunPower, or buy materials from distribution companies like BayWa r.e and CED Greentech.

Sometimes, vendors will even allow you to open a line of credit with them, where payments are not due immediately.

Pricing equipment and labor

Pricing the equipment and labor is important to ensure your business generates enough money for you to pay your team and earn a profit. How much you pay for the equipment will be a major factor in your pricing.

But, there are other factors in building out the price of a solar job, including the number of people who work on the job, their salaries, permitting, designing, and things like insurance costs.

Solar installation quotes usually list the price of a system in "cost per watt installed". This allows homeowners to easily compare quotes between companies in the same way you would look at the cost per square foot when shopping for a home. This way, homeowners can easily compare the costs of solar systems before deciding which company to go with.

Tip! How to help homeowners pay for your solar installation. Not many people have the cash to pay for a solar installation in full. As an installer, you need to have financing options available, which can include leasing or loan options. You also need to inform customers of the local incentives available to lower costs. It is also important to remind people to work with their tax advisors to get all the federal tax credits available.

How many people do you need on your team?

Solar installation companies can range in size, and depending on the type of business it is, the number of people on your team will vary.

If you plan to install panels and have a sales team finding jobs, your company would need at least a solar installer and a salesperson to get the business started, and the team can be built from there.

Hire solar installers who are NABCEP-certified or trained through SEI. Both of these organizations provide extensive training courses for solar installers. Keep your eye out for applicants who also hold contracting or electrician licenses.

If you are having trouble finding qualified installers, you can always offer to pay for or sponsor training opportunities to people interested candidates . This is a risk because there is no guarantee that the person will remain with you even if you pay to train them, but it could be an attractive incentive for people willing to learn.

A salesperson or working with a solar sales company is also key for a successful company. They do not necessarily need to have solar experience. Still, they should be able to explain financing options, how solar panels work, the installation process, and how much money homeowners can realistically save by installing solar panels.

Solar lead buying can mean more profits

Once your solar company is established with a dedicated sales team, installers, and equipment stocked, buying solar leads is your next best step.

SolarReviews has some of the best leads in the business. Aside from getting high-quality leads, partnering with SolarReviews gives you access to our installer dashboard. Within that dashboard, you can use our profitability calculator to determine your business' potential gross margin based on the number of leads you've purchased. You can even adjust metrics like average job size, labor, material costs, and the assumed average percentage of successful leads.

"The right solar leads can help you grow your business. SolarReviews provides high-quality leads at consistent volumes making it easy to scale your business with SolarReviews as your partner," said Lachlan Fleet, CEO of SolarReviews.

With a lead conversion rate of about 5%, for every $1 spent on leads, you generate $6 to $10 in gross margin. This means that for every $1,000 spent on leads, you get $6,000 - $10,000 back in gross margin. No matter how high quality, not all leads will turn into a sale. But you can set your business apart by not letting that discourage you.

2023 is the best time to get into the solar business. There is increasing global pressure to switch to renewable energy; the United States government is incentivizing homeowners to go solar, and high energy costs are making the switch to solar even more compelling. So pick a name, get an LLC, and build up your solar brand to be a part of the momentum.

Calculate how much you can save with solar panels

 - Author of Solar Reviews

Ana Almerini

Marketing & communications manager.

Ana is the Marketing & Communications Manager at SolarReviews, working within the solar industry since 2020. With a Master's in Climate and Society and professional experience within marketing, she helps communicate the value of solar to homeowners and build out awareness of the SolarReviews brand.

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  • How to Start a Solar Business
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In today’s rapidly expanding renewable energy market, starting a solar panel business presents a promising opportunity for aspiring entrepreneurs. This comprehensive guide will take you through the essential steps and strategies to establish and thrive in the solar industry. From understanding the solar energy market to developing a business plan, setting up your business, and marketing your services, we will provide valuable insights and practical tips to help you succeed.

  • 1 Key Takeaways
  • 2.1 Exploring the Solar Energy Market
  • 2.2 Solar Panel Installation: Key Components and Processes
  • 3.1 Developing a Business Plan
  • 3.2 Setting Up Your Solar Business
  • 3.3 Business Insurance and Legal Considerations
  • 4.1 Building a Professional Network
  • 4.2 Marketing and Sales Strategies
  • 4.3 Delivering Exceptional Customer Service
  • 5.1 Estimating Startup Costs
  • 5.2 Financial Management and Funding
  • 6.0.1 About the Author

Key Takeaways

  • Understanding the solar industry and market trends is essential for positioning your solar business strategically and capitalizing on the growing demand for clean energy solutions.
  • Proper planning, including a comprehensive business plan and setting up your business infrastructure, establishes a strong foundation for success in the solar industry.
  • Implementing effective marketing and sales strategies, delivering exceptional customer service, and managing business expenses and finances are key factors for launching and growing a profitable solar business.

Understanding the Solar Industry

The solar industry is experiencing rapid growth and transformation as renewable energy sources gain prominence. Understanding the solar energy market dynamics is crucial for establishing a successful solar business. Let’s delve into the subheadings to gain a deeper understanding:

Exploring the Solar Energy Market

The solar energy market has witnessed significant growth due to increasing awareness of the environmental benefits and the shift towards clean energy. Various factors, including government incentives, declining costs of solar panels , and rising consumer interest in sustainable energy solutions, drive the demand for solar power. By exploring market trends, identifying target segments, and understanding consumer preferences, you can strategically position your solar business to meet the market’s evolving needs.

Solar Panel Installation: Key Components and Processes

Solar panel installations require a comprehensive understanding of the key components and installation processes. Solar panels, inverters, mounting systems, and electrical components all play a crucial role in the functioning of a solar system. Staying up-to-date with technological advancements and industry standards is important to ensure efficient and reliable installations. Understanding the installation process, including site assessment, design considerations, permitting , and interconnection, is vital for delivering high-quality installations that comply with local regulations and building codes.

Planning Your Solar Business

Proper planning is essential to lay a strong foundation for your solar business. This section focuses on the various aspects of planning your solar business to maximize success:

Developing a Business Plan

A well-crafted business plan acts as a roadmap for your solar business. It encompasses defining your business objectives, conducting thorough market research, and analyzing your competition. A comprehensive business plan should also include a detailed marketing and sales strategy, financial projections, and assessing potential risks and mitigation strategies. This strategic document will guide your initial setup and serve as a reference for future decision-making and growth.

Setting Up Your Solar Business

Setting up your solar business involves several key considerations to ensure a smooth operation:

  • Choosing the Right Business Structure : Decide on the most suitable legal structure for your business, such as a sole proprietorship, partnership, limited liability company (LLC), or corporation. Each structure has different implications for taxation, liability, and management.
  • Registering Your Company and Obtaining Licenses : Follow the legal procedures to register your business with the appropriate government authorities. Additionally, obtain the required licenses and permits to operate as a solar installation business in your jurisdiction. Compliance with local regulations is essential to establish credibility and ensure smooth operations.
  • Establishing Your Office or Workspace : Determine the space requirements for your administrative and operational needs. Whether a dedicated office space or a home-based operation, ensure it is well-equipped and provides a professional environment to conduct business activities efficiently.
  • Procuring Essential Equipment and Tools : Acquire the equipment and tools required for solar panel installations. This may include solar panels, inverters, mounting systems, electrical components, testing equipment, and safety gear. Establish relationships with trusted suppliers to ensure the availability of high-quality products.

Business Insurance and Legal Considerations

Protecting your solar business and managing potential risks is crucial. Obtaining adequate business insurance is essential to safeguard your assets, employees, and customers. Liability, workers’ compensation, and general business insurance are among the key coverage types to consider. Additionally, familiarize yourself with legal considerations, such as contracts and warranties, to ensure clear and transparent dealings with customers and suppliers. Consult with legal professionals experienced in the solar industry to ensure compliance with relevant laws and regulations.

Launching and Growing Your Solar Panel Business

Once you have laid the groundwork, it’s time to launch and grow your solar business. This section covers strategies for establishing a strong presence in the market and expanding your operations:

Building a Professional Network

Networking is crucial for building a successful solar business. Establishing a professional network can foster valuable relationships within the solar industry. Here are some key aspects to consider:

  • Collaborating with Suppliers, Manufacturers, and Distributors : Build strong partnerships with trusted suppliers, manufacturers, and distributors of solar equipment and components. Having reliable and quality products is essential for delivering top-notch solar installations.
  • Connecting with Industry Professionals : Attend industry conferences, trade shows, and networking events to connect with professionals in the solar industry. Engage in discussions, share experiences, and learn from other’s expertise. Networking can lead to collaborations, referrals, and growth opportunities.
  • Joining Associations and Industry Groups : Become a member of industry associations and organizations dedicated to renewable energy and solar power. These groups offer resources, training, and networking opportunities for the solar industry. Active participation can enhance your industry knowledge and visibility.

Marketing and Sales Strategies

Effective marketing and sales strategies are vital for attracting customers and establishing a strong market presence. Consider the following:

  • Building a Strong Brand Identity : Develop a compelling brand that reflects your values, expertise, and commitment to solar energy. Design a visually appealing logo, create a memorable tagline, and ensure consistent branding across all marketing materials.
  • Creating a Professional Website and Online Presence : Invest in a well-designed website that showcases your services, portfolio, and customer testimonials. Optimize it for search engines to improve visibility. Leverage social media platforms and online directories to reach a wider audience.
  • Implementing Digital Marketing Strategies : Utilize digital marketing techniques such as search engine optimization (SEO), pay-per-click advertising (PPC), and content marketing to increase your online visibility. Share informative content, engage with your audience, and establish your authority in the solar industry.
  • Building a Referral Network and Utilizing Customer Testimonials : Encourage satisfied customers to refer your services to their friends, family, and colleagues. Word-of-mouth marketing can be a powerful tool. Request and showcase positive customer testimonials on your website and other marketing channels to build trust and credibility.

Delivering Exceptional Customer Service

Providing exceptional customer service is paramount for long-term success and client satisfaction. Consider the following:

  • Clear Communication and Transparency : Maintain open and transparent communication with clients throughout the solar installation. Address their queries promptly, provide regular project updates, and ensure they are informed about the progress and expected outcomes.
  • Accurate Quotes and Proposals : Provide detailed and accurate quotes and proposals that clearly outline the scope of work, associated costs, and project timelines. Transparency in pricing and deliverables helps build trust with customers.
  • Post-installation Support and Maintenance Services : Offer post-installation support and maintenance services to address any issues or concerns arising after the solar panel installation. Timely response to service requests and providing ongoing maintenance plans can enhance customer satisfaction and loyalty.

Managing Business Expenses and Finances

Effectively managing your business expenses and finances is crucial for sustainability and profitability. Here are key considerations:

Estimating Startup Costs

Thoroughly assess the initial expenses associated with starting a solar business. Consider costs such as equipment and tool purchases, inventory, marketing and advertising, office space, utilities, and employee salaries or contractor fees. Prepare a detailed budget and factor in contingencies to ensure you have adequate funds for a smooth startup.

Financial Management and Funding

Establish robust financial management practices to track cash flow, monitor expenses, and maintain financial records. Consider utilizing accounting software to streamline financial processes. Explore funding options, such as small business loans, grants, or partnerships with investors, to secure capital for your solar business—additionally, research government incentives and support programs to promote renewable energy businesses.

Understanding the solar industry, planning your business effectively, launching and growing your operations, and managing business expenses and finances are critical for establishing and scaling a successful solar business. By deeply understanding the solar energy market, including trends and target segments, you can position your business strategically to meet evolving demands. Thorough planning, encompassing a well-crafted business plan, setting up your business infrastructure, and ensuring proper insurance coverage and legal compliance, sets a strong foundation for success.

Once launched, growing your solar business requires effective marketing and sales strategies to attract customers and establish a strong market presence. Building a professional network through collaborations, industry connections, and association memberships can open doors to partnerships and referrals. Leveraging digital marketing techniques, such as a professional website, online visibility, and engaging content, can expand your reach and enhance your brand identity. Exceptional customer service, characterized by clear communication, accurate proposals, and post-installation support, cultivates long-term client satisfaction and positive word-of-mouth.

Managing business expenses and finances is crucial for the sustainability and profitability of your solar business. Estimating startup costs accurately, considering equipment, marketing, office space, and employee expenses, ensure you have adequate resources. Implementing robust financial management practices and utilizing accounting software enables you to track cash flow, monitor expenses, and maintain accurate records. Exploring funding options, such as small business loans or government incentives, can provide the necessary capital for business growth and expansion.

By excelling in understanding the solar industry, planning your solar business effectively, launching and growing your operations, and managing business expenses and finances, you lay a solid groundwork for building a thriving and profitable solar business. Embrace the opportunities in the renewable energy sector, and leverage your expertise to contribute to a sustainable future while achieving business success.

About the Author

Solar Panels Network USA stands at the forefront of solar energy solutions, driven by a team of seasoned solar engineers and energy consultants. With over decades of experience in delivering high-quality solar installations and maintenance, we are committed to promoting sustainable energy through customer-centric, tailored solutions. Our articles reflect this commitment, crafted collaboratively by experts to provide accurate, up-to-date insights into solar technology, ensuring our readers are well-informed and empowered in their solar energy decisions.

How to Start a Solar Panel Business? – In-depth Guide

Rakesh Patel

  • Last Updated: October 26, 2023

How to start a solar panel installation business

  • Conduct market research to determine the degree of demand for solar panel installation services.
  • Get the required permits and certificates for the installation of solar panels and keep up with local and state laws.
  • Be abreast of the most recent advancements in solar technology and installation methods, and spend money on ongoing education and training for both you and your staff.
  • Develop connections with regional solar panel distributors and producers to find trustworthy providers of machinery and supplies.

Getting started with a new solar business is a very ambitious move that takes a lot of confidence to enact. However, turning it into a profitable business is quite the endeavor. If you think you have what it takes to be a successful solar panel company then think again. This is because you’re expected to deal with any issues that may affect your solar panel installation process. 

There will be times when you’re expected to deal with situations that require you to do things such as welding, roofing, plumbing, dealing with individual contractors, and even understanding the local grid. 

Solar panels might be simple to understand but, the business of solar panels is a totally different animal. As soon as you step into the business side of solar panels, you’ll be met with competitors willing to pounce on you to make sure that their business is the one that is seen flourishing. 

Before we go ahead, let’s take a quick look at how to start a solar panel business and make money.

Table of Content

About the Solar Industry

  • How to Start a Solar Panel Business

Challenges Faced by a Solar Panel Installation Company

Solar installation trips made faster with upper.

Going in blind into any industry without any business ideas is a grave mistake. An entrepreneur’s primary responsibility is to be a subject matter expert to ensure that they have the utmost clarity. This is why you must understand what your solar business is all about.

Responsibilities of a solar installation business

A solar installation business is someone you call when you need to have solar systems installed. Usually, such installation businesses deal with clients that need renewable energy like solar energy in residential areas.

Since these installations are usually in residential areas, solar panels have to be installed on roofs. So solar panel installers are expected to be licensed to deal with roofing and plumbing. With such massive upfront requirements, an individual is very likely to ask, “what’s in it for me?”

Future prospects

Renewable energy sources has become quite the norm when it comes to development projects across the globe, with residential clients making a fairly big chunk of the consumer base. Why wouldn’t one want to replace electricity usage with a renewable yet reliable solar energy system? 

This trend has been rapidly expanding globally thanks to solar manufacturers constantly innovating and reducing the price of solar cells and solar technology. The goal for most of these manufacturers is to sell as many panels as possible.

