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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 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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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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Solar Farm Business Plan Template

Written by Dave Lavinsky

Solar Farm Business Plan

You’ve come to the right place to create your Solar Farm business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their solar farms.

Solar Farm Business Plan Example

Below is a template to help you create each section of your Solar Farm business plan.

Executive Summary

Business overview.

Helios Solar is a startup Solar Farm company located in northern New Mexico.  The company was founded by husband and wife team Derek and Meri Smith. Derek has deep experience in the construction industry, and Meri has a background in accounting. The combination of these skills positions the couple to succeed in building and maintaining a solar farm. What’s more, Derek and Meri already own a 250-acre tract of land in sunny New Mexico.

Product Offering

Helios Solar has designated 50 acres on which it will install crystalline silicon solar panels with sun tracking technology. It will begin as a 5MW farm, with ample land for capacity growth. The company will keep abreast of solar technology innovations as it grows.

Customer Focus

Helios Solar will offer wholesale electricity to established utility companies in New Mexico and surrounding states.

Management Team

Helios Solar will be owned and operated by Derek and Meri. Derek will oversee the physical operation of the farm, while Meri will oversee the administrative side.

Derek Smith has a background in construction, and is a graduate of Solar Energy International, and subsequently earned a North American Board of Certified Energy Practitioners (NABCEP) certification as a PV Commissioning & Maintenance Specialist.

Meri Smith is a graduate of the University of New Mexico with a Bachelor’s degree in Accounting. She has been working at a local accounting firm for over a decade as a CPA. Meri’s experience in accounting has given her the skills to manage the company’s finances, and the knowledge to steer the company to financial stability and success.

Success Factors

Helios Solar will be able to achieve success by offering the following competitive advantages:

  • Friendly, knowledgeable, and highly qualified PV experts
  • An ideal location in New Mexico, with ample room for expansion

Financial Highlights

Helios Solar is seeking $2 million in debt financing to launch its solar farm. The funding will be dedicated towards installing solar panels and payroll of the staff until the farm reaches break even. The breakout of the funding is below:

  • Hardware (modules, inverters, mounts, etc.): $1.7 million
  • Office equipment, supplies, and materials: $10,000
  • Overhead expenses (payroll, rent, utilities): $200,000
  • Marketing costs: $10,000
  • Working capital: $10,000

To supplement its funding requirements, Helios Solar intends to apply for government grants and take advantage of incentive programs for the installation of solar equipment.

solar business plan

Company Overview

Who is helios solar.

Helios Solar aims to deliver utility-scale solar power, starting with a 5MW capacity. The husband and wife team is highly qualified and experienced in PV maintenance, accounting, and financial reporting.

Helios Solar History

Helios Solar is owned and operated by Derek and Meri Smith, a former construction manager and certified PV Commissioning & Maintenance Specialist (Derek), and CPA (Meri). Derek has worked for a large construction company and oversaw a variety of construction projects in the Albuquerque metro area. Derek’s tenure with the construction company, as well as his education in PV maintenance, combined with Meri’s financial acumen has given them the skills and knowledge required to venture out and start their own company. Derek and Meri have been awarded contracts with two large utility companies, which guarantees Helios Solar stability while they work to increase capacity.

Since incorporation, Helios Solar has achieved the following milestones:

  • Registered Helios Solar, LLC to transact business in the state of New Mexico.
  • Has cleared and prepared a 5-acre parcel of land for PV installation, and constructed an office building nearby.
  • Reached out to numerous utilities in order to start getting wholesale contracts.
  • Began recruiting PV maintenance workers, and office personnel to work at Helios Solar.

Helios Solar Services

Industry analysis.

The Solar Power industry is expected to grow over the next five years to over $18.3 billion.

The growth will be driven by the large expansion of government spending is set to support the solar industry as the push toward renewables accelerates. Electric power consumption is expected to increase slightly, but is expected to continue its shift toward renewable sources and away from fossil fuels.

The Solar Power industry in the United States is growing rapidly, underpinned by a combination of favorable government incentives and consistent technological advancements. Furthermore, solar power falls into the emergent green energy sector and benefits from rising public and private support.

Costs will likely be reduced as PV panels continue to gain efficiency and manufacturers compete to drive down the price of producing the panels. Solar Farms have also benefited from attractive tax credits and requirements for downstream utilities to diversify energy holdings and integrate renewable energy into their portfolio.

Customer Analysis

Demographic profile of target market.

Helios Solar will target utility companies in New Mexico, Colorado, Utah, and Arizona.

The precise data for these target states are:

Customer Segmentation

Helios Solar will primarily target the following customer profiles:

  • Non-profit utility companies
  • Corporate utility companies
  • Government administered utilities

Competitive Analysis

Direct and indirect competitors.

Helios Solar will face competition from other companies with similar business models. A description of each competitor company is below.

Sunrise Solar Power Plant

Sunrise Solar is a 794 MWp (614 MWAC) photovoltaic power station in California, near the Mexican border. The facility was developed and constructed in three phases.

The first phase was commissioned in 2014, and supplies 266 MW under a 25-year agreement. The third phase was commissioned in 2018, and provides 328 MW using 2.8 million thin film panels. Phase two was commissioned in early 2020, and provides 200 MW.

The plant users more than 3 million thin-film CdTe photovoltaic modules and 138 skids which rotate on a north-south axis tracking the path of the Sun, and produces enough energy to power 72,000 homes.

Sun Mountain Solar Facility

The Sun Mountain Solar Facility is an 802 megawatt solar photovoltaic power plant. The plant entered service on December 1, 2010. It is co-located with three other solar projects in the region, thus forming a more than 1 gigawatt (GW) solar generating complex.

100 GW·h/year from phase 1 has been sold under a 20-year power purchase agreement (PPA). Power generated from phase 2 has been sold under a 25-year power purchase agreement (PPA).

This solar complex creates enough electricity to power 200,000 homes. It sits on 4,000 acres of land and has about 4.3 million solar panels. The facility has been built in phases and the first one came on line in 2010, with the rest following in 2012, 2015, 2016, and 2021.

Badlands Solar Park

Badlands Solar Park is one of the largest solar parks in the US. The park is spread over a total area of 7,000 acres, and has a total capacity of 2,000 MW. It is expected to eventually have a total capacity of 3,000 MW. The project is a joint effort between state-owned energy companies, which provide electricity across the country. Construction on the Badlands Solar Park began in 2016.

It was built in four phases:

  • Phase I – 420 MW of capacity
  • Phase II – 250 MW of capacity
  • Phase III – 500 MW of capacity
  • Phase IV – 250 MW of capacity

Competitive Advantage

Helios Solar will be able to offer the following advantages over their competition:

  • Local, family-owned operation, with highly-qualified PV experts
  • Helios Solar stays abreast of all technology developments, takes care of all maintenance and property improvements, and delivers an accurate and complete set of financials each month.
  • Helios Solar offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.

Marketing Plan

Brand & value proposition.

Helios Solar will offer the unique value proposition to its clientele:

  • Highly-qualified team of PV experts that provide a comprehensive set of solar services (financial, accounting, marketing, maintenance, and improvements).
  • Unbeatable pricing to its clients – Helios Solar does not mark up its services at a large percentage. They will offer the lowest pricing in the region.

Promotions Strategy

The promotions strategy for Helios Solar is as follows:

Professional Associations and Networking

Helios Solar will become a member of solar associations such as Solar Energy Industries Association (SEIA), American Council on Renewable Energy (ACRE), and Solar Energy International (SEI). They will focus their networking efforts on expanding their brand recognition and relevance.

Print Advertising

Helios Solar will invest in professionally designed print ads to display in programs or flyers at solar industry networking events.

Website/SEO Marketing

Helios Solar will maintain a well-organized and informative website, which will list all their services. The website will also list their contact information. The company will also hire a digital marketer to enhance their website presence with SEO marketing tactics so that Helios Solar’s website will be well-positioned at the top of internet search results.

Helios Solar’s pricing will be moderate and on par with competitors so clients feel they receive value when purchasing their services.

Operations Plan

The following will be the operations plan for Helios Solar.

Operation Functions:

  • Meri Smith will be President of the company. She will oversee the office and manage client relations.
  • Derek Smith will be CEO of the company. He will oversee field operations: performing installation, maintenance, and upgrades to the solar array.

Milestones:

Helios Solar will have the following milestones complete in the next eight months.

5/1/202X – Finalize construction of office space

615/202X – Finalize property preparation and solar array planning

8/1/202X – Installation of racks and mounts

12/1/202X – Installation of solar array

12/15/202X – Begin networking at industry events

1/1/202X – Helios Solar opens its office for business

Financial Plan

Key revenue & costs.

The revenue drivers for Helios Solar are the electricity fees they will charge to utility companies for their services. Most other solar energy wholesale companies charge $83 per MWh; Helios Solar will initially charge $80 per MWh.

The cost drivers will be the overhead costs required to maintain and upgrade solar arrays. The major expenses will be payroll, and hardware purchases.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required to achieve the revenue and cost numbers in the financials and to pay off the startup business loan.

  • Number of MWh Per Year: 1,750
  • Average Fees: $27/MWh

Financial Projections

Income statement, balance sheet, cash flow statement, solar farm business plan faqs, what is a solar farm business plan.

A solar farm business plan is a plan to start and/or grow your solar farm business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your solar farm business plan using our Solar Farm Business Plan Template here .

What are the Main Types of Solar Farms?

There are a number of different kinds of solar farms , some examples include: Crystalline Silicon Power Plant, Thin-Film Solar Power Plant, solar panel farms, renewable energy and alternative energy providers.

How Do You Get Funding for Your Solar Farm Business Plan?

Solar farm businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

A well crafted solar farm business plan is essential to attract any type of potential investor.  This is true for a new solar farm, a solar energy business plan and a solar panel business plan.

What are the Steps To Start a Solar Farm Business?

Starting a solar farm business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Write A Solar Business Plan - The first step in starting a business is to create a detailed solar farm business plan that outlines all aspects of the venture. This should include market research on the solar farm industry and potential target market size, information on the services and/or products you will offer, your mission statement, marketing strategy, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your solar farm business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your solar farm business is in compliance with local laws.

3. Register Your Solar Farm Business - Once you have chosen a legal structure, the next step is to register your solar farming business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your solar farm business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Solar Farm Equipment & Supplies - In order to start your solar farm business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your solar farming business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising to attract potential customers.

Learn more about how to start a successful solar farm business:

  • How to Start a Solar Farm Business

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.

TRUiC's YouTube Channel

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!

