Solar businesses capture and sell the energy of the sun.
Solar image by Thomas Leiss from Fotolia.com
Starting a solar energy business can be an exciting and rewarding way to get in on the ground floor of a fledgling industry with impressive growth potential. Solar energy business generally require a heavy initial investment, but a number of grants and tax incentives help solar energy companies to get off the ground. Solar energy offers a range of benefits to business, utility companies and households, including the 100 percent renewable nature of the energy source.
Step 1
Prepare a business plan for your solar energy company. Focus on what makes your companies different from competitors in terms of efficiency, business model, geographic advantages and other factors in your company overview section. Discuss the types of customers your will pursue — consumer, business or utility company — and how you will pursue their patronage, in the marketing section. Describe your plan for raising startup capital in your financial plan, and include projections for when your company will become self-sustaining and profitable.
Step 2
Register your business and obtain any licenses and permits required in your state. Contact the sectary of state to obtain specific instructions for registering a sole proprietorship, partnership or limited liability company in your state (See Resources).
Step 3
Seek grant funding from government and private sources. As an alternative energy business, you may be eligible for significant grant money from a range of sources.
Step 4
Raise additional financing through traditional means if necessary. Venture capitalists may be interested in injecting large sums of money into your venture if you impress them with your business model — your plan for profitability. Banks may also be willing to extend traditional business loans to help you get off the ground.
Step 5
Set up your electrical infrastructure. Solar energy companies, because they are technically utilities, must have their entire operations up and running before selling the first watt. This is why first-year expenses for solar businesses can seem outrageous at first glance. You are likely to incur your greatest expense at this stage; make sure you have adequate capital on hand to finish the job.
Step 6
Market your services to electric utility companies, businesses, households or any combination of the three. Serving different customers can help to ensure that your sales remain generally stable in times of economic uncertainty.
Step 7
Add an on-site installation service to your product mix to increase your market share and diversify your income. Offering as many solar energy related services as possible can help to establish your name as a leader in the industry.
Tip
- Offer consultation services to businesses and individuals who wish to implement solar technology in their offices or homes. Choose to offer premium consultation service, walking the client through every step of the process as they purchase and install the technology themselves, or a free consultation service, similar to a free estimate, that ultimately encourages the client to use your company's installation service.
