Home | Loans | Business Loan | How to Start Solar Energy Business

How to Start Solar Energy Business

|

10 min read

Facebook Twitter LinkedIn
Facebook Twitter LinkedIn
How to Start Solar Energy Business

With the fearsome increase in the consumption of electricity, worldwide, the importance of sustainable sources has also increased. Both the central and the state governments of India have planned and laid out various schemes, offers, and techniques that encourage more and more people to indulge in the adaptation of solar energy. Moreover, it is the best way to avoid electricity deficiency and load shedding, especially in the agricultural and industrial sectors. The most lucrative aspect of it is the fact that it is free of utility costs and reduces expenses especially as there isn’t any import duty mandated on solar chips and the solar industry, therefore, is experiencing its full bloom. The major leading sectors in the solar energy business are the Solar PV and the Solar Thermal industries. The manufacturing companies in the field are already very established and affluent with their skills and sales, the growing sectors in the industry at this point of time are:

  • Become an Associate in Solar Energy Business
  • Become a dealer or developer in Solar Energy Business
  • Become an Integrator in Solar Energy Business

Associate in Solar Business

Dealer or Developer in Solar Business

Integrator in Solar Business

Investment required (Approximate value)

25,000 Rs. to 40,000 Rs.

2,00,000 Rs. and above

50,000 Rs. to 2,00,000 Rs.

Work Requirement

  • Technical knowledge

  • Convincing skills

  • Educational hierarchy

  • Experience in sales and marketing

  • Association with the manufacturers

  • Trained sales team and with prior experience

  • Technical knowledge

  • Certified company with a broad network

  • Technical Team

  • Installation skills

  • Established technical company

  • Trained and certified to install solar panels of certain manufacturers

Steps to Start a Solar Energy Business

  • Charting a Business Plan

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

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

  • Field Research

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

  • Legitimizing and Authorizing Business

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

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

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

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

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

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

  • Choosing the Location

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

  • Finance Management

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

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

When running a business, especially while starting one, it is very important to be selective and choose employers who have the zeal to fight and knowledge to survive. In a technical line, educational background and acquired knowledge play a key point in the development of the business. Incompetency can lead to disasters even when every other aspect of the business stands flawless. Customer service, job efficiency, and appropriate professional behavior along with maintaining a friendly, reliable relation between the company and the customers are very important. It not just solidifies the brand name but also ensures a huge profit for the company both in the present and future ventures. 

Even when efficiency is the least required tool for the well-growth of the business and its profitability, it is the humbleness and understanding capabilities of the employer and the employees that touch the customers and increase sales at a tremendous level.

Engineering Elements in Solar Energy Business

  • Mechanical – tackles with the mounting procedures and the module installations
  • Electrical – tackles all the electrical aspects of the installation like wiring, cable connections, inverter installations and connections, power generators, protections, and switchgears, and solar panels.
  • Civil – tackles and secures the platform on which the module would be mounted.

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

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

Learn more – Loan for Solar Business

How to Start Solar Energy Business in India FAQs:

1. What are the divisions in solar energy businesses?

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

2. What should be the key objectives of the business?

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

3. What are the main components included in the package?

Solar panels, batteries and chargers are the three main components that are included in the package.

4. What are the types of solar panels?

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

5. What is the type of battery used for storing energy from solar panels?

The type of battery used is called the lead acid batteries that store the energy.

6. What should be the primary target markets for the business?

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

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

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

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

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

9. Is manufacturing solar accessories a profitable business?

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

10. How is the market condition in India?

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

Read More:
How to get business loan for textile business
Difference between tin tan vat pan dsc and din
epf balance
form 15g
how to withdraw pf amount online using uan
Fssai License
Business Ideas for Women
10 Business Ideas after Lock Down
Business Skills are Needed to Run Business
Business loan for women
Agriculture business plan
Dairy farm loan
Mudra Loan
Small Scale Industries in India
GST Registration Online
Aadhar Card Status
PAN Card Correction & Update
Aadhaar Card Download
PAN Card Apply Online
Instant PAN Card through Aadhaar
PAN Card Mistakes – To Avoid
How to Link Aadhaar with PAN Card
PAN Card Details Search By Name, DoB, PAN Number & Address
What is a Cancelled Cheque


0
Would love your thoughts, please comment.x
()
x