With such a ripe opportunity at hand, who doesn’t likes to make the most of it in order to start a solar business?

Why you should start a solar panel business

As previously stated, there are a lot of people looking to capitalize on this opportunity. This means that you only have a small window of time to enter the rapidly growing industry. It is only a matter of time before the major players are consolidated.

Fortunately, the expansion in the industry is helping a local solar business to easily capture their regional solar market. There is money to be made if you’re able to do the same. If it sounds good so far, then you must be wondering what it takes to start a solar business.

How to Start a Solar Panel Business?

Get ready for the laundry list of things that you’ll need to get started. The solar panel installation industry is not as straightforward as people make it out to be. A solar installation company has its own set of nuances. Here’s the list.

Step 1: Ensure that you have enough solar panels

How are you going to install and sell solar panels if you don’t have any yourself? It is expected of a business to have sufficient inventory. Sufficient is the key word here, a lot of businesses tend to overspend on inventory.

A good way to negate this effect is by acquiring inventory based on the number of workers that you have hired. Why would you need thousands of panels when you only have half a dozen people to install them?

Understand the demand in your locality to better estimate the required amount of investment. A solar power company is by no means a low-investment business plan. So, be prepared for the upfront costs to be heavy on the wallet.

Step 2: Get equipment that’s fit for a solar business

Here’s where skimping is not an option, for if you skimp you must deal with the consequences of your equipment failing on you at the worst times imaginable. In the solar panel installation industry, tools are an essential part of the business.

This also includes logistical tools such as trucks/vans and software that will optimize your business operations . As a solar business owner, you are in charge of making sure that your customers get renewable energy at their place without a hitch.

Investing once in reliable equipment usually proves to be quite the lifesaver for many solar businesses. However, alongside reliable equipment, a business plan must include backups to account for any bit of equipment that does fail.

Step 3: Understand the industry and technology in-depth

Understand the industry and technology to start a solar panel installation business

Expertise when it comes to Solar Panels is a must-have. How comfortable would you be giving your car away to a mechanic that barely knows how to start the thing? Exactly. For potential clients to prefer your solar business over other competitors, you must approach an industry expert and understand the solar industry from the inside out.

Once you’ve mastered the technical side, you’ve won half the battle. Armed with such knowledge you know your costs, condition, and challenges. This puts you ahead of those that don’t exactly specialize in the field.

Step 4: Acquire Skilled Labor

It is highly unlikely for a solar installation business to be run by one individual all by themselves. Installing solar panels is a task that inherently requires multiple workers. Although, you wouldn’t want to hire just about anybody.

You need to hire employees that are skilled but also well-behaved. No amount of skill will compensate for an employee that the customer finds repulsive. Neither will manners compensate for a worker who doesn’t know what they’re doing. Finding balance is key to building a great team.

You need a solar installer that you can fully trust to do your bidding as they are the primary link between you and your customers.

Step 5: Know your clientele

The primary reason for any business failing is usually a lack of understanding of what exactly their clients want. Similarly, it is important for solar companies to understand the target market and needs of their clients to serve them in the best manner possible.

When it comes to solar installers, customers prefer having a hassle-free process that doesn’t disturb them much and is wrapped up in an instant. A solar panel installer must understand that their customers don’t like delays or complications.

Most users of solar power systems do so to reduce energy costs, so they aren’t likely to opt for a solar panel system that costs a lot either. Understanding their needs is fairly simple if you understand your locality well.

Step 6: Get everything of value insured

To start a solar business is expensive indeed. Though it would be a shame if those expensive assets were to be broken. This is why you need to get your equipment and inventory insured to cover the cost of such unexpected costs.

Arguably getting business insurance is more important as if there were any mishaps while installing panels you would be covered for the damages. Basically, any vital part of your business should be insured to ensure that you don’t have to pay to replace them.

Paying out of your pocket is something that nobody would want to do for a mistake that was completely avoidable. Getting liability insurance is just as important as getting the right license. Moreover, you should also open a business bank account to manage the business expenses separately.  

Step 7: Acquire the required licenses

Depending on your state you need different permits and licenses in order to legally operate your solar panel business and conduct solar installations. You might or might not also need other licenses depending on your business structure.

For example, if you operate in Massachusetts you are required to have a construction license and an electrician’s license. While other states are comparatively lax when it comes to licensing they still require you to have an electrician’s license if you’re dealing with 120-volt electricity.

If you are mainly going to install rooftop PV systems then it is also helpful to have a roofing contractor’s license as some states require you to have one for such installations.

Step 8: Market your business

Market your business after start a solar panel installation business

Don’t expect any clients to come knocking on your door if you haven’t even tried to market your business. For you to get any kind of solar sales you must focus on marketing efforts heavily. Since the business heavily relies on interacting with customers, referrals and traditional media can prove to be highly effective tools.

Market yourself in a way that mainly speaks of your expertise in the field. Though talking about financial incentives is also important. Sure most of your client base might know of all the solar tax incentives and savings but it is your job to drive the point home.

Making yourself visible online is also a priority as these days people look towards the internet for local solutions. Creating a google business account or running social media ads on local pages is a great idea to boost the number of your clients. Marketing does require you to invest some finances however it does make a difference.

Step 9: Look for investors

If you’re unable to invest the amount of money that is required by  solar companies then it is not a bad idea to get investors on board with your business plan. The solar panel industry has seen a lot of consistently growing investment.

Even the biggest venture capital firms have been investing in profitable solar projects. Given that your business plan shows promise you shouldn’t have a hard time acquiring investments or getting a business loan.

Much like any other business, solar panel contractors will also face their fair share of challenges. They are usually caused because of neglectful mistakes made by a new business. We’ve listed a few of them so that you don’t end up making the very same common mistakes when running your own business. 

1. Prioritization

A lot of solar businesses prioritize things such as panel quality, maximum power delivery, and low price. While those aspects are important, they aren’t the most noticeable to the customer. The aspect that matters the most when it comes to a solar panel business is customer experience. 

While you could just give them free ice cream, we recommend that you gain their satisfaction by making your services as clear and linear as possible. Your job is not only to install solar panels but also to ensure that the client is at ease and isn’t bothered much by the process.

Such an order of priorities will not only help you retain the customer for longer. It will also make the customer more likely to refer your business name to other individuals that are looking to get solar power.

2. Untrained workforce

The most common reason for a botched solar installation is human error. As previously stated, having the right skilled workforce is imperative for a solar installation business to succeed. Remember that a worker’s job is not complete by just having the panels installed.

With solar installations increasingly becoming common you will have to stand out from the competition and build a positive reputation to boost your solar sales. 

3. Poorly made route plans

You’d expect a solar company to be good at installing solar panels but unfortunately, that is not the case due to poorly planned routes. The biggest gripe coming from customers is usually the amount of time it takes to get the job done.

Such delays are very frustrating and can damage the reputation of your own solar panel business. The time lost to bad planning is often overlooked by countless businesses but it does reflect in their overall sales and efficiency stats.

Business owners can never hope to reach their epitome without proper optimization. Thankfully you can avoid almost all route planning issues with the help of Upper.

If you’ve dealt with planning routes, then you know how much of a menace it can be. Not only is it time-consuming and complex, but it is also inaccurate. Now couple this with accounting for service times and transit times to see how much time it would take for anyone to craft the perfect route. 

These issues are a matter of the past, thanks to Upper. With Upper, you can create perfectly planned routes that account for almost anything that you want faster than ever! With One Click Dispatch, creating a highly accurate route is perhaps easier than ordering a pizza. Uploading and sharing data is just as easy with our API Integration which allows you to get the information that you need at lightning-fast speeds!

Upper also allows you to plan trips months in advance! This is especially important for a solar panel business where you have a wave of clients booked for future installations. You can also prioritize stops based on their urgency to customize the routes to best match your plans! 

In fact, U.S. based solar installation company Sunbility used Upper Route Planner. The automated route planning process helped to find the best routes for their technicians. With Upper, they could complete their jobs 75% faster than before . Additionally, Upper helped them get 3x service calls for solar panel installations, thereby growing their business. 

Upper takes your services to the next level!

Planning routes has never been easier thanks to Upper! With Upper by your side, you can rest easy knowing that your routes are perfectly planned.

crossline

A solar business requires a hefty amount of startup costs as investment typically around $50,000. The bulk of this investment will be going to hard assets such as inventory and equipment.

Indeed! It is a high-investment solar business though given the compound annual growth rate of the solar panel market it should be quite a profitable venture for a lot of individuals.

The lifespan of a solar panel is variable depending on the manufacturer but most solar panels typically last for an average of 25 years. Their primary reason for degradation is natural wear and tear caused by weather conditions.

The solar panel industry is one that is rapidly growing across the globe. In such a market your best bet is to deliver consistently good services in order to build a reputation that carries your brand image for years.

Customers in this solar industry expect the quickest and finest services within their budget and it is crucial for you to meet those expectations to the best of your abilities. You will have to face difficult situations, but you will have to learn to deal with difficult customers in order to get the job done professionally.

Having Upper by your side will quickly prove to be a necessity once you start planning routes by yourself. Optimization is the key to maximizing the potential of any given delivery business.

Rakesh Patel

Rakesh Patel, author of two defining books on reverse geotagging, is a trusted authority in routing and logistics. His innovative solutions at Upper Route Planner have simplified logistics for businesses across the board. A thought leader in the field, Rakesh's insights are shaping the future of modern-day logistics, making him your go-to expert for all things route optimization. Read more.

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Small Business Trends

How to start a solar panel business.

The future demand for solar energy is expected to continue growing as countries worldwide shift towards renewable energy sources to combat climate change and reduce reliance on fossil fuels.

The business potential for a solar panel installation business is significant, especially in regions with strong sunlight and supportive government incentives. As more homeowners and businesses opt for solar, there is a continuous market for installation services.

It’s important to note that the success of a solar panel installation business depends on various factors, including location, market conditions, and business strategy. Conduct thorough market research and consider local regulations when entering the industry.

solar panel business

Starting a Solar Business

These preliminary steps will help you lay a strong foundation for your solar panel business and increase your chances of success. Each step is crucial in ensuring your business is well-prepared and legally compliant in the solar power field.

solar panel business

Conducting Market Research for Your Solar Business:

Market research involves studying the solar industry in your target region. Identify the demand for solar panels, competitors, customer preferences, and market trends. This information will help you make informed decisions about your business’s location, target audience, and pricing strategy. For those considering broader ventures, exploring vacant land business ideas can provide additional opportunities.

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solar panel business

Developing a Business Plan

A comprehensive business plan outlines your business goals, strategies, financial projections, and operational details. It serves as a roadmap for your solar panel business, helping you secure funding, make informed decisions, and set clear objectives. Understanding solar farm income per acre can be crucial in financial planning.

Establishing a Legal Entity

Choose a legal structure for your business, such as a sole proprietorship, LLC (Limited Liability Company), or corporation. Register your business with the appropriate government authorities and obtain any necessary licenses or permits.

solar panel business

Obtaining Business Insurance

Insurance is crucial for protecting your solar business from unforeseen events and liabilities. Consider policies like liability insurance, workers’ compensation, and property insurance to safeguard your assets and operations.

Opening a Business Bank Account

Separating your personal and business finances is essential for financial transparency and tax purposes. Open a dedicated business bank account to manage income, expenses, and transactions related to your solar panel business.

Marketing Strategies for Solar Power Businesses

Develop a marketing plan that includes online and offline strategies. This may involve creating a professional website, utilizing social media for promotion, attending industry events and trade shows, offering incentives for referrals, and building partnerships with local contractors or energy companies for solar projects. In-depth knowledge of how to start a business can significantly enhance your marketing efforts.

solar panel business

Types of Solar Panel Businesses

These descriptions and tips should provide insight into the different types of solar-related businesses and strategies for success operating your own solar panel business niche within the solar industry.

Solar Panel Cleaning Business:

This business specializes in cleaning and maintaining panels at solar installations to ensure they operate at peak efficiency.

Marketing Your Solar Panel Cleaning Service

Promote regular cleaning services to solar panel owners, highlight the benefits of increased energy production, offer package deals for ongoing maintenance, and use online platforms to reach a wider audience.

solar panel business

Solar Panel Installation Business

A solar panel installation company designs and installs solar panel systems for residential and commercial clients.

Tips for Building Clientele

Build a portfolio showcasing successful installations, obtain relevant certifications, partner with local contractors, offer financing options, and establish a strong online presence to attract customers.

Solar Panel Manufacturing Business

These businesses produce solar panels and related components.

solar panel business

Invest in research and development to improve panel efficiency, maintain high-quality standards, adhere to industry regulations, and explore export opportunities to expand your market.

Solar Panel Distribution Business

Distributors source solar panels and components from manufacturers and supply them to retailers and installers.

Build relationships with reliable manufacturers, provide prompt and efficient distribution services, offer competitive pricing, and maintain an up-to-date inventory.

solar panel business

Solar Panel Repair and Maintenance Business

Specializes in diagnosing and repairing issues with solar panel systems, as well as offering routine maintenance services.

Offer emergency repair services, provide preventive maintenance plans, ensure staff is trained and certified, and focus on customer satisfaction to build a loyal clientele.

Becoming a Solar Energy Consultant

Consultants offer expert advice on solar energy systems, helping clients make informed decisions.

solar panel business

Obtain relevant certifications and stay updated on industry trends, create informative content to establish expertise, network with solar businesses, and provide customized solutions to clients.

Renewable Energy Credit (REC) Trading Business

This business deals with trading renewable energy credits, which represent the environmental attributes of generated renewable energy.

Understand REC regulations in your region, build relationships with renewable energy producers, stay informed about market prices, and consider offering REC management services to renewable energy projects.

solar panel business

The Future Outlook of the Solar Business

The future demand for solar energy is expected to continue growing in the US and in countries around the world. Worldwide, there’s a shift towards renewable energy sources to combat climate change and reduce reliance on fossil fuels.

The business potential for a solar panel installation business is significant, especially in regions with strong sunlight and supportive government incentives. Those ae the regions where the solar energy market is growing at the highest rate.

As more homeowners and businesses opt for solar, there is a continuous market for installation services. The opportunities for innovations and growth in the solar energy markets are strong.

solar panel business

FAQs: Solar Panel Business

Is a solar installation business profitable.

The profitability of a solar panel installation business can vary based on location, market competition, and the size of installations. On average, a small residential solar panel installation can generate profit margins ranging from 10% to 30%. For example, a typical residential installation might cost around $15,000 to $25,000, with potential profits of $1,500 to $7,500 after expenses. Profitability can improve over time as the business grows and efficiency increases.

What are the key challenges in a new solar business?

Key challenges in the solar panel business include intense competition, fluctuating government incentives, regulatory hurdles, and the need for significant upfront investment. Weather-related challenges, such as unpredictable cloud cover and shading, can affect energy production and project timelines.

How can solar companies stay competitive?

To stay competitive, businesses should offer competitive pricing, quality installations, excellent customer service, and stay updated on industry trends and technology. Diversifying services, such as offering energy storage solutions or EV charging installations, can also set a business apart from competitors.

What training is required for installing solar panels?

Training requirements can vary by region and local regulations, but typically, individuals working in solar panel installation need certification or training in solar installation and electrical work. Certification from organizations like NABCEP (North American Board of Certified Energy Practitioners) is highly regarded. Training covers safety protocols, electrical wiring, panel installation, and system design.

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Solar Panel Business Plan

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With an extensive market chunk, the solar panel business is easy to enter and provides the most promising rewards in terms of growth and financial scalability.

