How do I get into solar energy business?

Q&ACategory: QuestionsHow do I get into solar energy business?
1 Answers
Admin answered 1 year ago

Be an Uber for Solar!

So, here’s a theoretical Business Plan for setting up a company, which provides Solar PV Systems on Lease, yielding good returns upwards of 20% in the long run.

In cities like Pune, where there is a large construction boom, there are plenty of newly constructed buildings/projects. Most of them have very high electrical consumption primarily due to operations of Sewage Water Treatment Plants, Lifts/Elevators and Pumps (for pumping water to the Overhead Water Tank). The monthly electrical bills go into lakhs of rupees, as they are charged very high tariffs for excess consumption. The actual cost of electricity on a per unit basis is derived to be between INR 15-20/unit after all the various charges and taxes. (Yes, I have confirmed this after studying bills of various buildings)

Recently, the government of Maharashtra has approved a Net Metering Policy (like many other State Governments) whereby these buildings/societies can set up native Solar PV Systems on their premises/rooftops and provide electricity back to the Grid. This will help reduce their net  consumption of electricity and thus they will save on their bills.

The catch is that Solar PV Systems are expensive to set up and these buildings/societies can ill afford a large capital expenditure like that. That is where YOU can step in with your company, where you set up the Solar PV System, lease it and charge the consumers on a per unit basis for a period of 15 years, resulting in net savings for the consumers and an excellent return on your investment in the long term.

Here is the theoretical Business Model for setting up a 1KW Solar PV System.

As you can see, the savings for consumers & returns on your investment are excellent considering a 15 year life period for this system. The returns will only increase depending on the capacity of the system due to Economies of Scale. In today’s market, it will not be difficult to find large foreign investors willing to provide the capital required to set up a company like this. All you need is ability to market the sell the system. The demand is there and growing, but are YOU up for the challenge?


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