How To Start A Profitable Solar Business In India In 2023 (Full Guide)
Hello everyone, we all know that nonrenewable energy is limited. At some point in time, they all going to end. At that point what will we do? To solve this problem we can use renewable energy. And solar is the best example of renewable energy. So in this blog, we are going to discuss how you can start a solar business in India and make a profit and how you grab the future market of the Indian solar market.
First, you need to know that India is the third-largest solar market after the US and China. So if you start now differently you make profit in future. Now a question will come to your mind that how to start it? what is the process to start this amazing business?
Well, in this blog I am going to give you every detail about this business. Starting from its type, process, investment, market size, and many other topics.
What are the types of solar business you can do in India?
1. Solar Manufacturing: Where you manufacturing solar panels and sell them in the market. It required a large budget, large manpower, a heavy tech support team, and so on.
2. Solar Installation: Where you install solar panels incorporate place or in retail homes.
3. Solar Consultant: In here you consult manufacturing company, wholesale business and retail business abut this business.
4. Solar Part Business: In here you can manufacture and sell the solar parts as a wholesaler or as a retailer.
5. Solar Maintenance Business: In this type of business you maintain the solar panels of big companies as well as retail homes.
What are the steps to run or build a solar business?
Now you know what are the types of solar business in India but the next question has come how to start? what are the processes to start it? Don’t worry now I am going to explain to you about every process.
So the steps are,
7 Steps to start a profitable solar business in India in 2023
1. Do proper research and acquire the right knowledge
When you are going to start a new business no matter what kind it is you need to do proper research and acquired as much as possible knowledge you can take. Like other businesses in here also you need to research respective of what kind of business you are going to do. Learn everything about it. Read books related to your business. Then only when you start your business you can run it properly and then only it gives you profit.
2. Make a Business Plan.
Making a business plan is very essential for every business. Lots of businesses fail due to not having a proper and powerful business plan. But you can't do this mistake if you want to be the owner of a successful solar business. If you can't do it by yourself then you can hire a consultant who helps you to make it.
3. Legalizing Your Business.
The next most important thing you need to do is legalize the business. It means you need to register your business as a company under the company act of India. Then only you are allowed to trade in the market. In India, you can register your business in different types like LLP, private LTD, public LTD. Along with you need to register for GST, Bank account, Solar Tax and TIN, MoA, AoA, and other licenses.
4. Finalizing Locations.
Decide a suitable location for your company is very important. Sometimes it tells the future of a company. If you start a solar plant then you need to consider a place where panels acquire maximum sunlight to produce large electricity. And from a transportation point of view location is also very important.
5. Hire People.
Hire the right people is very important. You need to choose the right manpower for the right work. You need to train them about their work and need to make them ready for their works.
6. Make Online Presence.
In this year, it is the most important thing for your business that you have a good online presence. It should be a website, Facebook page, Instagram page, and any other social media presence. If you can't do it then don’t take any tension, because you can hire someone who does it for you.
7. Sales and Marketing.
To make your business profitable you can't skip the sales and marketing. You need to make sure that as much as people get to know about your business. Then only they can buy your products. Along with others, you can hire seals and marketing people who work for you and you need to just pay them.
There are the 7 most important steps that you need to know before going to start your solar energy company.
Now we can move to the next step i.e. how much money initially needs to start this business. So let us discuss.
How much investment do you need?
Well, it depends on you. What the business you are going to do, on which scale you are going to do, what is your target in next one year or next five year, what kind of product you want to sell, this all things tells you how much money you need.
1. If you going to start a manufacturing business then you need more than 50,00,000 Indian rupees to set up the factory, hire people, buying raw materials, marketing and seals.
2. In the case of a solar installation business you don’t need too much money, because it is like a contract job. When you install solar panels somewhere maybe in-home, in a factory, or any plants you got money according to it. But you need around 2,00,000 Indian rupees for buying the essential tools that you are going to use.
3. In a solar part business you need around and more than 10,00,000 Indian rupees depending on where you want to do the business. The money is required to build the infrastructure, buying the parts which you are going to sell.
In other cases, you need the money depending on your business type. It may be very time to time or location to location.
Well, now you know a basic of starting a solar business in India. But now some other questions have come, what is the market size, and what is the potential of your business? Well, I am still here to talk about it.
What is the market size of the solar business in India?
As of 2020, the global market size of solar power is $170.55 billion. Coming back to India, it is the third-largest market.
The Indian market size is around $5 billion and the main fact is that it grows up day by day. So if you are thinking to start a solar business in India then it is the right time to start it. It will definitely make you profitable in just the upcoming few years if you correctly follow the processes that I have mention.
Finally, we end the all necessary topics that you need to know. I hope you understand it very clearly. Again I want to tell you that it is a very powerful and amazing business if you execute it in a proper way. I wish your business will grow up along with time and you make so much profit. And please don’t forget us after you become successful.
Thank you.
Written by Jyotirmoy Choudhury