Want to secure funds for your clean energy business? Want to get large-scale utility and federal government projects? You definitely need a comprehensive business plan to grow an idea into a terrific business opportunity.

Need help writing a business plan for your solar panel business? You’re at the right place. Our solar panel business plan template will help you get started.

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Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

  • Fill in the blanks – Outline
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How to Write A Solar Panel Business Plan?

Writing a solar panel business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Products and services:.

Highlight the solar panel services you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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solar panel system business plan

2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

Describe your business in this section by providing all the basic information:

Describe what kind of solar panel company you run and the name of it. You may specialize in one of the following solar panel businesses:

  • Solar Panel Manufacturing
  • Solar project development
  • Solar panel installation
  • Solar Panel retailing
  • Describe the legal structure of your solar panel company, whether it is a sole proprietorship, LLC, partnership, or others.
  • Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

If you’re an established solar panel service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Additionally, If you have received any awards or recognition for excellent work, describe them.

Future Goals

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential:

Describe your market size and growth potential and whether you will target a niche or a much broader market.

Competitive Analysis:

Market trends:.

Analyze emerging trends in the industry, such as technology disruptions like virtual site assessments, smart energy management, Integrated photovoltaics, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your solar panel business plan::

  • Conduct market research, industry reports, and surveys to gather data.
  • Provide specific and detailed information whenever possible.
  • Illustrate your points with charts and graphs.
  • Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your products:

Mention the products offered by your solar panel business. This list may include different types of solar panels,

  • Monocrystalline solar panels
  • Polycrystalline solar panels
  • Thin film solar panels
  • Bifacial solar panels

Describe your services:

Mention the solar panel services your business will offer. This list may include services like,

  • Installation
  • Consultation and site assessment
  • System design
  • Repair and Mantainence

Quality measures

:This section should explain how you maintain quality standards and consistently provide the highest quality service.

Additional Services:

In short, this section of your solar panel plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your solar panel installation business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your solar panel business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Mention your solar panel business’s staffing requirements, including the number of employees needed. Include their qualifications, the training required, and the duties they will perform.

Operational Process:

Equipment & machinery:.

Include the list of equipment and machinery required for the solar panel business, such as manufacturing and installation equipment, testing and maintenance machinery, transport vehicles, office equipment, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your solar panel business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your solar panel services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

  • Add a table of contents for the appendix section to help readers easily find specific information or sections.
  • In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
  • Provide data derived from market research, including stats about the solar panel industry, user demographics, and industry trends.
  • Include any legal documents such as permits, licenses, and contracts.
  • Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your solar panel business plan should only include relevant and important information supporting your plan’s main content.

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This sample solar panel business plan will provide an idea for writing a successful solar panel plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our solar panel business plan pdf .

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Frequently asked questions, why do you need a solar panel business plan.

A business plan is an essential tool for anyone looking to start or run a successful solar panel business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your solar panel company.

How to get funding for your solar panel business?

There are several ways to get funding for your solar panel business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

  • Bank loan – You may apply for a loan in government or private banks.
  • Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
  • Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
  • Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

What is the easiest way to write your solar panel business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any solar farm business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How detailed should the financial projections be in my solar panel business plan?

The level of detail of the financial projections of your solar panel business may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a comprehensive view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

Can a good solar panel business plan help me secure funding?

Indeed. A well-crafted solar panel business will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.

So, if you have a profitable and investable business, a comprehensive business plan can certainly help you secure your business funding.

What's the importance of a marketing strategy in a solar panel business plan?

Marketing strategy is a key component of your solar panel business plan. Whether it is about achieving certain business goals or helping your investors understand your plan to maximize their return on investment—an impactful marketing strategy is the way to do it!

Here are a few pointers to help you understand the importance of having an impactful marketing strategy:

  • It provides your business an edge over your competitors.
  • It helps investors better understand your business and growth potential.
  • It helps you develop products with the best profit potential.
  • It helps you set accurate pricing for your products or services.

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Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Energy & Sustainability

How to start a solar panel business right now.

What's In This Article

How would you like to earn $10,000 per month (or more) from home? If you want to get started with owning a solar business, then read on.

Solar energy has become very popular over the last decade. The cost of solar panels continues to drop, and they are becoming more affordable every day.

In fact, according to the U.S. Department of Energy, the average American household spends around $3,500 each year on electricity bills .

This means that installing solar panels people’s home or companies office’s can save them thousands of dollars each year.

This presents a wonderful opportunity for you to start a solar business and supply these goods and services into the market.

What Do I Need To Know Before Starting A Solar Panel Business?

You don’t need to invest millions of dollars into building a solar farm to reap the benefits of renewable energy.

All you need is a simple solar panel system that can generate enough electricity to meet your daily needs. Here are some tips for how to start a solar panel installation company:

Panel Types

Find out what kind of solar panels will work best in your area. There are many types of solar panels available today. Some are made of metal, while others are plastic.

You should also consider whether you want to use photovoltaic (PV) panels or concentrated solar power (CSP).

Both options have their pros and cons, but PV panels are generally cheaper than CSP.

Financial Options

Learn about the various financing options available for solar panel installations. Solar systems come in all sizes and shapes.

Financing options include leasing, buying, renting, and selling back the generated energy.

Each option comes with its own set of advantages and disadvantages.

For example, leasing requires upfront payments, whereas purchasing allows you to avoid paying any monthly fees.

However, if you sell the energy back to the utility companies, you may not be able to make as much money as you could by using other financing options.

High-quality, low-cost operating equipment, such as solar panels, should be used to make money.

Advanced technology should be used to save money. Vans and trucks should be used to transport equipment and teams.

Partnerships with established engineering firms should be made to design the solar panel system.

A good supplier of high-quality solar panels and inverters should be chosen. Fair prices should be paid for mounting equipment.

A good supplier should be competent, located close to you, offer value for money, provide quality products and services, charge fair prices, be stable and responsive, and have extensive experience.

Create an attractive website that showcases your services. Make sure it includes information about the products and services you offer, testimonials from satisfied customers, and contact details.

Also, add links to social media pages where people can learn more about your company.

A website is an important tool for any business. Customers need to be able to easily get information about your company and products.

Your website should not be cluttered or confusing. High-resolution pictures of your work are important because customers need to know what you’re capable of.

Add a section with testimonials and customer reviews. Your website should be a solid asset. You need to invest some time into it.

Advertising

Start advertising online. Advertise your services on websites such as Google, Facebook, LinkedIn, Twitter, YouTube, and Pinterest.

You can also advertise through local newspapers, magazines, radio stations, and television channels.

With solar panels, there is a lot of visibility. You should install them on homes and businesses in high traffic areas.

Donate a panel to a local community park or school to get more customers. Make sure you have a strong sales pitch and training program for your sales team.

Your sales script should include information on government incentives and tax breaks available for those who install Solar Panels.

You can also use these incentives to attract new customers. Networking events such as the Solar Power Convention in Las Vegas are another great way to meet people and make connections.

Direct Mail, Door-to-Door Appointment Sales, Call centers, and Social Media Marketing are some ways to advertise your business.

Web Designers

Hire a professional web designer who specializes in creating high-quality websites. They can help you create a clean and user-friendly design that attracts visitors.

Promote your website on social networking sites. Use free tools such as Facebook, Twitter, Google+, and Instagram to share photos and videos of your product line.

Offer discounts and special promotions to attract new clients. People love getting deals, so they might just sign up with you.

Businesses should be aware of the competition and know what other companies are charging.

The price must be calculated based on market conditions. Low prices may attract customers, but may also put you in debt. High prices may scare away customers.

Solar installations vary in price depending on factors such as location, size, and energy needs.

Customers can choose from different packages based on their needs. Prices range from $2000 to $10,000.

The company should offer several versions of the same products.

It should also offer customized quotes based on the client’s needs. The company should avoid discounts that don’t ensure future premiums.

Get qualified leads. Once you have attracted potential customers, you need to find ways to convert them into actual sales.

To do this, you must first identify the most suitable lead generation techniques.

These methods include cold calling, email marketing, direct mail, SEO, and social media marketing.

There are many ways to market a solar company, but there are also many ways to promote a product.

You need to understand what your target audience wants and how to connect with them.

This will help you create a successful solar marketing campaign.

Keep Track Of Progress 

Follow up with your prospects regularly. It is important to send regular emails and post messages on social media platforms to keep your leads interested.

Keep track of your progress. If you follow these steps, you will be well on your way to starting a successful solar panel installation business.

What Is A Solar Panel Business?

Solar Installation is a very competitive business. There are many types of jobs you could do. You should specialize in what you know best.

Becoming an expert means more than knowing your product. You need to know how to navigate financial incentives, work with utilities and regulations, and understand what makes a customer tick.

Solar energy is becoming more popular every day.

People are starting new companies that sell solar energy products. There are many types of solar power systems available today.

Some people specialize in designing beautiful landscapes, while others specialize in helping homeowners get financing for solar panels.

This article helps people who want to be successful in the solar industry.

India has taken many steps toward reducing carbon emissions. Many companies are now investing in solar power.

Renewable energy is becoming more popular. Many large-scale companies gained heavy consumption during this period. Insurance, Pharmaceuticals, Online Education, OTT, Telecom, Healthcare, etc.

Many entrepreneurs started their own businesses but did not take calculated risks as they were not sure about their knowledge, experience, and skill set.

The solar business is growing rapidly because more and more people need electricity. Companies charge high prices for power.

Cities and towns are building rooftop solar panels to generate electricity. Smart cities are installing solar panels to reduce pollution. 

As the shift to solar power is in its nascent stage, there is an opportunity for many years to come for many people to start a solar business.

There are many ways to start a solar business, but most of them require huge investments. 

Solar Installers And Licensing

Roofing contractors should consider adding solar systems as part of their services. These companies are starting to merge together, and some roofing contractors are already offering solar installations.

Roofing contractors may also offer other types of services, such as energy efficiency upgrades.

Solar contractors must be licensed by the state. You may also need an electrical or plumbing license, depending on your location. States require different types of licenses.

Flawed designs can lead you straight to the drawing board. You’ll need to collect and report permit-related project data before you can get any permits approved.

Your projects will be rejected if they aren’t compliant with state or city regulations.

Solar design tools in Aurora make it easy to avoid costly mistakes. Every project gets verified by NREL before you submit it to the state or city.

You can easily export your project data to many rebate authorities for approval.

How Does The Solar Photovoltaic System Actually Work?

A solar panel converts sunlight into electricity. The electricity produced by the solar panel is then used to power devices inside the house or business.

The electricity generated by the solar panel is sent back to the power company when there is more than enough electricity being produced than needed by the customers.

Photovoltaic power generation is a method of generating electricity using sunlight. Solar panels use photovoltaics to convert light into electrical current.

A photovoltaic panel consists of multiple cells arranged in an array. The output of the solar panel is connected to an inverter which converts DC current to AC current to be used by the grid.

Installations of PV systems are often referred to as solar farms or solar fields.

When hiring employees, you should always try to take advantage of opportunities that arise during expansion periods.

Don’t wait until you’re desperate to hire someone. Hire people who are already doing something well, and then let them grow into positions that require more responsibility.

Make sure you hire people who have the skills you need, but also make sure they’ll be valuable to your organization.

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

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

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

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

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

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

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

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

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

Research Your Market

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

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

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

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

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

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

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

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

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

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

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

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

Choose The Right Solar Panel Manufacturer

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

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

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

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

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

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

Create A Business Plan

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

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

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

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

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

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

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

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

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

Marketing costs are also high.

Find Investors

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

Investors provide funding so that you can purchase the necessary equipment and pay the employees you need to run your business.

There are several ways to approach finding investors. One option is to ask friends and family members for financial support.

Another way is to contact companies like Google Capital, which provides financing for businesses that use renewable energy sources.

Get Permits

Finally, once you have enough funds to begin building your solar panel business, you’ll need permits from local authorities.

These permits allow you to install your solar panels without having to worry about getting fined by the government.

A business owner needs to have both general liability and workers’ compensation insurance because of the risks involved in providing services to others.

You should get your insurance policy checked by an agent every year. This will ensure that you know everything about your policy.

Obtain the proper types of insurance. At a minimum, you should get a general liability insurance policy.

You should review the amount of business property you keep as well, along with the amount of inventory. Make sure there is enough coverage to cover losses due to fire, theft, and vandalism.

If your business has full-time employees, then you should get workers’ comp. Insurance for any vans, trucks, or sales vehicles used for your work.

Start Selling Solar Panels

When your solar panels are complete, you’ll want to start selling them. This means setting up a storefront and hiring salespeople. Once you’ve done all this, you’re officially running a solar panel business!

Keep Up With Maintenance

As your business grows, you’ll find yourself spending more time maintaining your solar panels.

You’ll need to replace broken parts, clean the panels, and maintain the electrical connections between them.

Solar panels and installation accessories are expensive, but if you’re going to invest in renewable energy, you might as well go big.

You’ll need a lot of money to get started. Your startup costs should include: solar panels ($150-$400/panel),

installation accessories ($200-$600), transportation ($500-$1,000), labor ($2,000-$3,000), and advertising ($5,000-$10,000).

Banks are willing to give you a loan if you can prove that you need it. Angel investors are people who invest money in businesses without expecting any return.

Micro-financing gives you an opportunity to borrow small amounts of money from many sources.

Get some from your savings. Approach pro-green power special interests that finance solar businesses.

Grow Your Business

As your business continues to grow, you’ll eventually need additional space to expand. If you don’t already own any land, you’ll likely need to lease some property.

Solar energy is an important source of clean energy. It is also growing fast. By 2026, it will be more popular than any other form of electricity.

Sell Your Business

Eventually, you’ll no longer be interested in running your solar panel business full time. In fact, you may even want to sell it. However, before you do, you’ll have to prepare the business for sale.

Continue Growing Your Business

Once you’ve sold your solar panel business, there are plenty of opportunities to continue growing your income.

For example, you could open another solar panel manufacturing facility. Or you could create an app or a website that helps people get solar panels installed on their homes.

Enjoy Financial Freedom

You’ll finally be able to enjoy financial freedom after years of working hard to build your solar panel business.

But if you want to keep earning money long-term, you’ll also need to invest in new technologies.

Stay Motivated

If you want to stay motivated while growing your solar panel business, consider starting a blog.

Blogging allows you to share information with other people who might be looking for similar content.

And because blogging is self-sustaining, you won’t need outside investment to sustain your efforts.

What Certifications Do I Need To Start A Solar Panel Business?

Certifications are important because they help customers feel confident about buying products from you.

Certifications can also increase your earnings by allowing you to work in more states, and they can make you more competitive.

NABCEP certifications offer national standards for PV professionals. These are some of the most common titles used by people who work in the solar industry.

People who work in this field must be skilled and knowledgeable about many aspects of solar energy.

There is also a voluntary certification program offered by NAB CEP and Green-e. This certification program is based on experience, training, and passing an exam.

Self-certification provides a more professional appearance when dealing with clients.

Certification programs help establish standards of excellence among energy providers.

What Legal Affairs Do I Need To Know About?

An LLC is a business structure set up by state statute. LLCs provide many benefits, such as liability protection, flexibility, and tax advantages.

Getting an LLC involves choosing a name, selecting owners, creating organizational documents, and obtaining an EIN.

Protecting your personal assets from lawsuits isn’t enough. You’ll also need insurance for your solar businesses.

Solar businesses need insurance to cover costs related to property damage and liability claims, and without it, you may have to pay out-of-pocket.

Insurance is vital to mitigate potential risks and losses. Every contracting business needs general insurance, but there are a couple of things specific to the solar industry you should consider.

