Opportunities and business models in Solar Energy

Opportunities and business models in Solar Energy 

Solar Energy in India is a fast developing industry as part of the Renewable Energy in India. The country's solar installed capacity is  44.3 GW Ground Mount  and 2.1GW of Rooftop Solar as of 31 August 2021. The Country has fixed the target of 100 GW by 2022 which includes 40 GW Rooftop solar, targeting investment of US$ 100 billions.    The opportunity in this sector is dynamic and promising. 

 

The solar Power business is creating huge potential for the younger generation to choose the carrier and  encouraging the entrepreneurship. Listed below few of the business models and opportunities visible 

1. Manufacture Solar products : The manufactured components are Solar PV, Solar Inverters and many ancillary components. Manufacturing the core components is a capital intensive business.  You must have a Business plan with marketing, financial projections.  Apart from the major items, you can develop different  types solar products like Solar lantern, Solar Gadgets, Solar Charge controllers, Solar home lighting systems, Street lights etc., In Solar thermal the major manufacturing goes for the mechanical design and fabrication work.

2. Marketing & Sell Solar Products  – Billions of dollars of solar PV, solar thermal systems, solar cooling systems are sold each year, not to mention all the component parts required to build and operate such installations. Add to those solar lights, solar gadgets, solar rechargers are among the growing list of related products that you can shelf and strategize a go-to market plan and be a market-frontier.

3. Distribution solar products : As more and more manufacturers emerge, the portfolio is going to fortify. Every manufacturer needs a distributor today who can extend  unique business models. For example, a manufacturer sitting in Manufacturing facility needs to reach remote location or to unveil his solar panels in diverse geographies across the country needs an evident and aggressive marketing platform. Starting a Solar product distribution will require moderate investment and can be started by any one. 

4. After sales support , Repair, Operation & Maintenance

Many think that putting up a solar is the just the story but it’s not the case. Solar business brings long-term customer relation and business. The Solar products is an aftermarket service-based business. After the installation of the solar project, it demands regular operation & maintenance checks and repairs. Therefore, offering repair, operating & maintenance services is a lucrative business to start in the solar industry. However, the business demands both technical and networking skills. Also, it is a low-cost startup opportunity. Solar panel cleaning and vegetation removing is an other business model under this with low investment

5.  Solar Project Consultant

Multiple opportunities are available in the Project consultancy. People need professional guidance for the many domestic and industrial segments to decide the solar installation in their properties. The second business model is for large projects.   The large projects needs technical consultancies to study the technical feasibility and guide  the developers to invest on the project. If you have expertise and experience in developing solar projects, solar project consultancy can fetch a good returns. Third business model is the financial Consultancy,  The power buyers are from Government or  private corporate companies. Some banks will lend money for solar developers. So financial consultant services will help the client to build there project fast

 6. Engineering , Procurement and Construction(EPC)  of  solar projects and Integrators

There are two business models you can explore here. The solar installation at their properties as an integrators who can install and commission the projects. The business demands moderate capital investment    and moderate skill team.  Second model is the large projects EPC work which needs high investment, technical commitments in this business model. This model requires more skilled team and guarantee support requires to ensure maximum uptime of the plant with optimum generation. 

7. Solar power Auditing 

Solar energy auditing is a highly knowledge based business and it is growing in demand. The primary responsibility is to determination of energy requirement by energy auditing and recommend how can reduce their electrical consumption. An energy audit is the first step in identifying opportunities to reduce energy expense and carbon footprints. The Solar Energy Auditor needs good knowledge of the power generation, consumption, regulations and policies. Also should carry expertise in sales, marketing and able to find a right solution and way to control the energy consumption. This business is low startup capital and this can be operated from home also. 

8. Solar Developer and Independent Power producer.

Solar developer is one of the white collar business model. It does not requires great experience. Every one can be Solar developer without getting your hands dirty. You need to have equity investments and secured power buyers agreements. This gives a consistent Revinue for your investment.

9. Sell third Party provided services 

Selling services provided other companies – such as solar insurance products, solar financing, etc. The solar power plants are highly capital intensive projects. The Developers, investors needs to secure the investments  by third party insurence. Every projects needs the insurence products for the natural calamities and generation as well. This model is again low investment and can be operated from home.

10. Invent Solar products 

If you a bit of an inventor? There’s a whole bunch of new solar products being developed. Need an idea? Take a look at any existing product that needs power to operate and think about how you could use solar energy to provide that power. Maybe you have a new way of doing something, the opportunities in solar are just as big if not bigger (solar is truly a global business). Take what someone is successfully doing in one market and try to make it viable for your local market. You can also try it to a niche market like (e.g., solar for EV vehicles, solar products for boats, solar products for recreational users, solar powered agricultural  equipment's, mobile apps for people interested in solar energy, etc., )There are a lot of opportunities.

11. Financial business 

Funding is one the key ingredient in this solar Energy business. Set up a financial company and offer specific financing products such as solar construction financing, long term solar project financing, joint venture financing, provide angel financing, acquire solar projects, etc. There are a growing number of private investment groups that are well equipped in nurturing this business  model.

12. Solar assets Merging and acquisition Consultancy. 

Solar is the Growing Industry, Many Funds keep looking at the investments in to the solar assets by acquisition and develop a portfolio of Solar projects. M&A Consultancy is one of the low investment business model .

13. Human Resource for Solar Business 

The fast growth in the Solar industry also demanding huge human resources of skilled and low skilled . The placement service is one of the potential business model which any one can start with low investment. 

14. Skill development Training. 

Solar industry is new and upcoming industry. The hands on experience in the industry is lacking, Academics  are also not well equipped to skill the required manpower to this industry. There is growing need for skilled installers, testing and commissioning engineers. There is a big demand for the skilled man power in this industry. Starting skill development institutes is one of the potential business model. 

15.Solar  Research Information

There is a strong demand for good quality information in Solar energy business. If you are good at research; consider producing research reports, e-books, e-magzine, statistical reports,  instructional videos. The list of things you can make is limited only by your imagination.

16. Non Profit Solar business models. 

There are numbers of non profit solar business opportunities in the Solar space. Many foundations are working on the CSR fund rise and provide Solar products like solar lantern, Solar cookers, Solar home lights, Solar energy  and Solar energy awareness in the community.