Starting a solar panel company at home or anywhere else requires a strategic roadmap. This roadmap contains location selection, market research, brand name selection, investment amount, license, project longevity, marketing strategy, focusing customer, and many more things. Indeed, starting a solar panel company may not be easy due to a lack of exact calculations and detailed planning. So, let’s take a look at some essential steps on how to start a solar panel company at any place. This guidance can lead, encourage, and give you the actual idea to open a solar panel company at any location or country.
How to Start a Solar Panel Company?
If you want to start a solar panel company in California, Florida, Indiana, New York, the UK, Bangladesh, Canada, Australia, then you must make a long-term and widespread road map. So that your journey becomes easier. In that case, let’s follow some crucial steps.
1. Market Survey or Business Analysis
Market survey includes competitor analysis, market research services, customer research, location, etc., which location would be the best for opening a solar installer company, find that place, research competitors, and ensure that you can keep up with them in the competitive market. Can you use their strategy to get more PV panel sales and others?
This market survey will help to figure out the competitor pitfalls that can help you stay at the top in the market. There are so many privileges of market surveys or market research. So, before starting a solar panel company, research the market and get the actual idea of what the things you need to do.
2. Research Company Name
A company name is called a brand name. Brand name or company name should be short, meaningful, and easy to utter. In that case, you may choose paperwork and the internet. Search online and check different communities. You may focus on short short-length buying keywords that people search online. There are some tools online, like a business name checker or a business name maker tool.
You may also find different types of AI tools the Google AI tool, ChatGPT, and other AI tools. Just give a command according to your targeted name and niche, then that tool will suggest a hundred beautiful names. So, these are the best ways to choose or research a company name. So, select a name that goes better with your business niche.
3. Register A New Company Name
How to register a new company name or how to register a new business name? To register a new company name, focus on your business structure and location. First of all, you must choose a unique business name and check its availability through your Secretary of State. You should also ensure that it’s not already in use.
Now decide on a legal structure, such as an LLC, corporation, or sole proprietorship. File the necessary formation documents with the appropriate state agency. Once approved, obtain a federal Employer Identification Number (EIN) from the IRS for tax purposes. Depending on your business type and location, you may also need to apply for local or state business licenses and permits.
4. Apply for Business License
A license is a legal document that allows a business owner to do business in a legal way. It also proves that a person has been doing business by following a government’s rules and policies. You may sign an agreement to the US Power Purchase Agreement contact. That will help to share power with others.
However, starting a solar panel company requires approval from the local state government of a country. A business owner also needs different types of business licenses, such as a state business license, a cleaning business license, and others. However, let’s see an example of a solar business applying for a business license applying procedure
To get a business license Required Business Information
- Business name: [Write Your Solar Company Name]
- Refer your business structure: [Corporation/ LLC / Sole Proprietor / Partnership]
- Federal EIN: [Refer Employer Identification Number]
- Give your State Tax ID (if applicable/if you have)
- Give North American Industry Classification System (NAICS Code) or related code
Business Address
- Provide your address like Street, City, State, ZIP.
- Provide your Mailing Address [If you have a different address]
Owner/Officer Information
- Write your Full Name
- Are you Owner / Partner / Director (write a title)
- Give your contact details like Phone & Email
- Give your Social Security number or Employer Identification Number (SSN or EIN) (if required).
Business Operations
- Refer that what type of service you offered like solar panel installation, and maintenance and cleaning, solar panel financing, and other electrical and electronics tasks.
- If you have employee refer (how many employee, you have)
- Give your estimated annual revenue.
Insurance and Bonding
- If you have General Liability Insurance Certificate, then refer that.
- Refer Workers’ Compensation rules (if applicable)
Signatures and Notarization
- Applicant Signature (give your signature that you use continue or other legal papers)
- Give Notary Public Signature/Seal (if applicable)
Required Attachments
In this section you should provide some crucial information depending on the state and requirements.
- Copy of EIN letter from IRS
- Articles of Incorporation or Organization
- State contractor license
- Zoning approval or permit
- Photo ID
5. Startup Business Investment
Investing in startup companies requires a deep analysis, like market research, location selection, material cost, rent, license cost, and so on. In recent years, the solar panel company startup average cost in the USA ranges from $100,000 to $200,000 or more. This cost includes some essential areas, such as
Office Space Cost
Office space cost relies on location, length/width. For example, if an office space becomes 500 Square feet and per square foot becomes $15, then the total monthly rent cost becomes $7500. Utility costs can go up to $500 to $1000 per month.
Operation Cost
Operational cost involves licensing, land acquisition, and others. Most often solar panel company licensing cost in the USA is around $3000 to $10000, and this cost includes
- C-46 Solar Contractor License cost is around $500 to $700
- Business registration costs $50 to $55,0, and local licensing costs can go up to $100 to over $1000.
