How to Start a Solar Energy Business in Uttar Pradesh?
The demand for solar energy is set to increase in the coming years. It helps reduce electricity bills, generates a good return on investment, and helps companies go ‘green’; which is why it is the future for many organisations. The global solar power market size was USD 170.55 billion in 2020, according to Fortune Business Insights. In addition to the same, environmental regulations and government initiatives encourage companies to switch to eco-friendly power generation solutions. Countries around the world are focused on reducing their carbon emissions. All this can be made possible with the use of solar energy.
Different types of solar businesses:
Like any other business, the possibilities are endless when starting with a solar power business. Here is a list of the kinds of work you can do in the solar panel domain:
1. Selling solar products:
First, you can start your business selling solar products such as solar PV, solar thermal systems, solar cooling systems, and so on. Some other business ideas include solar mobile chargers, solar water heaters, solar lights, and others. It is easy to get a bank loan for the same.
2. Maintenance and cleaning:
A solar maintenance and cleaning center can be started to offer regular services to solar business owners. You can also start the business of repairing solar inverters and products. Again, the cost of investment for such a business is low.
3. Financial products and consulting:
You can offer specific financial products to solar businesses such as construction financing and joint venture financing. Additionally, you can also act as a consultant for solar energy companies and help them understand the different government programs and the kinds of finance options available for them.
4. Solar consultant:
To be a solar consultant, you need to be an expert in that area. You can provide business owners with professional advice and guide them through the entire process.
Some other solar energy-related businesses you can do include installation of solar panels, sales, and distribution, 3rd party services such as solar insurance, development of solar projects, maintenance and repairs, tax credit expert, energy auditor, and so on.
What is the investment required?
If you want to become a huge solar panel manufacturer, you will require a substantial investment. On the other hand, if you want to start with mounting a solar panel, it does not require a high investment. For about a 5 KW system size, you would need to invest ₹35,000 - ₹40,000 depending on the manufacturer.
Kinds of solar energy companies:
Typically, the solar energy sector is divided into 3 types of companies such as solar EPC companies (solar engineering, procurement, and construction companies), solar inverter manufacturers, and energy storage system (ESS) manufacturers.
How to start a solar power business in Uttar Pradesh?
1. Research
Analysing what you need to do is the first step for any successful business. If you want to avoid failure, we highly recommend that you learn everything you can about solar energy! You need to have a detailed idea as to what you require and how you can execute your plan. Once you are done with your research, we can move to the next stage - planning.
2. Plan
Planning for your business is a crucial step. You can hire an expert to provide you with a business plan or you can design it on your own according to your knowledge and research. The planning stage includes understanding the legal obligations, plan of action for investments and financing, analysing the workforce needed, location, tax implications, etc.
3. Register
For any Indian business, registration for license and certification is compulsory. You need to understand the eligibility of the same and apply for TIN and PAN. Furthermore, if it is applicable to your business, you will need to register with the Registrar of Companies (RoC) and prepare your Memorandum of Association (MoA) and Articles of Association (AoA). You will also require GST registration and a Certificate of Incorporation, and Certificate of Commencement.
4. Location
As discussed before, Uttar Pradesh has great potential considering the nature of the solar energy business. It has a high density of sunlight for storage and further usage.
5. Finance
The next step includes financing. Your business will need investment and fixed assets such as land, building, machinery, and so on. Other expenses include the purchase of raw materials, manpower, and other infrastructure. Depending on the kind of solar business you want to pursue, the amount of capital needed changes. You can decide to invest your own money or take out a bank loan. With a huge initial investment, you can easily make your business into a profitable venture in the future.
According to reports, India is expected to cross 100 GW installation of solar PV capacity by 2022. This means that the future of solar energy is big in the country! Over the last few years, the impact on the environment has been extremely adverse. More and more people are now switching to sustainable methods of producing and are shifting towards green marketing. Solar energy is one of the biggest sources of renewable energy, and to reduce the impact of global warming, it is one of the most sought-after businesses. The government of India is also promoting the use of solar and renewable energy resources.
As you can see, you can easily start the best business in Uttar Pradesh with a solar panel business or having solar products business. The time to act is now! And once you set up your business, you can use the OKCredit app to scale your business, keep track of receivables and payables. It is the digital way of managing your traditional bahi-khata easily.
Read more about amazing and profitable business ideas to start in India only at OKCredit’s blog.
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?
5) Solar Panels Manufacturers in India
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FAQs
Q. How much money does an acre of solar panels make in India?
Ans. Also called solar farming, an acre of a wasteland, when given to the government for producing solar energy, can help farmers earn up to Rs 80,000 per year while producing small crops on the same land. According to the Ministry of New and Renewable Energy, a 1 MW solar plant can be constructed on a five-acre land.
Q. How can I start a solar panel business in India?
Ans. You’d need to become a solar business associate who requires an initial investment of Rs 25000 - 40000. You can also associate with solar companies by providing technical support and installations.
Q. What is the cost of solar panels in India?
Ans. The usual cost for a 10-watt panel is about Rs 850 - 1000. It varies from one manufacturer to another, with the base price of Rs 24/Watt to Rs 58/ Watt.