How to Start a Solar Energy Plant Business in India
The term “solar business” clearly indicates that it revolves around solar energy and related equipment. Solar cells are utilized to generate electricity from sunlight. While the government has made significant efforts to address the electricity issues in India, many rural areas still face a shortage of power. Additionally, rising electricity bills are causing difficulties for many people. However, solar equipment offers solutions to these challenges. Nowadays, many individuals are turning to solar options to alleviate their problems, which is why there are immense opportunities in the solar equipment and related business today
If you’re considering starting a business, this could be a great option for you. Since this industry has only covered a small market area so far, you’ll have a significant opportunity to tap into a large market that is genuinely interested in these types of products.
Solar energy business
You can start a business in the solar industry based on both products and services. However, to succeed, you’ll need to attract a large number of consumers, or alternatively, you can focus on a specific niche market. In either case, it’s essential to have a deep understanding of all aspects of the solar business.
- Solar Energy Auditing:-This business is entirely focused on information. As a solar energy auditor, your main responsibility is to collect data regarding energy requirements. Whenever someone is interested in installing solar panels, this is the initial task they need to complete. In reality, auditors function as sales representatives who promote energy sources and educate people about energy usage. It requires minimal resources and can easily be launched from home.
- Solar Panel Installation:-To start a solar panel business, you need to have sufficient knowledge and technical skills. This industry can be quite profitable and offers attractive revenue opportunities. In addition to installing new panels, you can also provide repair services. However, keep in mind that there will be some investment required, along with expenses related to staff and marketing.
- Solar Product Distribution:-If you’re looking to start a business in the energy sector, distribution or trading are excellent options. However, you’ll need to find a reputable company that is seeking distributors in your area. Additionally, you can import goods from other countries to sell in your region.
- Solar Product Manufacturing:-This business requires significant investment, and it’s essential to have a comprehensive marketing and financial projection strategy. You can also create some traditional solar product items. Currently, the hottest segments are solar lights, solar gadgets, and solar chargers. If your product appeals to customers, it can become popular in no time.
- Solar System Repairing & Maintenance:- This market focuses on post-service business, as solar projects require daily maintenance and repairs even after installation. There are plenty of opportunities in this field. While technical and networking skills are essential, it remains a low-cost startup option.
Solar Product Distributor type in Solar Plant Business
There are many chances to set up your own business, and the key opportunities include the following.
- Becoming a Business Associate
- Taking the dealership
- taking distributorship
- taking a franchise
- Becoming an Agent
You can earn money in the field of solar energy by choosing any of these options. Which option you choose depends entirely on your investment.
Solar Business Associate
A Solar Business Associate is someone who receives comprehensive training from the company regarding all its equipment. This individual then shares this knowledge with people in their area and works to sell the company’s products in the market. This process helps the company’s products gain visibility and increases its profits. For every sale you make, the company rewards you with a commission. Thus, after the initial investment in training, this business operates entirely on a commission basis.
How much investment do you have to make for becoming a solar business associate (Investment for Solar Business Associate)
To pursue a role as a business associate in this industry, an investment of around 25,000 to 30,000 rupees is required for training provided by the company. Once you have completed the training, you can start selling the products in the market and generate profits.
Profit Of Solar Business Associate :- Choosing this method of business means that the profits you earn will be entirely dependent on your efforts. The more diligently you work to sell the tools available in the market, the greater your potential earnings will be. You have the opportunity to earn anywhere from ten thousand to millions of rupees each month.
By taking dealership for solar business ( Dealership for Solar Business)
If you wish, you can start your own business by acquiring a dealership for solar equipment. Many companies in India are expanding their operations by establishing dealers in various cities. However, this requires a significant investment, and it is essential to have a sales and marketing team in place. When you take on a dealership with a company, they provide comprehensive support for marketing and promotion, but the ultimate success of your business largely depends on your efforts.
Investment for Dealership :-The investment required to acquire a solar equipment dealership largely depends on the company you choose to partner with. For instance, if you opt for a dealership with Su-Kam, you will need to invest around 200,000. Conversely, a dealership with Bharat Solar Energy can be obtained for just 50,000; however, their terms stipulate that you must purchase 300,000 worth of products in your initial order, bringing your total initial investment to 350,000. Additionally, you may consider other solar companies such as Moser Baer, Indosolar, and Aditya Solar for dealership opportunities. Comprehensive information about these companies can be found on their official websites.
