The surge in the global power demand and consumption has highlighted the importance of renewable and sustainable energy sources. Owing to the Indian government’s promising initiatives, schemes and programs, solar power generation has increased in the recent years encouraging experienced businessmen and startups to invest in solar energy businesses and reap huge profits.
Before we dive into all the compliances, formalities, documentation and industry research, we need to figure out the type of solar business that would be ideal according to the business needs as investment in the solar business would vary depending on the type of solar business and organization wishes to set up.
Types of solar business
1. Solar EPC or Installation Company
EPC stands for Engineering, Procurement and Construction. Solar EPC companies obtain the necessary solar materials from a manufacturer, perform engineering work, and provide customers with installation and after-installation services.
Solar knowledge, solar product knowledge along with a great network is what are of utmost importance to establishing an EPC business in the solar industry. This business might require less investment but requires more skilled workers, a network and an experienced team.
2. Solar Manufacturers
Manufacturing companies are those who produce these solar items that are further bought and used by the solar EPC businesses. This usually consists of the materials that are required for solar projects.
To avoid the hassle of setting up a factory and manufacturing the products, some businessmen choose the Original Equipment Manufacturing (“OEM”) route. OEM is a process where another company for manufacturing the products utilizes their own machines, skilled workers and factory.
3. Solar Consulting
A business owner embarking on a major project in the solar industry might require some advice from an expert in the said field. They appoint a solar energy consultant in such cases to oversee the said project.
Solar consulting companies provide all detailed information and knowledge to suggest solar solutions to people. These companies present a golden opportunity for those who are passionate about green energy.
As aforementioned, there are various types of businesses that an entrepreneur or start-up can delve into. However, selecting two types of businesses simultaneously has proven to be risky in the initial stages of establishing the business. To understand the market better, market research should be conducted to weigh the pros and cons and gain a better perspective of the industry. Following are the few business sectors wherein the solar business can be established:
The entrepreneur has to invest a substantial amount of capital in this sector. A business in this sector is handed the responsibility of production of goods and accoutrements in the solar business. This sector requires a significant investment as it necessitates the purchase of machines to manufacture the product, the land required to set up the factory, and the wages of the workers, among other things.
Repair, maintenance, and installation are all part of this industry. One will need solar expertise and a technical team to complete duties like maintenance and installation of the solar plants.
Marketing and Sales Sector
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