Solargraf

How to Start a Solar Business. A-Z Guide

The solar industry is one of the fastest-growing industries globally, so it’s no surprise that new entrepreneurs consider getting involved in this boom every day. If you’re reading this right now, you’re likely thinking about riding this solar wave yourself, but you’re not sure where or how to start.   

While starting any business can be a large endeavor for anyone, this article will serve as an introduction and guide on starting a solar company, from the very beginning to how to generate leads and scale your company up from a one-man operation to a fully staffed and operational business.   

Whether you’re brand new to the solar industry and just earned the required PV licenses to work in your state, or you’re a solar installer or salesperson looking to branch out and start something new, there’s something in this guide for you.   

How to start a successful solar company  

Congratulations! Choosing the solar energy industry as the path for your business is a wise and responsible choice. Not only is it a growing industry with tons of room for success, but it also contributes to a cleaner, more sustainable environment.  

Before you jump right into it, though, let’s talk about one thing: goal setting. Without proper goal setting, your solar company will be like everyone else’s – with no direction and nowhere to go. You can’t just say what you want to do; you need to set deadlines and create action plans that will help you sustain the business. Can your actions meet your expectations?  

Examine past projects or events that were successful in this field and see if you can follow their pattern of success in creating your own goals. Also, keep an eye on other companies in this field who are doing well with their goals. If one of them has set up five branches around the globe in six months, don’t try to match them if you’re still new to this industry, as the chances are high that you won’t be able to meet their standards yet.  

Instead, aim for more realistic goals like hiring your first wave of staff within the first year; whatever works for you and helps build your confidence and reputation among clients and competitors over time.  

How to Get Started/First Steps  

Once you’ve set some realistic goals for yourself, it’s time to plan and get started. Here’s a quick list of every step you should consider before starting your business.   

  • Settle on a business structure (sole proprietorship, partnership, corporation).  
  • Write a detailed business plan. This is important as it will guide all your decisions and help you secure funding.  
  • Educate yourself further on the solar industry and learn to analyze the market. This will help you understand how your business fits in and determine its prospects for success. Learn what your competition is doing and identify how to stand out from them; that is, offer something different or better than they do.  
  • Design a solar marketing  plan . This should be based on a SWOT analysis; that is, an analysis of strengths, weaknesses, opportunities, and threats concerning other businesses in the same industry. If this sounds complicated, don’t worry too much, as there are plenty of online resources detailing exactly how to go about this step-by-step.
  • Apply for funding if required. You can apply for grants or loans from various government agencies. If successful, you’ll then have to figure out what equipment/inventory you need to buy and build so you can have everything ready when the funds arrive. You may also need some initial investment capital which can come from personal savings or friends/family members willing to invest their money into your venture (be sure they’re aware of any potential risks, though!). Consider using crowdfunding platforms like Kickstarter, too – it could give your company exposure while raising money simultaneously!  

Writing A Solar Business Plan  

Writing a business plan is one of the first steps in starting a solar business . For many, this means creating a comprehensive, 30-plus page document covering all aspects of your proposed company, from market research to financing and marketing.  

However, there’s no need to panic – it’s possible to create an effective business plan without spending weeks at it. Below are the six most important things you need to understand when writing one:  

  • Know your market  
  • Know your competition  
  • Know what makes you unique  
  • Know how you’re going to finance your business  
  • Know what equipment and tools you’ll need  
  • Know how you’re going to find clients  

When writing your business plan, you must answer a few questions about what makes your solar installation business unique. What sets you apart from the competition? What expertise do you bring to the market? Why would people want to buy from you rather than someone else?  

The truth is that most of your competitors will have roughly the same level of experience as you. So, when thinking about what makes your business unique, think about why it’s in a good position to succeed.  

Perhaps you are passionate about sustainable energy and believe that our society should be powering itself with renewable energy sources like solar power. If so, make sure this passion comes through in your marketing materials and customer interactions because it might be what sets you apart from other installers who just see this as a way to make money. Make sure that potential customers know how passionate you are about what they are buying rather than being sold on price or naivety alone.  

Understand what tools and equipment you’ll need to invest in to get your business up and running. This includes what kind of stock of PV panels, inverters, wires, etc. you’ll want to have on hand to start with, as well as any common or specialized tools  and safety/construction equipment you’ll need to provide yourself and your team with.   

Your business plan should also include some plans about staffing your company for the upcoming year. How many salespeople do you think you’ll need? Do you want to build multiple small teams of installers to cover more ground, or do you just need one or two to start with? Will you hire an in-house marketer or rely on agencies and freelancers? How much are you willing to pay people to provide the level of quality you want your business to offer, and how much do you want to spend on advertising to get your name out there?   

Funding Your Solar Business Startup  

There are many ways to go about funding your solar business. You can use your own cash (a home equity line of credit is a popular option), take out a small business loan, get an SBA loan, or even use crowdfunding or credit cards. If you’re unsure of how much money you’ll need to start up, it’s best to consult with a nonprofit organization that offers advice and guidance on the process (like SCORE).   

If you don’t have enough money to start an entire business right now, consider starting off as a subcontractor for another company until you’re able to stand on your own. This will give you some time to save up and gather the funds you need, but it will also keep you in the loop of what’s going on in the solar industry and help you build and maintain your own solar skills and knowledge.   

Learn about your local solar market  

You can have all the skills and certifications in the world, but if you don’t understand what your own, local solar market looks like, you’ll probably have some trouble starting a business that fits in with what your potential clients need. Market research can take many forms. Here are a few things to learn about when discovering your local solar market.  

  • Size: How big is your solar market? How many solar companies already operate in your area?  
  • Customers: Who are the people in your service area? What do they want? Where do they find their information and spend their time? How much do they like to spend?  
  • Competitors: What do your competitors offer? Why do your potential solar customers choose your competitors for their solar projects?  
  • Potential Gaps: Are there any gaps in the market that your competitors are neglecting? How can you fill them?   

Now that you know about the major solar markets in your area, what are some of the factors that make them more attractive to do business in than others? Each business has different needs and goals, and yours might differ from others. This is why your next step is to take a deep dive into your local market’s trends and big players.  

What are the trends in your local solar market?  

Understanding trends is important for any solar business. Solar is a growing industry, but how fast it grows and why depends on many factors.  

Solar market trends can be tracked using the following sources:  

  • The Database of State Incentives for Renewables and Efficiency (DSIRE) tracks incentives in real-time. DSIRE has one of the most comprehensive and up-to-date lists of state, local, utility, and federal incentive programs that promote renewable energy. Explore their website to search for financial incentives related to solar applications where your company will operate.  
  • Access the U.S Department of Energy’s SunShot Initiative website regularly to stay up to date on market data, reports, and current news in the solar industry.  
  • It is also important to learn about which companies are active at both the national level and within your local area by reading trade journals like PV Magazine or subscribing to newsletters such as those published by SEIA, SEPA, and Canary Media. This will also help you stay updated on new programs, incentives, and new equipment.   

Learn about your competitors  

No business should be run without some competitor research. This is essential to the success of your solar business. You need to know who you will be competing with within your market, what they do, and how they do it. This will help you create a plan to beat them.  

Identify their strengths and weaknesses. While your competition should be taken very seriously, do not forget that for a new business, it is also essential that you identify your own strengths and weaknesses to fill any gaps in the market left open by other companies.  

Find out how they reach customers. What channels do they use? How effective are these channels? Which channels could you potentially use as well? Do they have a blog with content that helps them to generate leads? What are they missing on their blog, and how can you put together content to draw traffic to your own website?  

Generating Leads, Clients  

There are many proven ways of generating leads and potential clients, but the one that we have found to be most successful and cost-effective is online marketing. With online marketing, you can target your customers based on location, income range, age range, interests, titles, etc. These targeting options allow you to find your ideal customer easily and provide your services right when they need them.  

To generate leads with this method requires a few things: A website and landing page created for conversions, a blog where you offer useful information about solar energy, and some form of lead magnet that offers people something valuable in exchange for their contact information (like an eBook or report). An email marketing campaign designed to nurture leads over time until they are ready to make a purchase should also be set up to build trust with people who provide you with their information.   

You should also consider setting up a presence on social media since most people have accounts nowadays and visit these places often. Here, you can build a community, educate people, and display what services you offer, all for free. You can also run paid ads on these platforms to supplement your search engine marketing efforts and link back to your website as many times as you’d like in an effort to gather emails and phone numbers for your salespeople.   

How to Scale  

Scaling a solar business is no easy feat, but it’s not impossible either. Once you have a small team of passionate employees and a few processes in place, building up from below shouldn’t be too complicated or challenging. Here are the three main things you need to build at your solar company if you’re looking to scale.   

  • Documentation: Keeping a record of everything is essential to growing a business. Document everything from sales processes, important information, and logins, instructions on how to complete certain tasks, manage inboxes and communicate with other teams in the company. All this documentation should be kept in a secure location, and everyone who needs to be in the know should have access. This prevents employees from leaving with essential information that no one else knows and helps new hires get onboarded effectively.   
  • Structure: Even if you don’t have the employees to fill certain roles yet, build up a company structure that you aspire to have in the future. For example, if you only have one salesperson right now, plan for that person to get promoted to team lead and hire below them. When people start telling you that their workload is increasing, make plans to hire people to cover the added workload.   
  • Trust: Your first employees should be people you believe can do a great job and people you trust to make decisions for you. As your company grows, you won’t be able to be as hands-on as you might have been when you started the business. Trust that the people you hired are competent enough to handle their departments, and let them build them up as necessary.   

Every company starts from nothing. The difference between those that make it, and those that don’t lie in how well they are able to handle growth and scale up.   

Difficulties of running a solar company  

The solar sales industry is not for everyone. Not everyone has the work ethic, personality and attitude to succeed in this type of business. So if you are looking for your get-rich-quick scheme or something to do on the weekends, this isn’t it.  

The solar sales industry requires an extremely high level of commitment from your employees and incredible discipline, patience, and self-motivation. Every day, you will face rejection, challenges, and obstacles you never even thought about before venturing into business ownership. If you cannot handle adversity or have a low threshold for stress, then maybe running a solar company isn’t for you.  

On the solar industry side of things, supply issues might cause problems for the solar jobs you have in the pipeline, state and federal incentives or programs might be canceled or dry up, and there’s always the risk that some newer, better renewable energy technology pops up and leapfrogs right over everyone in the solar industry.   

On the business side, employees will quit, customers will occasionally be unhappy with your work, and money might be lost along the way. The difference between a successful business and an unsuccessful one is how the owners and CEO can effectively adapt and handle these issues.  

