Solar is one of the primary sources of clean and renewable energy. As more people shift towards green building and living, the demand for solar energy keeps rising worldwide. For many existing and burgeoning entrepreneurs, a solar panel business would be a profitable investment in this era.
Today, we will guide you on starting a solar panel business and ensure it’s perfectly planned out, registered, and legally compliant.
Plan Your Business
A clear plan determines the success of any business idea. Your solar business idea isn’t an exception. It is an effective way of mapping out your business specifics while discovering the potential unknowns. Your plan should cover the following essentials:
- The approximate costs involved in opening your business.
- The ongoing expenses of running the business.
- The target market.
- How the solar panel business makes money.
- The reasonable amount to charge your clients or customers.
- Strategies for making your business profitable.
- What name do you intend to give your business?
Create a Legal Entity
There are various business structures to consider when creating your solar panel business. These options include sole proprietorship, corporation, partnership, and limited liability company (LLC). Corporations and LLCs are excellent in the event of a legal lawsuit, as they protect you from the liability of the consequences.
While you can form an LLC by yourself, hiring an expert in the field would be great. Working with an LLC expert or a registered LLC agent saves time and guarantees you the best results without worrying about errors. An expert can further advise you on how to start a solar panel business and even get leads for solar sales.
Register for Taxes
Every certified and legal entity should pay relevant taxes to the state and other authorities. Therefore, it is vital to register your solar panel business for appropriate state and federal taxes before continuing operations. The step involves applying for an EIN through the IRS website, which is free and easy.
You can receive the EIN via mail or fax, depending on your preference. At this point, you should thoroughly research the small business taxes in your state and the guidelines that govern these taxes.
Create a Bank Account and Credit Card for Your Business
Your business requires a bank account and credit card to facilitate and receive payments from clients to employees, among other stakeholders. Dedicated business banking and credit accounts are excellent ways of protecting personal assets. These accounts allow you to separate business accounts from personal ones, which keep your assets safe in case of a lawsuit on your business. Besides, having separate accounts for your business makes accounting and filing of taxes easier.
It would help if you also learned how to build business credit. Doing so allows your business to get credit cards, among other financial privileges, which results in higher interest rates and credit lines. Besides separating business and personal expenses, business credit cards are also valuable for creating an incredible credit history for your company, which helps raise money for future investments.
Create a Business Accounting System
Accounting is crucial to the success of your business. It is the primary way of determining your company’s financial performance, and it requires you to record all expenses and sources of business income. Ensure that you are accurate in all accounts for simplicity when filing taxes at the end of the financial year.
Acquire the Necessary Licenses and Permits
Operating in the solar industry without the necessary licenses and permits is a crime that carries hefty fines. It can also lead to a shutdown of your business. Therefore, you must research, understand all the necessary permits and licenses you need for your solar business and get them before you resume your operations. Some of these requirements include the certificate of occupancy and service agreement. The latter outlines the parameters of solar panel installation, the rates, and the client expectations – essential in ensuring that the solar panels you provide meet the clients’ energy requirements.
Solar panel businesses mostly operate outside their office space – mainly at their clients’ premises. Such businesses require a certificate of occupancy as proof that they understand and meet zoning laws, building codes, and government regulations that govern the industry.
If You Plan to Lease the Office Space
- The property owner should get a certificate of occupancy.
- You must confirm with the landlord that they have obtained a certificate of occupancy suitable for a solar panel business.
- In the event of a major renovation, you should push for a new certificate of occupancy.
If You Plan to Own Your Office Space
- You are responsible for obtaining a certificate of occupancy.
- Review all the zoning requirements and building codes for the premise’s location and ensure that your business is fully compliant.
In addition, every state may have unique licensing requirements for your solar panel business. Research and ensure compliance ahead of your business launch. If you are required to collect the sales tax on the goods and services you offer, solar sales, in this case, then ensure that you do so.
Invest in Business Insurance
Besides the licenses and permits, the successful operation of your business also requires insurance to protect your company’s financial wellbeing in case of unplanned events. These insurance policies come in different types depending on the risks they cover, from General Liability Insurance to Workers’ Compensation Insurance, among others.
Research and determine the most important – the ideal starting point for small businesses. Depending on your budget, you can also ensure your business is against fire and theft, among other risks.
Define Your Brand
Your brand determines how the public perceives your business. Besides, it’s what your company stands for. Therefore, you must create a strong brand that gets the best perception from the public and stands out from your competitors. You must know how to generate leads for solar sales.
It would also be great to promote and market your solar panel business adequately as you create a brand. You should find ways to keep your customers coming back and recommend your business to more clients.
Build a Business Website
Creating your company logo is a vital step in defining your brand. With everything set, it is time to create a business website – it is the perfect way to reach as many potential customers as possible in this internet era and one of the ways to generate leads for solar sales.
Here are some reasons why your solar panel business must have a website:
- Every legit business today has a website.
- Social media accounts are not a replacement for a business website.
- Creating a company website is easier with all the website builder tools available – GoDaddy Website Builder. Hiring a web developer shouldn’t worry you anymore.
Create Your Company Phone System
Communication is a vital aspect of the prosperity of any business. With a reliable phone system in place, employees can easily communicate with each other as potential customers can reach you at any given time. While it may be tempting to use your personal phone for business purposes, a separate one for the latter is a great idea.
A solar panel business can be a thriving business idea in the modern world. However, you must understand everything it entails, from installation to repairs, doing energy surveys, among others. Besides, you must also possess the necessary skills and experience to succeed in the industry.
Wrapping It Up
For most solar panel businesses, after setting up and establishing their business, they find it hard to just do the normal type of marketing. So instead, they find specific lead generation companies that specialize specifically in solar leads. One example is Solar Exclusive. They are experienced in providing exclusive solar leads. With the help of a lead generation company, established businesses get a chance to expand their business and profit more.
