Table of Content

    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.

    Start your Business Plan Now

    Start My Business Plan

    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 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 this 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 Plan
    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 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  
    Legal $112,200
    Consultants $0
    Insurance $23,000
    Rent $25,000
    Research and Development $10,000
    Expensed Equipment $56,000
    Signs $3,400
    TOTAL START-UP EXPENSES $229,600
    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 FUNDING
    Start-up Expenses to Fund $229,600
    Start-up Assets to Fund $1,111,000
    TOTAL FUNDING REQUIRED $1,340,600
    Assets
    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
    Liabilities $18,000
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $48,000
    Other Current Liabilities (interest-free) $0
    TOTAL LIABILITIES $66,000
    Capital
    Planned Investment $1,340,600
    Investor 1 $0
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    TOTAL PLANNED INVESTMENT $1,340,600
    Loss at Start-up (Start-up Expenses) $379,400
    TOTAL CAPITAL $1,720,000
    TOTAL CAPITAL AND LIABILITIES $1,786,000
    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 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 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.

    Valentin Marinov
    TrustPilot

    excellent work

    excellent work, competent advice.
    Alex is very friendly, great communication.
    100% I recommend CGS capital.
    Thank you so much for your hard work!

    ∙ Valentin Marinov

    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 Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
    Residential Suburbs 27% 21,000 25,200 30,240 36,288 43,546 10.00%
    Businesses 26% 18,000 21,600 25,920 31,104 37,325 10.00%
    Educational Facilities 24% 16,500 19,800 23,760 28,512 34,214 10.00%
    City Residences 23% 12,400 14,880 17,856 21,427 25,713 11.00%
    Total 100% 67,900 81,480 97,776 117,331 140,797 10%

     

    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 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

    Any questions? Get in Touch

    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 Sales Year 1 Year 2 Year 3
    Solar Equipment 987 1,046 1,109
    Product Installation 876 929 984
    Maintenance 568 602 638
    Consultancy 432 458 485
    TOTAL UNIT SALES 2,863 3,035 3,217
    Unit Prices Year 1 Year 2 Year 3
    Solar Equipment $1,200.00 $1,392.00 $1,614.72
    Product Installation $1,250.00 $1,450.00 $1,682.00
    Maintenance $1,350.00 $1,566.00 $1,816.56
    Consultancy $2,250.00 $2,610.00 $3,027.60
    Sales
    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 Costs Year 1 Year 2 Year 3
    Solar Equipment $800.00 $880.00 $924.00
    Product Installation $900.00 $990.00 $1,039.50
    Maintenance $750.00 $825.00 $866.25
    Consultancy $1,250.00 $1,375.00 $1,443.75
    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

    Note

    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 business plan solar energy. 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 1 Year 2 Year 3
    Manager $40,000 $44,000 $48,400
    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 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 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 8.12% 8.20% 8.26%
    Long-term Interest Rate 8.40% 8.44% 8.47%
    Tax Rate 24.03% 24.21% 24.60%
    Other 0 0 0

    8.2 Break-even Analysis

    Break-even Analysis - Solar Energy Company Business Plan Sample

     Break-Even Analysis  
    Monthly Units Break-even 5340
    Monthly Revenue Break-even $132,500
    Assumptions:
    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 1 Year 2 Year 3
    Sales $4,018,200 $4,940,779 $6,075,182
    Direct Cost of Sales $2,544,000 $2,966,304 $3,301,496
    Other $0 $0 $0
    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%
    Expenses
    Payroll $330,000 $363,000 $399,300
    Sales and Marketing and Other Expenses $145,000 $148,000 $156,000
    Depreciation $2,300 $2,350 $2,500
    Leased Equipment $0 $0 $0
    Utilities $2,900 $3,000 $3,100
    Insurance $2,100 $2,100 $2,100
    Rent $2,900 $3,000 $3,200
    Payroll Taxes $24,000 $25,000 $27,000
    Other $0 $0 $0
    Total Operating Expenses $509,200 $546,450 $593,200
    Profit Before Interest and Taxes $965,000 $1,428,025 $2,180,485
    EBITDA $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/Sales 19.21% 23.12% 28.71%
    Any questions? Get in Touch

    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 Received Year 1 Year 2 Year 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
    Expenditures Year 1 Year 2 Year 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
    Dividends $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    
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $275,000 $308,000 $338,800
    Accounts Receivable $24,000 $26,880 $30,213
    Inventory $4,300 $4,816 $4,900
    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 Capital Year 4 Year 5 Year 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
    Earnings $193,400 $210,806 $231,887
    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 1 Year 2 Year 3 INDUSTRY PROFILE
    Sales Growth 7.25% 8.03% 8.90% 3.00%
    Percent of Total Assets
    Accounts Receivable 9.21% 10.20% 11.31% 9.80%
    Inventory 5.39% 5.97% 6.62% 9.90%
    Other Current Assets 2.11% 2.34% 2.59% 2.40%
    Total Current Assets 149.80% 151.00% 152.00% 158.00%
    Long-term Assets 11.55% 11.60% 11.64% 12.00%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.90% 4.94% 4.98% 4.34%
    Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
    Total Liabilities 7.59% 7.65% 7.72% 7.38%
    NET WORTH 100.45% 101.25% 102.19% 110.00%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 94.60% 97.15% 99.87% 99.00%
    Selling, General & Administrative Expenses 93.56% 96.09% 98.78% 97.80%
    Advertising Expenses 1.52% 1.56% 1.60% 1.40%
    Profit Before Interest and Taxes 41.50% 42.62% 43.81% 33.90%
    Main Ratios
    Current 34 35 36 32
    Quick 33 33.8 34.645 33
    Total Debt to Total Assets 0.18% 0.18% 0.17% 0.40%
    Pre-tax Return on Net Worth 74.08% 74.89% 75.00% 75.00%
    Pre-tax Return on Assets 96.30% 101.12% 106.17% 111.30%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 33.56% 34.60% 35.67% N.A.
    Return on Equity 55.80% 57.53% 59.31% N.A.
    Activity Ratios
    Accounts Receivable Turnover 7.7 7.8 7.8 N.A.
    Collection Days 100 100 100 N.A.
    Inventory Turnover 32.4 34.02 35 N.A.
    Accounts Payable Turnover 15.6 16 16.3 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 2.5 2.5 2.6 N.A.
    Debt Ratios
    Debt to Net Worth -0.04 -0.03 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital $244,000 $257,664 $272,093 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.85 0.87 0.89 N.A.
    Current Debt/Total Assets 1% 0% 0% N.A.
    Acid Test 29 29.12 29.16 N.A.
    Sales/Net Worth 2.1 2.2 2.2 N.A.
    Dividend Payout 0 0 0 N.A.

    FAQ

    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