Start A Solar Panel Installation Business - Business Ideas

Updated: September 15th, 2022
Start A Solar Panel Installation Business

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

The solar panel installation business is a growing industry. In the past decade, solar panels have become more affordable and attractive to consumers. This has led to an increase in demand for solar panel installation services.

Solar energy is one of the most sustainable and environmentally-friendly forms of energy available today. It produces no greenhouse gas emissions or other toxic chemicals that can harm the environment or human health.

A solar panel installation business should consider investing in marketing strategies that will help them reach their target audience and sell their services effectively.

Starting a solar panel installation business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell solar panel installation services, or selling solar panel installation services online, you can use this page as a guide for everything you'll need to know.

Key Stats

market size
$164B
starting costs
$18K
gross margin
90%
time to build
270 days
growth
Organic social media
business model
Subscriptions
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs

Employee & Freelancer Expenses

$151

$252

Website Costs

$223

$7,015

Business Formation Fees

$600

$4,700

Vehicle Expenses

$0

$10,000

Retail Business Expenses

$1,250

$6,650

Advertising & Marketing Costs

$75

$3,986

Software Expenses

$162

$2,720

Office Space Expenses

$0

$100

Specific Industry Expenses

$0

$500

Total Startup Costs

$2,461

$35,923

Successful Businesses

Business URL Rank

Schneider Electric Global

schneider-electric.com

13,226

EnergySage

energysage.com

16,710

ENF Solar

enfsolar.com

56,500

SEIA.org

seia.org

146,379

LA Solar Group

la-solargroup.com

210,835

Sunpro Solar

gosunpro.com

255,946

Tata Power Solar

tatapowersolar.com

257,689

Solar PanelTalk

solarpaneltalk.com

448,966

Solar Topps

solartopps.com

461,896

POWERHOME SOLAR

powerhome.com

496,429

Baker Home Energy

bakerhomeenergy.com

508,380

Pros & Cons

Pros Description

Little startup costs required

The cost to start a solar panel installation business costs significantly less money than most businesses, ranging anywhere from 62 to 35,923.

Rewarding work

Starting a solar panel installation business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

Pick & choose the clients you work with

Solar Panel Installation Businesses have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!

Control of workload

With starting a solar panel installation business, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.

Gain exposure and experience

This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!

Cons Description

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

Longer Sales Process

A solar panel installation business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.

Work can be inconsistent

As a solar panel installation business, the amount of work assigned to you and schedule tends to be more inconsistent, which may make your income less stable. It's important to set boundaries and budget accordingly based on the amount of work you plan to have.

Lack of benefits

With a solar panel installation business, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.

Taxes

As a solar panel installation business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

No safety net

Typically, as a solar panel installation business, you do not receive a consistent pay-check and instead earn money based on your transactions each month. During the slow periods, you typically take away less since the job is based on commission. It's important to budget accordingly for the slow times.

Marketing Ideas

  • 1

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

    Learn more about direct sales ➜

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

    Learn more about word of mouth ➜

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

    Learn more about social media advertising ➜