Check with your state about the requirements for installing solar power. In some states, you need a license to be a solar installer.

In other states, there isn’t any licensing requirement. You should check with your local building code office to see if you need a license.

Finding Salespeople

Salespeople are the backbone of any solar company. They make or break the success of your business.

You need to hire people who know what they’re doing because if they don’t, then you’ll end up wasting time and money trying to train them.

Hire people who are passionate about what they do and who are willing to work hard.

Make sure they know how to answer every question that comes up and that they understand the needs of your customers.

Solar power is becoming more popular as people learn about how much money they can save by using this energy source.

Businesses are starting to outsource solar sales because they want to make sure that their customers get the most bang for their buck.

There are many companies that specialize in solar sales, and if you do a quick internet search, you’ll be able to find them.

Team Building

Start out with nothing but the very best. Find people who are NABCEP certified.

If your team isn’t NABCEP certified, give them the resources to get certified. Make sure your sales staff, installers, marketing people, and others know the details of your product.

Give everyone on your team the time to learn about your product. Keep in mind that your dream team doesn’t have to be all employees; network with other solar experts outside your niche.

These people will become invaluable sources of information and referrals if you keep working hard.

Compensation Structures

Solar salespeople get paid by commission. Salespeople who earn more money tend to be motivated to work harder.

However, if you give them too much money, they may try to make up for the lost time by taking on projects that aren’t profitable. This could lead to inflated prices and higher costs.

Solar startups need to register their businesses legally. You should do this before starting the business.

Your attorney will help you write the memorandum for your solar company. Some states require you to be licensed by the state. Check with your local government about any requirements.

Becoming An Expert In Your Field

Solar power companies need to know about government incentives and rebates. You should be an expert in this field.

There are many people who specialize in solar energy, so network with others who are knowledgeable in this area.

Be valuable resources and referral networks for others who are knowledgeable in solar energy.

Why Should I Start A Business In Solar Panels?

Solar panels are expensive, but they give homeowners more control over their energy costs.

Customers return to solar installations because they save money.

Green energy is becoming more popular among consumers. Companies are trying to become environmentally friendly by using solar power.

A franchise is a good business opportunity. Franchising is an easy way to start your own business.

There is no need to invest money or time into advertising. All you have to do is follow the instructions of the brand owner.

What Is The Profit Margin For Solar Companies?

Solar energy is becoming more popular because people want to save the environment. Companies are making money off solar energy by charging less than normal electricity costs.

Revenue streams and incentives are the two main ways for solar panel installers to make money.

Customers can get tax breaks and fast depreciation on solar equipment, while solar companies can benefit from government incentives such as tax breaks.

Companies can also reap benefits from faster depreciation on solar assets.

Final Thoughts

Solar power is growing rapidly, and people want to invest in this new technology.

You need to know how to set up a business plan, buy solar panels, advertise and market, and hire employees to help run the company.

Your first customer should come on board as soon as possible. You will need to prepare ahead of time to make sure you are ready to go.

Jenny Kim is the Energy & Sustainability Director at Green Building Elements where she is responsible with helping make solar power more accessible and affordable to anyone that wants to take advantage of the many benefits of solar energy. Jenny holds a Master of Science in electrical engineering from Virginia Tech where she paid her way through college as a top-performing inside sales representative for SolarCity.

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Solar Farm Business Plan Template

Written by Dave Lavinsky

solar farm business plan

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their solar farm business. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a solar farm business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your solar farm business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a solar farm, or grow your existing solar farms, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your solar farms in order to improve your chances of success. Your solar farm business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Solar Farms

With regards to funding, the main sources of funding for a solar farms are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a solar energy farm business.

The second most common form of funding for a solar farms is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will not fund a solar farms. They might consider funding a solar farms company with a locations across the country, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could never achieve such results.

Finish Your Business Plan Today!

How to write a business plan for a solar farm.

Your business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your solar farm business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the type of solar farms you are operating and the status; for example, are you a startup, do you have an existing solar farms that you would like to grow, or are you operating a network of solar farms?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the solar energy industry. Discuss the type of solar farms you are running. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing strategy. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of solar farms you are running.

For example, you might operate one of the following types:

  • Crystalline Silicon Power Plant: this type of solar farms uses Crystalline Silicon PV technology.
  • Thin-Film Solar Power Plant: this type of solar farms uses cadmium telluride (CdTe) solar panels.

In addition to explaining the type of solar farms you operate, the Company Analysis section of your business plan needs to provide background on the solar farm business.

Include answers to question such as:

  • When and why did you start the solar farm business?
  • What milestones have you achieved to date? Milestones could include sales goals you’ve reached, number of new attractions, etc.
  • Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the solar energy industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the solar energy industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies industry trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the market analysis section:

  • How big is the solar farms industry (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential market for your solar farms service. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your solar energy business plan must detail the customers you serve and/or expect to serve.

These are the main customers for the industry: Solar Power Utilities, and Federal Government.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of solar farms you operate. Clearly, commercial utilities would want different products and services, and would respond to different marketing tactics than government entities.

Try to break out your target market in terms of their location, and their wants and needs. With regards to location, include a discussion of the demand for solar energy for utilities’ renewable power portfolio standards. Because most solar farms primarily serve customers living in their same region, such information is usually available on local or county government websites.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your solar farm business faces and then focus on the latter.

Direct competitors are other solar farms projects.

Indirect competitors are other options customers may use that aren’t direct competitors. This includes traditional energy suppliers, other alternative energy providers, and other power plant contractors, such as fossil fuel and other renewable energy power plant contractors. You need to mention such competition to show you understand that not all energy needs will be met by a solar farms.

With regards to direct competition, you want to detail the other solar farms with which you compete. Most likely, your direct competitors will be solar farms located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

  • What types of customers do they serve?
  • What types of renewable energy technology do they use?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you use cutting-edge solar technologies?
  • Will you provide options or automations that your competitors don’t offer?
  • Will you make it easier or faster for customers to engage your services?
  • Will you provide better customer service?
  • Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a solar farm business plan, your marketing plan should include the following:

Product: in the product section you should reiterate the type of solar farms that you documented in your Company Analysis. Then, detail the specific services you will be offering.

Price: Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place: Place refers to the location of your solar farms. Document your location and mention how the location will impact your success. For example, is your solar farms located in a high-sunlight exposure area, or in a desert, etc. Discuss how your location might allow you to serve a greater volume of customers.

Promotions: the final part of your solar farms marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

  • Advertising in trade magazines
  • Attending trade shows
  • Attending networking events
  • Joining local organizations

Operations Plan

While the earlier sections of your solar energy business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your solar farms, such as researching and writing grants, maintaining solar panels, staying abreast of new technology developments, processing paperwork, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sign your 100 th contract, or when you hope to reach $X in sales. It could also be when you expect to purchase additional solar panels, or when you expect to launch a new solar farm location.

Management Team

To demonstrate your solar farms’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in renewable energy or in power generation. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in renewable energy and/or successfully running small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $1,000,000 on building out your solar farms, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $1,000,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a solar farms business:

  • Location build-out including design fees, construction, etc.
  • Cost of equipment
  • Payroll or salaries paid to staff
  • Business and liability insurance
  • Taxes and permits
  • Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your solar farm design blueprint or location lease.

Putting together a business plan for your solar farms company is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the solar farm industry, your competition and your potential customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful solar farms.

Solar Farm Business Plan FAQs

What is the easiest way to complete my solar farm business plan.

Growthink's Ultimate Business Plan Template  allows you to quickly and easily complete your Solar Farm Business Plan.

What Is the Goal of a Business Plan's Executive Summary?

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Solar Panel Manufacturing Plant Business Plan

MAY.05, 2015

Solar Panel Manufacturing Plant Business Plan

How to Write a Solar Panel Manufacturing Business Plan?

With increased awareness of the damaging impacts of fossil fuels on nature, the world is beginning to use renewable energy sources to power itself. If you are a business opportune, the changing trends must give you a hint to launch solar cell manufacturing plant.

I am a business management consultant at OGScapital and in this blog, I will guide you through the ways by which you could start and manage a solar cell factory successfully.

To step into the business, you have to first do exhaustive research on how to start a solar panel manufacturing business. Following that, you will need to take down your thoughts and draft them in a solar business proposal.

Solar Energy business plan

To write an effective business plan, here are the steps you need to take.

1. Outline a Clear Executive Summary

The executive summary should explain what your startup looks like, how you plan to manage it, who will be your buyers, and what are the targets you aim to achieve through your business.

2. Write the Company Summary

The company summary should throw light on the qualification and experience of the company owner and the motive behind starting the  solar panel production plant.

3. Pen Down Your Products and Services

This section should specify the products you will be selling and the services you will be offering by launching a  solar panel production plant.

4. Carry out a Market Analysis

Competitors are for both – to learn from and to compete with. Therefore, in this section of your solar panel manufacturing plant business plan you should explore your target market as well as your competitors.

5. Perform Customer Segmentation

In this part, you will have to identify the distinct groups of your target customers.

6. Set the Prices

Your business plan should contain your pricing strategy for at least three years.

7. Create the Personnel Plan

Your business plan should explain how many people with what qualifications will you be hiring. Taking down their expected salaries for at least three years is yet another detail you shouldn’t miss while writing the business plan.

8. Develop a Sales Strategy to Brand Your Startup

Know how you are different from others in the business world and figure out ways to brand your image.

9. Make a Financial and Operational Plan

This section of your business plan should describe solar panel manufacturing plant cost and other fiscal details.

How do I start up a solar cell manufacturing industry?

To start a solar cell manufacturing industry, you just need to follow a few steps:

Make Your Business Plan

To start with, you must get a detailed and accurate business plan that takes into account your spending, investment, expenditure, staff, customer groups, and every relevant detail.

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Execute the Business Plan

Next, you just have to follow your business plan in letter and spirit. You have to make sure you do not deviate from the criteria you had set in your business plan. For instance, how you will market your venture, how much salaries would you pay, all such details should be pre-decided.

Manage & Operate

Establishing and growing a business is more difficult than the launch. For that, you will have to ensure a strong hierarchical management structure and a clear chain of commands for smooth operations.

What are some basic details about the manufacturing process, investment, machinery, and human resource?

3.1 how are the solar panels manufactured.

The working principle behind the manufacturing of solar panels is the chemical and photoelectric electricity generation phenomenon.

Silicon is used to manufacture thin wafer-like slices in rectangular or square shapes. The metal block is then painted and polished. To enable the conduction the semi-conductor is converted to either N-type or P-type silicon. The silicons are soldered together in a grid-like structure. Afterward, a glass coating is laid so that light from the sun reaches the silicon matrix and generates electricity through the photoelectric effect.

3.2 The Pre-Requisites to Open Solar Panel Manufacturing Plant

As you can see, manufacturing solar panels is not a simple or single-process task. To manufacture it, you require sophisticated technology, tools, as well as electrical engineers. The human and other resources you need to have to manufacture solar panels are given below.

3.2.1 Investment & Monetary Resources

The investment in manufacturing solar panels would vary based on the technology you are using. For a rough estimate, a 20-Watt Solar Panel can cost about $90 – $120 in manufacturing. Therefore, it is obvious that you need a hefty amount in your account to step into this business.

3.2.2 Required Tools, Space & Machinery

To establish solar panel manufacturing plants you need to procure a large space that is free from the issues that can mess up with the manufacturing process. They include electric tripping, water leakage, and open areas exposing the panels to thunder before they are finished.

The machinery and required tools are:

  • Stringer machine
  • Automatic framing machine
  • Layup station
  • Automatic station with conveyor belts
  • Backsheet cutting machine
  • Solar simulator
  • Ribbon bending and joining tools
  • Electroluminescence Testing Equipment
  • Support and transport tables
  • Laboratory accessories for quality control

3.2.3 Human Resources

To enable the manufacturing, you will need to hire:

  • Operation Manager
  • Electrical Engineers
  • Energy System Engineer
  • Facility Managers
  • Technicians (Mechanics/ Electricians)
  • Sales Managers
  • Web Developers & Social Media Managers
  • Other General Staff

What’s the total investment of start solar panel manufacturing plant?

solar panel business plan

As mentioned earlier, manufacturing a 20-Watt Solar Panel can take from $90 – $120 depending on the technology you are using. The cost of the machinery required is also high as well as the cost of hiring and maintaining a specialized workforce.

Therefore, if you are looking for how to manufacture solar panels in the United States, you must keep in mind that it is going to take a lot of your funds.

To give you a complete idea about solar cell manufacturing plant cost, we are providing the estimated startup costs of a solar panel manufacturing startup based in Boston. This solar cell manufacturing equipment cost pro forma was devised for a startup that used the latest German technology to manufacture solar panels.

How much will it cost to set up a solar panel manufacturing unit?

In addition to the startup costs that were given in the previous section, the cost of maintaining the facility is also worth considering. 

Setting up a solar panel manufacturing plant includes daily maintenance and quality check of the machines and tools. To assess how much all of it will cost you and how much profit you would be able to generate you need to make a thorough financial plan. That plan should comprise a minimum 3-year analysis of the following:

  • Important Assumptions
  • Break-even Analysis
  • Projected Profit and Loss 
  • Profit Monthly
  • Profit Yearly
  • Gross Margin Monthly
  • Gross Margin Yearly
  • Projected Cash Flow
  • Projected Balance Sheet
  • Business Ratios

What are the factors worth considering?

6.1 licensing & registration requirements.

The first thing to pay heed to is the licensing and other requirements that are prevailing in your city for starting a solar panel manufacturing business.

6.2 Cost of Solar Panel Manufacturing Plant

Second, you should estimate the amount you can invest, your monetary goals, and the purchasing power of your clients to understand whether or not starting this business would be feasible in a specified location.

6.3 Sales Strategy of Competitors

To get ahead of your competitors, you have to first study them. Their sales strategy, price setting, discounts, and packages will help you understand how much money to spare to reach out to more customers.

6.4 Quality Standards & Expectations of People

While looking for how to setup a solar panel manufacturing plant you should also consider the quality standards of solar panels that people would expect from you. Normally you have to meet the following criteria:

  • Resilience to Harsh Environments
  • Long Cables for Easy Connection
  • Multiple Mounting Possibilities
  • Factory Certifications

Get Customized Business Plan Made by OGSCapital Experts

By now, you must have understood how you can capitalize on the solar panel manufacturing opportunities. You must also have realized that such an extensive business cannot be launched without an accurate business plan.

Reading solar panel installation company business plans available on the web and trying to draft your business plan might land you into trouble and your hard-earned money at risk. Therefore, it is important to hire professional services to get a business plan or a project report on solar panel manufacturing.

Among all the professional business plan writers, we would encourage you to explore a bit and know why you should hire OGSCapital for the task!

15+ Years of Industry Experience

We have the privilege of having written business plans for small and large enterprises. Our most successful business customers include Velapp, Global Impact, Confurmo, KFC, Subway, PolyClean, and a thousand more!

Highly Specialized Team

Our founders as well as the employed business consultants are highly specialized in their fields. At us, you will interact with business experts with great interpersonal skills and a spirit of cooperation.

Happy Customers in More Than 30 Countries

Since 2006, OGSCapital has been serving thousands of customers in more than 30 countries. 

Rated the TOP4 Small Business Consulting Firm

In 2020, OGSCapital was rated the Top4 Small Business Consulting Firm by the Clutch.

If you want to gauge our experience and expertise in the field before hiring us, you can request a sample business plan for a solar energy company.  

  • How do I set up a solar panel manufacturing company?

