How to Start a Solar Business in India in 2024 – 7 Best Ideas for Solar Business
Are you thinking of starting your business in the solar industry?- It can be a smart movement because people are turning towards cleaner energy sources. Among all the clean and renewable energy sources, solar power is one of the most convenient options in 2024.
But, do you know how to become an expert in this field?- In this blog, you will learn the overall idea about the different solar business. Additionally, you will learn about the basics, profit margin, business planning, etc. This will help you to make an informed planning for your business.
To start a solar business, you need to have a basic idea about the market trends in solar, the problems of people, their pulses, etc.
Following are some of the tips you can follow to start a solar business:
1. Doing a Market Research
You have to do thorough market research to know your target audience, scope in your area, customer demands, competitors, etc. This will help you to understand the required steps to follow to grow your business faster.
For instance, if you want to enter the solar system installation business, you have to research the locations where solar vendors are fewer in number but potential customers are high.
2. Planning Your Business
To make a successful business, you should start with strong business planning after good research. This can help your business to grow in a short time. Additionally, this will help you to achieve long-term success.
3. Registering Your Business
After that, you have to register your business as per norms in your location. It is also important to become a registered solar vendor to help your customers in terms of solar subsidy.
To do so, after business registration, you have to contact the MNRE-registered DISCOM of your state for further registration.
The solar subsidy scheme in India helps customers get up to Rs. 78,000 after installation. If you are a registered solar installer, your customers can claim a subsidy under this scheme.
4. Getting Licencing and Certifications
To run a solar business in India, you must have different licences as per the business requirements.
For example, if you run a solar panel manufacturing company your business has ISO certification, BIS certification, MSME certification, IEC certification, etc.
5. Hiring Solar Experts and Salespersons
Hiring solar experts and salespersons is the next step of this process. Your solar experts should have proper knowledge regarding installation works.
The salespersons should have proper knowledge about your business. This will help you to acquire your target customers easily.
6. Setting Up Compensation Structure
Before you start your business operation, you have to create a compensation structure for your employees. Remember to set a proper structure which can help you to earn more profits as well as to make your team happy.
You have to offer commission to your employees which will motivate them to work hard to acquire more customers.
Different Types of Solar Businesses
These are different types of solar businesses in India to start:
A. Small Scale Solar Businesses
If your initial budget is a maximum of Rs. 20 lakh, you can start the small-scale solar businesses:
1. Solar Dealer or Distributor
If you want to start a small-scale solar business, the first option available is to become a solar dealer. As a dealer, your work is to sell or install solar products directly to the end customers. In this category, you can distribute, sell or install solar products to consumers. You can offer solar panels, inverters, batteries, and other components.
A solar distributor purchases solar products from the manufacturer in bulk and distributes them to the solar installers, retailers, or end-users. You have to manage the logistics, storage, etc.
2. Local Solar Vendor or Shop
Don’t have enough capital to become a distributor? You can start your solar business by opening a local solar shop. You can sell solar products directly to end users from your shop. In addition, you can also offer consultancy or installation services as per the market demand in the business location.
If you are a solar vendor, you should also offer the latest technology to your customers. If you want to learn about the top solar companies in India, you can check our website. A detailed blog is available on our website.
3. Solar System Installer
Solar system installers install solar power plants at customers’ houses or land. This is one of the best options for you if you want to start a solar business. Because people are showing interest in new solar panel installations to save their electricity bills. On the other hand, the Indian Government is offering up to Rs. 78,000 subsidy for installations. Know about the solar subsidy in India, its eligibility criteria and application procedures.
Do you already work as a solar installer? or You are facing issues getting new customer leads?- Don’t worry, Das Energie Private Limited is here to help you. In our platform, you can get leads from interested customers. After seeing the request, you can pitch your offer price for the solar power plant. Through this way, you can acquire more customers easily for your business.
4. Solar Consultancy
A solar consultancy company helps to educate customers about solar products such as solar panels, solar subsidies, solar inverters, etc. Solar consultants mainly deal with solar installations which particularly focus on residential customers.
They arrange meetings, provide presentations, and inform potential customers about the advantages of solar energy to influence them to purchase solar panels. In this job, you have to complete a particular target and your payment will be based on the number of sales.
B. Large Scale Solar Businesses
5. Solar Components Manufacturers
A Solar component manufacturer produces various parts of solar power plants. It includes solar inverters, mounting structures, solar batteries, solar charge controllers, etc. All of these components are essential to make a complete solar power system.
As a manufacturer, you can sell your products to your dealers and retailers to earn profits. If you are interested in this solar module business, you can read more about solar PV manufacturing basics.
6. Solar OEM
Solar OEM (Original Equipment Manufacturer) services include product testing and manufacturing of customised solar components. The manufacturer that manufactures goods on behalf of other brands is called OEM.
In the solar OEM business, a company manufactures white label solar components but a different company sells them in the market with its branding. This means the company associated with the selling process puts its name on the products.
In this sector, the OEMs mainly manufacture and supply solar panels on behalf of the main manufacturer. The deal works via a contract between these companies. Get a detailed idea about solar module OEM and what it signifies for homeowners.
7. Solar EPC
A solar EPC (Engineering, Procurement, and Construction) company offers solar services such as solar plant installations, designing, etc.
From the initial planning to the final testing of the solar system, they supervise everything. These companies design custom solutions and handle equipment procurement for mainly large commercial solar projects. They ensure safe and efficient construction by maintaining local regulations.
What Is the Profit Margin of Solar Business in India
Knowing the profit margin of your solar business can help you to operate your business operation in a better way. In India, the gross profit margin stands between 15% and 20% for small-scale businesses. However, it depends on the size and nature of your business.
What Should Be Your Solar Business Plan?
As we discussed above, first you have to complete the basics such as market research, financing, and other steps. Based on the demand and your affordability, you have to invest your time and money in the right type of solar business.
However, you may start your business as a solar panel installation company as the demand is increasing in this sector. Both the government and house owners are interested in investing in solar energy to reduce carbon emissions as well as to reduce electricity bills.
If you empanel yourself with an MNRE-registered DISCOM, your customers can get a solar subsidy from the government. If you can help your customers with their subsidy, you will be able to acquire more customers easily.
How To Grow Your Solar Business with Das Energie
Das Energie is India’s first platform which offers a one-stop solution for both solar installers and interested house owners. If you register yourself with us, you can get online enquiries from customers from your business location. You can offer your prices against their quotation enquiries. If a customer accepts your offered quotation, we will help you to contact the customer.
This will help you to acquire additional customers. You can save your time and effort to find a new customer.
Conclusion
Starting a solar business in India is a great idea due to the increasing demand for solar power plants and other components of solar energy. Start with market research, make proper steps and strategies, and ensure customer satisfaction to grow your solar business.
Paying too high for customer acquisition?- Grow your solar business today with Das Energie Private Limited. Give your sales a boost by joining us as our installation partner. Get your problems solved at a reasonable price and multiply your profits.
Frequently Asked Questions:
Yes. A solar business is profitable. The profit margin in solar business in India is around 15% to 20%. With proper management and execution, you can make your business profitable.
As per experts, the total solar capacity of India may go to 800 MW by 2050. Therefore, this industry has a very high growth potential.
Yes, you can start your business in the solar industry. You can enjoy a good number of returns from your business in future.
For solar plant installation business, your minimum investment will be around Rs. 10 lakh – Rs. 15 lakh. For a solar component manufacturing business, your minimum investment must be Rs. 1 crore.
