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A solar panel business offers ample growth opportunities with large profits. Since solar energy is one of the most widely available resources, the government also offers various schemes to encourage adaptation. Considering the depletion of resources, the demand for solar business is bound to increase in the coming years.
Starting a business in the field of solar energy needs sound financial backup and political acquaintance. Refer to this guide to learn how to start a solar panel business.
Starting a solar energy business is a great way to save the environment while earning a decent profit margin. Follow these steps to get started:
Creating a solar panel business plan involves managing the investments, sourcing raw materials, team arrangement, training, business strategies, marketing strategies, sales techniques, equipment assembling, contacting manufacturers or suppliers, etc.
A detailed plan contains all the necessary details about your business background, budget, workers, techniques, strategies, working capital investment, raw materials, equipment, location, etc. When you approach a Business Loan provider or investor for financial support, they will require this business plan to make their decision.
Market research related to different field-related components and aspects is essential before setting up a solar business. Proper research increases the chances of business success. Conduct research in various aspects of the solar energy business, including parts, equipment, marketing, infrastructure, hiring, competitors, contractors, suppliers, target audience, etc.
Legitimising the business by registering it as a company is essential. Under the Company's Act 2013, you can register the company as a proprietorship, LLP, partnership, or sole private or public limited company.
Apply for an Employer Identification Number (EIN) to register for taxes, obtain a Certificate of Occupancy to operate from a physical location, and get business insurance to protect your company against loss. Here is a list of documents, licenses, and certificates required for a company’s registration:
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The government already supports solar energy business ideas to conserve energy and save the environment. Therefore, connecting with the electricity departments will save significant money and effort. Take advantage of any lucrative schemes the department offers its customers or sellers. Connections with authorities will always benefit your business and reduce the chances of complex issues.
The location of your business largely affects its chances of success. It becomes even more important for a solar business that largely depends on its strategic location to receive ample sunlight. Solar energy plants must be located in a place that receives a high density of the sun.
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Finance is the most crucial aspect of a business. Consider these factors to make a precise estimate of the costs involved:
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Workers are the key asset of a company. Hire skilful and efficient workers to produce the desired results. Since solar energy is still a new concept in India, you must train them to use the equipment safely and efficiently.
You can establish three types of companies in the solar energy sector:
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A solar energy business may work in any of these engineering segments:
Here is how a Business Loan from Hero FinCorp can help you to expand a solar business:
Also Read: How to Start an Online Business from Home in 8 Steps
Are you ready to apply for a Business Loan to set up your solar energy business? Follow these application steps:
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Solar energy is a booming industry with lots of opportunities and high growth potential. Moreover, its demand will only increase in the industrial and agricultural sectors due to frequent power cuts. Besides, it is a renewable energy source that benefits the environment and the entire human race. Are you planning to establish a solar energy business in India? Get the required funding from Hero FinCorp and repay it at your convenience.
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1. How profitable is the solar business?
Since the solar sector is flourishing, setting up a solar business is a lucrative and profitable business idea.
2. What is the minimum investment for a solar energy business?
You will require an investment of around Rs 10 Lakh to set up a solar energy business.
3. How much profit can you make with solar panels?
The gross profit margin in the solar business is around 15-20%, depending on the size and nature of your company.
4. Can I use a Business Loan to purchase solar panels and related equipment?
You can use the loan amount for any business-related purpose, including purchasing solar panels and related equipment.
5. How can I qualify for a Business Loan for my solar panel business?
Check the lender’s eligibility criteria to qualify for a Business Loan. These include your age, business age, credit history, repayment capacity, debt-to-income ratio, and related documents.