As you can study from this solar panel manufacturing plant business plan pdf, you can set up a solar panel manufacturing company by procuring silicon metal, machinery, and tools to enable the photoelectric phenomenon. The rest of the steps are given in detail in this blog.

  • How much profit can you make with solar panels?

Depending on the technology you use and your customer base, you can make $30 to $50 in profit per month with solar panels.

  • How to start a solar panel manufacturing company in the USA?

You just need to acquire the licenses, get registration and follow the steps that are mentioned in this solar panel manufacturing project report pdf.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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ProfitableVenture

Solar Panel Installation Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Green & Eco-friendly

Are you about starting a solar panel installation business ? If YES, here is a complete sample solar panel installation business plan template & feasibility report you can use for FREE . Solar energy has become one of the most reliable sources of power supply especially in the operation of lifts in commercial buildings.

The market for solar panels is increasing and it is indeed still open for new investors to come in. So if you are thinking of starting a business that is into the production of technological components, then you should consider starting your own solar panel manufacturing company.

In as much as the market for solar panel is growing all over the globe, you must adopt a workable marketing strategy to be able to make good sales and huge profits. You can go into contract agreements with those who manufacture products that use solar (panels) energy so that you can be in charge of supplying solar panels to them.

You can also make more sales if you work with your customers to produce customized solar panels that can suit their purposes. There are regions where solar panels sells like wild fire and you can only discover these regions if you carry out proper research.

A Sample Solar Panel Installation Business Plan Template

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.

There are loads of areas where you can use solar energy and that is the reason why a lot of inventions that is being powered by solar panel (energy) keep propping up.

You can use solar energy to power automobile, solar energy to power street lights; you can use solar energy to power your house ( all of your electronics and electrical appliances inclusive ), you can use solar energy to virtually power device that requires electrical energy to function et al.

The Solar Panel Repair Services industry is an open industry, hence a low level of market share concentration. Even though large multi-service agencies operate in the industry, revenue is also spread among thousands of small firms and freelancers.

As a matter of fact, no single solar panel repair company can account for more than 5.0 percent of the total revenue generated in the industry.

This is the reason why smaller solar panel repair business accounts for a large percent of the players in the solar panel repair services industry. According to a report published by the National Renewable Energy Laboratory, about 64.0 percent of total industry operators employ less than 10 full time workers.

The Solar Panel Installation, Repair and Maintenance industry has galloped ahead in recent years as a result of the rapid technological developments in our world, falling solar panel costs and favorable government policy. In the coming years, demand for solar panel installation is projected to continue growing.

Ongoing government aid in the form of tax credits and rebates, along with technological advances in solar energy, as well as the rising popularity of solar power purchase agreements (SPPAs), is expected to help revenue grow sharply going forward.

The industry is still dominated by original equipment manufacturers (OEMs), which are companies that will visit a customer to repair or replace the same products that they make.

Statistics has it that the Solar Panel Repair industry in the united states of America, is worth $10bn, with an estimated growth rate of 22 percent. There are about 13,494 registered and licensed solar panel installation, repair and maintenance businesses in the United States and they are responsible for employing about 77,312 people.

Most people who have stake in the industry will quite agree that the solar panel repair services industry has come to stay and of course it is one industry that plays key roles not only in the business world, but also in almost all the aspect of what goes around in our world today as long as solar panels are involved and would need to be repaired, serviced or installed.

Over and above, the solar panel repair service industry is very open to any aspiring entrepreneur who has acquired the required trainings, skills and perhaps professional certifications to start his or her own solar panel repair business and of course make good money from the industry.

2. Executive Summary

Clean Energy Technologies®, LLC is a U.S based and standard solar panel installation, maintenance and repair company. We have been able to secure a standard and well – positioned office facility in a central business district in San Diego – California.

We are a solar panel installation, maintenance and repair company that is set to compete in the highly competitive solar panel installation, maintenance and repair services industry not only in San Diego – California, but also throughout the United States market.

Clean Energy Technologies®, LLC will offer services such as solar panel sales, installation, repair, servicing and maintenance et al.

Our business goal is to become one of the leading solar panel installation, maintenance and repair company in the United States and we will make sure that we do all we can to compete favorably with leaders in the industry including solar panel manufacturing companies that are also into solar panel repairs.

Our workers are going to be selected from a pool of certified and highly experienced solar panel / solar energy repair engineers and technicians in and around San Diego – California and also from any part of the United States of America as the business grows.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading solar panel installation, maintenance and repair companies in the United States and throughout the globe.

At Clean Energy Technologies®, LLC, our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for all our partners, employees and for our clients.

Clean Energy Technologies®, LLC is founded by Engr. Shannon Carson a solar energy engineer per excellence, who graduated with from Illinois Institute of Technology (B.Engr.) and his friend and business partner for many years Moses Carpenter (B.Sc. Business Management).

They have a combine experience that can help them build Clean Energy Technologies®, LLC to favorably compete with other leading solar panel installation, maintenance and repair businesses in the United States of America.

3. Our Products and Services

Clean Energy Technologies®, LLC was established with the aim of maximizing profits in the solar panel installation, maintenance and repair services industry .

We want to compete favorably with the leading solar panel installation, maintenance and repair companies in the United States which is why we have but in place a competent quality assurance team that will ensure that every repair carried out or related services rendered meet and even surpass our customers’ expectations.

We will work hard to ensure that Clean Energy Technologies®, LLC is not just accepted in San Diego – California but also in other cities in the United States of America. Our products and services are listed below;

  • Sale and distribution of solar panel and accessories
  • Servicing, maintenance and repair of solar panels
  • Roof mounted panel installation
  • Solar tracking panel installation
  • Ground mounted panel installation
  • Fixed rack panel installation
  • Monitoring services
  • Other related solar panel installation, maintenance and repair services

4. Our Mission and Vision Statement

  • Our vision is to establish a standard and world class solar panel installation, maintenance and repair company whose services and brand will not only be accepted in San Diego – California but also in other cities in the United States of America.
  • Our mission is to provide professional solar panel installation, maintenance and repair services and other related services that will assist businesses, individuals, households and non-profit organizations in ensuring that their solar panels are always in good shape to produce the required power output.
  • We want to build a solar panel installation, maintenance and repair company that can favorably compete with other leading brands in the solar panel installation, maintenance and repair services industry.

Our Business Structure

Clean Energy Technologies®, LLC, is a solar panel installation, maintenance and repair company that intend starting small in San Diego – California, but hope to grow big in order to compete favorably with leading solar panel installation, maintenance and repair companies in the industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operations.

At Clean Energy Technologies®, LLC, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

  • Chief Executive Officer
  • Head, Technical Services

Human Resources and Admin Manager

  • Sales and Marketing Executive
  • Solar Panel Installation, Repair and Maintenance Engineers/Technicians (10)

Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
  • Responsible for providing direction for the business
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization

Head, Technical Services:

  • Serves as project manager of the organization; works directly with employees
  • Develops strategic plan by studying technological and financial opportunities; presenting assumptions; recommending objectives.
  • Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
  • Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
  • Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
  • Maintains quality service by establishing and enforcing organization standards.
  • Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
  • Makes certain that the technical department perform efficiently, coordinate employee efforts, and facilitate communications between management and computer repairs and maintenance engineers and technicians
  • Ensures that the organization work in line with international best practices.
  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Defines job positions for recruitment and managing interviewing process
  • Carries out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversees the smooth running of the daily office and factory activities.

Sales and Marketing Manager

  • Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
  • Model demographic information and analyze the volumes of transactional data generated by customer
  • Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
  • Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
  • Responsible for handling business research, market surveys and feasibility studies for clients
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develops, executes and evaluates new plans for expanding increase sales
  • Create new markets cum businesses for the organization
  • Empowers and motivates the sales team to meet and surpass agreed targets

Accountant/Cashier:

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting for one or more properties.
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for Clean Energy Technologies®, LLC
  • Serves as internal auditor for Clean Energy Technologies®, LLC.

Computer Repair and Maintenance Engineers (2) and Technicians (8)

  • Responsible for general solar panel repairs and maintenance services
  • Carries out solar panel installation services for clients
  • Handles solar panel and accessories sales and supply for the organization
  • Handles roof mounted panel installation
  • Handles solar tracking panel installation
  • Handles ground mounted panel installation
  • Fixes rack panel installation
  • Handles monitoring services
  • Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the creative director in an effective and timely manner
  • Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

6. SWOT Analysis

Clean Energy Technologies®, LLC engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured solar panel installation, maintenance and repair business that can favorably compete in the highly competitive solar panel installation, maintenance and repair service industry in the United States and the world at large.

Part of what the team of business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Clean Energy Technologies®, LLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Clean Energy Technologies®, LLC;

Our core strength lies in the power of our team; our workforce. We have a team of certified and highly trained and experience solar panel installation, maintenance and repair engineers and technicians, a team with excellent qualifications and experience in various niche areas in the solar panel installation, maintenance and repair service industry.

Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry.

As a new solar panel installation, maintenance and repair company in San Diego – California, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the already saturated and highly competitive solar panel installation, maintenance and repair services industry; that is perhaps our major weakness.

Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.

  • Opportunities:

No doubt, the opportunities in the solar panel installation, maintenance and repair services industry is massive considering the number of individuals and corporate organizations who are now switching over to alternative energy such as solar panel.

As a solar panel installation, maintenance and repair company, we are ready to take advantage of any opportunity that is available in the industry.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new solar panel installation, maintenance and repair company in same location where our target market exist and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

  • Market Trends

One obvious trend in the solar panel installation, maintenance and repair industry is that players in this industry install solar panels as part of general residential and commercial contracting services.

These solar panel installation, maintenance and repair companies are contracted either by a homeowner, a solar panel manufacturer or by solar marketing firms that arrange a buyer for solar panels and contract an industry enterprise to carry out the installation work, maintenance and repairs et al.

Another trend is that, the Solar Panel Installation, Repair and Maintenance industry has galloped ahead in recent years as a result of the rapid technological developments in our world, falling solar panel costs and favorable government policy.

In the coming years, demand for solar panel installation is projected to continue growing. Ongoing government aid in the form of tax credits and rebates, along with technological advances in solar energy, as well as the rising popularity of solar power purchase agreements (SPPAs), is expected to help revenue grow sharply going forward.

Lastly, the solar panel installation, maintenance and repair industry is still going to be dominated by original equipment manufacturers (OEMs), which are companies that will visit a customer to repair or replace the same products that they make.

8. Our Target Market

Before starting our solar panel installation, maintenance and repair business in San Diego – California, we conducted a market survey and feasibility studies and we are certain that there is a wide range of both corporate and individual clients who cannot successfully run their businesses without the services of solar panel installation, maintenance and repair companies.

In view of that, we have created strategies that will enable us reach out to various corporate organizations and households who we know can’t afford to do without our services. Below is a list of the people and organizations that we have specifically market our products and services to;

  • Banks, Insurance Companies and other related Financial Institutions
  • Blue Chips Companies
  • Corporate Organizations
  • Manufacturers and Distributors
  • Real Estate Owners, Developers, and Contractors
  • Research and Development Companies
  • The Government (Public works department)
  • Schools (High Schools, Colleges and Universities)
  • Sport Facilities
  • Religious Organizations
  • Television Stations
  • Printing Press (Publishing Houses)
  • Branding and Advertising agencies
  • Individuals and households
  • Entrepreneurs and StartUps

Our Competitive Advantage

Surviving in the business world as a solar panel installation, maintenance and repair company requires more than, your expertise, knowing how to deliver standard repairs and maintenance jobs but also how to network with key people that matters; decision makers that can decide who will get a solar panel supply, installation, repair and maintenance contract.

Without a shadow of doubt, there are loads of big time investors (Solar Panel Manufacturing Companies), that have a stake in the solar panel installation, maintenance and repair services industry; but one thing is certain, there is room big enough to accommodate both the big solar panel installation, maintenance and repair companies and the small solar panel installation, maintenance and repair companies.

What smaller solar panel installation, maintenance and repair companies need to do to survive in the industry is to concentrate on providing solar panel sales, repair, maintenance and installation services to households, individuals, estates, communities, schools, hospitals and hotels et al before bidding for big solar panel supply, installation, repair, and maintenance contracts from large corporations and government agencies (Public Works Department).

We are quite aware that to be highly competitive in the solar panel installation, maintenance and repair services industry means that you are not only expected to be able to deliver consistent and highly reliable solar panel supply, installation, repair and maintenance jobs, but you must be able to meet set targets. No one would want to continue to hire your services if don’t always meet up with the target date of completion of projects.

Our competitive advantage lies in the power of our team; our workforce. We have a team of certified and highly trained and experience solar panel installation, maintenance and repair engineers and technicians, a team with excellent qualifications and experience in various niche areas in the solar panel installation, maintenance and repair service industry.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups solar panel installation, maintenance and repair businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Clean Energy Technologies®, LLC is established with the aim of maximizing profits in the repair services industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients. Clean Energy Technologies®, LLC will generate income by offering the following solar panel installation, maintenance and repair related services;

10. Sales Forecast

One thing is certain, there would always be corporate organization, government agencies, households and individual who would need the services of solar panel installations, maintenance and repair companies.

We are well positioned to take on the available market in solar panel installation, maintenance and repair services industry and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our solar panel installation, maintenance and repair company to enviable heights.

We have been able to critically examine the solar panel installation, maintenance and repair market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in San Diego – California.

Below is the sales projection for Clean Energy Technologies®, LLC, it is based on the location of our business and of course the wide range of our services and target market;

  • First Year-: $350,000
  • Second Year-: $750,000
  • Third Year-: $1,200,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same solar panel installation, maintenance and repair services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

We are mindful of the fact that there is stiffer competition in the solar panel installation, maintenance and repair services industry; hence we have been able to hire some of the best marketing experts to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the solar panel installation, maintenance and repair services industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Clean Energy Technologies®, LLC.

Our corporate goal is to grow Clean Energy Technologies®, LLC to become one of the top 10 solar panel installation, maintenance and repair services brands in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in San Diego – California but also in other cities in the United States of America.

Clean Energy Technologies®, LLC is set to make use of the following marketing and sales strategies to attract clients;

  • Introduce our solar panel installation, maintenance and repair company by sending introductory letters alongside our brochure to individuals, households, corporate organizations, religious organizations and key stake holders.
  • Promptness in bidding for solar panel supply, installation, repair, and maintenance contract from the government and other corporate organizations
  • Advertise our business in relevant business magazines, newspapers, TV stations, and radio station.
  • List our business on yellow pages ads (local directories)
  • Attend relevant international and local expos, seminars, and business fairs et al
  • Create different packages for different category of clients in order to work with their budgets and still deliver excellent services
  • Leverage on the internet to promote our business
  • Engage direct marketing approach
  • Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with our in house brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to become the number one choice for both corporate clients and individual clients in the whole of the United States and beyond which is why we have made provisions for effective publicity and advertisement of our solar panel installation, maintenance and repair company.

Below are the platforms we intend to leverage on to promote and advertise Clean Energy Technologies®, LLC;

  • Place adverts on both print (newspapers and magazines) and electronic media platforms
  • Sponsor relevant community based events/programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our services
  • Install our Bill Boards on strategic locations all around San Diego – California
  • Engage in road show from time to time in targeted neighborhoods
  • Distribute our fliers and handbills in target areas
  • Contact corporate organizations by calling them up and informing them of Clean Energy Technologies®, LLC and the services we offer
  • List our solar panel installation, maintenance and repair company in local directories/yellow pages
  • Advertise our solar panel installation, maintenance and repair company in our official website and employ strategies that will help us pull traffic to the site.
  • Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo et al.