In Closing   

Starting a solar business requires a lot of planning, consideration, money, and effort, and it isn’t for everyone. The good news is that if you follow this guide, you’ll have a great foundation to start off with. While we can’t help everyone build their own solar companies, the tips we’ve laid out here are definitely a great starting point for anyone looking to grow and be successful in the solar industry.   

Looking to scope, sell and complete more solar projects than ever? Solargraf is the most user-friendly, robust, and fully integrated solution on the market. Book your  free demo today  to learn more about growing your business with Solargraf. 

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How to Start a Solar Farm

start a solar farm

Starting a solar farm can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful solar farm.

Importantly, a critical step in starting a solar farm is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start a Solar Farm :

  • Choose the Name for Your Solar Farm
  • Develop Your Solar Farm Business Plan
  • Choose the Legal Structure for Your Solar Farm
  • Secure Startup Funding for Your Solar Farm (If Needed)
  • Secure a Location for Your Business
  • Register Your Solar Farm with the IRS
  • Open a Business Bank Account
  • Get a Business Credit Card
  • Get the Required Business Licenses and Permits
  • Get Business Insurance for Your Solar Farm
  • Buy or Lease the Right Solar Farm Equipment
  • Develop Your Solar Farm Marketing Materials
  • Purchase and Setup the Software Needed to Run Your Solar Farm
  • Open for Business

1. Choose the Name for Your Solar Farm

The first step to starting a solar farm is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your own solar farm:

  • Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
  • Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
  • Think about marketing . Come up with a name that reflects the desired brand and/or focus of your solar farm.

2. Develop Your Solar Farm Business Plan

One of the most important steps in starting a solar energy farm business is to develop your solar farm business plan . The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

  • Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your solar farm.
  • Company Overview – this section tells the reader about the history of your solar farm and what type of solar farm you operate. For example, are you a photovoltaic power station, concentrating solar thermal power (CSP), or a concentrating photovoltaic (CPV) solar farm?
  • Industry Analysis – here you will document key information about the solar industry. Conduct market research and document how big the industry is and what trends are affecting it.
  • Customer Analysis – in this section, you will document who your ideal or target market are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing products or services like the ones you will offer?
  • Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
  • Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
  • Product : Determine and document what products/services you will offer 
  • Prices : Document the prices of your products/services
  • Place : Where will your business be located and how will that location help you increase sales?
  • Promotions : What promotional methods will you use to attract customers to your solar farm? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
  • Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
  • Management Team – this section details the background of your company’s management team.
  • Financial Plan – finally, the financial plan answers questions including the following:
  • What startup costs will you incur?
  • How will your solar farm make money?
  • What are your projected sales and expenses for the next five years?
  • Do you need to raise funding to launch your business?

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3. choose the legal structure for your solar farm.

Next you need to choose a legal structure for your solar farm and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the owner of the solar farm and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a solar farm together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a solar farm include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a solar farm is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your solar farm, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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4. Secure Startup Funding for Your Solar Farm (If Needed)

In developing your solar farm business plan , you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for a solar farm to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a solar farm that they believe has high potential for growth.

5. Secure a Location for Your Business

The first step in finding a location for your solar company is to determine the amount of space you will need. You’ll need to calculate the square footage of the area you plan to use for the solar farm.

Once you have calculated the square footage, you’ll need to research potential locations that meet your needs. The best locations for solar farms are open areas with plenty of sunlight. You’ll also want to consider the availability of land, as well as any zoning or permitting requirements that may apply.

Finally, you’ll want to contact local officials to inquire about any potential restrictions or limitations on solar companies in the area.

6. Register Your Solar Farm with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your solar farm’ name. This process is fairly simple and involves the following steps:

  • Identify and contact the bank you want to use
  • Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
  • Complete the bank’s application form and provide all relevant information
  • Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your solar farm to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

In order to start your own solar farm business, you will need to obtain a number of licenses and permits. These include a license to operate the solar farm, a site development permit, and possibly other permits depending on the specifics of your project. You should reach out to your local government officials to learn more about the specific requirements in your area.

10. Get Business Insurance for Your Solar Farm

A solar farm can be a valuable asset, and it’s important to protect that asset with insurance. There are a few types of insurance you may need to operate a solar business, including:

  • General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
  • Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
  • Property insurance : This covers damage to your property caused by fire, theft, or vandalism.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.

11. Buy or Lease the Right Solar Farm Equipment

To run a solar farm, you will need solar panels, inverters, and a monitoring system. Solar panels are used to transform sunlight into electricity. Inverters convert the direct current (DC) power produced by the solar panels into an alternating current (AC) that can be used in homes and businesses. Monitoring systems allow you to keep track of all the important data that can affect how well your solar panels are running.

Other solar equipment you might need includes transformers, AC/DC disconnects, AC switchgear, and interconnection equipment.

12. Develop Your Solar Farm Marketing Materials

Marketing materials will be required to attract and retain customers to your solar farm.

The key marketing materials you will need are as follows:

  • Logo : Spend some time developing a good logo for your solar farm. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
  • Website : Likewise, a professional solar farm website provides potential customers with information about the products and/or services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
  • Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your solar farm.

13. Purchase and Setup the Software Needed to Run Your Solar Farm

Solar farms often use complex software to track energy production of the solar panels installed. This is an important part of a solar farm because it ensures all panels work together to produce as much power as possible. Without this technology, different panels could produce varying amounts of energy, making it less efficient.

14. Open for Business

You are now ready to open your solar farm. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

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How to Start a Solar Farm FAQs

Is it hard to start a solar farm.

It can be hard to start a solar farm, but there are many resources available to help you get started. The Solar Energy Industries Association (SEIA) is a great resource for information on everything from policy to financing as well as project development. You can also find case studies and examples of solar farms that have been successfully built and operated.

How can I start a solar farm with no experience?

If you're interested in starting a solar farm, but don't have any experience, there are a few things you can do. First, research the process of starting and running a solar farm. Second, reach out to other solar farmers for advice and guidance. There are many online forums and communities where solar farmers share advice and tips. Finally, attend workshops and seminars on solar farming. There are many events that offer training and education on all aspects of solar farming.

What type of solar farm is most profitable?

There are different types of solar farms, each with advantages and disadvantages. The most profitable of solar farm types are utility-scale solar farms. These are large solar farms that provide power to an entire town or city. They are more expensive to build than other solar farms, but they also generate more power.

How much does it cost to start a solar farm?

There is a lot of variation in the solar farm cost. Costs can range from a few thousand dollars to tens of millions of dollars, depending on the size and complexity of the project.

The primary driver of the total cost is the size of the project. A larger solar farm will have higher up-front costs due primarily to the requirement for more equipment. However, huge solar farms are often able to sell their electricity for a lower price per kilowatt-hour than smaller ones. Larger solar farms also take advantage of economies of scale and might be able to pay for the entire cost of construction in a few years.

On the other hand, smaller solar farms tend to have higher prices per kilowatt-hour because they sell their electricity on a spot market or have a contract with one buyer (i.e., a local utility). A small solar farm might take more than five years to pay for construction and meet other business expenses.

What are the ongoing expenses for a solar farm?

Ongoing expenses for a solar farm include the costs associated with maintaining the solar equipment. This includes costs such as labor and materials to perform maintenance. A few examples of ongoing expenses include clearing debris, mowing grass around panels, replacing worn-out tools and parts, and picking up litter near the panels.

How does a solar farm make money?

A successful solar farm business makes money by selling the electricity it produces to utility companies. The utility companies then sell that clean energy to its customers. Additionally, many solar farms receive government subsidies or tax credits for producing renewable energy.

Is owning a solar farm profitable?

Solar farms can be profitable if they are well-managed and have access to good sunlight. First, the cost to manufacture solar panels has been dropping dramatically in recent years, and this trend is expected to continue. In addition, many states offer tax incentives or rebates for businesses that install solar panels. Finally, the price of electricity continues to rise, making solar power an increasingly attractive option.

Why do solar farms fail?

Some solar farms fail because of the lack of money to maintain them due to tax credit limits. Some fail because they're built on less suitable land. Others struggle because they don't have an organized business structure for the farm. Additionally, some fail because the solar farm business owner doesn't consider the impact technology advancements could have on the business.

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Back to All Business Ideas

How to Start a Solar Farm

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

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 December 22, 2021 Updated on February 14, 2024

How to Start a Solar Farm

Investment range

$1,020,400 - $2,070,700

Revenue potential

$240,000 - $600,000 p.a.

Time to build

3 – 5 years

Profit potential

$216,000 - $540,000 p.a.

Industry trend

Solar power is worth $185 billion globally and still seeing explosive growth. With your own solar farm — a large field of photovoltaic panels linked to the grid — you could generate good money while also doing good for the environment.

The initial investment of about $1 million is considerable, but there is an alternative: if you own or buy a sizable piece of land, you could lease it to your local utility company, which would then build and maintain the solar farm and pay you a share of the revenue. After some years, you might be able to take financial control of the farm and expand further.

Either way, starting a solar farm is challenging and requires time and hard work. Starting off with the right knowledge is crucial, and this step-by-step guide provides all the information and insight you need to begin building your solar empire.

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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

Pros and cons.

Every business has pros and cons that you should consider before deciding if it’s right for you.

