Types of Solar Businesses You Should Invest in 2019

As the conversion of sunlight into electrical energy, solar power is probably the cleanest and most stable of renewable energy sources, and as such, it should be interesting for entrepreneurs who’d like to expand to the renewable energy sector. Whether you’re interested in investing in photovoltaic solar panels for direct conversion or concentrated solar system for indirect gains, keep in mind that the demand for solar systems is in growing, which creates a huge potential for new startups. Here are the most profitable solar power business ideas for the next year.

Solar panel manufacturing

Photovoltaic solar panels are gaining widespread popularity all over the world as more and more people find them increasingly effective and convenient for their power needs. There are numerous ways in which solar power can complement or even outperform the local power grid. Solar panels come in different sizes, shapes, and capacities, which makes them suitable for installing on rooftops, backyards, farms, orchards, etc. With that in mind, make sure your solar panel manufacturing company takes different customer niches into account.

Solar farm business

While the general public is relatively familiar with solar panels mounted on the house rooftop, a solar farm is another solar energy-related business with a potentially huge margin for profit. Household solar panels and solar farms both serve the same purpose, but at different degrees. While domestic solar systems are designed and calibrated to fulfill the needs of individual households, solar farms make use of large areas of land and an array of solar tracking towers to provide electrical power to whole communities. Coupled with high-capacity solar batteries, these farms have proven their effectiveness in fighting power shortages on many occasions.

Solar panel installation

With an increasing number of households and businesses embracing solar energy, a business that specializes in solar panel installation can be started with moderate means and make a quick turnover. This venture is perfect for an entrepreneur who has sufficient knowledge and technical skills. Apart from the new panel installation, after some time, you can expand into offering maintenance and repair services as well. However, apart from the tools, you also need to consider staffing and marketing expenses.

Solar repair and maintenance

While closely related to system installation, repair and maintenance service is an aftermarket-based enterprise. Although manufacturers of today’s solar panels guarantee up to 25 years of operation, solar systems need regular maintenance, not to mention repair in case of external damage. This low-cost startup opportunity, however, demands technical and networking skills, while the initial costs can be mitigated by renting larger inventory pieces. For example, the advantage of a contemporary scaffolding rental is that you can start out from your garage, hiring the scaffold as you head out to your next job.

Solar hot water heating

Manufacturing solar-powered water heaters are another lucrative startup idea for a resourceful entrepreneur. Solar hot water systems use sunlight to heat water, with the effectiveness of 60-70% in geographical latitudes below 40 degrees, when heating water to temperatures up to 60 °C. The most popular types of solar water heaters include evacuated tube collectors and glazed flat plate collectors. These two types are mostly used for household hot water, while unglazed plastic collectors are mainly used for heating swimming pools.

Solar energy auditing

This is one of those businesses where high-degree knowledge pays off. As a licensed solar energy auditor, your responsibility is to evaluate and approve solar energy equipment. Just as a home extension or re-roofing project needs building inspectors, anyone who decides to install solar panels needs an auditor. On the other hand, an auditor is also a salesperson who is marketing conservation and sunlight as an ultimate renewable resource. Once you reach the required educational degree, this business demands a very small startup capital.

Solar financing consultant

Solar installations are expensive and state and national governments, as well as banking institutions, offer various financing programs, such as long-term loans. Your business could provide services to clients who are interested in finding the money for their solar projects. You can also pair this service with independent solar consulting, giving people professional opinion whether it makes sense to install a solar system on their property, as well as guide them through the entire process.

Non-profit solar startup

Not all ideas need to be limited to generating profit, as there is a number of non-profit solar business opportunities too. For example, you can start a foundation that helps to bring solar energy to people in disaster-struck or impoverished areas, promotes the adoption of Feed-In Tariff (FIT) programs in your legislation, advocates solar energy awareness in your community, promotes awareness about vitamin D or raises money for installing solar systems in developing countries.

Whichever kind of solar business you’re looking to start, it’s always better to have some practical work experience. Apart from getting introduced to the industry trends and dynamics, you need to consider which business would address the niche audiences in your area or state, as well as which type of company demands small startup capital investment.