How to Start a Solar Panels Business The industry of solar energy is expanding and the sun is just beginning to rise. In 2020, the solar power sector was the largest renewable energy source in terms of capacity. This makes it the cornerstone of new markets for renewable energy. Since 2010, solar has been consistently ranked first or second in the U.S. in terms of new energy capacity.
Solar installers are also one of America’s fastest-growing occupations. This lucrative field will see a 52 per cent growth rate between 2019-2029 and median annual earnings of $44,890. This is an excellent opportunity for anyone who wants to start in this lucrative industry. This article will help you to understand what it takes to start a solar-related business.
How to Start a Solar Panels Business
It’s more than just about putting up panels. There are many options available for general contracting, roofing and manufacturing. You can find a niche in your industry that isn’t crowded, and you can use your expertise to establish yourself as an expert in your area.
Before you start:
Expertise is not just about knowing your product. Companies that are keen to stay ahead of the competition will find it important to keep their fingers on the pulse by taking advantage of numerous rebates and incentives. The agreements can be beneficial for companies that do their own analysis in order to save time and money.
It doesn’t matter if your skill set is in installation, sales or both, it’s important to be proficient in navigating financial incentives as well as dealing with regulations and utilities that may not be obvious in the planning process.
It is best to locate your venture in solar in the middle large, over-saturated markets. Contact your local SEIA chambers to find out what experts are doing in your area. You can also search the Internet. Maybe your market could use an expert in regulation and financing. You’ll likely find the niche you are best at filling, even though the market is saturated with traditional solar-related companies and businesses.
Although the idea of starting your own solar-powered business does not require you to have a team of roofers to install the panels, it is possible. There are many companies that specialize in sales.
They are responsible for selling solar systems. This includes acquiring leads, evaluating them and conducting in-home or virtual consultations to convince the client to make a purchase. Once a client has been signed, the company will work with a contractor to manage the rest of the installation process.
The most popular business in the market is the solar installer. You may want to know the basics of roofing before you start thinking about how to set up a solar business. Solar panels can be a great way to grow your roofing business.
The roof and solar industries seem to be collaborating, and for good reasons. Solar panels and roofs have an approximately twenty-five year lifespan. Smart roofing contractors are realizing the double benefits of installing both a new roof and a solar system together. There are many opportunities for solar and roofing to be integrated into your business plans, regardless of whether you’re a contractor or a roofing company.
What is a PV System?
We’ll start by briefly reviewing the basics of PV systems to help you get an idea of what it takes to make a profit from building one.
How does a Solar Photovoltaic System work?
Photovoltaic is the term for solar panels that convert light particles’ energy into electricity. Photons are absorbed into the material by electrons when they strike the photovoltaic device (PV). These excited electrons create the electric charge by flowing.
Three main steps are required to understand how solar panels work at a higher level.
- Solar panels have solar cells that absorb sunlight and produce an electric current.
- Inverters convert DC power to AC electricity.
- The electricity used is used for current energy needs in the customer’s residence. Any excess electricity not used by the customer is returned to the grid.
Photovoltaic reactions take place at the level of individual cells. Many cells make up solar panels. PV systems consist of many solar panels that are connected (“stringing”) to provide the required voltage to the inverter.
After installation, a PV system can be installed. This will provide customers with free green energy.
Establishing the Solar Team
1. How to find salespeople
All solar companies are run by salespeople. No matter what your field, there’s a good chance someone on your team makes at least part of their salary calling people and making calls.
When you’re looking for salespeople, there are three things you should consider:
- Knowledge about your niche
- Perseverance and passion
- Customers can trust us to answer any questions they may have about solar energy.
It is essential to create a culture of customer satisfaction in all your employees, salespeople included. These are the people who will be leading your conversion efforts and are often the first-line employees in your company. They must be well-dressed and offer top-quality customer service.
Outsourcing sales is an option if you don’t have the resources to hire a sales team. Many companies specialize in solar sales outsourcing, both for consultants and installers. You can find the right company by doing a quick Google search.
2. A player can boost a team’s performance
- Start with the best. See the previous paragraph to find team members that have been NABCEP-certified. Your team may not have NABCEP-certified members. Give them the resources and time to become certified.
- It is important that all salespeople, installers, marketing teams, and others are informed about the details of your products. Every member of your team should be able to learn about your product.
- The dream team doesn’t have to include all of your employees. Get in touch with experts from other fields. If you’re persistent, they can be invaluable resources of advice and assistance.
3. Compensation structures to be implemented
Commissions are often paid to solar salespeople. Commissions are usually paid as a percentage of base contract price or a portion of the total contract cost.
There are many advantages and disadvantages to commissions. They can be a motivator for your employees to become more productive. Commissions can also motivate salespeople to sell more than customers want and to take on projects that are too expensive or increase project costs above market prices.
Learn more about the typical commission structure for the solar industry.
It is easy to either over-engineer or under-engineer solar systems. A bad or inept design can spell doom for a company. Aurora Solar’s innovative system for designing solar panels allows you to create full engineering designs and sales proposals with just an address and your electricity bill. This means that you can create the most efficient design possible every time.
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Get electric quotes from your clients
Customers are often wary about paying for electricity. It could make the difference between attracting a customer’s attention or losing it. This will make the process for your clients as easy as possible.
Electric customers receive their bills every month by mail. If they don’t receive their bills in the mail, they can most likely obtain them online through their utility. Aurora can estimate the year-round energy usage by analysing one month of bills. This includes weather, HVAC, and many other factors. If you don’t have your bill in the system, then you can get the kWh directly from your customer. Divide the kWh by the number of days in the billing cycle, usually each month. Then multiply that number by 30 to get an estimate of your energy consumption.
This is a great opportunity to remind your client how efficiency improvements at home can dramatically improve energy efficiency.
Make sure you read the net meters regulations in your state. A major selling point for solar panel manufacturers could be the ability to sell excess energy back to the grid.
You could be sent to the drawing board with unsound designs. Your solar plan may be rejected if it is not compatible with local laws or regulations. Due to mistakes made by installers and regulations’ bottlenecks, permit-related information can account for up to 70% of your total solar project costs.
Aurora has many features that can reduce delays in licensing and permits. Each design created using Aurora’s platform is approved and permits-ready. A shading analysis is available that is verified by NREL. This means that you don’t have to visit the site each time you install. Instead, you can send our shading reports directly to many rebate authorities in order to receive incentive approval.
Referring more customers can be made possible by the professionalism and kindness of your staff. Nielsen research has shown that 83% of people trust referrals from family and friends more than any other marketing methods. Referrals are made by customers who are happy.
When salespeople are performing their job properly, spending less cold-calling time, increasing employee morale and converting more customers, they can be your marketing team. The referral/customer relationship is the best reason to believe in luck.