Do you want to start solar energy business plan?

Are you interested in starting a solar energy business? In this age of renewable energy, this might be one of the best business to start. And the best part is its simplicity. You don’t need a degree or professional training to start a solar energy business. Just the basic know-how is enough.

Whatever the business may be, you will need the help of best business consultants. They will guide you in making a solar farm business plan. This is a very important step when you want to learn how to start a solar panel business. Here, we have shown how to write a small solar farm business plan.

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Executive Summary

2.1 The Business

Sun Rise Energies will be a solar energy business started by Ben Stark. It will provide all solar energy related services in and around Chicago. This business will provide various services such as procurement and installation of solar energy panels, maintenance and supply.

2.2 Management of Solar Energy Business

When you are starting solar panel business, you will need a good solar farm business plan first and foremost. You can take help from professional business planning firms for this. Alternatively, you can also refer to this document when you are learning how to start solar company.

In solar farm business plan, you should include all the technical, financial and management details related to your solar panels franchise.

2.3 Customers of Solar Energy Business

Since everyone is joining the green energy bandwagon, our customers will not just be limited to one domain. Our customer base will include work places as well as residential areas. However, our recurring customers will be:

  • Residential Towns
  • Small/ Large Businesses
  • Educational Facilities
  • Individual Residences

2.4 Business Target

The man aim of our business is to be the primary suppliers of solar panels for business. We want to become the most reliable and authentic source of all solar energy related services that our clients need.

The financial targets that we want to meet in the first three years of our launch are shown below:

3 Years Profit Forecast - Solar Energy Company Business Plan Sample
Franchise Business Planning 
Helps the franchisee get business case approval from the franchisor

Company Summary

3.1 Company Owner

Ben Stark will be the owner of Sun Rise Energies. Stark completed his technical training under the guidance of an industry giant a few years ago. And then he proceeded to work up to a managerial position in a home-appliance business.

But he wanted to pursue his goal of starting a business in solar energy. And so he left his job to start this venture.

3.2 Why the solar energy business is being started

Being in the appliances industry, Ben was already aware of and interested in the rise of the renewable energy services. He saw that despite the popularity, there was still a lot of demand of solar energy ventures. And so, he started looking how to start an energy company to apply his own knowledge of the industry.

3.3 How the solar energy business will be started

Step1: Plan Everything

One of the foundational steps in starting a solar energy business is developing a business plan on solar energy. This acts as the basis for the success of your business. So getting this step right is crucial. You can take help from solar energy business plan pdf pdf samples from the internet. Or you can ask solar farm business plan experts for advice. You can also look through this document to learn about everything you need to have in a strong business plan.

Step2: Define the Brand

The second step is to make your brand stand out from its competition in the industry. You have to refine and market your values, services and exceptional policies in this step to gain competitive advantage.

Step3: Establish Your Corporate Office

In order to start up his business, Ben decided to rent out a shop in a commercial building. He will talk to his supplier for all the relevant equipment and furniture required for the store.

Step4: Establish a Web Presence

Setting up an online presence is just as important as a physical store in our digital age. Ben knew this and decided to create a simple website where people can look through the store’s services and products and even order them. Ben has also decided to create social media pages for his store to get greater reach.

Step5: Promote and Market

The final step is to create a marketing plan and execute it to its completion.

Startup Cost - Solar Energy Company Business Plan Sample
Start-up Expenses 
Research and Development$10,000
Expensed Equipment$56,000
Start-up Assets$266,000
Cash Required$279,000
Start-up Inventory$39,000
Other Current Assets$240,000
Long-term Assets$287,000
TOTAL ASSETS$1,111,000
Total Requirements$1,340,600
Start-up Expenses to Fund$229,600
Start-up Assets to Fund$1,111,000
Non-cash Assets from Start-up$1,416,000
Cash Requirements from Start-up$285,000
Additional Cash Raised$50,000
Cash Balance on Starting Date$35,000
TOTAL ASSETS$1,786,000
Liabilities and Capital 
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$48,000
Other Current Liabilities (interest-free)$0
Planned Investment$1,340,600
Investor 1$0
Investor 2$0
Additional Investment Requirement$0
Loss at Start-up (Start-up Expenses)$379,400
Total Funding$1,340,600
Any questions? Get in Touch!

