The solar sector is thriving, and this is just the tip of the iceberg. In 2020, solar power, by capacity became the leader in new renewable-energy, which has made it a cornerstone in the market for emerging renewable-energy. In America, solar has ranked second or first consistently in newly installed energy capacity every year since at least 2010.
At the same time, installers of solar are one of the fastest-growing professions, especially in the U.S. This trade is expected to secure a 52% 2019-2029 growth rate while the average median income is around $44,890 per year, providing promising prospects for contractors looking to sink their teeth into this booming sector. If you have thought about what is needed to launch a solar company, this article is definitely for you.
• How To Start A Solar Company – The Beginning Phases
There is a lot more to solar installations than just slapping together a few panels. This profession requires general contracting, metal fabrication, roofing, maintenance and repair, sales, landscape design, consultation, and a lot more. The first step in solar power jobs will involve finding a particular niche that is not saturated in your local market, using your skills, and then finding a way to rise above the competition as an industry expert within a particular field.
• What You Need To Know Before You Get Started
To become an expert, you need more than just knowing a product. It will mean you need to stay up to date on the different incentives and rebates available, which is one of the important differentiators for businesses that want to stand apart from their competitors. The companies that have done their research when it comes to saving their customers money and time are usually the ones that secure the contracts.
It doesn’t matter if you decide to specialize in installation, sales, or both, you must become a professional when it comes to the navigation of financial incentives, and working with regulations and utilities that may not always be apparent immediately during planning processes.
The ideal space to launch your new solar company is to find the cracks between over-saturated, large markets. Find out what the solar experts in your local area are doing by contacting the local SEIA Chapters and Chambers Of Commerce, as well as conducting research on the internet. Perhaps you should think about specializing in landscape design and aesthetically-pleasing solar. Or maybe the market in your area could do with a financing and regulation expert. It is still very likely that even when the market in your area is already overly saturated with the traditional solar companies, you will still be able to find the niches that can be filled by you.
• Solar Sales
Launching a solar company doesn’t always mean you will have teams installing panels on roofs. If you prefer sales, several companies only focus on that.
These are the businesses that work on the sale of solar systems which involves obtaining leads, qualifying these leads, doing virtual or in-home consultations, and getting these customers to sign. Once the customers have signed on, the organization works with different contractors to handle the installation processes.
• Solar Installers
Solar installation is currently the business that is most saturated in the market. If you have thought about launching an installation business for solar, you may want to consider starting at the very basics. For example, if you are already a roofer, then solar installation may be the ideal option that you can add to an existing business.
The roofing and solar industries have started to converge, for very good reasons. Roofs and solar panels have a similar lifespan of around 25 years, and the savvy roofer has started to realize the financial benefits of installing solar systems and new roofs at the same time. Whether you are a solar installer or roofing contractor, there are lots of overlaps between these two products, and an untapped market opportunity for incorporating solar and roofing into a business plan.
• What Is A PV System?
Before moving on, let us quickly discuss how the PV systems work to give you a clearer idea of how to make money when it comes to building one.
• How Do Solar Photovoltaic Systems Work?
A solar panel converts photon (light particles) energy into electricity. This is a process that is known as a photovoltaic effect. When these photons hit PV (photovoltaic) devices, their energy will impact the electrons present in this material. The excited electrons start flowing to produce electric currents.
The process involved in how a solar panel works include these three main steps:
• Solar cells in a solar panel absorb the light generated from the sun, and this is what causes an electric current to start flowing.
• An inverter is then used for converting the DC electricity into AC electricity.
• This generated electricity supplies the energy demands of the home or building of the customer and the extra electricity that the customer doesn’t use is exported back to the “grid”.
The photovoltaic processes occur at cell level. Each solar panel is made up of several cells, and the PV system is made up of a sequence of solar panels that are wired together, better known as “stringing”, to provide adequate voltage to the inverter of the system.
Once the PV system has been installed, the customer is granted access to green, free energy.