With a growing focus on sustainability, solar energy is becoming more prevalent in India. With the Central Government’s aim to meet 50% of India’s energy needs through renewable sources, the solar energy industry has got a boost. Solar energy accounts for 13.22% of total power capacity installed in India during the first quarter of 2022.
This behavioural change has led many people to integrate solar energy solutions with their commercial as well as residential facilities. In fact, the focus on renewable energy sources has made starting a solar energy business an attractive option. However, this business requires you to have skilled staff and follow a structured strategy.
So, if you are planning to start this business, you need to have a robust solar energy business plan in place. Read on to find out more about how you can structure your solar power business plan and make it a success in the short and long term.
Based on the operations that your company performs, there can be different types of solar energy companies:
Solar Power Plant Installation Business: Certain companies provide solar power plant installation services because these plants need high technical know-how. Estimates suggest that you may need capital of ₹4 Lakhs and above to start this business.
Solar Power Plant Manufacturing Business: Some companies also focus on manufacturing solar panels and other components like the batteries used in a solar plant. You will require an initial investment of around ₹5 Lakhs to start this business.
Solar Power Plant Sales Business: Certain companies only engage themselves with the sales of solar power plant components. To start this business, you may require a minimum of ₹1 Lakh.
Solar Power Plant Maintenance Business: Solar plants require timely maintenance to perform at optimal levels. Some companies are focused on providing this service. You can start a maintenance business with as little as ₹50,000.
If you have decided to start a solar energy business plan but do not have the required funds, you can go for a business loan. The following table presents the interest rate you can get on business loans from partner lenders on Bajaj Markets.
Lending Partners |
Interest Rate Range |
Maximum Tenure |
15% onwards |
36 months |
|
15% onwards |
9 months |
|
12% onwards |
36 months |
|
18% onwards |
60 months |
|
28% onwards |
36 months |
|
18% onwards |
36 months |
|
20% onwards |
48 months |
|
20% onwards |
36 months |
Disclaimer: The interest rates mentioned in the above table are subject to change at the lender’s discretion.
To avail of a business loan for your solar energy business, you will need to fulfil the following requirements:
You must be an Indian resident or an NRI
You must be between 25 to 65 years of age
You must be a self-employed individual with a regular source of income
Your solar energy business needs to be a sole proprietorship, partnership, limited liability partnership, or a private limited company
You will be required to submit the following documents to a financial institution for a solar energy business loan:
PAN card, Voter’s ID card, passport, or driving licence as an identity proof
Aadhaar card, passport, lease agreement, or utility bills as an address proof
Bank statement for the last 6 months
ITR form
Balance sheet, and Profit and Loss (P&L) statement for the last 2 years
Business strategy
Map of the business’ location
Copy of licenses, permits, and registration certificates
Proof of partnership agreement/Sole Proprietorship Declaration (if any)
Certified copy of Memorandum and Articles of Association (if any)
You can apply for a solar energy business loan online by following these simple methods:
Click on the ‘Apply Now’ button
Fill in the loan application form with details such as your name, address, phone number and check for a loan offer
You will now be navigated to a new page where you can compare the lenders and select the preferred one after entering additional details
Select the loan amount and repayment tenure that best suits you
A representative will contact you to take your application further once you have completed the steps provided above.
A solar energy business is profitable. You can earn 20%-25% profits in your solar energy business.
The startup cost for various types of solar energy businesses may range between ₹50,000 and ₹5 Lakhs.
The 1MW solar farm cost may range between ₹4 Crores and ₹5 Crores.
Yes, a 1 MW solar farm can generate a net income of ₹40 Lakhs.
The major divisions of the solar energy businesses are Solar PV and Solar Thermal.
The main components of the solar package include solar panels, inverters, racking, and solar battery storage.
For solar businesses, there can be three primary target markets. These include household customers, commercial facilities, and public institutions.
Yes, maintenance and cleaning of solar equipment can be very profitable.