    Services of Solar Energy Business

    Before you start any business, you need to find your customer base. Figuring out your customers helps in the development of your solar farm business plan. And same is the case for solar system business plan.

    As Ben wanted to offer not just products but also services in his business, so his solar energy plan business plan can be used as a reference for any type of solar farm business plan. You can use this solar energy business plan doc to understand what you should write in your plans.

    Before we get into the details of how to get into solar business, let’s take a look at the services Sun Rise Energies will provide:

    • Sale of Solar Equipment

    We will sell all basic solar energy equipment that is listed below. And our customers will be able to seamlessly shift to using renewable energy sources.

    • Solar Panels
    • Solar Inverters
    • Solar Power Batteries
    • Solar Powered Appliances (fans, bulbs, toasters, water bottles etc.)
    • Solar Power Bank
    • Solar Powered Watch
    • Product Installation

    As a part of our versatile business plan solar energy company, we will also provide services related to installation and user guidance of solar energy products. We will provide:

    • Solar Panel Installation
    • Solar Invertor Setup
    • Solar System Use Training
    • Maintenance of Products

    We will also provide maintenance of solar energy products. This will extend to products that were not necessarily installed by us.

    • Consultancy

    Our last service will be consultancy regarding energy related goals of our customer and how to attain them in their homes or workplaces.

    Marketing Analysis of Solar Energy Business

    Learning how to open a solar panel installation business involves a lot of research. You need to know about both your customers and competitors in detail. You can do this by conducting a thorough market analysis as part of your solar energy farm business plan. You should also include price analysis and expected financial goals in your solar business proposal.

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    If you don’t understand all the details related to marketing analysis, then you can just take a look at a solar business plan template like this one for guidance. For starting a solar power company, we have included some information gained from market research in this solar installation business plan.

    5.1 Market Trends

    According to SEIA’s solar industry research data, the solar industry received more than $25 billion private investment in just 2020. And according to Allied Market Research, the solar energy market was valued around $52 billion in 2018. And as the demand for shifting to solar energy increases, the market value is expected to rise to around $220 billion by 2026. The global warming scares have everyone shifting to green energy as fast as they can. And solar energy is the biggest contributor in this shift.

    5.2 Marketing Segmentation

    The potential customers of Sun Rise Energies will be:

    Marketing Segmentation - Solar Energy Company Business Plan Sample

    Business plan for investors

    5.2.1 Residential Suburbs

    Our customer base will primarily be made of people living in the surrounding residential towns and suburbs. As the focus on shifting to cleaner sources of energy increase, more and more residential towns will need our services regularly.

    5.2.2 Small/ Large Businesses

    Our second biggest clients will be small and large businesses. Solar energy is not only cleaner but after the initial investment, it’s much cheaper than the usual sources. Therefore, more and more businesses want these services and the will be our regular customer as well.

    5.2.3 Educational Facilities

    Our third group of clients will be educational facilities looking to shift to greener energy sources. They are expected to regularly avail our maintenance services.

    5.2.4 City Residences

    Lastly, city residencies or houses are also expected to be our recurring customers as most people are taking baby steps towards shifting to renewable energy sources.

    Market Analysis       
    Potential CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
    Residential Suburbs27%21,00025,20030,24036,28843,54610.00%
    Educational Facilities24%16,50019,80023,76028,51234,21410.00%
    City Residences23%12,40014,88017,85621,42725,71311.00%

    5.3 Business Target

    • To become the biggest suppliers of solar energy services throughout Chicago
    • To increase our range of services over time
    • To attain a profit of about $40k per month by the end of second year
    • To receive certifications regarding solar energy services
    • To achieve and keep customer satisfaction above 95%.

    5.4 Product Pricing

    Our charges will be very reasonable as compared to competitive prices. And our services will also ensure maximum customer satisfaction.

    Marketing Strategy of Solar Energy Business

    You cannot gain attention and success in a crowded industry by selling goods and services alone. You need a strong competitive advantage when you want to start a solar farm business.

