How to start a solar power installation business?

Solar power installation is one of the profitable business ideas in the solar sector.

Are you a fresh MBA or a graduate with an interest in the field of solar energy?

Do you want to start something of your own in this field without much investment?

If the answer is YES, then solar power installation is one of the business ideas into which you can venture.

Assess the problem

Electricity failure or cut is a common problem in every house around in any locality. Everyone wants relief from this cut, especially during summer days.

The need for electricity can become a business opportunity for you.

Where you can provide solutions to their energy needs by providing consultancy.

And doing customized solar power installation for your clients.

The demand for residential solar system installation is picking up. You can utilize this opportunity and can become an early entrant in this segment.

Basic requirement for solar installation business

• Designing the proper solar system on the basis of the load and the battery backup required by the client.
• Knowledge of working, functioning & specifications of all the components used while designing the solar system.
• Operating expenses & manpower requirement:
• One laptop or a desktop with a printer or a smartphone can do it.
• Business cards
• One telephone or mobile
• 10’ X 10’ office (You can operate from home itself)
• You can be in touch with your local electrician and the fitter. Whenever you receive an order for installation, you can accompany them for installation and pay them, on the order basis, for their services after installation.

So, a team of 3 (including you) and operating expenditure is less than 25,000/-(If you already have a desktop or computer then this cost is reduced by that amount).

Business tie-ups

• After having basic knowledge of the solar power installation, the next step is to get tie up with companies which manufacture and supply solar components used in a solar installation. You will refer their products in case of client conversion.
• Take the product list and the price list. It will be required when you will be telling the client about the cost of the system or at the time of sending quotation through e-mail. (Keep in mind to add your service charges while sending the quotation.)
• When their team will come for installation, be there at the site so that you can get the practical experience. You can accompany electrician and fitter (whom you know well) of your area at the site so that they can also see the process of installation. This will enable you to do the installation with your team of electrician and fitter independently and your profit margin will also increase.
• Always tie up with good companies which provide durable products, because for client you are the face whatever good or bad happen you have to bear it.
• Do remember to have telephone numbers, email ids of the concerned person of the company ready with you.

Marketing in solar installation business

Now, after tie-ups with various solar companies, you can start marketing in your locality. You need to make residents aware of the benefits of solar electricity and how this can be beneficial in the long run.

• You can purchase a local directory of addresses-mail and phone numbers of the people around your locality. Talk to them through phone and tell about your business and services. Try to fix up a personal meeting with your prospect so that you can convince him/her more effectively and efficiently.
• Mail the description of your services at their e-mail ids.
• You can contact the club in your locality and ask for permission from the club authority to display advertisement of your services at their premises.
• You can ask school authorities of your area to display the advertisement of your services in the premises.

Here the idea is to market you at the places where there are a group of people.

The Payback period

Instant, based on the client conversion rate.

Opportunities in solar installation business

• Most big companies only provide a standard solution. You have a bouquet of products from different companies with different prices. Therefore, you can provide customized solutions based on the energy needs and the financial budget of the client.
• Big companies cannot penetrate deep into the residential market as like you. These companies also need someone who is local to the area and can refer their product .That is why they readily go for a tie up with you (because it cost them nothing except a few paperwork for the tie-up). A win-win situation for both parties.
• The token size of the residential solar installation is very small as compared to the commercial solar power installation. It is a good thing for you at the initial stage of the business
• After installation, you can sign AMC (Annual Maintenance Contract) with a client where you can charge for servicing and the maintenance of the system.
• With experience, you can associate with the companies which participate in the govt tender. These companies obviously can outsource some business to you

Road Ahead

With the ever-increasing demand for electricity and the continuous increase in the rate of electricity annually by the electricity department, days are not far when everyone will be running for solar power installations for their houses. 

So get going and become a solar installer.