Learn how to start a solar panel business in India, with steps, costs, and financing options explained clearly.
Starting your own solar panel business can help you tap into one of India’s fastest-growing industries. With the rising demand for clean energy, you have a golden opportunity to create both profit and impact. You’ll learn how to set up your business, follow all legal steps, and create a solid solar panel business plan. You’ll also discover why financing matters and how to secure the right loan for solar energy business needs. Missing these essentials could set you back—so take control and give your business the strong start it deserves.
Building a solar panel business in India offers great potential—but only if you take the right steps from the beginning. A strong foundation will help you avoid risks and grow faster. Here’s a robust plan to help you get started and stay on track:
Your first step in understanding how to start a solar energy business is to decide which type suits your goals. Here are the most common models:
A clear solar energy business plan helps you stay focused, attract investors, and get funding. It should include goals, market insights, service details, and a breakdown of initial costs. Here’s what to include:
Before you start, understand the local demand and competition. This helps you offer the right services at the right price. Here’s what to research:
Using high-quality equipment helps reduce maintenance issues and build customer trust. Here’s how to find the right partners:
Knowing your startup expenses is key to financial planning. Use this to estimate how much money you need to start a solar panel business. Here are the major expenses to consider:
Proper registration keeps your business legally safe and opens doors to government schemes. Learn more about how to start a solar panel business in India by ensuring your legal setup is complete and compliant. Here’s what you need to do:
Marketing your solar business is essential for attracting new customers and building long-term visibility in your local area. Here are some low-cost and effective ways to promote your services:
Register your business on local listing websites and digital directories. This helps people in your area find you when they search for solar solutions online.
Create ads for your business and show them to people in your region using basic targeting options. Even a small ad spend can help you generate interest and enquiries.
Encourage your satisfied customers to refer others by offering small rewards or discounts. This builds trust and helps you gain reliable leads with minimal effort.
Connect with housing societies, schools, or small businesses that may need solar installations. These partnerships can lead to bulk orders or long-term contracts.
Design simple brochures or digital catalogues to showcase your services and contact information. Share these in person or through messaging apps to expand your reach.
Ask happy customers to provide feedback that you can use in your marketing. Positive reviews and testimonials build credibility and increase trust among new prospects.
Use relevant keywords, location-based phrases, and service categories in your website or listings. This helps your business appear in local search results and attract nearby customers.
Registering your solar energy business adds credibility and opens the door to funding, tenders, and government incentives. Here’s what you need to complete:
Good financial planning gives your business the stability it needs to grow and survive during slow periods. Here’s how to build a strong financial foundation and secure the funding you need:
List all startup expenses including equipment, labour, transport, permits, and marketing. This gives you a clear picture of how much capital you need before you start operations.
Map your expected income and expenses month by month. This helps you manage your funds better and avoid cash shortages in the early stages.
If you're applying for a secured loan, assess what business or personal assets you can offer as collateral This improves your chances of approval and may help reduce your interest rate.
Don’t settle for the first offer—compare interest rates, repayment terms, and processing fees from multiple lenders. Look for the best loan for solar energy business needs that matches your budget and repayment capacity.
Set aside funds for unexpected costs like equipment failure, delayed payments, or sudden demand spikes. A buffer ensures your operations stay on track even during financial stress.
Starting a solar energy business often involves upfront costs that can’t be delayed or ignored. Here are the most common ways in which financing can support your business goals:
Buying solar panels, inverters, and batteries in bulk helps lower costs per unit. However, this requires a significant upfront investment that a loan can easily cover.
Essential tools and reliable transport are needed to complete on-site solar installations efficiently. Financing helps you invest in quality equipment and delivery vehicles from day one.
Renting an office, storage unit, or warehouse is vital for inventory management and business operations. A loan can help cover rental deposits and setup costs without straining your budget.
Trained technicians and support staff are key to delivering quality service and handling installations. Financing ensures you can hire the right talent without compromising on other costs.
Building your customer base requires strategic digital and offline marketing efforts. With a loan, you can launch ads, create brochures, and attend trade events to boost visibility.
A business loan can give you the financial freedom to grow, adapt, or stabilise your operations when needed. Here are the key features and benefits you can enjoy:
Get access to loan amounts of up to ₹50 Lakhs to suit your specific business needs. Use the funds to boost working capital, expand operations, or hire essential staff.
Experience instant approval on your loan application without visiting a branch. Eligibility-based checks ensure the process is quick and completely online.
Apply for a secured or unsecured business loan depending on your requirements. You can access funds without pledging your valuable personal or business assets.
Enjoy interest rates starting from just 14% per annum to keep your repayment affordable. You can choose flexible repayment tenures of up to 96 months based on your cash flow.
Choose between a term loan for a fixed borrowing amount or a flexi loan with a flexible withdrawal facility. Both options are available on Bajaj Markets to match your business needs and repayment style.
