Tips to Get Your Solar Power Business Off the Ground

Starting a solar power business is one of the most lucrative business decisions you could make. The technology needed for creating and storing solar energy has changed and evolved over the years, and now it’s available to the average household.

At the same time, an average homeowner is much more aware of the importance of using alternative energy sources. This is partly an environmental concern and partly a way for the homeowners to save on energy costs at least in the long run.

Licenses

This industry is very much regulated and there are a lot of licenses that you need to obtain before you’re able to sell your products and services legally. This isn’t just a way for the government to tax small businesses even before they open their doors. It’s a safety precaution, needed to run such a complicated and impactful business.

Have in mind that it might take a long time to obtain the proper licenses and appeal to the proper institutions. Sometimes this is a bigger cost than the actual price of getting a license. In some states, it might take as long as years to actually start making revenue from a solar company.

Find a niche market

The potential of the industry is becoming apparent to investors both large and small, and soon the market will be saturated with small solar companies. That’s why it’s best to find a niche market, to which you can cater with smaller infrastructure and which you can dominate.

For instance, the needs of small businesses might be different from those of the homeowner. If your business is organized in a way that’s better suited to supplying small businesses with solar panels, you might find yourself being the only one to offer such a service.

Additional infrastructure

The main cost of starting a solar panel business is in the solar panels themselves, and in the professional labor needed to install and maintain them. However, these aren’t the only costs, and business owners are usually surprised by the price of the additional infrastructure needed to set the business up.

For instance, a solar power business will need scaffolding for hire, as well as other instruments to make sure your employees are safe while installing the panels. The same goes for reliable trucks needed to transport both the equipment and the workers safely and quickly.

Funding

A solar panel business requires quite a lot of initial funding. This is an obstacle, but it shouldn’t be discouraging because there’s a market that can help you return your investment. The most common way of getting the funds is to apply for a loan. These loans are often backed by the government as well because of the importance of the alternative energy industry.

It’s best to borrow a bit more money than you’ll initially need. That way you’ll cover both the initial costs of starting a business, but also additional costs that arise during the day-to-day job of running a company.

Customers

Having a steady line of customers is essential for a small company. It’s a way to make sure you always have enough income to expand the company and target new customers. Word of mouth is important in this line of work and your marketing campaign should rely on it heavily.

Make sure that the customers you’ve worked with are able to promote you and share their experiences about working with you with other potential customers. This can be accomplished with a good reference system and a marketing campaign focused on customer service.

Provide additional services

Your solar power business doesn’t have to be just about installing and maintaining solar panels. This is bread and butter for most companies, but there are other services you can provide and thus diversify your income, which is always a smart thing to do.

One of the services every solar company can offer is consulting in relation to green energy. Many businesses are looking for a way to start using more green energy without losing too much of their fund on establishing this infrastructure. That’s where your business can help and find an additional income source.

Prepare for tough times

The truth is that as much as 50 percent of all companies fail in the first year. This is something to prepare for in advance, because that’s the only way to keep the company running during a tough period. Most difficulties come from not being able to find new clients, which is why you should leave some of your profits aside each month to prepare for these dry spells.

It’ also a good idea to keep your personal finances separate from those of your company in case it goes under.

Solar power businesses can be rather lucrative. Establishing those takes time and funding, but when you find a customer niche, they can be profitable for years.