How to Know if you Should Start a Solar Company in Your Town
The solar industry is growing at a rapid pace, but is your town ready for it? Here are some things to consider.
Solar energy is one of the fastest growing and most lucrative markets in the world right now. Just in the annual year of 2017, the world "added 30% more solar energy capacity", an unprecedented gain that continues to transform the energy market landscape. Some places, however, lag behind others in developing and utilizing this source of energy. This opens up a vacuum for people to move into this unfilled niche and build a successful business, many times in their local communities.
The initial stage of trying to start a solar company would be to research the market and see if there is a viable demand that you could potentially fill. The availability of solar energy can be determined through several layers of investigation: researching how many solar companies are already operating in your area, the solar energy capacity of your state and how people in your local community feel about solar power are all crucial factors. Also, the geolocation of your community is also highly important and can introduce several new variables, such as the amount of sunlight, state laws and a host of other factors. Also, using a market research app can help set up a more concise methodology for determining demand by creating surveys and examining a myriad of variables.
Another important aspect of research is becoming literate on your state's laws regarding solar power and energy usage in general. In some states, such as Nevada, customers are reimbursed around 96% of their daily excess energy by the state. this can be a pivotal marketing point and makes solar energy considerably more popular. On the flip side, in the State of Florida, a recent law passed by the state legislator makes 3rd party ownership of solar panel illegal. Third-party ownership is leasing installed solar panels to the company that installed them in order to cover the upfront costs. Over 72% of Americans who use solar power opted for this choice, with most not being able to afford several thousand dollars to install and maintain the solar tiles. Seeing where your community and state come down on these types of issues can be a make or break decision in deciding whether or not to go through with starting a solar energy company.
The subsequent step is to form a cogent business plan. This would include defining prices and deciding what specific products and services you are willing to offer the public. In terms of pricing, this can very heavily from state to state and the location within said state. Solar companies often offer a wide array of both different installation sizes and payment plans to widen their respective customer base. these payment plans can include monthly payments to the customer leasing solar panels. Insurance plans will also have to be drawn up to ensure the panels continue to work properly and fix any potential damages incurred from the elements. Solar companies also traditionally offer more products that simply solar panels. Many businesses offer a variety of disparate home battery packs that increase the amount of energy that can either be stored and later used or send off to the city for eventual reimbursement.
Overall, solar energy is a ripe and booming field that has a large number of fertile grounds waiting to be tapped into. However, conditions can vary heavily based on state laws, demand for alternative energy, competition, amount of sunlight and a countless number of other factors. Doing a sufficient amount of research before you attempt to start a solar company in your town can be decisive to whether or not such an undertaking will survive and how you can maximize its chances of success.