  • Eco-friendly – Solar power is good for the environment
  • Good Money – Profit margins in solar are high
  • Minimal Work – A solar farm need servicing just 3-4 times per year

High Startup Costs – Building a farm costs $1M and up

Solar industry trends

Since the US instituted a major tax credit for solar projects in 2006, the US solar industry has grown 100-fold, according to the Solar Energy Industries Association.(( https://www.seia.org/initiatives/solar-investment-tax-credit-itc ))

In terms of trends, the storage capacity of solar batteries has increased in recent years, which helps stabilize the solar grid on your farm and reduce wasteful production. In addition, a rising number of US households are installing solar panels. Shipments of solar modules for residences increased a stunning 33% in 2020, according to the Energy Information Administration. Homeowners can also sell excess energy from their solar panels to the power company, as 40 states allow homeowners to do so.(( https://www.eia.gov/todayinenergy/detail.php?id=49396 ))

Industry size and growth

  • Industry size and past growth – Research firm IBISWorld values the US solar farm market at more than $11 billion, a 26% increase from its value a decade ago.(( https://www.ibisworld.com/industry-statistics/market-size/solar-farm-developers-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 nearly 7,500 solar farm developers in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/solar-farm-developers-united-states/ ))
  • Number of people employed – US solar farms employ more than 42,000 people.(( https://www.ibisworld.com/industry-statistics/employment/solar-farm-developers-united-states/ ))

solar industry size and growth

Trends and challenges

Trends in solar farms include:

  • Increasing use of solar batteries with higher storage capacity
  • More US households installing solar panels
  • Strong demand for clean, renewable energy
  • Growing concern over climate change

Challenges in solar farms include:

  • High initial investment in solar panels
  • Supply chain issues to impact solar panel production

solar industry Trends and Challenges

Consumer spending

  • Average consumer spend – An American family spends $1,450 a year on electricity.(( https://www.forbes.com/advisor/home-improvement/average-cost-of-solar-panels/ ))
  • Potential customer base – Almost half of Americans were considering solar panels.(( https://www.forbes.com/home-improvement/features/will-americans-go-solar/ ))
  • Average prices – A solar panel in the US costs $20,498 on average.(( https://news.energysage.com/how-much-does-the-average-solar-panel-installation-cost-in-the-u-s/ ))

solar industry consumer spending

Price differences across the country

  • More expensive – A 10-kw solar panel is most expensive in Washington D.C., Indiana, New Mexico, New York, and Rhode Island, with the price ranging from $31,500 to $34,100.
  • Less expensive – The lowest prices for a solar panel are in Arizona, Florida, Nevada, Delaware, and Utah, with prices ranging from $23,300 and $26,300.(( https://news.energysage.com/how-much-does-the-average-solar-panel-installation-cost-in-the-u-s/#cost ))

Solar industry price differences

What kind of people work in solar farms?

  • Gender – 77% of solar energy engineers in the US are male, while 23% are female.(( https://www.zippia.com/solar-energy-engineer-jobs/demographics/#gender-statistics ))
  • Average level of education – 65% of solar energy engineers hold a bachelor’s degree.(( https://www.zippia.com/solar-energy-engineer-jobs/demographics/#degree-level-types ))
  • Average age – The average age of a solar energy engineer is 43 years old.(( https://www.zippia.com/solar-energy-engineer-jobs/demographics/#age-statistics ))

solar industry demographics

How much does it cost to start a solar farm business?

Startup costs for a solar farm range from $1 million to $2 million and more. The lower end is for a one-megawatt farm, which is the minimum you need for the power company to be interested, and assumes you already have 6-8 acres of land. The higher-end is for a two-megawatt farm and includes a down payment for the land purchase. If you instead decide to lease your land to a utility company, they will pay for the farm’s development and your costs will be next to nothing.

How much can you earn from a solar farm business?

The per-acre profit of a solar farm runs between $20,000 and $40,000, with an average of $30,000. After costs your profit margin should be about 90%.

Development

If you have a 20-acre property and you develop only eight acres into a solar farm, bringing in $30,000 per acre. Your annual revenue will be $240,000, and your profit will be $216,000. As you gain more customers, you could fully develop the entire 20 acres. You’ll be earning $600,000 in annual revenue and $540,000 in profit. You could expand your farm over time by using your profits to purchase more land and add to your grid, thus increasing your income substantially.

solar farm development business earnings forecast

If you lease your land, you can probably earn $2,000 per acre per year. With 8 acres at $2,000 per acre, you’ll make $16,000 in annual revenue and at least $14,000 in profit. If you lease out the entire 20 acres, you’ll make $40,000 in annual revenue and $36,000 in profit. It’ll be a good source of passive income.

solar farm lease earnings forecast

What barriers to entry are there?

There are a few barriers to entry for a solar farm. Your biggest challenges will be:

  • Costs to develop a solar farm are high
  • A sun-drenched swathe of land
  • Permission from the utility, which can take years

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Step 2: hone your idea.

Now that you know what’s involved in starting a solar farm, 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

You should research whether your land is right for a solar farm. You should look for:

  • Minimum of 6-8 acres, flat and no flood-risk
  • At least four peak sun hours daily
  • No regulations in terms of conservation
  • Within a few miles of the power grid

What? Determine your products or services

You need to determine if you want to lease your land or develop your solar farm. By leasing your farm, you can start with minimal cost, but make far less money. With a farm, your revenue potential is much higher, but your upfront costs are significant.

How much should you charge for solar?

The price you charge for power will be dictated by how much the power company is willing to lease your land for. A good lease could mean $2,000 per acre per year. Strong revenue for a developed solar farm is $30,000 per acre per year. 

Once you know your costs, you can use this our 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

Your target market will be power companies and solar developers. You should find them via internet search and contact them directly via phone or email.

Where? Choose the location for your solar farm

The location of your solar farm is a critical factor in its success. Look for a location with plenty of sunlight, minimal shading, and adequate land availability. Consider the proximity to the power grid and transmission lines, as well as any regulatory requirements for solar farms in the area.

Additionally, assess the local demand for renewable energy and the potential market for your solar farm’s electricity. Consider the economic and political climate in the area, as well as any incentives or subsidies that may be available.

When selecting your location, consider factors such as access to water, soil quality, and any environmental considerations. The right location can help optimize your solar farm’s energy production and ensure the sustainability of your operation.

By carefully choosing the location of your solar farm, you can establish a profitable and sustainable business that contributes to the growth of renewable energy and helps combat climate change.

solar farm business idea rating

Step 3: Brainstorm a Solar Farm Company 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
  • The name should be relevant to your product or service offerings
  • Ask around — family, friends, colleagues, social media — for suggestions
  • Including keywords, such as “solar” or “solar power”, boosts SEO
  • Choose a name that allows for expansion: “Bright Future Solar Farms” over “Commercial Solar Farms” or “Residential Solar Farms”
  • 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 Solar Farm 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: Outline the goals and strategies of your solar farm business, emphasizing renewable energy production and potential contributions to the regional power grid.
  • Business Overview: Describe your solar farm’s operations, including generating solar energy and selling it to utilities or directly to consumers.
  • Product and Services: Detail the core service of electricity generation using photovoltaic panels, and any additional services like energy storage or leasing solar equipment.
  • Market Analysis: Assess the demand for renewable energy in your region and identify potential buyers like local utilities, businesses, or government entities.
  • Competitive Analysis: Compare your solar farm to others in the area, focusing on factors like energy output capacity, technological efficiency, or location advantages.
  • Sales and Marketing: Outline your approach for securing contracts and partnerships with energy buyers and other stakeholders in the renewable energy sector.
  • Management Team: Highlight the experience and qualifications of your team, especially in areas like renewable energy, project management, and environmental regulations.
  • Operations Plan: Describe the operational process of your solar farm, including installation, maintenance of solar panels, and energy distribution.
  • Financial Plan: Provide an overview of financial aspects such as investment costs, revenue models, and long-term profitability projections.
  • Appendix: Include supplementary documents like site plans, environmental impact studies, or power purchase agreements that support 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 sunnier states could offer real advantages when it comes to solar farms.

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 farm 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 needs 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

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solar 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 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.
  • Venture capital : Offer potential investors an ownership stake in exchange for funds, keeping in mind that you would be sacrificing some control over your business.
  • 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 farm. You might also try crowdfunding if you have an innovative concept.

types of business funding

Step 8: Apply for Solar Farm Business Licenses and Permits

Starting a solar farm business requires obtaining a number of licenses and permits from local, state, and federal governments.

Solar farms are subject to strict review processes through federal, state, and local regulators. They also require permission from a power company. The process for approvals usually takes 3 to 5 years.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your solar farm 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 any 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.

You can use industry-specific software, such as quickbase , 3 megawatt , or enact , to manage your solar installation and measure energy generated.

  • 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

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

Your clients are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Here are some powerful marketing strategies for your future business:

  • Identify Your Target Market : Understand who your primary customers will be. This could include local businesses, government entities, and residential communities. Tailor your marketing message to address their specific energy needs and concerns.
  • Leverage Green Credentials : Emphasize the environmental benefits of solar energy. Highlight how using solar energy reduces carbon footprints and supports sustainable living. This can be a strong selling point for environmentally conscious consumers.
  • Utilize Digital Marketing : Create a strong online presence with a professional website showcasing your solar farm’s capabilities, benefits, and services. Use social media platforms to engage with your audience, share relevant content, and build a community around renewable energy.
  • Content Marketing : Develop informative content that educates your audience about solar energy, its benefits, and how your solar farm contributes to the energy landscape. Blog posts, videos, infographics, and webinars are effective tools.
  • Partnerships and Networking : Collaborate with local businesses, environmental groups, and educational institutions. Networking can lead to partnerships that not only expand your market reach but also provide mutual benefits.
  • Government Incentives and Policies : Stay informed about government incentives for renewable energy and use this information in your marketing. Educating potential clients about available subsidies or tax breaks can be a persuasive marketing tool.
  • Community Engagement : Engage with the local community through events, sponsorships, or educational programs. Building a positive community presence can enhance your brand and increase local support.
  • Testimonials and Case Studies : Share success stories and testimonials from satisfied customers. Case studies demonstrating the effectiveness and savings from your solar farm can be compelling evidence for potential clients.
  • Competitive Pricing Strategies : Ensure your pricing is competitive and offers value for money. Consider flexible pricing models to attract a wider range of customers.
  • After-Sales Service and Support : Highlight the quality of your customer service and after-sales support. Providing excellent service can lead to referrals and repeat business.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your solar farm meets 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 farm could be:

  • Stable supply of clean, renewable energy 
  • Efficient solar storage solutions
  • Maintenance-free and environment-friendly 

unique selling proposition

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a solar farm business would include:

  • Maintenance Workers – Maintain your solar panels and grid
  • General Manager – Oversee maintenance, accounting

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: Run a Solar Farm – Start Making Money!

Solar power is the future of energy and it’s good for the planet since it’s clean and renewable. By starting a solar farm, you’re doing your community a service and making money at the same time. 

The US solar market is worth more than $11 billion and growing rapidly, which means your solar farm should provide sizable profits with little effort once it’s up and running. Alternatively, leasing your land for a solar farm costs essentially nothing but will add a nice stream of passive income . Now that you have the information you need, you’re ready to start building your solar empire!

  • Solar Farm Business FAQs

If you develop a solar farm, once it’s up and running, you should make $30,000 per acre per year. If you lease your land for a solar farm, you can make $2,000 per acre per year.

You will need to contact federal, state, and local regulators to start the permitting and approval process, which can take 3 to 5 years. You will also need to contact the local power company for approval.

The general rule is 6 to 8 acres at minimum. This is enough to develop a 1-megawatt solar farm.

Conduct a thorough site assessment to determine the optimal location for installation, considering factors such as sunlight exposure, shading, and structural integrity. Follow manufacturer guidelines and industry standards for the installation process, including proper mounting, wiring, and electrical connections. Regularly inspect and clean the solar panels to remove dirt, dust, or debris that can reduce their efficiency.