12. Our Pricing Strategy

At Clean Energy Technologies®, LLC we will keep the prices of our services below the average market rate for all of our customers by keeping our overhead low and by collecting payment in advance from corporate organizations who would hire our services. In addition, we will also offer special discounted rates to all our customers at regular intervals.

We are aware that there are some one – off jobs or government contracts like solar panel supply, installation, repair, and maintenance services which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.

  • Payment Options

At Clean Energy Technologies®, LLC, our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

  • Payment by via bank transfer
  • Payment via online bank transfer
  • Payment via check
  • Payment via bank draft
  • Payment via mobile money
  • Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a standard solar panel installation, maintenance and repair company; it might differ in other countries due to the value of their money. However, this is what it would cost us to set up Clean Energy Technologies®, LLC in the United of America;

  • Business incorporation fees in the United States of America will cost – $750.
  • The budget for Liability insurance, permits and license will cost – $3,500
  • Acquiring an office space or warehouse that will accommodate the number of employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $100,000.
  • The amount required to purchase the needed tool box and repair equipment – $25,000
  • Equipping the office (computers, printers, projectors, markers, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $30,000
  • Amount required to purchase the needed software applications to run our business – $ 3,500
  • Launching an official Website will cost – $500
  • Amount need to pay bills and staff members for at least 2 to 3 months – $70,000
  • Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000

Going by the report from the market research and feasibility studies conducted, we will need about two hundred and fifty thousand (250,000) U.S. dollars to successfully set – up a medium scale but standard solar panel installation, maintenance and repair company in the United States of America.

Generating Funding/Startup Capital for Clean Energy Technologies®, LLC

Clean Energy Technologies®, LLC is a business that will be owned and managed by Engr. Shannon Carson and his friend and business partner for many years Moses Carpenter. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

  • Generate part of the start – up capital from personal savings and sale of his stocks
  • Generate part of the start – up capital from friends and other extended family members
  • Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 (Personal savings $70,000 and soft loan from family members $30,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Clean Energy Technologies®, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our solar panel installation, maintenance and repair services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Clean Energy Technologies®, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

  • Business Name Availability Check:>Completed
  • Business Incorporation: Completed
  • Opening of Corporate Bank Accounts various banks in the United States: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Securing a standard office facility for our studio: Completed
  • Application for business license and permit: Completed
  • Purchase of All form of Insurance for the Business: Completed
  • Conducting Feasibility Studies: Completed
  • Generating part of the start – up capital from the founders: Completed
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of Logo for the business: Completed
  • Purchase of repair and installation tools and equipment: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of the Needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
  • Creating Official Website for the business: In Progress
  • Creating Awareness for the business: In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with vendors and key players in various industries: In Progress

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StartupBiz Global

Starting Solar Installation Business Plan (PDF)

Solar Panels Installation Business Plan

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).

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. 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)

Solar Installation Business Plan PDF

Testimonial 5

I was able to understand the business side of farming because of your business plan. You did extensive research; the business plan was well prepared and fully detailed.  It made everything clear, and I have somewhere to start now. I am confident that I am going to succeed in my business because of the guidance from your business plan.

Testimonial 1

StartupBiz Global provided a very professional and comprehensive business plan which I used for my business. The business plan was easy to edit, and I was able to get the funding which I wanted. I highly recommend their business plans.

Testimonial 4

The business plan which I purchased from your website saved me TIME and MONEY! The layout of the business plan was excellent. The financial statements were detailed and easy for me to edit. I will come back to purchase another business plan soon.

Testimonial 3

I was extremely lucky to come across StartupBiz Global. Their business plan exceeded my expectations, and most importantly I was able to secure a loan from my bank. Thank you guys, now my dreams are coming true!

Testimonial 8

Just wanted to say I am very happy with the business plan and I will gladly recommend your products, thank you very much and have a great day.

Testimonial 2

Many thanks for your incredibly efficient service and thorough business plan. I am very impressed with the business plan. Before I bought the business plan, I tried to do my own business plan – it was such a nightmare and it turned out badly, also not to mention the stress it caused me. I wish I knew about your website earlier!

Testimonial 6

I purchased a business plan from you, and I’m glad to inform you that I was able to get my loan, and I’m starting my poultry farming business on the 1 st of July. This was made possible because of your business plan. Thank you very much, you made my dream come true.

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I found Startupbiz Global online when I was in desperate need of a business plan. I was overwhelmed by the quality of the business plan, it’s comprehensive and well researched! I did not have to wait to get the business plan, I got it instantly after payment. I highly recommend Startupbiz Global, and would happily use them again in the future.

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!

solar installation business proposal

If you want to purchase multiple business plans at once then click here: Business Plans Store.

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.

We wish you the best in your solar installation business! Check out our collection of business plans  , and more business ideas .

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How to Start a Profitable Solar Energy Business [11 Steps]

Nick

By Nick Cotter Updated Feb 02, 2024

image of a solar energy business

Business Steps:

1. perform market analysis., 2. draft a solar energy business plan., 3. develop a solar energy brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for solar energy., 6. open a business bank account and secure funding as needed., 7. set pricing for solar energy services., 8. acquire solar energy equipment and supplies., 9. obtain business insurance for solar energy, if required., 10. begin marketing your solar energy services., 11. expand your solar energy business..

When embarking on a solar energy business venture, it's crucial to understand the market landscape you're entering. A thorough market analysis will inform your business strategy and allow you to identify opportunities and threats within the solar industry. Here are key points to consider in your market analysis:

  • Assess the current demand for solar energy solutions in your target market, including residential, commercial, and industrial sectors.
  • Analyze the competitive landscape by identifying existing solar energy businesses, their market share, and their product offerings.
  • Examine government policies, incentives, and regulations that could affect the solar energy market, such as tax credits, subsidies, or import duties on solar panels.
  • Identify trends in solar technology advancements and how they might influence market dynamics and your business strategy.
  • Understand the customer profile, including their motivations for switching to solar, their purchasing power, and the factors that influence their decision-making.
  • Consider the geographic factors that may impact the solar energy potential, such as average sunlight exposure and weather patterns in your target regions.
  • Explore the supply chain for solar components and assess the reliability and costs of sourcing materials and equipment.

image of a solar energy business

Are solar energy businesses profitable?

Yes, solar energy businesses can be profitable. According to the U.S. Energy Information Administration, the cost of solar energy has declined significantly over the past few years, making it a more accessible and attractive option for businesses. With a variety of incentives available to businesses who install solar systems, including tax credits and other state incentives, this renewable resource continues to be a profitable and practical choice for business owners across the country.

Embarking on a solar energy business venture requires a well-crafted business plan to navigate the competitive landscape and chart a path toward profitability. A comprehensive plan will serve as a blueprint to guide your operational, financial, and marketing strategies. The following points should be included in your draft:

  • Executive Summary: Summarize the business objectives, mission statement, and the basic information about your company's leadership team, employees, and location.
  • Market Analysis: Conduct research to understand the solar industry, customer demographics, market trends, and competitor strategies.
  • Organization and Management: Outline your company's organizational structure, details about the ownership, and profiles of your management team.
  • Services or Products: Describe the solar products or services you plan to offer, including details on product life cycles and research and development activities.
  • Marketing and Sales: Develop a strategy for how you will attract and retain customers, including your sales approach and marketing channels.
  • Funding Request: If you are seeking financing, specify the amount needed, potential future funding requirements, and strategic financial plans.
  • Financial Projections: Provide an analysis of the financial forecasts, including balance sheets, income statements, cash flow statements, and budget for capital expenditures.

How does a solar energy business make money?

Solar energy businesses make money through a variety of different sources. These include the sale of solar panels, installation services, and maintenance services. Additionally, many solar businesses offer additional services such as energy auditing and system monitoring. An example target audience for an air duct cleaning business would be homeowners as they are often looking to improve their indoor air quality, increase efficiency, and reduce their carbon footprint. They are also less likely to want to do the labor themselves, so they will be looking for a reliable and competitively priced service provider that they can call on whenever necessary.

Developing a brand for your solar energy business is crucial as it sets you apart from competitors and communicates your company's values to customers. A strong brand resonates with your target audience, fosters loyalty, and enhances recognition. Here's how you can build a compelling solar energy brand:

  • Determine your brand's core values and mission statement to reflect your commitment to sustainability and customer service.
  • Choose a brand name that is memorable, easy to pronounce, and reflects the solar energy industry.
  • Design a logo and visual elements that are distinctive and convey clean energy and eco-friendliness.
  • Create a brand voice and messaging that consistently communicate your brand's benefits and values across all marketing materials.
  • Identify your target audience and tailor your branding to meet their needs and preferences.
  • Ensure all branding materials maintain a consistent aesthetic and message for strong brand cohesion and recognition.
  • Consider trademarking your brand name and logo to protect your brand's identity.
  • Use storytelling to connect with customers and share the impact of solar energy on the environment and their lives.

How to come up with a name for your solar energy business?

When coming up with a name for your solar energy business, start by brainstorming words that symbolize the energy and goals of the business. Consider words like “sun”, “breeze”, “light”, and “power”. Once you have a list of words that resonate with you, combine them with other positive keywords to come up with an exciting and effective business name. Check online to make sure that the name you decide on has not already been taken. Additionally, consider visiting your local library for resources to help guide you in the process of picking the perfect title for your new enterprise. With some thought and creativity, you can come up with a memorable and fitting name for your solar energy business!

image of ZenBusiness logo

Starting a solar energy business requires not only technical know-how and market knowledge but also making sure your venture is legally recognized. Formalizing your business registration is a key step in legitimizing your operations and protecting your interests. Here's how you can navigate this crucial stage:

  • Choose a business structure suitable for your needs, such as sole proprietorship, partnership, limited liability company (LLC), or corporation, and register with your state's Secretary of State or equivalent entity.
  • Obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) for tax purposes, especially if you plan to hire employees.
  • Register for state and local taxes, including sales tax, use tax, and property tax, if applicable to your business operations.
  • Acquire the necessary business licenses and permits specific to the solar energy industry from local, state, and federal agencies.
  • Ensure compliance with local zoning laws and regulations, especially if you're operating a physical office or installation service.
  • Consider registering your business name as a trademark to protect your brand and identity in the marketplace.

Resources to help get you started:

Tap into valuable materials designed specifically for solar energy entrepreneurs aiming to stay ahead in market trends, optimize operations, and pursue strategic business expansion:

  • Solar Energy Industries Association (SEIA) Reports: Comprehensive industry data, policy updates, and market research critical for strategic planning. Visit SEIA .
  • GreenTech Media (GTM) Research: In-depth analysis and news on solar energy technologies and market trends. Great for staying informed on the latest in solar innovation. Visit GTM .
  • International Energy Agency (IEA) Solar PV Roadmap: Strategies and analysis to understand the global solar PV market's future and its implications for entrepreneurs. Visit IEA .
  • National Renewable Energy Laboratory (NREL) Publications: Peer-reviewed papers, data sets, and analysis tools on solar technologies and financing. Visit NREL .
  • Renewable Energy World: A hub for news, articles, and reports on the broader renewable energy market, including solar. Ideal for entrepreneurs looking for a wider perspective. Visit Renewable Energy World .
  • Solar Power World: Offers news, technical articles, and reviews on solar technology and installations, suitable for keeping up with industry best practices. Visit Solar Power World .

Starting a solar energy business requires strict adherence to various legal requirements including licenses and permits. These are crucial to ensure compliance with local, state, and federal regulations. Below is a guide to help you acquire the necessary documentation:

  • Research Local Requirements: Investigate the specific licenses and permits required in your area by contacting the local city or county government. Solar installation often requires a general contractor's license or a specialized solar contractor's license.
  • State-Level Permits: Check with your state's department of business licensing or professional regulation for any state-specific permits and how to apply for them.
  • Federal Compliance: Ensure you understand the federal requirements, which could include obtaining an Employer Identification Number (EIN) for tax purposes and adhering to the Occupational Safety and Health Administration (OSHA) guidelines.
  • Building Permits: Get familiar with the process of obtaining building permits, as most solar panel installations will require them.
  • Electrical and Plumbing Licenses: Depending on the scope of your services, you may need to obtain specific licenses for electrical and plumbing work related to solar installations.
  • Specialized Solar Training and Certification: Although not always a legal requirement, obtaining certification from entities such as the North American Board of Certified Energy Practitioners (NABCEP) can enhance credibility and may be required by some jurisdictions.

What licenses and permits are needed to run a solar energy business?

In order to run a successful solar energy business, you will need the appropriate licenses and permits. Depending on the type of business you’re running, you may need to obtain a local business license, a certification of authority to do business in the state, an occupational license, and any other applicable permits that are required by your local or state governments. You may also need to obtain an electrical contractor’s license if you are installing and wiring solar panels, as well as any applicable certifications that are required by your state or local government to handle hazardous materials, such as batteries.

Starting a solar energy business requires careful financial management from the outset. Step 6 is crucial for keeping your business's finances organized and obtaining the necessary capital. Here's how to tackle it:

  • Research banks and credit unions that offer business banking services. Look for institutions with experience in renewable energy financing and favorable terms for small businesses.
  • Prepare the necessary documents, which typically include your business plan, EIN (Employer Identification Number), Articles of Incorporation, and possibly a business license or certificate.
  • Open your business bank account by completing an application with your chosen financial institution. This will help you manage your expenses, revenues, and taxes effectively.
  • Explore funding options such as business loans, solar-specific grants, government incentives, or venture capital. Consider the pros and cons of each to decide which best suits your business needs.
  • Develop a comprehensive financial plan that outlines how you'll use and repay any borrowed funds, ensuring sustainable growth for your solar energy business.
  • Regularly consult with a financial advisor who specializes in renewable energy to keep your business on track and make informed funding decisions.

Setting the right price for your solar energy services is crucial for business success. It involves striking a balance between being competitive and ensuring profitability. Consider the following guidelines to help structure your pricing strategy:

  • Assess Costs: Calculate all your expenses, including equipment, installation, maintenance, and overheads. Ensure your prices cover these costs and yield a reasonable profit margin.
  • Market Research: Analyze your competitors' pricing. Offer competitive rates without undervaluing your services to attract customers while maintaining quality.
  • Value-Based Pricing: Consider the value your solar solutions provide, such as energy savings and environmental benefits, and price accordingly to reflect this value.
  • Incentives and Rebates: Take into account any government rebates or tax incentives for solar energy that you can pass on to customers, potentially allowing you to adjust your pricing.
  • Flexible Options: Offer different pricing packages or financing options to cater to a variety of customers. This can include leasing, loans, or power purchase agreements (PPAs).
  • Clear Communication: Ensure that your pricing structure is transparent, with no hidden costs, to build trust with potential clients.

What does it cost to start a solar energy business?

Initiating a solar energy business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $159000 for launching such an business. Please note, not all of these costs may be necessary to start up your solar energy business.

Embarking on the journey of starting a solar energy business is a commendable stride towards a sustainable future. Step 8 is crucial as it involves acquiring the right equipment and supplies that will form the backbone of your service offerings. Here's a guide to help you navigate this stage:

  • Research Suppliers: Find reputable manufacturers and distributors of solar panels, inverters, batteries, and mounting systems. Consider factors like price, warranty, and technical support.
  • Quality Matters: Opt for high-quality, durable products that meet industry standards to ensure the longevity and efficiency of your installations.
  • Purchase Essential Tools: Acquire the necessary tools for installation, such as solar PV wire, conduit, meters, and safety equipment.
  • Invest in Software: Consider software for design and simulation of solar installations, customer relationship management (CRM), and project management.
  • Training and Certification: Ensure that you and your team are trained and certified, if required, to handle the equipment safely and competently.
  • Stock Management: Set up an inventory management system to keep track of your equipment and supplies.
  • Logistics: Establish a reliable logistics network for the timely delivery of equipment to project sites.

