Solar is energy is derived from the sunlight and
converted into electrical energy to provide power or heat. The business is
lucrative with a huge market and few players.
This offers a good business opportunity for investors
eager to earn good income in renewable energy business. Establishing a company is moderately challenging
and requires knowledge of trending technology, laws and funding.
Challenges include material costs, research, development
and marketing the technology. Other considerations include hiring qualified
staff, incorporating the business, training and insurance.
How
to Start a Solar Energy Business.
Funding
the Solar Enterprise
Clean renewable energy businesses are eligible for
grants. Europe, United States of America, Canada, Australia and many countries
focus policies towards alternative energy especially green technology.
The federal governments are willing to provide grants for
product development and eco-friendly companies. To secure funding submit grant
proposal to government agencies and angel investors.
Other funding sources include bank loans, crowdfunding
and investment groups. You could sell startup equity, find core investors, try
target saving or borrow from friends and family. More include lines of credit, venture
capitalists, group contributions or association loans.
Funding
- Government grants
- Non-Government Organization Grants
- Angel investors
- Bank loans
- Crowdfunding
- Investment groups
- Sell startup equity
- Find core investors
- Try target saving
- Borrow from friends and family
- Lines of credit
- Venture capitalists
- Group contributions
- Association loans.
Write
a Business Plan
Write a solar energy company business plan and carry out
a feasibility study. Focus on customer demography, business model, services,
profit and loss.
Differentiate your company from competitors and offer
competitive prices and value added services. Use the plan to attract investors,
secure funding and create a workable budget. Focus on profitability, growth,
development future projections and self sustainability of the company.
Prepare
a Grant Proposal
Only a few advanced countries offer grants towards green
technological development and research. If your country falls under this group
then submit your proposal to appropriate agencies.
If you don’t have such initiatives there are international
non-government grant organizations willing to offer financial assistance.
Before reaching out to such organization you need to carry out research on such
groups and due diligence.
You could contact an expert to prepare a grant proposal.
Make sure the grant is submitted to eco-friendly non government organizations
and government agencies.
Related: How to Start a Thermal Station
Register
the Solar Business
Register the business as a LLC or sole proprietorship
business. Carefully select a business name that reflects your core business.
Choose a domain name and paid host plan to develop your
website. Find out from the authorities the licensing and permits to run a solar
company. Don’t forget liability insurance and tax identification number.
Related: How to start a Renewable Energy
Company
Setup
Infrastructure
If you are into generation you need appropriate permit
and licensing to setup your infrastructure. Other requirements include zoning
and land use requirements.
Startup costs for infrastructure is huge and the technology
expensive. Once the structure is in
place, up and running you can sell the energy. Some solar businesses focus on
small solar installations for private residents, offices and government
offices.
How
to Marketing a Solar Company
You could develop strategic partnership with existing
power generation companies. This is done by offering excess power to existing
power grid.
The partner will pay your company for the extra power.
Such contracts are usually short or long termed depending on your agreement.
Another opportunity is residential installation services
and maintenance. You can approach government offices, commercial buildings,
schools and real estate developers.
Include solar related services, seminars and products to
generate more income. Reach your customers through newspaper advertisement,
television and radio programs.
Use print media such as billboards, flyers and business
cards. Join alternative energy associations, groups and participate in trade
shows. Offer discounted products including promotions during public holidays.
Marketing
- Sell excess power
- Residential installation
- Maintenance services
- Attend seminars
- Sell products
- newspaper advertisement
- television advertisement and radio programs
- billboards, flyers and business cards
- Join alternative energy associations
- Participate in trade shows
- Offer discounted products
- Promotions
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