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written by | October 11, 2021

Learn About Solar Business in India

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Today, we are in a world that is struggling with the fast depletion of most of its energy sources.  Among a few others, solar energy is emerging as a vast source to sustain the world’s ever-increasing hunger for energy. Solar power is the electricity derived as a renewable energy source from sunlight available in abundance. 

If you want to start a business, the solar panel business could be a lucrative business opportunity. Solar energy business can be considered a non-conventional business that allows you to make money and do your bit to save the world by moving towards alternate energy sources. 

Did you know? 

India has set a target to install residential solar panels to generate 40GW of energy. Till the year 2021, India had achieved only 5GW of this target.

To meet 280GW solar panels by 2030, the government offers subsidies as under

System Capacity (kW)

Solar Subsidy (in %)

1kW to 3kW

40%

4kW to 10kW

20%

More than 10kW

No subsidy

To get this subsidy, the cost of rooftop solar installation has to be around ₹60,000 to ₹70,000. To receive an energy generation based subsidy, one has to generate 1100 kWh to 1500 kWh.  These subsidies are only available to homeowners for residential purposes and can be claimed through the state DISCOM.

Also Read: Best Eco-Friendly Business Ideas in India

Solar Power - Global Market Size

Globally, the solar power business is fast-growing and expected to reach $293.18 billion by 2028, with a 6.9% CAGR forecast for 2021-28. Solar power is the cleanest & the most plentiful available energy source available to humanity. Countries like the US, China, Spain and Germany are investing in building the largest solar resources to capture this energy to be used in a meaningful way. Solar power has been a widely accepted alternate energy source and seeing massive investments from both the developed and developing countries worldwide. It opens up opportunities for solar-based products and services for entrepreneurs.

Potential of Solar Business in India

India has moved ahead and adopted renewable solar energy to meet its increasing demands of energy in urban and rural areas. In keeping with India's commitments towards the UN’s Sustainable Development Goals (SDG), that needs to be achieved by 2030.

The biggest business opportunity lies in the utilities & industrial sectors, with solar paving the way forward. AI and other emerging technologies supporting solar energy generation have made solar entrepreneurship.

India being a tropical climate country, sunlight is available in abundance throughout the year. With more than 3000 hours of sunlight available, it translates to 5000 trillion kWH of solar energy per year over its landmass. Many states in India like Gujarat, Andhra Pradesh, Maharashtra, Rajasthan, Bihar etc., have excellent potential for mega solar energy generation due to their location.

There is a tremendous potential for solar energy to turn into the most important energy source for the world as early as 2030. The Indian Government is providing incentives and supporting technological innovations that will lead us into this transition. Besides these, to encourage solar energy's use, the government has also taken initiatives like providing subsidies for solar energy-based home and business solutions. The falling prices of solar panels, acceptability of solar energy, affordable costs to enable it in common daily use scenarios make the solar panel business a viable business proposition.

Solar Business Entrepreneurship in India

You can look at several areas for starting a business around solar energy and solar energy-related applications. Here are some of the businesses you can evaluate:

Solar Business Retailer

The simplest and easiest of the businesses that can be started is selling solar products. There are plenty of solar products/novelties that can be sold on retail or online platforms. Solar fans, lights, chargers. There are solar thermal systems, water heaters, batteries, etc.   Particularly solar lights, torches and fans can be a target product segment for rural areas where there is a problem of electricity and frequent power outage.

Similarly, components like solar panels, storage batteries etc., are needed and are in demand for any solar power solution that service providers offer.

Distribution Business

This part deals with the wholesale or distribution of solar-based equipment or components needed to build them. Again, the solar panel is one of the main components and is the key component that is required for implementing any solar-based solution.

Solar Aftermarket Products

Any solar installation is not a time - Install & Forget project. It needs add-ons, capacity enhancements, consumables like batteries, and regular maintenance. A business around these ensures that you continue your traction and enjoy a long-lasting business relationship with your customer.

Solar Panel Manufacturer

Manufacturing of solar panels is also a lucrative business opportunity if you have the capital to invest. Solar panels are a key component and need for any solar power installation.  A plant to manufacture solar panels needs an investment of ₹4-5 crores, besides other expenses to go to market with your product.  

Solar System Integrator

A solar system integrator will execute a deployment of any solar project at home or for commercial purposes. An energy assessment, feasibility, sizing, and actual solar panel and system deployment is the work of the system integrator.  

Also Read: How To Start A Plastic Recycling Business

End-to-End Solar Project Developer

This is an end-to-end turnkey solar project execution that consists of the below steps. It involves a full suite of consultancy, pre-project evaluation, design and engineering planning, and building and deploying the solution at the site. The end-to-end project management, operations and sustainability may also be a part of these large projects. Such projects are expensive, capital intensive, may need a high level of engineering and execution capabilities, liaising with the Government and participating in large contracts such as airports, industrial complexes, etc.

Conclusion

Given India’s commitment towards stated alternative energy goals, it is an appropriate time and opportunity to look at the solar panel business in India. Indian economy's prevailing positive market sentiments also encourage small and big business investments in this sector and make starting a business in solar panels an attractive proposition. The ability and easy reach of retail selling using various online platforms clubbed with the availability of reasonable solar panels and other components make it a very attractive business. Solution-based solar panel business for those who can sell it as a concept to customers brings in recurring revenues combined with repeat sales opportunities and better traction with customers. Today, aspiring solar energy businesses have easy access to business loans from banks and get subsidies and support from the government, making this a viable business to start even if you have a low investment appetite.

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FAQs

Q: What is the capital investment to start a solar panel manufacturing plant?

Ans:

The typical investment is ₹4-5 crores. One can look at loans from a bank to fund such business projects.

Q: I am a small-time business with limited capital. Is the solar panel business risky for me?

Ans:

All businesses come with risk attached to it. The same is the case here. As a businessman, you need to carefully plan your business and return of investment with wise use of inventory based on your sales or manufacturing. It helps if you have a well-crafted go-to-market strategy to build a healthy order pipeline.

Q: How can I be certified as an expert in solar panels and their installation?

Ans:

There are various certification programs available in solar photovoltaic installations. It certifies you as a person with knowledge and expertise that gives you an edge in your solar panel business. These courses are offered by the National Institute of Electronics and I.T, Aurangabad and Gujarat Energy Research Management Institute.

Q: Is there a potential for solar energy in India?

Ans:

India is a signatory to the UN’s Sustainable Development Goals that need to be achieved by 2030. There will be a massive push from the government in terms of subsidies, faster clearance of projects that envisage solar energy development. Given these, the requirement for solar panels is bound to surge as it is the key component in any solar project.

Q: Do I need a licence to be a solar panel or solar gadget trader?

Ans:

Yes,you need all the necessary trade licences, shop & establishment licenses, and local permissions to open retail trading or a shop.

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The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.