List of software, tools and supplies needed to start a solar energy business:

  • Solar Panels: Approximate cost range from $200 to $400 per panel.
  • Inverters: Approximate cost range from $1000 to $3000 per unit.
  • Mounting Systems: Approximate cost range from $500 to $1500 per system.
  • Battery Storage Systems: Approximate cost range from $800 to $3500 per system.
  • Power Control Systems: Approximate cost range from $500 to $1000 per system.
  • Cables, Connectors and Wiring: Approximate cost range from $100 to $250 per item.
  • Software Design Tools: Average cost of software tools is around $100.
  • Installation Service/Labor Costs: Average labor costs are around 20-50 percent of the project’s total cost.
  • Photovoltaic System Maintenance/Repairs Costs: Average maintenance costs are around 5-10 percent of the project's total cost.
  • Miscellaneous Supplies (e.g., protective gear, snow rakes, etc.): Cost varies depending on type and quantity of supplies needed.

Starting a solar energy business involves several critical steps to ensure it runs smoothly and is protected against various risks. One of these essential steps is obtaining the right business insurance. Below are some key points to consider when looking for insurance for your solar energy business:

  • Identify the types of risks associated with your solar energy business, including property damage, general liability, and professional liability.
  • Consult with an insurance agent or broker who specializes in renewable energy to understand the specific coverage needs for your solar business.
  • Consider purchasing general liability insurance to protect against third-party claims of bodily injury or property damage.
  • Look into professional liability insurance, also known as errors and omissions insurance, which can cover claims related to professional advice or services provided.
  • Assess the need for workers' compensation insurance if you have employees, to cover medical expenses and lost wages in case of work-related injuries.
  • Explore business property insurance to protect your equipment, inventory, and office space from damage or loss due to events like fire, theft, or natural disasters.
  • Review your policy options and compare quotes from multiple insurance providers to find the best coverage at a competitive price.
  • Ensure that you understand the terms, conditions, and exclusions of your insurance policy to avoid gaps in coverage.
  • Maintain compliance with any state or local insurance requirements for solar energy businesses.

Starting a solar energy business requires not only a strong understanding of solar technology but also an effective marketing strategy to reach potential customers. Your goal is to create awareness of your brand, educate your target market on the benefits of solar energy, and convince them to choose your services. Here's how to get started:

  • Develop a Strong Online Presence: Create a professional website with clear messaging, and engage with customers through social media platforms to build trust and community around your brand.
  • Content Marketing: Use blogs, videos, and infographics to educate your audience about solar energy benefits, system installations, and financial incentives, positioning yourself as an industry expert.
  • Local Networking: Join local business groups, attend community events, and partner with other businesses to gain local visibility and referrals.
  • Customer Referral Program: Encourage satisfied customers to refer friends and family with incentives, such as discounts or service upgrades.
  • Targeted Advertising: Use targeted ads on platforms like Google and Facebook to reach potential customers who have shown an interest in renewable energy or home improvements.
  • Collaborate with Builders: Partner with construction companies and contractors who can recommend your services to homeowners during the building or renovation process.

Once your solar energy business is up and running, expanding your reach and services can help you tap into new markets and increase profits. Here are some strategic steps to consider for growing your solar business effectively:

  • Explore New Markets: Research and target new geographical areas or sectors that could benefit from solar energy, such as commercial or industrial clients.
  • Diversify Your Services: Consider offering additional services such as solar panel cleaning, maintenance, or energy storage solutions to add value for your customers.
  • Form Strategic Partnerships: Partner with other businesses, such as construction companies or home developers, to integrate solar options into their offerings.
  • Invest in Marketing: Enhance your online presence, utilize social media, and consider SEO strategies to increase visibility and attract new customers.
  • Stay Updated with Technology: Keep abreast of the latest solar technologies and innovations to offer cutting-edge solutions and maintain a competitive edge.
  • Offer Financing Options: Make solar energy more accessible by providing financing plans or partnering with financial institutions to help customers afford installations.
  • Expand Your Team: As your business grows, hire additional skilled staff or train your existing team to handle the increased workload and maintain high service standards.

Solar Panel Installation, Mounting, Settings, and Repair.

Solar Panel Distributor (wholesale supplier Business Plan)

Business and Sales Infographic

If you’re looking for a way to make money while helping the environment, then becoming a solar panel distributor might be just what you’ve been waiting for. Due to their cost benefits, solar panels are gaining popularity in the United States.

If you’re interested in making some money by becoming a solar panel distributor, this article will help you understand:

  • What it takes to be a solar panel distributor
  • The importance of marketing as a solar panel distributor
  • The requirements you need to address to become a solar panel distributor

If this sounds like something you might be interested in, continue reading.

What Does a Solar Panel Distributor Do?

Rather than active users of solar energy systems, distributors act as intermediaries between manufacturers and buyers.

They help find customers who want to buy high-quality products at affordable prices before connecting them with sellers so they can complete their transactions.

Solar panel distributors are often responsible for marketing strategies, developing new products, and working on sales. In addition to this, they also have administrative duties, such as handling inventory or managing finances.

To become a solar panel distributor, you must have good written communication skills and an understanding of finance.

It’s also helpful if you know about software design because there is a lot of data entry involved with this job role.

How to Become a Solar panel Authorized Distributor?

Solar panels are a great way to save money on energy bills and help reduce CO2 emissions. But before you can become an authorized distributor of solar panels, you must fulfill licensing requirements set by the state where your business is based.

See also:   Jobs in Solar Energy: A Comprehensive Guide to a Bright Career Path

Fulfill Licensing Requirements

The first step is to fill out the application form for your state’s Department of Environmental Protection or other regulating agency.

Your company must provide information about its officers, directors, shareholders, managers, agents, and other members, and any affiliates that may sell solar panel systems.

You will also have to:

  • Get licensed with an installer or manufacturer of solar panels
  • Pass an exam on photovoltaic systems installation and safety standards
  • Complete state certification requirements if necessary
  • Purchase insurance coverage from a qualified provider.

Come Up With a Business Plan

To become an authorized distributor, you will need to develop a business plan that includes:

  • Your company’s mission statement and goals
  • Market research on whether there is enough demand in your area to support the cost of distributing panels
  • Financial projections for start-up costs and growth over the next few years
  • Marketing strategy, advertising campaigns, or other promotions that will be used to create awareness about your product among potential clients

By taking these steps before implementing your idea, you can ensure that any risks involved are minimized while maximizing your chances for success.

Seek Financing

Starting a business is not easy. You need to do many things, and one of the most important tasks is securing financing. One of the best ways to finance your company is by looking for solar panel distributor financing.

It will enable you to get credit from banks, investors, or other institutions to pay off your debts over time without having any cash upfront.

The good thing about this type of loan is that it has low-interest rates, which means fewer fees for repayment.

Identify Wholesale Suppliers

Solar power systems are a hot commodity, and finding the best supplier for your needs is essential.

You should always ask about minimum purchase requirements to qualify for wholesale pricing before making any purchases in bulk from an exchange company or dealer.

Many dealers offer discounts on the retail cost when purchasing more significant volumes of goods like solar panels at once, which could be as much as 40%.

Be particular while shopping around and ensure every piece has been factory-fresh, direct from its country’s manufacturing plants.

Build Inventory

To become a solar panel distributor, you must purchase at least two systems designed for residential household use and three smaller, more portable models.

For temporary uses in vacation cabins or hobbyists’ remote power needs, consider getting smaller versions that can be easily transported from one location to another using your car as an installation site.

Schedule an Opening

On your first day in business, host an open house for residents and customers. Offer door prizes, including solar-powered pinwheel fans that children can use as well as electronics, such as calculators or emergency radios.

Provide coffee drinks free of charge so people may learn about how you offer them something new.

Provide Free Estimates

As a solar panel distributor, providing free estimates for all of your potential customers is essential. Now, what does a free estimate entail?

A free estimate is an offer given by a potential installer of solar panels where they go to a customer’s house, assess their property, and estimate how much it would cost to install a solar panel on their roof.

This type of offer is popular with homeowners because they can compare prices from different companies without spending any money.

Comply With Professional Industry Standards

It is essential for a solar panel distributor to know industry standards and how they can be applied. To provide the best customer service, distributors must implement these standards to stay competitive in today’s market.

To become a distributor, you will need experience repairing and installing solar panels.

There are many professional industry standards for a Solar Panel Distributor, such as:

  • Make sure all products come from verified suppliers
  • Educating customers about the benefits of going green
  • Have customer service available 24/7
  • Provide excellent installation services that meet warranty requirements

As a distributor, it’s also essential to keep up-to-date on any changes in legislation that could affect your plan.

Solar panels on a house with a metal roof

How important is a Marketing Plan For a Solar Panel Distributor?

An important step for any distributor or seller of products today in the modern-day business world is marketing. Marketing can be done through many mediums, but using a website is one of the most effective and popular ways.

A website allows you to connect with customers and potential clients who may not know your business or what you do.

It also gives you the chance to put your best foot forward by showcasing what makes your company unique and valuable to current and prospective customers. Some aspects that should be considered when designing a solar panel distributor’s website include layout, navigation, content, and social media integration .

Design is an integral part of any company’s success. A website needs to have an excellent layout to be successful. The solar panel distributor should have a clean and professional design that will entice visitors to learn more about the company.

If the site doesn’t look legitimate, it won’t get many clicks or shares – which can hurt their business in the long run.

Navigation is an important aspect of any website. However, it’s not just for the user to have a better experience on your website.

It also helps with SEO and improves conversion rates. A website with easy navigation can help you reach your goals as a solar panel distributor looking to expand your market online.

The importance of content for a solar panel distributor’s website is well-documented.

The internet has made it possible for customers to find anything they need. People looking for a distributor specializing in solar panels want to read about the benefits of choosing this type of product.

Social Media Integration

Connecting your website to other platforms effectively expands reach and increases engagement through earned media. If you share your posts on Facebook or Twitter, people will see them in their feeds.

Social media also has the potential to go viral if shared by others who have large audiences. There are many platforms today where marketers can share their content- some popular ones include Instagram, Pinterest, Snapchat, LinkedIn, and Google+.

Solar Panel Distributor

There are many different ways to make money as a solar panel distributor. You can either lease or buy panels, sell them wholesale at the best possible price, and then resell them for profit.

The amount of money you will earn depends on how much work you put in and your sales skillset.

Solar panel distributors can make a lot of money by selling these products.

If you’re interested in becoming a solar panel distributor, then the information included in this article should help you get started.

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Be the Solar Expert & Start Your Own Solar Business

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.

fastest growing solar industry

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 panel system business plan

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

solar panel system business plan

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

solar dealer 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

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

solar installer

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

solar servicer provider

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 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

solar 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

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?

loom solar

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.

84 comments

Suresh Babu

Suresh Babu October 17, 2023 at 18:52pm

I am interested to start this business kindly advise

Partha sarathi Ghosh

Partha sarathi Ghosh September 14, 2023 at 15:01pm

Faroque Ahmed

Faroque Ahmed May 27, 2023 at 00:56am

I want to start this business…

Navnath rambhau zine

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

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

Sampathkumar September 27, 2022 at 17:22pm

I am salem I am interested pls share details

N K Batta

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

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

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

mohammad moin July 12, 2022 at 18:40pm

am interested in this business am from vijawada,AP. call me 9000392514

Jersey D. Gomid

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

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

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

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

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.

Satbir singh

Satbir singh February 22, 2022 at 17:05pm

I want start solar business/consultancy solution.so place suggest me how to start plz contact 7888984784

Tikayat Ray

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

Nitish Kumar January 25, 2022 at 23:40pm

I want dealership. Please guide us. Contacts number -9993827275

Narendra Kumar Ahuja

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

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

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

CHANDAN P December 04, 2021 at 16:58pm

Sriranga Damodar

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

Mangharam Choudhary November 18, 2021 at 21:29pm

Buisness for distribution

sidhanta

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

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

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

Keerthi Nandigam

Keerthi Nandigam October 13, 2021 at 08:24am

Hi, Your website looks impressive and I’m interested in setting up a dealership with you guys in Andhra Pradesh. Kindly contact-630286019

jithin.u

jithin.u October 07, 2021 at 15:12pm

intrested instalation becuase i am an elecrician how to start

Sujit Rajan

Sujit Rajan October 01, 2021 at 09:13am

Sir, I want to start a solar business in Kerala. Kindly advise.

Madhusudan Kabra

Madhusudan Kabra September 20, 2021 at 09:27am

Interested in solar panel manufacturing and distributorship. Can you help. Want to cater to eastern india needs

Bhushan

Bhushan September 19, 2021 at 20:10pm

Looking for start solar panels business as a production unit. Will you people help me in that

Khuzaima Chhatriwala

Khuzaima Chhatriwala September 12, 2021 at 16:48pm

Interested in solar dealership business

Bhavin

Bhavin September 04, 2021 at 14:54pm

I am completely new to this, but I am interested in solar technology. I am more over interested in manufacturing or distributorship

Zainudheen K

Zainudheen K September 04, 2021 at 08:01am

Sir, I would like to start a dealership/distribution for Solar Energy in Kerala. Please assist me, Thank you Mobile# 7034581669

Rajendra  thosar

Rajendra thosar September 02, 2021 at 17:53pm

Interested solar system business I want to start business

Dulari

Dulari August 31, 2021 at 23:35pm

I am interested in solar business and want to know more about it.

Uvan Suresh Kumar

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 .

Subhash simepurushkar

Subhash simepurushkar August 30, 2021 at 12:10pm

Interested in dealership

PRASHANT SHELKE

PRASHANT SHELKE August 26, 2021 at 18:57pm

UTKARSH YADAV

UTKARSH YADAV August 23, 2021 at 00:41am

Want to start solar business. Please contact 9208617320

tapan kumar dash

tapan kumar dash August 21, 2021 at 07:33am

Good assesories.

manoj pal

manoj pal August 20, 2021 at 12:34pm

i want to set up my own business,i man electronics engg. in electro mechanical field and industrial automation. Nagpur 9923528903

Vivek Jindal

Vivek Jindal August 15, 2021 at 13:54pm

Interested in Discussing business possibilities. Contact us at 9417206568

Antony

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

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

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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Solar Power World

Clearway Energy builds 1.1-million panel solar project in Texas

By Billy Ludt | February 22, 2024

Clearway Energy Group completed its 452-MW Texas Solar Nova complex in Kent County, Texas. The project, built in two phases, will generate enough electricity to power over 190,000 homes each year and generate approximately $5.4 million in property taxes and wages to be paid in the first year.

solar panel system business plan

An aerial shot of the Texas Solar Nova project. Clearway Energy Group

“We are incredibly grateful for our partnerships with local officials, suppliers, construction partners, and customers that made this project possible,” said Valerie Wooley, SVP of 0rigination at Clearway. “The Texas Solar Nova complex is delivering new renewable power to the ERCOT grid, thanks to the ongoing dedication of our partners. We thank Verizon, SKF and Toyota Boshoku America, among others, for partnering with Clearway to help meet their own decarbonization goals.”

Texas Solar Nova offtake agreements will support Verizon in achieving its target to source the equivalent of 50% of its total annual electricity consumption with renewable energy by 2025. A portion of the renewable attributes from the solar projects will also go toward supporting SKF and Toyota Boshoku America in achieving their respective decarbonization goals through renewable energy certificate (REC) purchases.

