Why start a solar panel business?
Starting a solar panel business in India is a smart choice due to the growing demand for clean and renewable energy. With increasing awareness about climate change and government support through schemes, the solar industry is expanding rapidly. India has abundant sunlight, making solar power a reliable and cost-effective energy source, especially in rural and remote areas. A solar panel business offers opportunities in manufacturing, installation, maintenance, and sales, creating jobs and contributing to sustainable development. Additionally, rising electricity costs and frequent power shortages increase the need for solar solutions, making it a profitable and future-ready venture.
Types of solar energy companies
The solar energy industry is diverse, encompassing various types of businesses that contribute to the generation and distribution of solar power. Here are the main categories:
Manufacturers: These companies produce solar panels, batteries, and other essential components for capturing and storing solar energy. They focus on research and development to enhance efficiency and reduce costs.
Installers and integrators: Specialise in the planning, installation, and integration of solar systems into residential, commercial, and industrial properties. They manage everything from site assessment to system commissioning.
Distributors and suppliers: Act as intermediaries between manufacturers and installers, supplying the necessary equipment for solar installations. They ensure a steady supply of components like panels and inverters.
Financing companies: Provide financial solutions such as loans and leasing options to customers wanting to install solar systems but lacking upfront capital. Explore this detailed laundry business plan for innovative ideas on structuring your solar business.
Consultancy and engineering services: Offer expert advice on energy management, system design, and efficient implementation of solar projects. They also help in navigating regulatory and permitting challenges.
Maintenance and repair services: These companies ensure that solar installations are running efficiently and often offer long-term maintenance contracts.
Each type of company plays a vital role in the solar industry's ecosystem, contributing to the overall growth and sustainability of solar energy solutions.
How to start solar business plan in 2025
Starting a solar energy business can be a lucrative venture if done right. Here’s how to begin:
1. Creating a Solar Panel Business Plan
Before starting any business, proper planning is essential to ensure smooth operations, steady growth, and financial stability. A good solar business plan should cover areas like sourcing raw materials, deciding on investments, building a team, training staff, setting up infrastructure, choosing marketing methods, and sales strategies.
Since setting up a solar business involves high initial costs, it’s wise to apply for business loans. Many public and private banks, NBFCs, cooperative banks, MSME loan schemes, and rural banks offer funding support with flexible terms.
2. Researching the Solar Power Market
Doing proper research is the foundation of any successful business. In the case of solar energy, you need to understand the companies involved, material sources, government schemes, legal requirements, competitors, marketing trends, and customer needs. This helps you plan your business better and prepares you for any risks or challenges that may come your way.
3. Registering and Legalising the Business
To run your business legally in India, you must register it under the Companies Act, 2013. You can choose from different structures like:
Choose a business name that reflects your services and is easy to remember. A unique and meaningful name helps in marketing and building a brand.
You will need the following documents to register your business:
Registration Certificate
PAN and bank account details
Proof of registered office
Aadhaar card
Digital Signature Certificate (DSC)
Director Identification Number (DIN)
Memorandum and Articles of Association (MoA & AoA)
Director's consent (affidavit)
Certificate of Commencement
TIN and sales tax details
Shop and Establishment licence
4. Coordination with the Electricity Department
Since the government is actively promoting solar energy, it’s important to stay in touch with your state’s electricity board. Many beneficial schemes are available for both businesses and customers, so staying updated can save you time and money. Good relations with local electricity officials can also speed up approvals and resolve issues more efficiently.
5. Choosing the Right Location
The success of your solar business depends a lot on where it’s located. Choose an area with good road connectivity and plenty of sunlight throughout the year. Avoid areas with frequent rainfall or long cloudy periods, as this affects solar power generation. A well-connected and sunny location helps in smooth operations and quicker customer service.