Solar farms provide several environmental and sustainability benefits, including:

  • Renewable energy generation: Solar farms harness sunlight to generate clean and renewable energy, reducing reliance on fossil fuels and greenhouse gas emissions.
  • Carbon footprint reduction: By displacing energy generated from fossil fuels, solar farms contribute to reducing carbon dioxide and other harmful emissions that contribute to climate change.
  • Water conservation: Solar farms have minimal water requirements compared to other forms of energy generation, reducing strain on local water resources.
  • Land preservation: Solar farms can be built on existing open spaces, including unused or degraded land, minimizing the need for new land development.
  • Local economic benefits: Solar farms create job opportunities during construction and ongoing operations, stimulating local economies and providing long-term revenue streams.

Best practices for managing and monitoring solar farm operations include regular maintenance and inspection of solar panels and equipment, monitoring energy production and system performance, implementing remote monitoring and control systems, establishing a preventive maintenance schedule, conducting periodic performance assessments and analysis, and providing staff training and education.

To assess the potential solar resource and energy production of a solar farm, you can conduct a solar resource assessment using historical solar irradiance data, perform a feasibility study including a site visit, and utilize solar modeling software or online tools that consider parameters like panel type, tilt angle, and shading.

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  • Decide if the Business Is Right for You
  • Hone Your Idea
  • Brainstorm a Solar Farm Company Name
  • Create a Solar Farm Business Plan
  • Register Your Business
  • Register for Taxes
  • Fund your Business
  • Apply for Solar Farm Business Licenses and Permits
  • Open a Business Bank Account
  • Get Business Insurance
  • Prepare to Launch
  • Build Your Team
  • Run a Solar Farm - Start Making Money!

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How to Write a Solar Production Business Plan

Create a comprehensive solar production business plan for production success .

A well-written business plan provides a roadmap that outlines the goals, strategies, and financial projections of your business. It also serves as a powerful tool for attracting investors and securing financing.

Today, we’ll cover what you need to know to create an effective solar production business plan for solar manufacturing success. We’ll look at the elements of a good business plan, the pros, and cons of developing your own business plan versus hiring a professional, and tips for crafting an effective solar manufacturing business plan.

We’ll also discuss common mistakes to avoid. Let’s get started!

Why You Need A Business Plan 

A solar production business plan involves a thorough analysis of the market, the competition, and the industry. It also involves creating a financial plan, setting milestones, and planning for contingencies.

Creating a solar production business plan for a solar manufacturing company requires a deep understanding of the industry, the current market conditions, and the competitive landscape. It also requires an understanding of the technologies used in solar manufacturing, the  costs of solar panel manufacturing in setting up production, and the regulations and laws governing the industry.

Developing a solar production business plan.

Business plans are not just for startups. Existing businesses can also benefit from creating a business plan. A good plan can help a business grow and expand, identify new opportunities, and create a roadmap for success.

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A solar business plan provides the framework for goals and objectives and outlines the strategies and plans for achieving them. It also provides investors with a detailed understanding of the business and its potential for success.

For solar manufacturing, a business plan can help you determine the most cost-effective way to set up production, identify potential markets, and develop strategies for marketing and sales. It can also provide a roadmap for navigating the often-complex regulatory environment, as well as a plan for securing financing.

Creating a solar production business plan can also help you stay organized and focused. It provides a framework for tracking progress, measuring success, and identifying areas for improvement.

Elements Of A Business Plan

A good business plan should include the following elements:

  • Executive summary:  a brief overview of the business plan, including a summary of the company’s mission and objectives, a description of its products and services, and a financial overview.
  • Market analysis: this section is an analysis of the current market conditions, the competitive landscape, and the potential for growth.
  • Business model: this section outlines the technologies used, the production process, and the cost structure.
  • Financial plan:  this details the budget, projections, and financing for solar module manufacturing .
  • Marketing plan:  outlines the strategies and plans for marketing and sales.
  • Operational plan: this section should describe the operational procedures and processes.
  • Risk management plan: describes the chosen strategies for managing the risks of solar panel manufacturing .

should you develop your own business plan? 

Developing your own business plan has its advantages and disadvantages. On the plus side, it gives you the opportunity to customize the plan to your specific needs and goals. It also gives you the chance to learn more about the industry and become an expert in the field.

On the other hand, writing your own solar production business plan can be time-consuming and may require more research and resources than you have available. It also requires a deep understanding of the industry, the current market conditions, and the competitive landscape.

should you hire a professional Writer for Your business plan?

Hiring a professional writer for your business plan is another option. On the plus side, professional business plan writers have the expertise and experience to create an effective business plan quickly and efficiently. They also have access to resources and industry knowledge that you may not have.

On the other hand, hiring a professional can be costly, and you may not get the personalized attention that you would with a DIY approach. Additionally, you may not have as much control over the process.

Tips For Crafting An Effective Solar Production Business Plan 

Here are some tips to help you craft an effective business plan

  • Do your research:   research the industry , the market, and the competitive landscape to get a better understanding of the opportunities and challenges.
  • Be realistic: don’t underestimate the costs and challenges associated with starting a solar manufacturing business.
  • Focus on the future:  think about the long-term goals and objectives of the business and create a plan to achieve them.
  • Keep it simple: avoid using jargon and technical language and focus on the key points.
  • Be proactive: address potential risks and contingencies in advance and develop strategies for managing them.

How To Get The Most Out Of Your Business Plan

To get the most out of your business plan, it’s important to:

  • Update your business plan regularly : market conditions and the competitive landscape can change quickly. Make sure to update your business plan regularly to reflect any changes.
  • Monitor progress:  track your progress and make adjustments as needed.
  • Get feedback: seek feedback from industry experts and investors to ensure that your plan is on the right track.
  • Be flexible: don’t be afraid to make changes if needed.

Without a solar production business plan, your venture will not have a roadmap to guide it. This will increase the risk of failure. It’s also next to impossible to get financing from banks or investors without a business plan.

Developing a business plan gives banks and potential investors confidence that the business can be run profitably. It gives them a reasonable expectation of a good return on their investment and makes them more likely to loan or invest in the business.

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How to Prepare a Business Plan for a Solar Farm

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How to Set Up an Alternative-Energy Company in Texas

Main steps in business planning, how to write an operating plan.

  • What Are the Benefits of Solar Power to Business?
  • How to Create a Business Plan for a Bank

Solar farms utilize a large-scale deployment of solar panels to generate renewable electricity for sale to utilities, government entities, individual consumers and organizations. A business plan is a formal document that provides a road map for a company's startup and growth in early years. Preparing a business plan for a solar farm can help you to think through all of the implications of starting a business in the growing alternative energy sector, and can help you to obtain financing and investment to get off the ground.

Create an overview of your company covering your mission statement, industry and a snapshot of your operations. Discuss the need that your company serves, and any industry trends that support the viability of establishing a solar farm, in addition to your company's name, address and geographic reach. Describe your company's form of organization, its location and its competitive advantages.

State the purpose of the business plan in this section in concrete terms: include the exact amount of funding or any other response the plan is intended to solicit from the reader.

Write an overview of your products and services. Describe the amount of electricity that will be generated by your solar farm, and detail your plans for the future expansion of your services. Compare the electricity produced by your business with traditional utilities and other alternative energy providers in terms of price, reliability and scalability.

Craft a marketing analysis section. Analyze your your competitors and target customers in this section. Your primary competitors are likely to be large-scale alternative energy suppliers, such as other solar farms, wind turbine farms and large hydroelectric utilities. Analyze the traditional energy suppliers—coal, natural gas and nuclear utilities—in your region and discuss your company's plan for gaining market share from these well-established powerhouses.

Your target customers are likely to be established utility companies, large businesses and government entities.

Create a financial plan section, including projected financial statements and ratio analysis. Large deployments of renewable energy technology, such as solar farms, require extensive capital resources at startup, and feature a cost structure that decreases over time as the expensive technology begins to pay for itself. Discuss possible sources of funding, including bank loans, stock offerings and government grants. Grants are likely to play a large role in the initial funding of an alternative energy company.

Write a personnel plan. Include an organizational structure chart showing the layers and hierarchy of management, and present brief professional biographies of yourself and your executive team. Discuss the number and types of staff that will be employed in the solar farm's initial years. Consider keeping your staff to a minimum as long as possible in this type of business, using third-party labor for the installation of your solar equipment, and employing a small work force for maintenance and upkeep in addition to a small office staff.

Create an executive summary, and use it as the first section in your business plan. Provide a brief overview of each business plan section, highlighting the information that is most important to the specific reader of the plan. Consider altering your summary slightly to suit different readers—whether bankers, investors or even potential customers.

  • The Finance Resource: Free Solar Energy Farm Business Plan
  • U.S. Department of Energy: Solar
  • Bplans: Business Plan Resources

David Ingram has written for multiple publications since 2009, including "The Houston Chronicle" and online at Business.com. As a small-business owner, Ingram regularly confronts modern issues in management, marketing, finance and business law. He has earned a Bachelor of Arts in management from Walsh University.

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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

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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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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.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

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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.

About the Author

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Upmetrics Team

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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Solar Energy Farm Business Plan Sample

MAR.01, 2014

solar farm business plan

Do you want to start solar energy business plan?

Are you interested in starting a solar energy business? In this age of renewable energy, this might be one of the best business to start. And the best part is its simplicity. You don’t need a degree or professional training to start a solar energy business. Just the basic know-how is enough.

Whatever the business may be, you will need the help of best business consultants . They will guide you in making a solar farm business plan. This is a very important step when you want to learn how to start a solar panel business. Here, we have shown how to write a small solar farm business plan .

Executive Summary

2.1 the business.

Sun Rise Energies will be a solar energy business started by Ben Stark. It will provide all solar energy related services in and around Chicago. This business will provide various services such as procurement and installation of solar energy panels, maintenance and supply.

2.2 Management of Solar Energy Business

When you are starting solar panel business, you will need a good solar farm business plan first and foremost. You can take help from professional business planning firms for this. Alternatively, you can also refer to this document when you are learning how to start solar company.

In solar farm business plan , you should include all the technical, financial and management details related to your solar panels franchise.

2.3 Customers of Solar Energy Business

Since everyone is joining the green energy bandwagon, our customers will not just be limited to one domain. Our customer base will include work places as well as residential areas. However, our recurring customers will be:

  • Residential Towns
  • Small/ Large Businesses
  • Educational Facilities
  • Individual Residences

2.4 Business Target

The man aim of our business is to be the primary suppliers of solar panels for business. We want to become the most reliable and authentic source of all solar energy related services that our clients need.