Here’s a quick comparison to help you choose the most suitable lender available on Bajaj Markets based on interest rates and repayment tenures:
Partners |
Minimum Interest Rate |
Maximum Tenure |
Aditya Birla Finance Limited |
22% p.a. |
36 months |
Ambit Finvest |
20% p.a. |
36 months |
AYE Finance |
29.50% p.a. |
30 months |
Bajaj Finance Limited |
14% p.a. |
96 months |
FlexiLoans |
18% p.a. |
42 months |
IIFL Finance |
16.50% p.a. |
48 months |
InCred |
24% p.a. |
60 months |
Indifi |
22% p.a. |
36 months |
KreditBee |
18% p.a. |
36 months |
Lendingkart |
19.20% p.a. |
36 months |
Protium |
20.5% p.a. |
36 months |
Credit Saison |
22% p.a. |
36 months |
UGRO Capital |
24% p.a. |
72 months |
Disclaimer: The interest rates, loan tenures, and offers listed are indicative and may vary based on lender discretion and applicant eligibility.
To qualify for a business loan, you need to meet a few basic eligibility requirements. These ensure that your business is financially stable and eligible for credit. Here’s what lenders typically look for:
You must be an Indian citizen
You should have a healthy CIBIL score
You must be self-employed—either as a professional (like a doctor or CA) or a non-professional (like a trader or manufacturer)
Your age should be between 21 and 60 years
Your business must be registered as a partnership, LLP, or private limited company
Your business should be operational for at least 1 year
Your business must have a minimum annual turnover of ₹1.5 lakhs (as per ITR)
While checking your eligibility is important, keeping your documents ready can make the application process much smoother. Here’s a list of documents you may need to provide:
Identity Proof: PAN card, Aadhaar card, passport, driving licence, or Voter ID
Address Proof: Aadhaar card, passport, utility bill, or lease agreement
Income Proof: Last 6 months’ bank statements, ITR, and certified financials (P&L, balance sheet, and income computation for the past 2 years)
To apply for a business loan, you do not need to visit a physical branch. Instead, navigate to the official website or use the Bajaj Markets app. The steps to apply for a business loan include:
Click on the ‘Check Offers’ button
Fill in your basic personal information in the application form
Choose your desired loan amount and repayment period
Submit the form to proceed with verification
Government schemes can ease financial pressure and help you build your solar energy business with better support and lower risk. Here are some schemes you can explore:
This scheme offers subsidised loans to individuals setting up new micro-enterprises in manufacturing or service sectors. It’s ideal if you are launching your solar business and need funding with a capital subsidy component.
CGTMSE provides collateral-free credit to eligible micro and small businesses through approved lenders. It is especially helpful if you don’t have assets to pledge but still need financial backing for your solar project.
IREDA offers financial assistance specifically for renewable energy and energy efficiency projects. These schemes are well-suited for solar energy businesses looking to scale operations or adopt new technologies.
Stand-Up India Scheme provides loans to SC/ST and women entrepreneurs to promote inclusive business growth. You can access loans ranging from ₹10 lakhs to ₹1 crore to start or expand your solar venture.
Starting a solar panel business in India requires proper planning, legal registration, and timely access to financial support. From choosing a model to creating a solar energy business plan, each step matters. Securing a loan for solar energy business needs can help you manage setup costs and stay financially stable. Business loans and government schemes reduce your burden and support growth at every stage. By staying informed and acting early, you can build a profitable solar energy business that meets India’s growing demand for clean power.
Profit margins in the solar business generally range between 10% and 30%, depending on your solar panel business plan, operations scale, and efficiency of service delivery. Margins may be higher for companies that also offer maintenance or value-added services.
Startup costs can vary from ₹2 lakhs to ₹10 lakhs, depending on your chosen model and how you plan how to start a solar energy business. A full-scale EPC or distribution model may require ₹15 lakhs or more, depending on the region and inventory.
Setting up a 1 MW solar power plant in India usually costs between ₹4 crore and ₹6 crore. The final cost depends on land, equipment quality, and infrastructure needs.
Yes, a 1 MW solar farm can be profitable over time, with returns typically seen within 6 to 8 years. Profitability depends on PPA rates, maintenance costs, and sunlight availability.
Solar businesses can be divided into segments like installation services, dealership and distribution, EPC, solar financing, and maintenance. You can choose based on your expertise and available capital.
A typical solar installation package includes solar panels, inverters, mounting structures, cabling, batteries (for off-grid systems), and safety equipment. Some providers also include installation, monitoring, and maintenance services.
Your main target markets should include residential customers, commercial buildings, small-scale industries, educational institutions, and government bodies. Areas with frequent power cuts or high electricity rates offer strong potential.
Yes, it can be profitable, especially in regions with high solar panel adoption. Regular cleaning and maintenance improve efficiency, and businesses offering AMC (Annual Maintenance Contracts) can generate consistent income.
Yes, solar energy businesses are profitable in the long run due to low operational costs, increasing demand, and government support. Profitability depends on proper planning, execution, and market focus.
In India, the profit margin typically ranges from 10% to 25%, influenced by the business size, segment (residential or commercial), and how efficiently operations are managed.
You should focus on customers with high energy consumption and long-term savings goals, such as homeowners, schools, hospitals, factories, and commercial property owners.
You may need ₹2 lakhs to ₹15 lakhs to start a solar panel business. The amount depends on whether you operate as a retailer, installer, distributor, or a mix.