If you are planning to start a business that should be beneficial for both you and society both, then Solar business is the optimum choice.
Solar energy is one of the biggest sources of renewable energy and people are trying hands on such businesses.
Studies revealed India is the 3rd largest solar market in the world.
We will be guiding and helping you to take your business to great heights. Traffic tail can help you in connecting to the right and potential customers.
So, if you are looking for a complete guide on establishing a Solar business in India then you have knocked on the right door.
How to start a solar business?
Starting a solar business is overwhelming, as you lack in required details and information. Within this guide, we will be covering different aspects associated with the solar business.
This blog includes the benefits of establishing a solar business, a step-wise guide, and the different types of solar businesses that can be started. We will be unveiling other relevant information related to the solar business and the benefits associated with it.
Benefits of Solar Business
Solar energy is one of the most inexpensive and renewable sources of energy. It can be used for many purposes. Solar energy can be used for generating electricity. You can get into different types of solar businesses and earn handsome profits. The solar business promises a noticeable return on investments.
India has enough sunlight throughout the year therefore, it can be used for generating electricity at a lower price. It also adds value to the property where the solar plant is installed.
You can earn a lot by selling property that is embedded with solar plants. Even the government provides incentives for establishing the solar plant.
You can manage the loan of amount 10 lacs from nationalized banks. Many states offer a subsidy for installation of the solar plant. You will be happy to know, installation of solar plants makes you eligible for tax depreciation.
Solar businesses come with numerous benefits. You must have made your mind to go for this business as it requires less investment and results are sizeable.
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Here we go with the step-wise guide of initiating a solar business in India-
Step 1- Research is the key!
Research serves as a raw material for every kind of business. It is necessary to do relevant research. It allows you to get acquainted with consumer behavior and economic trends. Strong research helps you in building a strong strategy. Research can answer hundreds of questions for you.
Several factors should be included in your research, which includes, location of your business, market trends, expectations of customers, type of product they are demanding, cost, and many more. Proper research reduces the chances of business failure.
There are different ways of doing research. It is time-consuming and not at all feasible to go to every customer to fetch the required details. Instead, you can conduct surveys, roll out questionnaires, conduct in-depth interviews or hunt for any other suitable method of doing research.
Step 2- Write your business plan
You have made in-depth research on different aspects of your business. The next step is to create a plan. Now you have an idea of what you want to sell, what are your strategies and marketing techniques, so you can prepare a plan. This plan should include every significant detail associated with your business.
It should include your target audience, financial model, marketing strategies, and operating strategy. Your business plan should narrate the story of your business. It should be written in a convincing tone. It helps you in pitching investors.
You cannot underestimate the power of a precise and well-maintained business plan. You can earn investors by showcasing a convincing and promising business plan. Business planning is a crucial thing, that is to be done right before the initiating of the business. You can either create your business plan on your own or hire experts for developing a flawless business plan.
Step 3- Assess your Finance
One of the most important questions is “how are you going to pay your business”. It is impractical to think of establishing a business without finances. You need to understand the needs and requirements of your business and then arrange your finances accordingly.
There are different type of solar business and every business require a different amount of investment. You need to choose the best one for you.
After selecting your type, you need to prepare the budget. Many states even provide subsidies for solar businesses.
Do not forget to consider those subsidies in your budget
Now the budget is prepared you have to find the perfect source. If you have enough bank balance, you can finance your business. If not, you can go for loans, grants or you can fetch them from investors. Many nationalized banks provide a loan of the amount up to Rs. 10 lakhs.
Step 4- Structure of Business
Before getting your business registered, you need to decide the structure of your business. It depends on you which type of business structure you want to adopt.
• Sole proprietorship– In this kind of business, you’ll solely be held responsible for your deeds. You will be the one earning profits and you will be the one bearing losses.
• Partnership– As the name itself suggests, two or more people will become the owner of the business. The share of profit and loss will be equal or as per the ratio in the contract. It is advisable to have a clean and clear contract among the partners.
• Company– If you don’t want to be held liable for the profits and losses of the business, you can go to building a company. Here, the business would be treated as a separate legal entity and it can make contracts in its name. The company will pay tax, sue, and can get sued, without harming your matters.
You must be aware of the pros and cons of every structure of the business. Then you should decide your structure.
After deciding your structure, the next step is to get registered and obtain the necessary licenses. You would require many permissions, federal, local, or state licenses to run your business.
Step 5- Open your bank account
Now you are done with legal formalities, the next step is to open a bank account in the name of your business. You need to open this account in the name of the company. It should be a current account. You can open this account with any bank of your choice.
If you are opening an account for a company, you would require a Company Incorporation certificate, Memorandum of Association, Article of Association, GST Certificate, and identity and address proof. And if you are opening it for a sole proprietorship business you will need a GST certificate and identity and address proof.
Step 6- Your team
The human capital of a business represents it. It decides the reputation and the performance of the business. Your manpower is going to add life to the business. People will manufacture the product or provide the service to customers.