The financial targets that we want to meet in the first three years of our launch are shown below:

3 Years Profit Forecast - Solar Energy Company Business Plan Sample

Company Summary

3.1 company owner.

Ben Stark will be the owner of Sun Rise Energies. Stark completed his technical training under the guidance of an industry giant a few years ago. And then he proceeded to work up to a managerial position in a home-appliance business.

But he wanted to pursue his goal of starting a business in solar energy. And so he left his job to start this venture.

3.2 Why the solar energy business is being started

Being in the appliances industry, Ben was already aware of and interested in the rise of the renewable energy services. He saw that despite the popularity, there was still a lot of demand of solar energy ventures. And so, he started looking how to start an energy company to apply his own knowledge of the industry.

3.3 How the solar energy business will be started

Step1: Plan Everything

One of the foundational steps in starting a solar energy business is developing a business plan on solar energy. This acts as the basis for the success of your business. So getting this step right is crucial. You can take help from solar energy business plan pdf pdf samples from the internet. Or you can ask solar farm business plan experts for advice. You can also look through this document to learn about everything you need to have in a strong business plan.

Step2: Define the Brand

The second step is to make your brand stand out from its competition in the industry. You have to refine and market your values, services and exceptional policies in this step to gain competitive advantage.

Step3: Establish Your Corporate Office

In order to start up his business, Ben decided to rent out a shop in a commercial building. He will talk to his supplier for all the relevant equipment and furniture required for the store.

Step4: Establish a Web Presence

Setting up an online presence is just as important as a physical store in our digital age. Ben knew this and decided to create a simple website where people can look through the store’s services and products and even order them. Ben has also decided to create social media pages for his store to get greater reach.

Step5: Promote and Market

The final step is to create a marketing plan and execute it to its completion.

Startup Cost - Solar Energy Company Business Plan Sample

Services of Solar Energy Business

Before you start any business, you need to find your customer base. Figuring out your customers helps in the development of your solar farm business plan . And same is the case for solar system business plan.

As Ben wanted to offer not just products but also services in his business, so his solar energy plan business plan can be used as a reference for any type of solar farm business plan . You can use this solar energy business plan doc to understand what you should write in your plans.

Before we get into the details of how to get into solar business, let’s take a look at the services Sun Rise Energies will provide:

  • Sale of Solar Equipment

We will sell all basic solar energy equipment that is listed below. And our customers will be able to seamlessly shift to using renewable energy sources.

  • Solar Panels
  • Solar Inverters
  • Solar Power Batteries
  • Solar Powered Appliances (fans, bulbs, toasters, water bottles etc.)
  • Solar Power Bank
  • Solar Powered Watch
  • Product Installation

As a part of our versatile business plan solar energy company, we will also provide services related to installation and user guidance of solar energy products. We will provide:

  • Solar Panel Installation
  • Solar Invertor Setup
  • Solar System Use Training
  • Maintenance of Products

We will also provide maintenance of solar energy products. This will extend to products that were not necessarily installed by us.

  • Consultancy

Our last service will be consultancy regarding energy related goals of our customer and how to attain them in their homes or workplaces.

Marketing Analysis of Solar Energy Business

Learning how to open a solar panel installation business involves a lot of research. You need to know about both your customers and competitors in detail. You can do this by conducting a thorough market analysis as part of your solar energy farm business plan. You should also include price analysis and expected financial goals in your solar business proposal.

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excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!

If you don’t understand all the details related to marketing analysis, then you can just take a look at a solar business plan template like this one for guidance. For starting a solar power company, we have included some information gained from market research in this solar installation business plan .

5.1 Market Trends

According to SEIA’s solar industry research data, the solar industry received more than $25 billion private investment in just 2020. And according to Allied Market Research, the solar energy market was valued around $52 billion in 2018. And as the demand for shifting to solar energy increases, the market value is expected to rise to around $220 billion by 2026. The global warming scares have everyone shifting to green energy as fast as they can. And solar energy is the biggest contributor in this shift.

5.2 Marketing Segmentation

The potential customers of Sun Rise Energies will be:

Marketing Segmentation - Solar Energy Company Business Plan Sample

5.2.1 Residential Suburbs

Our customer base will primarily be made of people living in the surrounding residential towns and suburbs. As the focus on shifting to cleaner sources of energy increase, more and more residential towns will need our services regularly.

5.2.2 Small/ Large Businesses

Our second biggest clients will be small and large businesses. Solar energy is not only cleaner but after the initial investment, it’s much cheaper than the usual sources. Therefore, more and more businesses want these services and the will be our regular customer as well.

5.2.3 Educational Facilities

Our third group of clients will be educational facilities looking to shift to greener energy sources. They are expected to regularly avail our maintenance services.

5.2.4 City Residences

Lastly, city residencies or houses are also expected to be our recurring customers as most people are taking baby steps towards shifting to renewable energy sources.

5.3 Business Target

  • To become the biggest suppliers of solar energy services throughout Chicago
  • To increase our range of services over time
  • To attain a profit of about $40k per month by the end of second year
  • To receive certifications regarding solar energy services
  • To achieve and keep customer satisfaction above 95%.

5.4 Product Pricing

Our charges will be very reasonable as compared to competitive prices. And our services will also ensure maximum customer satisfaction.

Marketing Strategy of Solar Energy Business

You cannot gain attention and success in a crowded industry by selling goods and services alone. You need a strong competitive advantage when you want to start a solar farm business.

There are many good solar business ideas in the industry. You need to carry out detailed marketing analysis and identify your strengths.

You can look at solar farm business plan samples to learn how to start a power company. You can even use this information for starting a paintball business because at the end of the day, the broad details are the same.

6.1 Competitive Analysis

  • We will have excellent 24/7 customer support to help clients with all their problems and queries.
  • Our customers can easily contact us through a physical store visit or through our online platforms such as website and social media.
  • We will offer the latest technology and products to keep our customers up-to-date.

6.2 Sales Strategy

  • We will offer 10% discount to first-time customers.
  • We will also offer a 15-20% discount for our recurring customers.
  • We will use Google ads, Social Media, and Posters for advertisement.

6.3 Sales Monthly

Sales Monthly - Solar Energy Company Business Plan Sample

6.4 Sales Yearly

Sales Yearly - Solar Energy Company Business Plan Sample

6.5 Sales Forecast

Unit Sales - Solar Energy Company Business Plan Sample

Personnel plan of Solar Energy Business

The success of a business is greatly dependent on the customer experience. Customers subscribe to a business when they feel welcome and taken care of. Since employees are responsible for this interaction, so figuring out an employee criterion is important when you want to start a solar panel company.

These criteria will be essential for your solar farm business plan . Or even a business plan template for summer camp for that matter.

7.1 Company Staff

  • 1 Co Manager to help in overall operations
  • 3 Installation Engineers
  • 2 Solar Energy Installation Assistants
  • 2 Customer Services Representatives
  • 1 Website Developer
  • 1 Social Media and Website Manager
  • 3 Solar Energy Experts/Consultants

7.2 Average Salary of Employees

Financial plan of solar energy business.

Starting a business is not just selling products, it involves a great deal of planning. A part of this planning is business plan on solar energy. Or a plan related to the specific business such as coal mining business plan .

To ensure the success and financial stability of your business, you need to perform a detailed financial analysis. This will help you reduce solar energy startup cost. And it will be a part of the solar farm business plan as well. This is important to plans for any and all businesses such as biofuel business plan .

Here we’re providing the thorough financial plan developed for Sun Rise Energies. So that you can understand the financial side of the business.

8.1 Important Assumptions

8.2 break-even analysis.

Break-even Analysis - Solar Energy Company Business Plan Sample

8.3 Projected Profit and Loss

8.3.1 profit monthly.

Profit Monthly - Solar Energy Company Business Plan Sample

8.3.2 Profit Yearly

Profit Yearly - Solar Energy Company Business Plan Sample

8.3.3 Gross Margin Monthly

Gross Margin Monthly - Solar Energy Company Business Plan Sample

8.3.4 Gross Margin Yearly

Gross Margin Yearly - Solar Energy Company Business Plan Sample

8.4 Projected Cash Flow

Projected Cash Flow - Solar Energy Company Business Plan Sample

8.5 Projected Balance Sheet

8.6 business ratios.

  • Is solar energy business profitable?

Is solar panel business profitable? The answer is a huge YES. Solar energy business is in great demand with the world today that wants to shift its energy sources.

  • How do I start a solar energy business?

You can start your business by researching industry niches and looking at a business plan solar farm. They will give you a good idea of how you can use your resources to start a solar farm and reduce start up cost of solar energy business.

  • How much does it cost to start a solar company?

The capital and resources you need to start energy company depends on the size and location of your business. You can use your own savings to start it or look for loans to finance your venture.

  • Is solar energy a good business?

Solar energy business gives a great return on investment(ROI). With the innovations causing a decrease in equipment with all the government incentives, you can already see the profit.

Download Solar Energy Company Business Plan Sample in 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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Thank you for your comment. If you need assistance in writing your business plan please contact us by email: [email protected] or call us at USA +1-619-727-5304, UK +44-203-318-1069, Canada +1-613-699-7822, Australia +61-385-956-735.

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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 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 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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Why the Cost of Biden’s Climate Law Keeps Going Up

Forecasters say the president’s clean-energy incentives will be more effective than they had originally expected, in part because of new federal regulations.

solar business plan

By Jim Tankersley

Jim Tankersley is an economics reporter who covers policy from the White House.

The estimated price tag for President Biden’s clean-energy and climate agenda has effectively doubled since the Inflation Reduction Act was signed into law a year and a half ago.

Nearly all of the increase is attributable to forecasters’ belief that the law will be more popular than they had originally expected, in part because of the way the Biden administration wrote certain regulations . That rising price tag may actually be good for reducing greenhouse gas emissions — and for the U.S. economy.

The Inflation Reduction Act, which Democrats passed on a party-line vote in summer 2022, includes tax credits and other subsidies for low-emission energy technologies that are meant to help wean the nation from fossil fuels.

Many of those credits are effectively unlimited, meaning the more people or companies choose to claim them, the more they will add to federal deficits. The uncapped credits include incentives for manufacturers to build solar-panel or wind-turbine factories, and for consumers to buy electric vehicles . Budget scorekeepers have to estimate how popular those credits will be, in order to forecast how much they’ll cost.