6. Managing Business Finances
Keeping track of your income, expenses, and profits is key to running a successful solar business. You should carefully plan all costs involved and monitor your financial performance regularly to avoid losses. Clear budgeting helps you stay financially stable and plan for future growth. For additional financial support, check your business loan eligibility to know how much funding you can raise without pledging assets.
7. Infrastructure Costs in a Solar Business
When setting up a solar panel business, your main spending areas will include:
Land or office space and taxes
Buying machinery and equipment
Tools and spares
Salaries and wages for staff and labour
Maintenance costs
Marketing and advertising
Training and education for staff
Purchasing raw materials
Company benefits and commissions
Legal and compliance costs
8. Building the Right Team
Having the right team is crucial for any new business. Hire people who are skilled, motivated, and willing to learn. In a technical field like solar energy, educational background and hands-on experience are very important. Poorly trained staff can hurt your business, even if everything else is in place.
Good customer service, teamwork, and professionalism help build trust and a strong brand name. Being respectful and understanding with customers also leads to higher satisfaction and more sales. Over time, these relationships will help your business grow and succeed in the long run.
Types of partnerships for investing in a solar panel business
Role
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Approximate Investment Required
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Key Skills and Requirements
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Solar Business Associate
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Rs 25,000 to Rs 40,000
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Basic technical knowledge, good communication skills, relevant education, experience in sales and marketing
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Solar Dealer or Developer
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Rs 2,00,000 and above
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Partnership with manufacturers, experienced and trained sales team, strong technical knowledge, registered company with a wide network
|
Solar Integrator
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Rs 50,000 to Rs 2,00,000
|
Skilled technical team, installation experience, established company, certified to install solar panels from specific manufacturers
|
How a business loan can help you grow your solar business
3 Loan Options to Choose From
Pick the loan that fits your needs – Term Loan, Flexi Term Loan, or Flexi Hybrid Loan.
No Extra Charges for Part Prepayment on Flexi Loans
With Flexi Term Loan and Flexi Hybrid Loan, you can repay part of your loan early without any extra fees.
Loans from Rs. 2 Lakh up to Rs. 80 Lakh
Whether your business is small or large, you can get a loan anywhere between Rs. 2 Lakh and Rs. 80 Lakh to manage your expenses.
Flexible Repayment Periods up to 8 Years
Choose repayment terms that suit you, from 12 months up to 96 months.
Get Money in Your Account Within 48 Hours*
Usually, the loan amount is credited to your bank account within 48 hours after approval.
No Hidden Charges
All fees and charges are clearly mentioned here and in your loan documents. Please read them carefully.
No Collateral Needed
You don’t have to provide any security or collateral to get this business loan.
Easy Online Application
Apply for the loan anytime and from anywhere, all online and hassle-free.
Challenges in the solar business and how to overcome them
The solar business in India faces several challenges. One major issue is the high initial investment, which can be difficult for small entrepreneurs. Additionally, there is a lack of skilled technicians for installation and maintenance, leading to poor service quality. Another challenge is the irregular availability of sunlight in some regions, affecting efficiency. Government policies and subsidies can also be complex to navigate. To overcome these, entrepreneurs should explore government schemes like the MNRE subsidy and seek affordable financing options. Investing in training for skilled staff is essential. Careful site selection ensures better sunlight availability. Staying updated with policy changes helps in making informed business decisions.
Conclusion
The solar energy sector is an exciting and dynamic field that offers significant opportunities for entrepreneurs and established businesses alike. With the increasing demand for renewable energy solutions, starting a solar business can be a profitable and impactful endeavour. To ensure success, it is crucial to have a well-thought-out business strategy, a clear understanding of the market, and the necessary technical expertise. For instance, you can draw inspiration from this agarbatti making business plan for crafting a robust strategy For those looking to expand or enhance their operations, a business loan can provide the essential capital to invest in advanced technology, skilled personnel, and marketing efforts. Embracing the solar business plan is not just a financial decision but a step towards a sustainable future.
