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
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
- Limited Liability 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?
2. What should be the key objectives of the business?
3. What are the main components included in the package?
4. What are the types of solar panels?
5. What is the type of battery used for storing energy from solar panels?
6. What should be the primary target markets for the business?
7. What are the top government programs in the solar energy business?
8. Is the Maintenance and Cleaning of solar equipment a profitable business in India?
9. Is manufacturing solar accessories a profitable business?
10. How is the market condition in India?
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