Solar Panel Business in India – Things you must know

The major source of solar energy is the sun, which contains energy that fuels our planet. Therefore, if you are wondering about the solar panel business in India, you must know these things.

Solar energy is one of the largest renewable sources. It is also an alternative energy resource with several opportunities, innovation, profits and government support which provides a subsidy.

However, profit business opportunity comes with competitors, and a lot of experience businesses and start-ups have already ventured into the solar energy business.

To start a solar energy business, the businessman should have a sound backup of financial support. According to the Indian Ministry of Renewable Energy, solar power generation has remarkably increased in the last few years in India.

Steps to start a Solar Panel Business in India

Proper planning and execution are your keys to being ahead of your competitors in this industry. You can follow the below step-by-step guide to start any solar business, which includes the investment and the profit margin in the solar business in India.

• Business plan:

Making a business plan is one of the most important steps for starting a business. In fact, make the most of your decisions in this step which includes investor, finances, type of business, sole or partnership business, target customers and branding strategy, everything which makes your business idea worthy.

You should do a well-research on the recent market about your competitors and all the problems and risk before starting the investment into the actual business.

• Legal work:

To start every business, you need some legal documents, permission and certificates. There are different types of certifications available depending on the type of business you want to start.

However, the first is to go for company registration and get your business registered. You should have the documents like company registration certificate, GST registration, sales tax and TIN numbers, etc when starting the business.

• Financial Planning:

Every business needs a capital investment amount. It should cover the costs of infrastructure, machinery, land, and maintenance. Always remember to invest only so much that you can afford to lose.

• Hiring Labor:

This is the last but crucial step of setting up a solar business. Hire the labour or a workforce depending upon your work in the solar panel business.

Ensure that they are skilled who has full knowledge of installing and maintaining panels. In this step, you also need to figure out how many people you will hire, their duties, and how much you will pay them.

Read more in detail about: How to start a solar power plant business in India

Types of solar businesses in India

1. Solar Business Associate or Solar Consultant- A consultant is an individual who creates awareness and refers more customers to the company. It is one of those business ideas that require minimum investment with the time and profit all being in your hands.

2. Solar Installation Business- Includes installing solar panels, planting and maintenance of the solar panel.

3. Selling Parts Business: Selling solar parts such as solar panels, solar lights, cooling systems, etc. You can earn profits worth thousands of rupees from this business.

4. Franchise: You can get a solar business franchise by reaching out to top solar companies in India. By acquiring a franchise, your customers are not only individual buyers but also other retailers. You will also be managing any installation and maintenance of that company.

5. Manufacturer – Manufacturing solar products like solar panels, power grids, and other items for solar energy use with innovative ideas. It may take a considerable amount of investment to start a manufacturing business of solar products. However, in the growing Indian market, it can recover in a real quick time. Also, for the manufacturing unit, you need to obtain a license for installing in India.

6. Products servicing- Maintenance and repair services of solar products are a good idea for the small investment horizon of the solar business in India.

Why go for the solar panel business in India?

First, let’s understand a solar panel. A solar panel is a device of photovoltaic cells embedded in a framework for installation that uses sunlight as a source of energy to generate direct currents.

According to the Indian Ministry of Renewable Energy, India receives about 5,000 trillion kWh per year energy is incident over most parts receiving 4-7 kWh per sq. m per day.

Recently, India achieved the 5th global position in solar power deployment by surpassing Italy. Reports show that solar power capacity increased rapidly in the last five years from 2.6 GW in March 2014 to 30 GW in July 2019.

Benefits of Solar Panel Business in India:

• Saves money- even though solar installation prices are high solar energy generates electricity at low cost than the electricity bill, thus saving more on the pocket.
• Sustainable and Environment-friendly- solar power is the only alternative solution to low overhead electric production. Solar power is a continuous source of energy and also doesn’t affect the environment.
• Limitless energy- Sun is the chief and only solar energy source, so by investing in a solar power system, you can ensure that you are getting an unlimited source of energy.
• Constant supply of electricity during daylight. And you can store the electricity supply through a battery system so that you can have a backup during the night.
• Solar tax benefits-This is one of the big rewards that you will be getting for your business. All levels of the Federal government are offering a few financial assistance programs and other beneficial tax incentives.

Disadvantages of Solar Panel Business in India

Like every coin has two sides, solar panel installation also has some disadvantages like:

1. The installation area can be a problem. It should be an open area where sunlight can absorb by solar plates. Also, away from children and animals reach.

2. Not all areas get the same amount of sunlight every day. It acts as a barrier in making electricity from solar energy. As we move away from the equator, sunlight decreases and leads to a reduction in solar energy.

3. The solar panels will start undergoing degeneration at some point in time. Because of continuously changing weather conditions like hailstone, storm, snowfall, cyclone, and rainfall.

4. The cost of installing is high. According to reports, an average-sized panel installation is between 4.50-5 lakh for producing power of 5KW.

 Author Name

Divyashree Panwar