Profitability in a dealership is fundamentally tied to the characteristics of your market. If your area shows a robust demand for these devices, you can significantly enhance your income through this business model. With the right strategies, earning a substantial amount is within reach.
Distributor for Solar Energy Business
A distributor serves as the intermediary between the end customer and the dealer. This individual is responsible for making products available to customers through various stores, online channels, and dealers. If you aspire to become a distributor of solar equipment, it is essential to make a significant investment. Additionally, training will be provided through the company, and you will need to obtain certain licenses in accordance with your state government and other relevant departments.
Investment For Become a Distributor :To become a distributor, a relatively significant investment is required. In the case of a solar energy company in India, the investment needed for obtaining a distributorship ranges from 700,000 to 800,000 INR, with approximately 100,000 INR being charged as a fee by the company.
Profit – In this you will have a relatively larger market to serve, so your profit percentage will also be higher. You can earn thousands to lakhs of rupees every month through this too.
By taking a business franchise in the field of solar energy (Franchise for Solar energy Business)
You have the option to acquire franchises from various renowned companies to start a business in your area. These companies offer training facilities for a fee, which can assist you in your entrepreneurial journey. However, it is essential to establish an office in your area to manage your operations effectively.
Investment:-If you are interested in acquiring a franchise for this business, you will need to invest according to the specifics of your city. The estimated investment ranges from approximately 20,000 to 40,000, but please note that the costs for setting up your office will be additional.
Profit:-Your company’s reputation and the effectiveness of your work will significantly influence the benefits you receive. As your business volume increases, so will your profits. This avenue could allow you to generate substantial earnings.
Become a Solar Equipment Agent for Business
You can still make money in this business even if your investment capital is limited. One viable option is to become an agent, where you can sell and install the company’s products. For your services, the company will compensate you with a commission.
Investment – As we have already told you that you have to invest very little to become an agent, so you can earn profit by investing only 8 to 12 thousand rupees.
Profit – You can earn a good profit by becoming a solar equipment agent and installing or selling the company’s products. You can earn thousands of rupees every month through this.
Major Solar Power Companies in India ( Solar Equipment Companies in India) –
Recognizing the significant opportunities within this sector, numerous prominent companies are now focusing their efforts here. Below is a list of companies operating in this field in India, along with their official websites.
- Bharat Solar Energy – bharatsolarenergy.com
- Loom Solar Pvt Ltd loomsolar.com
- Icomm Tele Limited icommtele.com
- Moser Baer Solar Ltd. moserbaersolar.com
- Websol Energy Systems Limitedwebelsolar.com
License and Certification
To achieve this, various certifications will be necessary. You must meet specific qualifications to obtain these licenses and certificates, which encompass the following credentials.
- TIN number
- The article of Association
- An article of Memorandum
- A Certificate of Commencement
The authority will not grant you a license if it receives any incorrect information. You will need two essential certificates and documents, namely the Articles of Association and the Articles of Memorandum, which are crucial for starting your business.
Government subsidies in the solar business
The Government of India has taken a significant step in the field of solar energy production by establishing the “Jawaharlal Nehru National Solar Mission.” The mission aims to generate 20,000 megawatts of solar energy by the year 2022, utilizing an area of 20 million square meters for solar energy generation.
Additionally, there is a government initiative known as the “Solar Energy Subsidy Scheme,” which aims to promote the use of solar panels. While it does not assist in the manufacturing of solar panels, it provides valuable support to consumers who have installed them in their homes. This scheme offers subsidies to those individuals who have embraced solar energy by setting up solar panels.
The SECI project has another goal: to facilitate the large-scale installation of rooftop solar panels. By centralizing various government initiatives, this project seeks to enhance their effectiveness. It provides a streamlined approach for individuals interested in installing solar panels on their roofs, making the process easier and more accessible.
If you decide to launch a solar energy business, you’re likely to find it a profitable venture. India’s climate is particularly favorable for solar technology, and there is a pressing need for these solutions in rural regions. Many well-known companies have already entered this market, capitalizing on these opportunities. By collaborating with them, you can achieve great financial success and secure your future.