How to Start a Solar Electricity Business
Solar electricity businesses give customers an opportunity to rent or purchase a solar electric system for their home or office. Opportunities to sell solar electricity products have increase considerably. According to the U.S. Energy Information Administration, U.S. shipments of solar cells and modules increased by more than 90 percent in 2008. The solar investment tax credit has been a major factor in this growth, and now that it has been extended to 2016, this tax credit will provide new solar electricity businesses with an opportunity to increase sales.
For those contemplating a solar electricity start-up, it has never been easier. States are offering energy grants and rebates to citizens and businesses that convert to green energy products. Also, organizations such as the U.S. Department of Energy and the U.S. Small Business Administration (SBA) are offering business grants and loans to business owners seeking to start solar electricity businesses.
Other People Are Reading
Things You'll Need
- Business plan
- Capital funding
- Business insurance
- Business procedures
- Marketing plan
Instructions
-
-
1
Write a solar electricity business plan. Solar electricity start-ups need to define, organize and finance their business model. Writing a solar energy business plan helps with that process. Most solar electricity businesses fall into two business models---franchise businesses and independent contractors. Choosing the right business model takes research, and writing a business plan helps with this choice.
A business plan often uncovers hidden costs to doing business, government regulations and government grant money for energy businesses. It also helps the solar electricity business owner understand what is needed to run a solar energy business. For research and help writing a solar electricity business plan, visit the web sites of the SBA, the U.S. Energy Information Administration and the U.S Department of Energy.
-
2
Apply for grants and loans to finance the solar electricity business. Starting a solar electricity business can be expensive depending on the choice of business model, the local regulations pertaining to solar electric businesses and the amount of advertising needed to educate the public about solar electricity. New solar energy businesses can seek out government grants and loan opportunities through the SBA, the U.S. Department of Energy and web sites such as Business.gov and Grants.gov.
-
-
3
Review and comply with all government regulations and restrictions for solar electricity businesses. Solar electricity businesses require licensing, permits and registration. Check with the Federal Energy Regulatory Commission and other federal agencies such as the U.S. Department of Energy for federal regulations that pertain to solar electricity businesses. Some counties and cities in the United States have local building regulations and codes that a solar electricity business must follow, while some states have solar rights laws that prohibit certain restrictions by local governments and homeowner associations. Solar energy regulations and business permits vary in each state. For more information, contact your state's small business assistance program and its department of energy or environmental protection agency.
-
4
Buy business insurance. Business insurance is required for building permits. In some states, surety bonds are also required for the installation of solar energy businesses. SBA offers a number of surety bond programs for new business start-ups, so contact your local SBA office for more information. For business insurance, contact an insurance agent that specializes in insuring businesses.
-
5
Set up business procedures. The way a solar electricity business handles its finances, sales, inventories and installations determines its level of success. Once financing is in place, the operations aspect of the business plan is ready for implementation. If a comprehensive business plan has been completed, research into business locations, the names of manufacturing vendors, sales and installation procedures, local advertising resources and information about the number of employees needed should have already been completed.
-
6
Open for business, and start advertising campaigns. A complete business plan will have a section that includes a marketing plan. A marketing plan contains strategic advertising and programs designed to attract customers to your solar electricity business. The marketing plan will also include a budget. If this step has been completed correctly, advertising money has been included in the start-up costs of the business. For example, a solar electricity business marketing program would budget for trade show events such a home and garden shows. Now is the time to implement these programs and advertising campaigns.
-
1
References
Resources
- Photo Credit photo Solar energy image by Aleksandar Radovanovic from Fotolia.com