You need to check the requirements of your business and then accordingly hire your employees. You should select skilled, dedicated, and hard-working people for your business. They should be honest and must possess good communication skills. You can either make or break customers by using your tongue.
Your team should be composed of mixed talent. The selection of the team should be done cautiously. If you are not able to hire the right personnel, you can outsource this task. Many companies provide this service. They can help you in recruiting the best manpower for your solar business.
They would understand the need and type of your solar business and then would accordingly build your team. The only thing you need to keep in mind is to choose a reliable company and outsource your work.
Step 7- Build your brand and Advertise
Your product is ready to be sold.
So now, you need to spread the word about your business. You need to choose a brand name and get it registered. You should get a logo designing service for your solar business. It would allow others to recognize your brand. You can either get it designed by your team or outsource this work.
Marketing is the next step.
Marketing involves selling, convincing, advertising the product or service. Customer satisfaction is also a part of marketing. Marketing can be done either traditionally or digitally.
If you have enough resources you can go for both. Traditional method costs more than digital methods.
Digital marketing includes the use of the internet to promote or advertise a product or brand. You can promote your solar business by using different techniques of digital marketing. You are expected to choose the right digital marketing technique for your business.
The first thing you need to do is to mark your presence online.
For those purposes, you need to develop a website. Your website should narrate the story of your business. It should include your services, offers, packages everything. It should provide the latest details of your business. It should be easy-to-load and comply with the theme of your business.
Secondly, you should connect your website with social media accounts. Nowadays, every business has marked its presence on social media. You can use social media to advertise your business. Social media marketing is so powerful than you think, for advertising your business.
The only key to win the game is to learn the tools of social media and rock the stage. You can advertise your business using the right social media tools.
Usually, start-ups lack the knowledge of digital marketing techniques. You can outsource this work to digital marketing agencies. There are several digital marketing agencies in the market. You have to check the working method, price, and other relevant aspects before getting connected to any digital marketing agency. It should help you in achieving your goals and expectations.
Step 8- Grow your solar Business
The last step is to figure out the different ways to grow your business. Building a website can help you in getting connected to potential customers.
You can find prospective clients and businesses through a website. It also helps you in finding the employees for your business. Getting connected to the right people allows your business to grow.
Every person has different thoughts and ideas and when they get connected to your business they will add to your resources. This leads your person to great heights.
You have variety within the solar business. There are different types of solar businesses you can start in India.
Types of Solar Business-
• Solar Installation Business
• Solar Consultant
• Solar parts Business
• Solar Tax Credit Expert
• Solar Maintenance Business
• Solar Manufacturing Business
• Solar Sales Business
• Energy Consultant
You can research these different types and choose the best fit for you. You should know the pros and cons of each of these types. Also, consider SWOT analysis to make the best choice.
How much Investment is required?
The investment varies based on the type of business you want to start. The cost of business gets affected based on the component used in a solar PV system. The difference between different components could be as high as 200%. If you want to start a manufacturing business you would need heavy investments. And if you want to become an installer you can start this with a small investment.
The estimated amount required to start a solar business is Rs. 50,000. The cost of licenses is not included.
Do you know?
• As per the latest reports, India installed 8.3 GW of solar PV (photo-voltaic) capacity in 2018.
• Solar PV accounted for only 1% of total electricity consumption, revealing there is a scope in this era.
• DFC announced financing of $41 million for renewable energy in India
• Nagpur man converted his van into a solar van using solar energy
• The cost of solar energy has dropped 89% in 10 years.
• Engie is about to sell 74% of its stake in solar assets in India to Edelweiss Infrastructure Yield Plus.
The description of the solar business would remain incomplete if its eco-friendly nature remains unappreciated. The solar business makes use of natural energy and contributes towards reducing pollution. Solar energy is one of the best sources of renewable energy.
Since 60% of global emissions stem from energy use, we need to resort to low-carbon technologies, therefore enhancing the scope for renewable sources of energy. You are not harming the environment by doing solar business, instead, you are making optimum use of the available resources.
This step-wise guide can help you from scratch to end. You know the investment and every tiny detail associated with the solar business.
So, if you are planning to start a solar business in India, go for it. Because you have chosen one of the best business ideas to flaunt as an entrepreneur.
Frequently Asked Questions
Ques. 1- How much money do I need to start a solar business in India?
Ans. The estimated amount required to start a solar business in India is Rs. 50,000. However, if you are planning to start a manufacturing business it would require a handsome investment.
Ques. 2- Is the solar business a good plan?
Ans. Definitely, yes. India is the third biggest market for the solar business in the world after China and the US. This is a profitable business if done properly.
Ques.3- Is it environment-friendly?
Ans. Yes, the solar business is an environment-friendly business. It makes use of sunlight that is a natural source of energy.
Ques. 4- Will it be beneficial if I digitalize my solar business?
Ans. An answer to this question is a big yes. Digitalization is the need of the hour. Every business performs better when it gets digitalized, as digitalization increase the number of opportunities and the reach.
Ques. 5- Where can a solar power system be installed?
Ans. A solar power system should be installed in the areas that get direct sunlight. It can be installed in places that are free from shading.