    There are many good solar business ideas in the industry. You need to carry out detailed marketing analysis and identify your strengths.

    You can look at solar farm business plan samples to learn how to start a power company. You can even use this information for starting a paintball business because at the end of the day, the broad details are the same.

    6.1 Competitive Analysis

    • We will have excellent 24/7 customer support to help clients with all their problems and queries.
    • Our customers can easily contact us through a physical store visit or through our online platforms such as website and social media.
    • We will offer the latest technology and products to keep our customers up-to-date.

    6.2 Sales Strategy

    • We will offer 10% discount to first-time customers.
    • We will also offer a 15-20% discount for our recurring customers.
    • We will use Google ads, Social Media, and Posters for advertisement.

    6.3 Sales Monthly

    Sales Monthly - Solar Energy Company Business Plan Sample
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    6.4 Sales Yearly

    Sales Yearly - Solar Energy Company Business Plan Sample

    6.5 Sales Forecast

    Unit Sales - Solar Energy Company Business Plan Sample
    Sales Forecast   
    Unit SalesYear 1Year 2Year 3
    Solar Equipment9871,0461,109
    Product Installation876929984
    TOTAL UNIT SALES2,8633,0353,217
    Unit PricesYear 1Year 2Year 3
    Solar Equipment$1,200.00$1,392.00$1,614.72
    Product Installation$1,250.00$1,450.00$1,682.00
    Solar Equipment$1,184,400.00 $1,456,338.24 $1,790,713.50
    Product Installation$1,095,000.00 $1,346,412.00 $1,655,548.20
    Maintenance$766,800.00 $942,857.28 $1,159,337.31
    Consultancy$972,000.00 $1,195,171.20 $1,469,582.51
    TOTAL SALES$4,018,200.00 $4,940,778.72 $6,075,181.51
    Direct Unit CostsYear 1Year 2Year 3
    Solar Equipment$800.00$880.00$924.00
    Product Installation$900.00$990.00$1,039.50
    Direct Cost of Sales   
    Solar Equipment$789,600.00 $920,673.60 $1,024,709.72
    Product Installation$788,400.00 $919,274.40 $1,023,152.41
    Maintenance$426,000.00 $496,716.00 $552,844.91
    Consultancy$540,000.00 $629,640.00 $700,789.32
    Subtotal Direct Cost of Sales$2,544,000.00 $2,966,304.00 $3,301,496.35

    Personnel plan of Solar Energy Business


    The success of a business is greatly dependent on the customer experience. Customers subscribe to a business when they feel welcome and taken care of. Since employees are responsible for this interaction, so figuring out an employee criterion is important when you want to start a solar panel company.

    These criteria will be essential for your solar farm business plan. Or even a business plan template for summer camp for that matter.

    7.1 Company Staff

    • 1 Co Manager to help in overall operations
    • 3 Installation Engineers
    • 2 Solar Energy Installation Assistants
    • 2 Customer Services Representatives
    • 1 Website Developer
    • 1 Social Media and Website Manager
    • 3 Solar Energy Experts/Consultants

    7.2 Average Salary of Employees

     Personnel Plan   
     Year 1Year 2Year 3
    Installation Engineers$125,000$137,500$151,250
    Installation Assistants$70,000$77,000$84,700
    Customer Service Reps$25,000$27,500$30,250
    Web Developer$15,000$16,500$18,150
    Social and Web Manager$25,000$27,500$30,250
    Solar Experts/ Consultants$30,000$33,000$36,300
    Total Salaries$330,000 $363,000 $399,300

    Financial Plan of Solar Energy Business

    Starting a business is not just selling products, it involves a great deal of planning. A part of this planning is business plan on solar energy. Or a plan related to the specific business such as coal mining business plan.

    To ensure the success and financial stability of your business, you need to perform a detailed financial analysis. This will help you reduce solar energy startup cost. And it will be a part of the solar farm business plan as well. This is important to plans for any and all businesses such as biofuel business plan.

    Here we’re providing the thorough financial plan developed for Sun Rise Energies. So that you can understand the financial side of the business.

