Solar energy is one of the never ending energy source. There are many opportunities for fabulous business career. Alternative energy sources are on the mind of everyone this trend is going to continue.
Oil prices are increasing day by day and it is a limited source of energy. We have limited fossil fuel on the earth but the sun is an unlimited source of energy. We have one more unlimited source of energy it is windmills but it has too many barriers to establish it.
Solar energy power plant system is easier to establish than windmills. India has been working on the solar system for 50 years and now the rates are very low here in comparison of starting time.
The government has also launched several schemes to promote this.
Types of solar energy companies
There are three types of companies in the solar industry-
1.) Solar EPC company – EPC is engineering, procurement and construction. EPC term is for providing end to end solar services from designing the system, procuring the components and installing the project. Under EPC system you set the power plant to third party and purchase the complete component of the developer the same developer offers you the profit on the payment condition. EPC buy material from manufacturer.
2.) Manufacturer – It makes the necessary material for the solar projects like solar cell, panel, stand etc.
3.) Contractors – People required to do the actual ground work and this work of contractor. They do physical work for solar business like to set solar panel and maintenance of solar panel etc.
Process of establishing a solar energy company–
- Make a business plan –
For making a solar energy business plan you should work on these points
Research on market – The first step you need to take before starting a company is to do a research on market conditions, this is the most important step in the success of your business. Do search about raw material for solar plant, market competitors, costs etc.
Make a good combination with govt. Electricity department because you have to sell your electricity to them. You should make good working policy with them.
Location – In the business of solar power plant location matters a lot because our whole work depends on sunlight and sunlight depends on location.
Different places have different sunlight. The difference is the intensity of sunlight. In the picture we can see intensity depends on location. Dark red colour has more intensity than faded yellow .
First thing is to insure that intensity of sunlight must be in good range. If intensity is very low then we can not produce that much energy.
Second thing is flat land must be there. Flat land is ideal condition for arrangement of solar panels . Now days adjustable panel are available for uneven land but we can reduce expenditure by flat land and we can get more energy by flat land.
Third thing is we need shadow free land for panel because shadow can decrease the product of panel.
Before choosing a location you should consult an expert it can reduce your extra expenditure on solar panel.
- Licence and certification –
After deciding a suitable business plan find out how to become certified.It is time to start the process at the corporate level. First of all understand the process of application of licences and certificates.
You must be sufficiently qualified to obtain this licence and certificates.
The licence and certificate will include
1. Tin number
2. Article of association
3. An article of memorandum
4. Certificate of commencement
The article of association and the article of memorandum are the two major documents that you need to start a business.
- Registration –
Registration is the preceding step after obtaining the licence and certificate. You have to register your company in the registrar office of your state then they will check all certificate and after getting you competent in all aspects of your company will be registered.
- Secure sound financing –
Review all the costs required to launch and run your company. If you don’t have adequate fund then submit a loan proposal. Government are providing good loan and subsidy for solar power plants.
Financial decision are most important activity in business. Financial decision about how much to spend on each activity.
There are many activities depends on fund like land, building, machinery, marketing etc.
60% of the whole money is consumed by land because land’s prices are getting high. Land is the biggest part of this business it plays a big role in this business.
Saving money on solar cell is not right you should not compromise with quality of solar cell because this business takes a lot of time to get profit back it can take about 10 to 15 years till then it is your responsibility to keep your solar panel safe. Best quality solar panel can cost more but if they are good then they will last longer and will keep earning profit by panel.
You must hire a specialist for buying solar equipment because equipment’s utility depend on your land you have to choose the right equipment to save money
Specialist can help you to reduce expenditure on equipment.
- Man power for company –
Then comes an important step which is to mobilize man power for your firm because new start up require more labour and employee and competent human resource will definitely give more benefits. A hardworking team can bring success to a very big level so choose the team well.
Look for candidates who can bring a positive attitude to your business.
- Marketing strategies –
- Know your target customers – Identify target customers before launching your company. Pinpointing and targeting specific groups helps establish a reliable customer base.
- Maintain a strong online presence – A well designed website make you reach to client more easily. Your website should incorporate mobile friendly features by this customer can connect to your site through their smartphones.
- Additionally include a project portfolio as well as your company’s contact details.
- Create awareness across all social media platforms – Open different social media accounts and use them to elevate your business profile.
- Build a solid customer base – proper marketing can build a solid customer base. Reward clients regularly with discounts, gifts and free services. Satisfied customer will often refer more people to come to your solar panel installation business.
Be sure to choose a unique name for your business. Maintain your solar installation equipment properly to avoid unwanted expenditures like repair or replacement costs. Ensure that all employees understand their role in the company and treat all clients with fairness and respect to keep them connected.
Long term growth and business success depends on always putting the customer first.
Related post – How to Make a Business Plan