More than 400 craftworkers contributed to the Texas Solar Nova complex with more than 500,000 hours of injury-free labor. The project is built on approximately 5,000 acres of land with over 1.1 million solar panels.

Clearway and its construction partner, Mortenson , supported several local organizations during construction, including the Texas Leadership Charter Academy-Secondary campus, the Spur Texas Community Food Bank, school supply drives and fundraisers for local community parks.

News item from Clearway Energy Group

About The Author

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Billy Ludt is senior editor of Solar Power World and currently covers topics on mounting, installation and business issues.

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Wealth of Geeks

Solar Energy: Beyond Rooftop Solar Panels

W hen discussing the topic of solar energy, the first thing that probably comes to mind is rooftop or field-based solar panel systems. However, there is so much more to solar energy than solar panels.

Solar energy consists of different tools and technologies that support clean, ecologically sustainable, and renewable practices that can help protect the environment and save money. Today’s leading solar energy technologies include photovoltaics, concentrating solar power, solar heating and cooling, passive solar, and solar water heating. 

It is no exaggeration to say that these technologies do not come cheap despite the ethical, environmental, and economic benefits. Fortunately, there are options consumers can rely on to go greener while saving money and the planet simultaneously.

Solar Energy Technologies 

Photovoltaics .

Photovoltaic or PV technologies are the ones most think of when hearing the words solar energy. PV technologies generally take the form of home rooftop or field-based solar panels. 

Embedded in the cells of each solar panel are semiconductors similar to the ones found in computer chips, temperature sensors, and sound amplifiers. These semiconductors help PVs create electrical power by converting direct sunlight into solar energy.

When the sun is at its point during the middle of the day, semiconductors assist the solar panels in generating the most solar energy. This output of solar energy can neutralize the higher costs associated with high demands for electricity.

Concentrating Solar Power

Also called CSP, these large-scale projects are mass solar panel facilities. CSPs employ mirrors that use solar energy to make electricity by running a conventional steam turbine. The solar energy at a CSP facility is then concentrated and stored for use whenever needed. 

In addition to delivering heat, CSPs process food, chemicals, and minerals, desalinate water, and enhance natural oil recovery. There are approximately 1,815 megawatts of CSP facilities in the United States today, with more expected to open in the coming years. 

Solar Heating and Cooling 

Solar heating and cooling (SHC) systems collect large quantities of solar energy. This energy converts to heat for air heat, hot water, and air conditioning in residential, industrial, and commercial buildings. 

An SHC system that is well-designed and correctly installed can meet up to 80 percent of a building’s hot water requirements while also providing air conditioning or heat without relying on or using utility-based electricity. 

Passive Solar

A passive solar design system can provide heating and cooling to a building. It employs windows facing in a southern direction to collect heat from the sun. It then stores the accumulated heat in receptacles located around the building. This process is called thermal mass. 

Passive Solar Heating

With passive solar heating systems, the south-facing windows and receptacles throughout the building absorb and retain the harnessed heat. When there is no sun, such as at night or on an overcast day, the collected heat disperses from the thermal mass and the south-facing windows, providing heat as needed. 

Passive Solar Cooling

Passive solar cooling systems use thermal mass like passive solar heating systems. However, they also use natural ventilation and shading to harness colder air at night, reducing the heat inside the building to make it optimally cool and comfortable. 

Solar Water Heating

An alternative way to provide hot water for homes and commercial and residential buildings is to use solar water heating systems. They harness the sun’s solar energy to heat the water as needed.

Solar water heating systems are either active or passive. Active systems depend on electric pumps to circulate hot water throughout the home or building. These systems are more common than the less efficient and cheaper passive systems, which rely on the laws of thermodynamics to convert solar energy into a mechanism that heats water.

Solar Energy Fundamentals

The solar industry in the united states .

Solar energy systems are on homes, commercial, and industrial properties. These systems come in various forms and sizes to meet the precise energy needs of the respective property. Even utility companies are constructing massive solar power plants to keep electrical grids working and provide reliable service. 

While the U.S. solar industry continues to bounce back from the supply chain issues that plagued nearly every sector in 2022, projections show that it will continue to show gains in the future. In the second quarter of 2023, the number of installed gigawatts fell 8 percent from the first quarter of 2023, but it still was a 20 percent gain from the same quarter in 2022. 

In addition, in the first quarter of 2023, 54 percent of all new electricity generation sources were from photovoltaic (PV) solar systems. This impressive growth demonstrates that solar energy is not just a mere fad but a wave of the present and future. 

Benefits of Using Solar Energy

If addressing concerns about climate change, the effects of pollution and the world left to future generations is a priority, there are many reasons to adopt a solar energy approach for the home or business.

Solar energy:

  • makes existing electrical grids stronger
  • lowers the consumer costs of utility-based electricity
  • harnesses and stores backup power for use during electrical power outages and when there is little to no sun
  • is scalable
  • benefits the economy
  • is clean, sustainable, and renewable
  • creates new jobs in a growing industry

Integration of Solar and Traditional Systems

Deciding to implement a solar energy system at a residential, commercial, or industrial property does not mean traditional electrical energy is no longer needed.

On the contrary, solar energy systems consolidate with other renewable and sustainable energy methods and the currently existing power arrangements found in electrical grids, residences, and business properties.

Cost of a Solar Energy System and Installation

The cost to purchase and install a solar energy system for a residential property varies because of factors such as the size of the project and geographical location. Homeowners looking to purchase and install a solar energy system should expect to pay between $15,000 and $25,000, according to 2023 data from the Center for Sustainable Energy. 

Additional Solar Energy Costs

People considering the admirable choice of switching to a solar energy system may be surprised by unexpected expenses. These unplanned, likely unknown costs regarding solar energy systems are known as soft costs because they do not involve hardware like equipment. 

Some examples of solar energy soft costs include finance charges, permits, equipment installations, and the overhead solar energy businesses have to cover to turn a profit, land new customers, and pay their vendors. For companies installing rooftop solar energy systems, most of their expenses come from soft costs.

Financing Solar Energy Systems

The cost of solar energy installation gives legitimate pause to even the most earnest potential buyers, which is understandable. Spending tens of thousands of dollars in equipment and soft costs to save money over time and protect the environment is enough to make anyone think twice about making such an investment.

However, those concerns should not be a deterrent because several solar energy financing options can allow buyers to meet their solar energy goals without breaking the bank in the process.

Cash Buyers

Buyers who can comfortably pay cash for a solar energy system can save a lot of money by not having to pay finance charges from loans or monthly lease payments for those opting to take the solar energy equipment leasing route. 

Solar Loans

Buyers who take out a loan to pay for their solar energy system can obtain a solar loan if offered at their local bank or other lending institution. These subsidized loans offer borrowers below-market rates, which can save money over time compared to different types of loans.

Federal Housing Administration and Fannie Mae

New homebuyers obtaining mortgage loans from the Federal Housing Administration (FHA) or Fannie Mae can add the cost of solar energy projects to their mortgage loan, as the agencies view them as a home improvement .

Power Purchase Agreements

In a power purchase agreement (PPA), a solar energy business owns the installed solar energy system. Customers lease the solar energy equipment from the company and purchase solar-generated electricity, agreeing to pay a specific price for each kilowatt hour. 

The customer agreement with the solar energy company provides them with lower monthly electric bills in exchange for not having to make monthly payments on the leased solar equipment. These leasing arrangements often do not require a down payment from the customer, helping them realize additional upfront savings. 

Solar Lease Plan

Like a PPA, in a solar lease plan, a solar energy company also owns the solar energy equipment. However, the set price customers pay for electricity is an estimation of how much power the solar energy system generates. Lessees are ineligible for tax benefits under federal and state programs because the solar energy business owns the solar energy system, and the tax benefits are specifically for owners only. 

Financial Incentives

Before committing to any solar energy project, knowing the money-saving financial incentives for installing solar energy in the home is crucial. The U.S. Department of Energy has information about the federal Solar Investment Tax Credit (ITC) for homeowners installing residential solar energy systems. Unless Congress extends the program, the ITC expires in 2024. The program provides a 22% credit for new solar energy system installation.

Homeowners can locate state-based and local information regarding available financial incentives from the Database of State Incentives for Renewables & Efficiency® or DSIRE ®. The online database has financial incentives and policy information arranged by state and zip codes.

Solar Energy Is Here To Stay

The growth of the solar energy industry indicates its popularity among consumers and the widespread recognition that to reverse the damaging effects of climate change and pollution, people must do more. Going green is not cheap, but the cost to the earth and the upcoming generations is much higher. 

14 Reasons Why You May Want To Stick With Your Gas Car and Wait on Electric

Solar Energy: Beyond Rooftop Solar Panels

  • Home Energy & Utilities

Off Grid vs. Grid Tied Solar Panel Systems: What's the Difference?

Kicking your utility to the curb sounds like a great deal, but it's more difficult than it sounds. Here's what it takes to go off the grid with solar panels.

Going off the grid doesn't have to look rustic and old-fashioned. You can go off the grid wherever you live with solar panels and batteries.

A man sits sipping a cup of coffee in front of a rustic home with a solar panel sitting next to him.

If you feel the cost of electricity has risen recently, you're not imagining it.

As more stuff in our homes uses electricity, it's getting more expensive. According to inflation data published by the  US Bureau of Labor Statistics , the cost of electricity rose 3.8 % in the 12 months ending in January 2024. That's much below the number a year ago, when it rose nearly 12 % .

With energy prices always climbing, you might be tempted to take your home off grid  and cut ties with your utility completely. The proliferation of rooftop solar panels might make it seem in reach, but it's not as simple as it sounds.

Can solar panels save you money?

Interested in understanding the impact solar can have on your home? Enter some basic information below, and we’ll instantly provide a free estimate of your energy savings.

CNET contributor Eric Mack knows all too well what it takes to move completely off the gird and achieve 100% energy independence. "Living off the grid means committing to sourcing everything you need to survive and thrive independently: food, shelter, water,  energy . It's empowering, until the moment things don't work," Mack wrote in his first-person account about living off the grid.

Although this transition requires significant upfront costs, you could save money in the long run. Here's what to know if you're thinking about buying a solar panel system and disconnecting from the power grid.

What is an off-grid solar system?

An off-grid solar system is a self-contained energy system that independently produces and stores electricity. 

Off-grid systems function by using solar panels, often mounted on the rooftop, to absorb energy radiated from the sun and convert it to direct current electricity before transferring it to a battery for storage. An inverter converts the energy stored in the battery to alternating current electricity to power your home. 

Solar panels home

Considering Solar Panels?

There are four main components of every off-grid solar system: 

  • The solar panels and mounts that hold the panels in place.
  • The charge controller, which regulates energy flow from the solar panels to the batteries.
  • The battery, which stores the energy accumulated from the solar panels.
  • The inverter, which converts the DC electricity stored in the battery to AC electricity that runs appliances.

As inflation continues to erode the dollar's value , more people have embraced cost-effective sustainability practices. These off-grid solar system solutions offer the dual benefit of positively affecting the environment and increasing energy independence. 

Can you still be connected to the grid and have solar panels?

Grid-tied systems are not independent, standalone entities. Instead, they are connected to the utility grid and transmit excess energy generated by the solar panels back to the electric grid -- often selling it back, through a process called net metering , for credits on your power bill. The primary advantage of grid-tied systems is they are significantly cheaper because the owners do not need to buy expensive batteries to add to the system.

Off-grid vs. grid-tied solar systems: Which is better?

When it comes to off-grid vs. grid-tied solar systems, there is no easy answer, said  Rohit Kalyanpur, CEO of Optivolt,  a Silicon Valley-based solar technology company. It all depends on your preferences and needs. 

For example, If you live in a remote area and don't have reliable access to the electricity grid, then an off-grid solar system would work better, said Kalyanpur. 

Both grid-tied and off-grid solar systems are eligible for a 30% federal tax credit on the total cost of the system. In order for batteries to qualify for the credit, they'll have to have a capacity of at least 3 kilowatt-hours. 

Off-grid solar systems

Grid-tied solar systems, types of off-grid solar systems.

Each off-grid solar system installed at a location must be customized to meet the unique energy needs of the people at that location, Kalyanpur said. However, three main types of off-grid solar systems cater to the energy needs of most people.

Solar-only systems

These systems rely exclusively on solar panels for power generation. The excess energy generated from the solar panels is stored in batteries and used when the panels don't generate enough power to run the home -- such as at night or when it's cloudy . The cost of these systems depends on factors such as the number of solar panels, battery capacity and efficiency, and the types of inverters and charge controllers. 

Solar system with generator backup

These systems combine solar panels with a backup generator. The solar system generates electricity during the day, and the backup generator kicks in during periods of low sunlight or at night. These backup generators are usually powered by diesel, gasoline or natural gas. The cost of backup generators varies, so it's essential to research and understand the costs associated with fueling the generator on a monthly basis before making a decision.

Hybrid solar systems

These systems use solar panels and other alternative renewable energy sources like wind turbines or hydroelectric power to create a diversified and reliable power system. Like solar-only systems, hybrid systems work in conjunction with external batteries. 

How much do off-grid solar systems cost?

Off-grid solar energy systems are a great alternative that helps families meet their energy needs and save money on their utility bills. But solar panels aren't cheap, and neither is the installation work required to get a system in operation. The typical solar panel system in the US costs around $30,000 before the federal tax credit. 

Off-grid systems will typically be even more costly. For example, high-capacity, high-efficiency solar batteries are typically very expensive and cost another $10,000 to $20,000. In some cases, they may be more expensive than solar panels. 

Correction, Aug. 18:  This story originally presented some statements as direct quotations that were actually paraphrases of what the individual cited had said. Those passages have now been rendered appropriately as paraphrases.

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  • Best Portable Solar Panels
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Solar Installers by State

Solar Installers & Storage

  • Tesla Solar Panels Review
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  • Enphase Battery Review
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Solar Resources and Guides

  • Why Solar Panels Will Likely Keep Getting Cheaper
  • How to Make Your Solar Panels Last Longer
  • How the Solar Tax Credit Works
  • How Much Do Solar Panels Cost?
  • This Is How Many Solar Panels You'll Need to Power Your Home
  • Solar Power Purchase Agreements Explained: The Pros and Cons
  • Free Solar Panels: What's in the Fine Print?
  • Avoid Solar Panel Scams: 7 Tips for Getting a Great Deal
  • Solar Panels Will Eventually Save You Money. How to Know When the real Savings Begin
  • This Is How Long You Can Expect Your Solar Panel Installation to Take
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  • Nest Learning Thermostat vs. Nest Thermostat
  • Storage Tank Water Heaters vs. Tankless Water Heaters
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Living Off the Grid Series

  • Moving Off- Grid: My Ultimate Pandemic Project Is About More Than Utility Bills
  • How Living With Solar Panels Demystified Electricity for Me
  • For Life Off the Grid, Batteries Mean Independence
  • The Biggest Pros and Cons of Living Off-Grid Arent What I Expected
  • The Hidden (and Not So Hidden) Expenses of Living Off Grid
  • My Off-Grid Project: The Secrets I Learned to Save on Solar

Updated Feb. 20, 2024 5:00 a.m. PT

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    When discussing the topic of solar energy, the first thing that probably comes to mind is rooftop or field-based solar panel systems. However, there is so much more to solar energy than solar panels.

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    The cost of solar panels varies depending on various factors such as the system's size and quality of the panels. On average, the cost of an 8 kW solar system ranges from $20,000 to $36,000.