When the law passed, the nonpartisan Congressional Budget Office published an estimate based on work by the congressional Joint Committee on Taxation projecting that the energy components would add $391 billion to deficits over a decade, from 2022 to 2031. It revised those forecasts upward last spring and again on Wednesday based on joint committee calculations.

The new forecasts project the energy incentives in the law will cost about twice that much for that 2022 to 2031 period. For the next decade, through 2033, the budget office projects the provisions will cost more than $800 billion.

Here is what has changed, and why it matters for emissions, the economy and the budget.

Clean-energy manufacturing is booming.

The law has supercharged investment in American manufacturing facilities of some low-emission technologies, led by solar panels, advanced batteries and the full supply chain for electric vehicles.

An investment tracker by the Rhodium Group, a consultancy that follows energy and climate spending, and the Massachusetts Institute of Technology shows companies spent $44 billion on clean-energy manufacturing in America over the past year, with significantly more planned in the years ahead. Those companies will benefit from the tax breaks in the climate law, either directly or indirectly .

The popularity of those credits has surprised forecasters. Budget office officials said Wednesday that they now expected the provisions to add about $205 billion more to deficits through 2031 than they had initially anticipated, based on joint committee estimates.

Electric vehicles could also surge.

Forecasters now expect the consumer credit for electric vehicles, which is as much as $7,500 for an electric car or truck, to cost several times as much as initially expected. That calculation isn’t really based on sales of electric vehicles, which hit a record last year even though annual sales growth slowed from 2022. It stems from a pair of Biden administration regulations that are meant to fuel more electric vehicle sales — and which the budget office expects to be quite effective.

The first regulation is in place and expanding access to the electric-vehicle credit. The I.R.A. doesn’t allow every electric vehicle sold in America to qualify for the credit. It restricts the subsidies to cars and trucks that are largely sourced and assembled in the United States, in order to support domestic manufacturing. But there is a loophole, which was codified by a Treasury Department regulation: Car shoppers who lease, instead of buy, their electric vehicles can effectively receive the full credit even if their vehicles do not otherwise meet sourcing and manufacturing requirements. Not coincidentally, electric-vehicle leases shot up last year.

The second regulation is a proposal from the Environmental Protection Agency that could result in two-thirds of new passenger cars sold in the United States to be all-electric by 2032. The budget office estimates that regulation, once finalized, will incentivize more Americans to buy electric vehicles and cash in on the tax credit. They’ll also burn less gasoline, which will reduce federal gas tax revenues.

Concerted climate action could help the economy and the budget.

Rhodium modelers estimated last year the I.R.A. will result in a steep cut to U.S. emissions, though not quite enough to meet the nation’s pledges for 2030 under the Paris Agreement on climate change. The rising costs in the law suggest it could spur even deeper emissions cuts than those forecasts.

A more effective Biden climate agenda could potentially catalyze more ambitious global action to cut emissions and avert economically catastrophic warming levels. Administration officials have warned the risks of climate inaction are large for the economy and the budget. In 2022, the White House budget office estimated unchecked climate change could reduce the size of the economy by as much as one-tenth by the end of this century.

They also estimated climate damages could force the government to spend an extra $1 trillion or more in today’s dollars over the course of a decade on flood insurance, disaster relief, health care costs from heat waves, and more.

But the climate law now probably adds to the deficit.

The I.R.A. was more than a climate law. It also raised some corporate taxes, increased subsidies for some people who buy health coverage through the Affordable Care Act and cut federal spending on prescription drugs by allowing the government to negotiate prices with pharmaceutical companies. It also gave more money to the Internal Revenue Service to crack down on corporations and high earners who have been able to avoid paying taxes they owe. The net result, the budget office initially estimated, was a law that slightly reduced deficits over a decade.

The rising cost of the energy and climate incentives now flips that math. The law, by the C.B.O. and J.C.T. accounting, is on track to add slightly to deficits from 2022 to 2031.

Biden officials still contend the law will reduce deficits on net. They estimated this week that the I.R.S. enforcement efforts will bring in $432 billion from 2022 to 2031, which is $252 billion more than the budget office forecast. Treasury officials say that is more than enough, by their math, to offset the losses from a more successful climate effort and ensure the law still reduces deficits.

“The Inflation Reduction Act is bringing billions in private-sector capital off the sidelines to invest in America,” Michael Kikukawa, a White House spokesman, said Thursday. He said the law “will reduce the deficit over the long run by cutting wasteful spending on special interests, making big corporations pay their fair share and cracking down on wealthy tax cheats.”

Jim Tankersley writes about economic policy at the White House and how it affects the country and the world. He has covered the topic for more than a dozen years in Washington, with a focus on the middle class. More about Jim Tankersley

Solar panel recycling company plans $344M Georgia factory, hiring 600

solar business plan

CEDARTOWN, Ga. - A company that recycles solar panels announced Thursday that it would build a $344 million factory in northwest Georgia, for the first time expanding to making new glass for panels.

Arizona-based Solarcycle said it would hire more than 600 workers in Cedartown for a factory opening in 2026.

The company was founded in 2022 and opened its first recycling facility in Odessa, Texas. Earlier this month, the company opened a headquarters, research lab and second recycling facility in Mesa, Arizona, hiring more than 100 people.

Solarcycle says its automated recycling process can extract materials worth 95% of a solar panel’s value, including silver, silicon, copper and aluminum. Solarcycle said it would be able to recycle 1 million solar panels in Cedartown. Then it plans to make enough glass to make solar panels that could produce 5 gigawatts a year of electricity, using a combination of recycled glass and raw material. Solarcycle said it would sell the glass to companies that make solar panels in the United States.

Last week, South Korean-owned Qcells, which makes solar panels in nearby Dalton, said it had contracted with Solarcycle to recycle decommissioned Qcells panels in the United States. Solarcycle said it has similar contracts with more than 40 other solar energy companies.

The company chose Cedartown to be close to domestic solar panel makers, spokesperson Brooke Havlik said, saying the location offers rail and shipping infrastructure and workers.

Solarcycle has raised tens of millions of dollars from private investors for expansion, and Havlik said the Cedartown factory would largely be funded through private investment.

The company has also received $1.5 million from the U.S. Department of Energy to fund research and development, and Havlik said the companies that buy Solarcycle’s glass are expanding, "largely driven by incentives and tailwinds" created by Biden administration actions.

Democratic U.S. Sen. Raphael Warnock credited President Joe Biden’s clean energy and healthcare law, the Inflation Reduction Act, with spurring Solarcycle’s investment, saying Georgians continue "to reap its benefits."

Gov. Brian Kemp, though, has argued that Georgia’s business environment deserves credit for attracting companies like Solarcycle and Qcells. Georgia Economic Development Commissioner Pat Wilson said the company approached state economic recruiters at a trade show.

"Solarcycle provides a critical piece to the integrated solar supply chain we are building in Georgia," Wilson said in a statement.

Solarcycle didn’t say how much workers will make, only describing pay and benefits as "competitive."

The company could qualify for $9 million in state income tax credits, at $3,000 per job over five years, as long as workers make at least $31,300 a year. The company will also receive property tax breaks from Cedartown and Polk County, said Chris Thomas, the president and CEO of the Development Authority of Polk County, but he did not provide an estimate. Solarcycle said Georgia will also pay to train workers.

Solar Panel Business Plan Template & Guidebook

Are you looking to make a name for yourself in the solar industry? Developing and launching a successful solar panel business can be a daunting task. But with the right business plan, your journey to success can be made easier. The #1 Solar Panel Business Plan Template & Guidebook provides you with the essential tools and resources to help create an effective roadmap for your business. Find out how this comprehensive guidebook can help get your business off the ground.

Nick

Get worry-free services and support to launch your business starting at $0 plus state fees.

  • How to Start a Profitable Solar Panel Business [11 Steps]
  • 10+ Best & Profitable Solar Panel Business Ideas [2023]

How to Write a Solar Panel Business Plan in 7 Steps:

1. describe the purpose of your solar panel business..

The first step to writing your business plan is to describe the purpose of your solar panel business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a solar panel business:

Our mission at Solar Panels is to provide efficient, affordable solar energy solutions to our customers that enable them to reduce their carbon footprint, reduce their electricity costs, and take advantage of the many environmental and economic benefits of renewable energy sources.

Image of Zenbusiness business formation

2. Products & Services Offered by Your Solar Panel Business.

The next step is to outline your products and services for your solar panel business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

  • What is my business?
  • What are the products and/or services that I offer?
  • Why am I offering these particular products and/or services?
  • How do I differentiate myself from competitors with similar offerings?
  • How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

Image of Zenbusiness business formation

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your solar panel business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your solar panel business includes the following elements:

Target market

  • Who is your target market?
  • What do these customers have in common?
  • How many of them are there?
  • How can you best reach them with your message or product?

Customer base 

  • Who are your current customers? 
  • Where did they come from (i.e., referrals)?
  • How can their experience with your solar panel business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

  • How does it work, what features does it have, and what are its benefits?
  • Can anyone use this product or service regardless of age or gender?
  • Can anyone visually see themselves using this product or service?
  • How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

  • Which companies are competing with yours today (and why)? 
  • Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
  • What specific advantages does each competitor offer over yours currently?

Marketing channels

  • Which marketing channel do you intend to leverage to attract new customers?
  • What is your estimated marketing budget needed?
  • What is the projected cost to acquire a new customer?
  • How many of your customers do you instead will return?

Form an LLC in your state!

solar business plan

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

  • The equipment and facilities needed
  • Who will be involved in the business (employees, contractors)
  • Financial requirements for each step
  • Milestones & KPIs
  • Location of your business
  • Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a solar panel business?

To run a Solar Panel business, you will need the following equipment, supplies, and permits:

  • Solar Panels and Inverters
  • Tools to install the panels (wrenches, ladders, drills, etc.)
  • Cables for wiring and transfer of energy
  • Safety equipment (helmets, gloves, etc.)
  • License from local government to do business as a solar contractor

5. Management & Organization of Your Solar Panel Business.

The second part of your solar panel business plan is to develop a management and organization section.

This section will cover all of the following:

  • How many employees you need in order to run your solar panel business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
  • The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
  • How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Solar Panel Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a solar panel business varies based on many different variables, but below are a few different types of startup costs for a solar panel business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your solar panel business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your solar panel business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your solar panel business plan:

  • Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
  • Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
  • Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
  • Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
  • Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
  • Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

solar business plan

Frequently Asked Questions About Solar Panel Business Plans:

Why do you need a business plan for a solar panel business.

