How to Start a Profitable Solar Energy Business in Maharashtra?

The depletion of the natural resource, adverse climatic change, and increased energy consumption make solar energy the need of the hour. With strategic planning and technical knowledge of solar energy and the implementation of solar panels, it is one of the most profitable business ventures.

Maharashtra has seen tremendous growth in terms of infrastructure, industries, residential and commercial construction. The implementation of solar energy for the harvest and production of electricity is the only way to meet the growing energy demands across the state.

Are you wondering about how to start a solar panel business in Maharashtra? Before starting the business, it is crucial to identify how switching to solar energy is profitable for both the business as well as the environment. Solar energy is a clean, renewable form of energy, and with a minimum investment of installation of solar panels, it helps harvest sunlight and convert it into electricity.

Planning to start a solar panel business? For any business, thorough planning is required, and this can be acquired only through research and understanding the scope of the business. For planning to start a solar business in Maharashtra, it is crucial to determine the right demographics as the target audience, analyse the scope, and have a proper plan in place.

Understand the Industry through Proper Research

The research and thorough understanding of the business is crucial for starting the solar power business. The schemes and policies related to every state for solar power are different. To start a business in Maharashtra, it is crucial to identify the policies, subsidies, and operational procedures in the state. The regulations by the government of Maharashtra are an initiative to boost the use of solar power through the installation of solar rooftop systems.

The Maharashtra government has approved the Net Metering Policy, where the residential rooftops of bigger societies can set up solar panels and sell excess generated electricity to the power distribution companies. This helps in solving the demand for electricity along with lowering the power bill for the residents of the society.

The latest guidelines by the Maharashtra Electricity Regulatory Commission (MERC) state that the net metering system installation connects it to the grid of distribution companies. As a part of the solar panel business plan, educating people about the policies and how they can benefit the people or business is important.

Weighing Options on Type of Solar Business

The solar business is vast and diverse and has different options in terms of business prospects. Solar power will be in high demand with all the government initiatives and subsidies. The Maharashtra Government aims to achieve 12GW of solar power capacity by the end of 2022 and has introduced multiple policies and subsidies in place. It is crucial to focus on a specific niche to start with.

Here are some types of solar energy businesses for the state of Maharashtra:

1. Installation of Solar Panels

This by far is the most lucrative and beneficial business for solar power. There is an increase in demand for energy, and with government policies and incentives, there will be a spike in panel installations. Bigger cities like Mumbai and Pune have seen a construction boom, and the installation of solar panels can help in reducing the monthly electrical bills without compromising on quality.

2. Repair, Cleaning, and Maintenance of Panels

The tremendous increase in the installation panel means an increase in demand for cleaning and maintenance. It is an extended domain for the solar panel business but is profitable with the constant increase in the installation of the panels. This business can be clubbed with the panel installation business.

3. Franchise and Distribution

This requires a proper understanding of marketing and the study of the target audience in the market. Establish a professional relationship with the suppliers and manufacturing companies and take up a franchise to sell their solar products. As a distributor, you can distribute solar products from major solar players into the market. It is a good start and gives exposure to the solar panel business.

4. Solar Energy Independent Consultant

If you have the product knowledge and technical expertise, start an independent consulting firm. Identify solar energy usage and educate people about solar power and its benefits. Through consulting services, you can join NGOs or the government and help install solar panels in remote villages across Maharashtra.

Conduct a Feasibility Study and Identify Target Customers

Once you have decided on the niche of the business, it is crucial to conduct a feasibility study and do research on the target audience. If you are into the solar products business, identify the market and plan a strategic marketing plan. For a solid business plan, you need to know who the business target audience is.

For example, if the business is about solar panel installation, would you cater to the urban or rural population? For the urban population, will the installation be for residential or commercial buildings or both? Will the installation be independent or with the local power grid? This aspect is important to know what demographics or target audience the business will cater to.

Budgeting, Business Proposal, and Licensing/Permits

Once you have figured out how to start a solar power business, it is time to take the next step. Starting a business requires capital investment. Depending on the type of business, set a budget and allocate the investment accordingly. If it is a high investment business plan, create a business proposal and consider loans or funding under the government schemes. There are many initiatives by the government that fund solar business.

Once the business plan is in place, the next step is to set up the company, starting with the registration process. It is important to obtain all the necessary permits and licenses for starting the business. This will legalise the business.

There are different registration processes for the business depending on the type of entity you want to form. Register as Private Limited Company or Companies Act, 2013. The registration of the company requires certain documents like Certificate of Incorporation, Memorandum of Association, Articles of Association, GST number, PAN number, etc.

Marketing and Promotion of Business

After all the above steps, the fieldwork starts, which requires marketing and promoting the company as a brand. Use different strategies to promote and market the services to the target audience through both online and offline marketing channels.

Hire workforce is required to help with the setting up of the business and its continuity. Make sure the hiring is done after scrutiny and hire only experts who are technically sound with solar products and installation.

Conclusion

The solar power business is one of the best businesses in Maharashtra as it can help in reducing the energy crisis in major cities as well as bring electricity to remote places. This guide offers a step-by-step breakdown of the procedure to start a solar business in Maharashtra and make it a profitable venture.

The steep decline in fossil fuel and the non-renewable source has increased the demand for solar energy. With a solar business, one can completely revolutionise things and make an impact in tackling the climate crisis and conserving natural resources.

Also Read:

1) How to start a business of eco-friendly & organic cleaning products?
2) How To Start An E-waste Recycling Business?
3) How Can Stock Summary Reports Optimise Inventory Management?
4) How Safe and Secure is Online Software?

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FAQs

Q. How does the Net Metering System Benefit Residences?

Ans. The installation of solar panels on the rooftop of residential societies generates electricity, and with the installation of a net metering system, excess electricity is sold to power distribution companies. It even lowers power bills for residents.

Q. Which is the best solar energy business?

Ans. The best option with a little investment is the solar panel installation business. This is profitable as, with time, there will be an increase in the demand for solar power. The most commercial and residential complex has installed solar panels on the rooftop for the harvest of energy. Hence, this business is likely to boom in a few years.

Q. Is it important to register and license for the solar panel business?

Ans. Yes, it is mandatory to register for the business to legalise its operation. Make sure to read and know all the state-related rules and regulations of registration of the business. It provides all the necessary certificates and permits required for running the business.

Q. Is there a funding scheme or loan for starting a solar business?

Ans. If the cost of starting a business is very high, a loan or funding is important. A proper and well-researched business plan outlining the aim, goals, and expected outcome is necessary for seeking a loan. However, the Maharashtra government has some funding schemes for green and clean energy.