    8.1 Important Assumptions

     General Assumptions   
     Year 1Year 2Year 3
    Plan Month123
    Current Interest Rate8.12%8.20%8.26%
    Long-term Interest Rate8.40%8.44%8.47%
    Tax Rate24.03%24.21%24.60%

    8.2 Break-even Analysis

    Break-even Analysis - Solar Energy Company Business Plan Sample
     Break-Even Analysis 
    Monthly Units Break-even5340
    Monthly Revenue Break-even$132,500
    Average Per-Unit Revenue$231.00
    Average Per-Unit Variable Cost$0.62
    Estimated Monthly Fixed Cost$163,800

    8.3 Projected Profit and Loss

     Pro Forma Profit And Loss  
     Year 1Year 2Year 3
    Sales$4,018,200 $4,940,779 $6,075,182
    Direct Cost of Sales$2,544,000 $2,966,304 $3,301,496
    TOTAL COST OF SALES$2,544,000 $2,966,304 $3,301,496
    Gross Margin$1,474,200 $1,974,475 $2,773,685
    Gross Margin %36.69%39.96%45.66%
    Sales and Marketing and Other Expenses$145,000$148,000$156,000
    Leased Equipment$0$0$0
    Payroll Taxes$24,000$25,000$27,000
    Total Operating Expenses$509,200 $546,450 $593,200
    Profit Before Interest and Taxes$965,000$1,428,025$2,180,485
    Interest Expense$0$0$0
    Taxes Incurred$193,000$285,605$436,097
    Net Profit$772,000$1,142,420$1,744,388
    Net Profit/Sales19.21%23.12%28.71%

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    8.3.1 Profit Monthly

    Profit Monthly - Solar Energy Company Business Plan Sample

    8.3.2 Profit Yearly

    Profit Yearly - Solar Energy Company Business Plan Sample

    8.3.3 Gross Margin Monthly

    Gross Margin Monthly - Solar Energy Company Business Plan Sample

    8.3.4 Gross Margin Yearly

    Gross Margin Yearly - Solar Energy Company Business Plan Sample

    8.4 Projected Cash Flow

    Projected Cash Flow - Solar Energy Company Business Plan Sample
     Pro Forma Cash Flow   
    Cash ReceivedYear 1Year 2Year 3
    Cash from Operations   
    Cash Sales$51,000$55,080$59,486
    Cash from Receivables$22,000$23,760$25,661
    SUBTOTAL CASH FROM OPERATIONS$73,000 $79,570 $85,936
    Additional Cash Received   
    Sales Tax, VAT, HST/GST Received$0$0$0
    New Current Borrowing$0$0$0
    New Other Liabilities (interest-free)$0$0$0
    New Long-term Liabilities$0$0$0
    Sales of Other Current Assets$0$0$0
    Sales of Long-term Assets$0$0$0
    New Investment Received$0$0$0
    SUBTOTAL CASH RECEIVED$74,000 $79,000 $85,000
    ExpendituresYear 1Year 2Year 3
    Expenditures from Operations  
    Cash Spending$42,000$42,000$45,000
    Bill Payments$27,000$28,000$31,000
    SUBTOTAL SPENT ON OPERATIONS$69,000 $70,000 $76,000
    Additional Cash Spent   
    Sales Tax, VAT, HST/GST Paid Out$0$0$0
    Principal Repayment of Current Borrowing$0$0$0
    Other Liabilities Principal Repayment$0$0$0
    Long-term Liabilities Principal Repayment$0$0$0
    Purchase Other Current Assets$0$0$0
    Purchase Long-term Assets$0$0$0
    SUBTOTAL CASH SPENT$69,000 $74,520 $80,482
    Net Cash Flow$21,000$23,000$25,000
    Cash Balance$27,000$30,000$33,000