A business plan for a solar panel business helps you to map out the steps necessary to develop your business, identify sales goals and milestones, determine how much capital you need and how you will secure it, understand the competitive landscape for solar panel businesses, develop marketing strategies, and ultimately, create a successful business. It also helps you to assess potential risks and rewards associated with different decisions made throughout the life of your solar panel business.

Who should you ask for help with your solar panel business plan?

When creating a business plan for a solar panel business, it is advisable to seek professional advice from an accountant and/or lawyer, a business consultant, or a solar energy specialist. Additionally, it is beneficial to research successful solar panel businesses and reach out to the owners for advice.

Can you write a solar panel business plan yourself?

Yes, it is possible to write a solar panel business plan yourself. You will need to research the industry in your area, develop a market analysis, create a financial plan and craft a detailed business strategy. Additionally, you will need to consider industry regulations and legal requirements. Writing a business plan can be complicated and time-consuming; however, it can be done on your own with the right guidance.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

Energy.gov Home

 Achieving Target Will Create $1 Billion in Energy Savings

WASHINGTON, D.C.  — At the U.S. Department of Energy (DOE)’s National Community Solar Partnership (NCSP) Annual Summit today, Principal Deputy Assistant Secretary Jeff Marootian challenged the community solar industry to commit to meeting the NCSP target of 20 gigawatts (GW) of community solar by 2025—up from seven GW today. DOE also launched several new initiatives aimed at supporting the deployment of community solar, a critical tool for achieving DOE’s goal of 100% clean electricity by 2035 and net-zero carbon emissions by 2050 while providing an equitable pathway to renewable energy for all Americans.

“Thanks to President Biden’s Inflation Reduction Act and Solar for All programs, this target is within reach,” said Jeff Marootian, Principal Deputy Assistant Secretary for Energy Efficiency and Renewable Energy. “DOE and our partners at NCSP are committed to providing industry with the tools and information they need to advance our national goal of accessible, affordable community solar for every American household.”

NCSP announced the target in 2021 and estimated that 20 GW of community solar would power the equivalent of 5 million households and create $1 billion in energy savings for subscribers. Since then, the rollout of new and expanded tax credits, and funding for the Environmental Protection Agency’s Solar for All residential investment programs, which can include investment in community solar, have primed the industry to experience rapid growth—and the market potential is significant. In a new report , the National Renewable Energy Laboratory (NREL) estimates that if all technically viable community solar is deployed, it could serve more than 53 million households and over 300,000 businesses in the U.S. that cannot access rooftop solar, representing nearly 1 terawatt of potential community solar capacity. 

View the study findings and attend NREL’s upcoming webinar to learn more . 

Solar panels in front of mountains

Mount Meeker and 14,259-foot Longs Peak serve as a backdrop for the Jeffco Community Solar Garden in Arvada, Colorado. The 1.5-megawatt farm serves homes in Arvada, parts of Jefferson County and other surrounding counties. Community solar gardens allow residents who can’t put solar panels on their homes or apartments to participate in clean energy programs by signing up with a developer, who acquires land for a panel array of 5 to 15 megawatts. 

In support of the Principal Deputy Assistant Secretary’s challenge to the industry, NCSP announced the following initiatives at the event:

Equitable Solar Communities of Practice 

The DOE Solar Energy Technologies Office selected five organizations to lead new Equitable Solar Communities of Practice, pending negotiation and final acceptance. These organizations will each receive $75,000 to identify and convene a core team of key stakeholders over a 6-month period to identify resource gaps, support the development and dissemination of best practices and resources, and identify pathways to scale equitable solar practices:

  • Solar United Neighbors: Equitable Access and Consumer Protections – This community of practice will focus on solar sales practices, contract terms and disclosures, and availability of financial products that support strong consumer protections and participation among all households, and inclusive education and outreach.   
  • Clean Energy States Alliance: Meaningful Household Savings – This community of practice will focus on providing household savings for energy burden reductions, wealth building opportunities, and other direct benefits for all households including renters.    
  • Clean Energy Group: Resilience, Storage, and Grid Benefits – This community of practice will support household- and community-level resilience, grid strengthening and grid-level resilience, and improved health outcomes through reduced or shortened power outages.  
  • Cooperative Energy Futures: Community-led Economic Development – This community of practice will focus on models and opportunities for local economic development which can include community ownership models, community benefits agreements, entrepreneurship support, and increased support for local-, small-, minority-, and women-owned businesses. 
  • Midwest Renewable Energy Association: Solar Workforce – This community of practice will work on ways to ensure that solar jobs are accessible to workers from all backgrounds, provide prevailing wages and benefits, support career pathways and training, and provide opportunities to participate in a union.   

Learn more about the Equitable Solar Communities of Practice . This funding opportunity is managed by   ENERGYWERX, a collaboration made possible through an innovative Partnership Intermediary Agreement set up by the DOE Office of Technology Transitions .

Least-Cost Optimal Distribution Grid Expansion (LODGE) Model 

LODGE , a new model released today, identifies the most cost-effective ways community solar can be sited on the grid, with a focus on minimizing interconnection costs and maximizing distributed resource deployment. Historically, community solar adoption can be held up by costly grid upgrades or untimely review processes. If adopted widely, the model has the potential to encourage streamlined interconnection and community solar deployment. The LODGE tool complements DOE’s existing  Interconnection Innovation e-Xchange program, a stakeholder partnership with the goal of enabling a faster, simpler, and fairer interconnection process for clean energy resources.  

Developed by Lawrence Berkeley National Laboratory, the model is being piloted with the Oregon Public Utility Commission Additional state utilities and electric public utility commissions interested in piloting the tool should become a LODGE model partner . 

Learn more about the tool at NCSP’s interconnection and LODGE model webinar on March 7 at 11 a.m. ET . 

Learn about  NCSP’s other community solar initiatives . 

Read More Solar Energy News

More From Forbes

Valentine’s day spending to hit $26 billion, as ‘experience gifts’ grow in popularity.

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Valentine's Day is expected to generate record sales this year, across a range of categories ... [+] including jewelry, flowers, candy and dining experiences.

As consumer preferences and behaviors evolve, so do centuries-old traditions. And while romantic spouses and friends still plan to celebrate Valentine’s Day, retailers are starting to see a shift in how this day is being celebrated: red roses and heart-shaped chocolate might not be at the top of consumers’ priorities. While still widely popular, could Valentine’s Day need a rebrand?

U.S. consumers alone are expected to spend $25.8 billion on Valentine’s Day this year, according to a survey released by the National Retail Federation and Prosper Insights & Analytics. Overall, 53% of consumers will celebrate and indulge on this holiday, with individuals aged 25-34 being more involved than any other age group. The holiday is still widely relevant, yet different dynamics are starting to slowly reshape it, and retailers are paying attention.

Beyond The Classic Heart-Shaped Bouquet And Chocolates

While flowers, candy and greeting cards still top the list of main gifts, younger generations are shifting the way Valentine’s Day is being celebrated, looking beyond traditional gifts. NRF President and CEO Matthew Shay said that “with consumers prioritizing their spouse or significant other this year, retailers expect to see a shift in spending for certain gifting categories.” Indeed, new spending records are expected for jewelry ($6.4 billion), clothing ($3 billion) and an evening out ($4.9 billion).

“Classic gifts like candles, jewelry, pajamas and perfume are certainly popular,” Shopify President Harley Finkelstein also shared with the NRF . “But we’re also seeing shoppers opt for non-traditional gifts focused on experiences, like recreating your favorite cocktail at home with a new barware set, planning for an upcoming adventure with travel accessories, or elevating couples’ game night with table shuffleboard.” This trend demonstrates a rising interest in celebrating this holiday differently, bringing in a more original, experiential approach to the event.

Retailers are adapting by promoting their assortments to cater to the ones who want to celebrate by dining out or at home, with special menus, offers and experiences. Grocery chains have become particularly active when it comes to targeting customers for this holiday, enticing them to buy more than just flowers. British supermarket chains Tesco and M&S have become references when it comes to selling indulgent, romantic meal deals. Both have designed specific dine-in menus and meals to choose from for the occasion, sold for £ 18 and £ 25 respectively. These options include fine dining-like ready-to-eat main courses, indulgent desserts and a bottle of wine or prosecco, giving consumers wishing to stay home or being on a budget the opportunity to treat themselves in a convenient, pleasant way.

Best High-Yield Savings Accounts Of September 2023

Best 5% interest savings accounts of september 2023, a more inclusive celebration of love for valentine’s.

Another trend worth noting in how Valentine’s Day is being celebrated is the rise in a new consumer segment, turning the holiday into one that goes beyond celebrating couples only. The holiday is no longer reserved for those involved in a romantic relationship, but is increasingly being celebrated by those wanting to honor their friendships or themselves. Galentine’s Day has indeed become widely popular, with the term originating from the TV show Parks & Recreation, in an episode aired in 2011 in which one of the main characters introduces Galentine’s Day as a concept to celebrate friendship with her friends. It is now a cultural phenomenon that friends take part in, almost as a counter-Valentine’s Day event.

“We are seeing some of the mainstream corporate companies starting to embrace a wider descriptor of what Valentine's Day actually means,” shared Joanna Feeley, founder and CEO of UK-based trend-forecasting agency Trend Bible, with BBC.com . “Valentine's almost needs a rebrand, but it's not dead.” In addition to celebrating friendships, consumers are also using this holiday to treat themselves, with self-care on the rise and often considered a luxurious treat.

Younger demographics are leading these shifts, with 28% of GenZ likely to spend Valentine’s Day celebrating with friends or family (versus 15% for millennials), as shown in a survey conducted by Ypulse . This is pushing brands to innovate in terms of marketing to cater to a wider audience. Even jewelry brands, which traditionally target couples, are expanding their communication to address all types of love. This year, Pandora unveiled its new brand campaign “Be Love” just a few weeks before Valentine’s Day, featuring new global brand ambassadors sisters and artists Chloe and Halle Bailey. Aiming to go beyond romantic love only, the campaign aims to promote all types of love, starting with self-love. A message that certainly resonates with a broader audience these days, while unlocking a wider customer audience for the jewelry brand.

These shifts represent an interesting opportunity for brands across a wider range of categories to leverage Valentine’s Day and promote their products, whether it relates to wellness, food and beverage, beauty and more. Understanding how younger generations interact with each other during this traditional holiday and celebrate love is crucial to developing relevant campaigns that address a wider audience wishing to celebrate this day of love in a broader way. Traditional gift categories will be competing with more original, unique ones, pushing retailers to innovate and think creatively to stay relevant. In other words, flowers and chocolate might soon need to make space for non-alcoholic spritzers and self-care beauty packages.

Clara Ludmir

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