- Insurance cost can range from $2000 to $5000
- Training and certification costs can go up to $1000 to $2500
However, for home solar system installation cost in the USA is around $24,000 to $50,000. If a 30% federal cost is added to this budget, the PV system company startup cost stands at around $24,000 to $36,000.
6. Need Solar Panel Installation Technician
If you want to start a company, you must have staff or employees. To start a solar panel company, require a solar panel installation technician or a panel installation engineer. Rather, you also need them to provide solar panel cleaning service, solar panel repair and maintenance service.
So, how many employees need to be hired? As a startup company owner, it depends on the business owner’s service area and the staff’s cost affordability. If you have a small company, then you may recruit 3 to 5 technical staff to provide a PV installation system and service. Remember one thing, must focus on at least a minimum experienced person to provide quality installation in different places like
Alright, but how to find the skilled solar installation engineers or technical staff? Search online in your browser “best solar system technician near me” to obtain a solar panel mechanic, a solar PV design engineer. On the other hand, search for your top solar engineering companies and contact those that provide contact-based solar panel installation service. Adopt social media, give recruitment in different communities of the solar system service and maintenance group. So, these are the best ways to find skilled technical staff.
7. New Company Marketing Strategy
Indeed, social media marketing for a new business plays a pivotal role. Social media is a renowned platform all over the world. All the small, medium, and large business owners use different types of social media platforms like Facebook, X.com, LinkedIn, Instagram, etc. In the United States, over 73% percent people use social media.
Over 250.2 million Americans use Facebook, more than 106.23 million US people perform on X.com, over 169.65 million, and 235 million Americans use Instagram and LinkedIn, respectively. So, if you perform on those platforms for marketing and promotional activity, then you may have a mega chance to get more clients.
Those who require commercial and home solar system installation, repair, and maintenance. There are different ways of marketing a new business, like image, video, and content marketing. So, adopt the right strategy according to your country’s people’s demand and perform better.
So, these are the 7 best methods of how to start a solar panel company in the USA, UK, Australia, Bangladesh, India, and other countries. Indeed, follow this strategic process and start a solar panel cleaning company, or start a solar panel installation company wherever you want.
How Much Does It Cost to Start a Solar Company?
A company’s startup cost is not fixed. It varies from time to time. It depends on some essential factors like location or State, service area, number of employees’ salaries and wages, office renting cost, equipment cost, licensing, utility cost, and others. However, a minimum level of solar company startup cost is around $50000 to $500000. Sometimes this cost goes beyond the estimated cost limit. A medium and a bit large-scale solar system company opening cost can range from $100,000 and over $500,000. This cost includes
- Business registration and licensing cost $1,000 to $10,000
- Insurance (liability, workers comp) cost $3,000 to $10,000 per year
- Office setup (rent, utilities) cost $5,000 to $50,000
- Tools, equipment, and vehicles cost is around $20,000 to $100,000
- Employee wages and training is around $30,000 to $200,000
- Marketing and branding cost can go up to $5,000 to $25,000 per month (depends on emphasize on marketing).
- Software (CRM, design, permitting) and solar system monitoring software cost can go up to $1,000 to $10,000. (at the beginning free software can be used to minimize startup cost).
Cost in USA Different Areas
Solar panel opening cost becomes different according to the different states in the USA, such as
- In the California the cost ranges approximately $150,000 to $500,000
- In Texas PV company Startup Cost is around $100,000 to $300,000
- Florida PV company Startup Costs around $80,000 to $250,000.
- Solar panel opening cost in New York is around $120,000 to $400,000.
It is noted that this cost can be different depending on the location, area, equipment cost, and situation. So, before opening a company, conduct overall market research and make an actual decision.
How to Start a Solar Panel Manufacturing Company?
Starting a solar panel manufacturing company involves some essential factors that we have referred to the How to start a solar panel company section. But right now, we want to add some additional and important things that are highly recommended for opening a solar panel manufacturing company.
- Arrange sufficient finance, like $50 million to $100 million.
- Decide on a location where low-cost land, transportation, and staff are available.
- Establish manufacturing entity (solar panel frame, PV panel manufacturing materials, and machine).
- Set up the operation and production technical team.
- Ensure packaging and transportation.
- Ensure the solar panel buyer that will be sold after manufacturing.
Final Thought
Starting a solar panel company involves several key factors like business analysis, market research, financial eligibility, and other essential factors. However, before starting a company, always focus on building a better relationship with customers and other staff as well. So, keep patience, work hard, build branding, and provide a better solar system installation service and reach in ultimate goal.