    8.5 Projected Balance Sheet

     Pro Forma Balance Sheet  
    AssetsYear 1Year 2Year 3
    Current Assets   
    Accounts Receivable$24,000$26,880$30,213
    Other Current Assets$1,000$1,000$1,000
    TOTAL CURRENT ASSETS$282,000 $315,840 $355,004
    Long-term Assets   
    Long-term Assets$10,000$10,000$10,000
    Accumulated Depreciation$19,400$21,728$24,444
    TOTAL LONG-TERM ASSETS$24,400 $27,328 $30,744
    TOTAL ASSETS$294,000 $329,280 $370,440
    Liabilities and CapitalYear 4Year 5Year 6
    Current Liabilities   
    Accounts Payable$18,700$20,944$23,541
    Current Borrowing$0$0$0
    Other Current Liabilities$0$0$0
    SUBTOTAL CURRENT LIABILITIES$19,000 $21,280 $23,919
    Long-term Liabilities$0$0$0
    TOTAL LIABILITIES$15,000 $16,800 $18,883
    Paid-in Capital$30,000$30,000$31,000
    Retained Earnings$53,000$57,770$63,547
    TOTAL CAPITAL$285,000 $310,650 $341,715
    TOTAL LIABILITIES AND CAPITAL$300,000 $329,280 $370,440
    Net Worth$293,400$319,806$351,787

    8.6 Business Ratios

     Ratio Analysis    
     Year 1Year 2Year 3INDUSTRY PROFILE
    Sales Growth7.25%8.03%8.90%3.00%
    Percent of Total Assets    
    Accounts Receivable9.21%10.20%11.31%9.80%
    Other Current Assets2.11%2.34%2.59%2.40%
    Total Current Assets149.80%151.00%152.00%158.00%
    Long-term Assets11.55%11.60%11.64%12.00%
    TOTAL ASSETS100.00%100.00%100.00%100.00%
    Current Liabilities4.90%4.94%4.98%4.34%
    Long-term Liabilities0.00%0.00%0.00%0.00%
    Total Liabilities7.59%7.65%7.72%7.38%
    NET WORTH100.45%101.25%102.19%110.00%
    Percent of Sales    
    Gross Margin94.60%97.15%99.87%99.00%
    Selling, General & Administrative Expenses93.56%96.09%98.78%97.80%
    Advertising Expenses1.52%1.56%1.60%1.40%
    Profit Before Interest and Taxes41.50%42.62%43.81%33.90%
    Main Ratios    
    Total Debt to Total Assets0.18%0.18%0.17%0.40%
    Pre-tax Return on Net Worth74.08%74.89%75.00%75.00%
    Pre-tax Return on Assets96.30%101.12%106.17%111.30%
    Additional RatiosYear 1Year 2Year 3 
    Net Profit Margin33.56%34.60%35.67%N.A.
    Return on Equity55.80%57.53%59.31%N.A.
    Activity Ratios    
    Accounts Receivable Turnover7.77.87.8N.A.
    Collection Days100100100N.A.
    Inventory Turnover32.434.0235N.A.
    Accounts Payable Turnover15.61616.3N.A.
    Payment Days272727N.A.
    Total Asset Turnover2.52.52.6N.A.
    Debt Ratios    
    Debt to Net Worth-0.04-0.03-0.04N.A.
    Current Liab. to Liab.111N.A.
    Liquidity Ratios    
    Net Working Capital$244,000$257,664$272,093N.A.
    Interest Coverage000N.A.
    Additional Ratios    
    Assets to Sales0.850.870.89N.A.
    Current Debt/Total Assets1%0%0%N.A.
    Acid Test2929.1229.16N.A.
    Sales/Net Worth2.12.22.2N.A.
    Dividend Payout000N.A.


    1. Is solar energy business profitable?

    Is solar panel business profitable? The answer is a huge YES. Solar energy business is in great demand with the world today that wants to shift its energy sources.

    1. How do I start a solar energy business?

    You can start your business by researching industry niches and looking at a business plan solar farm. They will give you a good idea of how you can use your resources to start a solar farm and reduce start up cost of solar energy business.

    1. How much does it cost to start a solar company?

    The capital and resources you need to start energy company depends on the size and location of your business. You can use your own savings to start it or look for loans to finance your venture.

    1. Is solar energy a good business?

    Solar energy business gives a great return on investment(ROI). With the innovations causing a decrease in equipment with all the government incentives, you can already see the profit.

    Download Solar Energy Company Business Plan Sample in pdf