How to Start Solar Business in India [Complete Guide]

The world is shifting towards renewable energy sources and solar is one of the biggest sources of renewable energy! Starting a Solar Business is one of the biggest business opportunities nowadays!

Do you know that according to the recent reports, India is the 3rd biggest solar market in the world after China and the US!

So, it’s fairly clear that starting a solar business in India is one of the best business ideas in India to start in .

But, the question is How to start a solar business in India?

Well, that’s what I’m going to tell you! In this blog you will be able to get all the information about :

Now, before we move ahead and see how to start a solar business in India, I would like to tell you one thing!

There are different types of Solar Businesses that you could start. So, what are those different types of solar businesses?

> Different Types of Solar Businesses in India

  • ✅ Solar Installation Business
  • ✅ Solar Sales Business
  • ✅ Energy Consultant
  • ✅ Solar Consultant
  • ✅ Solar Manufacturing Business
  • ✅ Solar Parts Business
  • ✅ Solar Maintenance Business
  • ✅ Solar Tax Credit Expert

So, now you know different types of solar businesses you could start!

But the question is how to start?

Well, let me tell you 🙂

> How to Start a Solar Business in India?

Now, as we have seen above, there are different types of solar businesses that we could start!

So, I’m going to give you a universal step-by-step guide about How to Start Solar Business which will work on any kind of solar business you want to start.

#Step 1 : Do Research

Yes! You have to do a lot of research.

Not only in this business, but any business you start needs proper research.

If you start your business without doing research, then the chances of your business failure are very high. So, it’s better you do research for your business.

If you don’t know what kind of research you’ve to do, then you can check this article which will explain to you how and what kind of research you have to do.

#Step 2 : Make a Business Plan

Once you’re done without your research, it’s time to make a business plan for your business.

Business planning is also one of the most important things you’ve to do before you actually start your business.

Many business owners skip this part and this is one of the biggest reasons for their business failure!

If your business plan is full proof, your business is going to be full proof. There are many things comes under a business plan.

You can hire an expert to make a business plan for you or you can learn yourself and then make a full-proof business plan for your business.

If you want to know how to make a business plan for your business, you should consider this blog which will help you to make a great business plan for your business.

#Step 3 : Get Legalised –

Now, you’ve done your research and created a full-proof business plan for your business, it’s time to get legalized.

There are different types of company registrations in India, it’s on you what kind of entity you want to form. You can form either a Private Limited company or a Sole Proprietorship.

There is also a new entity introduced in the Companies Act, 2013. It’s a One Person Company!

One Person Company is kind of a Sole Proprietorship business, but it has a separate identity and has many other benefits.

So, your business should have these documents which you’ll get when your company got registered :

  1. Certificate of Incorporation
  2. Memorandum of Association
  3. Articles of Association
  4. TAN
  5. PAN
  6. GST

Now, if your business is a sole proprietorship, then you will only need to have your GST Registration Certificate!

You can also take MSME (Micro, Small, Medium Enterprise) certificate also known as Udyog Aadhaar. It’s free and you can do it yourself online!

#Step 4 : Open a Bank Account

Once you’re done with your business registrations, it’s time to open a company/business account for your business.

It’s important to have a current bank account on your business name. You can open your account with any back you like which will suitable for you and your business.

You’ll need your Company Incorporation Certificate, Memorandum of Association, Articles of Association, GST Certificate and the Identity and Address proof of Directors in order to open a company’s current bank account.

Now, if you’re a Sole Proprietor, then you’ll need only need your business GST Registration Certificate and your Identity and Address proof.

Also, do check the bank policies before opening a bank account with them! It’s recommended to open a bank account with a low Minimum Average Balance (MAB).

#Step 6 : Hire –

Done with everything? It’s time to hire manpower which will help you in making your business successful.

Hiring is one of the crucial parts of any business. Your company workers are the one who is going to run your business. So, it’s very important that you hire skilled and knowledgable people in your company/business.

If you are from Tier-1 or Tier-2 cities, then one is easier for you as you can hire a workforce for your company online.

But, if you are from Tier-3 cities or any small city or town, then it will much more difficult to find the right people for your company.

#Step 7 : Make Online Presence

Online Presence of your business is a must nowadays!

Your business should have a Good Website. It improves your credibility and helps you in capturing the market online!

The cost of website development is quite reasonable these days and if you need a website for your solar business then check out this website development company in India. They provide best website development at the most reasonable price.

Along with that, your business should also have a social media presence! You can create Facebook pages for your business, which helps you in generating leads from social media.

Also, one of the main things is Google My Business! You should have your business on Google My Business.

It helps your business in coming up in the search results when someone searches for “solar panel installation” or services related to your business on Google.

#Step 8 : Sales and Marketing –

After establishing your business, it’s time to market your business and generate sales!

Anyone can start a business nowadays without even knowing anything about business!

But, if you do marketing for your business effectively and smartly, then no one will stop you in achieving success.

There are multiple ways by which you can market your business! You can hire salespersons who will visit local places and spread awareness about Solar systems and your business.

You can do traditional ads marketing like Newspaper ads, Radio Ads and more…

But, one of the most effective and low cost marketing methods is Digital Marketing!

You can promote your business through Digital Marketing in the lowest budget possible and get unbelievable results!

> How much investment do you need to start a solar business in India?

There is no such limit that I can discuss here but if you want to become a manufacturer of a solar panel or solar inverter then it required a huge investment.

If you want to become a manufacturer you can start with mounting structure. Mounting structure manufacturing does not require a huge investment.

You can also become a solar installer which required very less investment but you should have your own team to handle big projects.

But still, on a rough side, you’ll need at least Rs.50,000/- in order to set up your solar business in India!

If you want to register your company as a Private Limited Company, Partnership or One Person Company, you will need approx Rs.10,000/- for your company registration.

Then you’ll have to set up an office which will cost you around Rs.20,000/- and then you’ll need to invest in hiring and marketing. Also, you will need extra funds for the future.

> What is the market size of solar business in India?

Last year in 2018, India became the third-largest solar marketing in the world. China is in the first position and the US is in the second position as shown in the graph below.

According to the latest reports, India installed 8.3 GW (gigawatt) of solar PV (photo-voltaic) capacity in 2018! While China installed 44.3 GW and 10.6 GW solar PV installed by the US.

India is expected to cross 100 GW by 2022, which states that there is a huge business opportunity in this business!

Also, as we all know that pollution is increasing exponentially and we have to move towards renewable sources of energy in order to reduce the effects of global warming. Solar is one of the biggest sources of renewable energy.

Not only that! The Government is also promoting Solar and Renewable energy in India with the aim of spreading awareness.

So, in simple words, there is a huge market of Solar in India and this is the best time to start your Solar Business in India.


Conclusion:– This is all about How to Start Solar Business in Inda and now you also know about How much investment this business requires and what is the market size of solar business in India!

It’s time to start your business and start making money. This is one of the best business ideas which you can start in ! But, if you want to check some more business ideas, then do check out my blog on Top 20 Business Ideas in India.

Thank You 🙂

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