SOLAR FARM BUSINESS PLAN GUIDE
Do you need profitable solar business opportunities to start?
The solar franchise is a multi-billion industry and Elon Musk is about raking billions out of it as he did with Uber.
If you have been thinking about venturing into solar business entrepreneurship opportunities, this is the right time you should do that because people are now depending more on solar as their backup source of generating power.
Do you know that the International Energy Agency predicts that Solar Energy will be the largest source of power supply, surpassing the contribution of fossil fuels and other renewable sources like wind and nuclear, by the year 2050?
Several reasons give rise to this assertion. The first is that producing power from traditional sources is becoming more expensive, especially in connecting off-grid communities and settlements to power structures and sources.
Another reason is that generating power from these sources is harming the environment and depleting the ozone layer through the emission of harmful solar power by-products and gases.
Solar Energy provides solutions to the above challenges on an increasing basis.
Not only is the cost of generating power from Solar energy through photovoltaic systems and structures decreasing, but solar power generation is also environmentally-friendly in its entirety.
From these arise the business value chain that solar energy business ideas provide.
Many companies and businesses are now stepping up and scaling the provision of solar power, especially because many countries are grappling with a huge energy deficit and solar power is becoming a sure means of meeting this power shortfall.
If you are already an energy entrepreneur or you desire to take advantage of the emerging trends in sustainable power generation, starting a solar business will be an ideal fit for you.
You can decide to enter into the solar system business value chain via the following business models/structures:
- ENERGY EFFICIENCY MANAGEMENT BUSINESS PLAN
- E-WASTE RECYCLING BUSINESS PLAN
- ENERGY BROKERAGE BUSINESS PLAN
- SOLAR PANEL INSTALLATION BUSINESS PLAN
1. Selling Solar Products/ Servicing Solar Installations
You can set up a solar business selling solar products to end-users that are seeking a viable alternative to the traditional power generating sources.
In addition to stocking up on the more notable solar panels, you could also offer for sale other items like inverters, batteries, charge controllers, breakers and relays, AC & DC wires, etc.
You could also be involved in offering after installation support to individuals and businesses that already have solar systems; whether home lighting systems, heater systems, Air conditioners, or refrigerators. Such services can encompass trouble-shooting such systems and carrying routine maintenance procedures.
2. You Can Become a Distributor
The Solar business is experiencing renewed drive and expansionary programs.
Many large and medium scale businesses are now into the manufacture of solar parts like panels, charge controllers, batteries as well as providing solar farm services.
If you have the requisite financing and extensive knowledge of your target market, then you can become a major distributor to any number of source manufacturers of these solar parts.
You would need to devise an effective marketing and distribution chain, in meeting the needs of retailers of the solar energy products that you have purchased in bulk.
3. Consultancy/Training School
The value chain in the Solar business is such that you can decide to offer specialized services, depending on how vast your knowledge is, in the solar energy subsector.
A veritable business startup that you can start is spreading the knowledge on the many applications of Solar energy to homes and businesses, as well as offering to counsel customers on the most appropriate solar solutions for their unique needs.
You can run a training school alongside your Solar consultancy teaching people how to start a solar panel installation business. With teeming numbers of people seeking to be gainfully employed, your training school can breed the next generation of solar panel technicians, installers, and repair/service personnel, who can go on to open solar panel businesses or seek employment with existing solar business ventures.
4. Engage in Innovation/Invention
This business idea will appeal largely to individuals that have a science and/or technological background. It will entail you analyzing the systems, structures, and devices that are currently being powered by solar energy and looking for ways by which they can be improved upon.
You must remember that solar energy generation and usage are still undergoing lots of research and fine-tuning; hence your innovation or invention could just be the next big event that will further make solar energy more commercially applicable in homes and industries.
5. Solar Energy Auditing
Another venture in the Solar business chain which is gathering steam is the business of Energy auditing.
One of the many challenges confronting traditional methods of power generation as well as power derived from solar energy is the losses that accrue from the generation, transmission, distribution, and consumption of power.
Like an energy audit consultant, with a bias for solar energy, you will be entering a highly specialized and in-demand sector that educates users on how to conserve energy by utilizing more efficient processes and systems.
The effect is that users will notice a reduction in their consumption levels; hence a reduction in the amount spent on solar power.
The list above is just a few amongst the substantial number of ventures that can be started under the Solar business value chain.
Common denominators for your consideration for any of the aforementioned solar businesses will include you identifying your niche/target market, drawing up a detailed solar business plan, calculating your solar business startup costs, creating an effective marketing/advertising campaign, having an educative website as well as utilizing the opportunities that the various social media platforms present to promote these business opportunities in solar energy, power, and product market.
How to Start a Solar Power Farm
Do you own farmland that is not fetching as much income required from your crude or mechanized farming? Or you have land that has not been used for growing crops for a very long time, or maybe it is even a vacant site, and you are interested in starting up a solar farm?
Perhaps you are thinking of a Franchise opportunity?
This write-up will take you through how to start a solar farm if you would want to invest in the solar farm business. this article is also aimed at discussing the financial requirements, the fast facts about solar farms mentioning the current statistics on the requirements and their usage.
In so many homes you might have seen solar panels mounted on roofs, usually single panels that convert energy from the sun into Alternating current (AC) for use in the house, and on hearing solar farm, you did wonder, how relevant the solar farm business would be and what is it like?
A solar farm is a capital-intensive business and the return on investments is worth it so well.
- What Is a Solar Farm?
How does a solar panel farm work? What about a solar energy generation farm? A solar farm (Photovoltaic Power) is a wide area of land where solar towers are being erected on the ground.
The purpose is to harvest a large quantity of energy from the sun which is far larger than the one in private homes and supply a very large number of people.
Generally, large or multiple solar panels are being installed in unimproved lands.
The energy produced by a solar farm is efficient. 5 A megawatt of installation will require approximately 25 acres of land. The 5 Megawatt accumulated will serve about 1500 houses for a whole year based on average usage.
The size of a solar farm site is around 15-100acres of land. Panels can either be installed on the ground in the field and need be can be installed on commercial buildings.
Since the focus is harvesting massive energy from the sun, therefore, panels must be placed where sun rays can effectively be captured. It is best to position them southwest for the best output.
Additionally, to make the most out of the sunshine.
While it is true that solar panel gets energy from sunlight directly, it is important to get the panels cleaned regularly.
If the panel surface is left with dirt, it will affect the rate at which sun rays will reach them.
Solar panels are designed to withstand all forms of weather for a very long time. Usually, a solar panel can last around 25-40 years. Although, losing efficiency over time is inevitable.
The inverters that are used for the energy conversion into AC can also last a considerable number of years, basically spanning 10-15 years.
It may also last a length of 2-5years before a solar farm permit will be granted, due to the submission and approval stages; it must be submitted to the federal, state, and local regulator.
Apart from the permit, you must apply for a business license and other related documents.
Facts About Starting a Solar Farm
- Solar is one of the fastest-growing sources of renewable energy currently in America.
- Statistics from the government show that in 2015, about 123 solar farms are proposed to be built.
- The target of the UK is to meet sourcing at least 15% of its energy from renewable by the year 2020.
- Solar power is common in the public sector. More than 80% of the British public sector supports the use of solar power.
Consider Starting a Solar Farm or Franchising?
Truthfully, in-depth knowledge about the solar farm industry will be needed if one would want to start a solar farm business.
You are expected to understand the best and available products, solutions to numerous homes and business owners, establish a solid relationship between suppliers and consultants, and many more.
This will help develop a working solar farm business plan.
To that effect, it is cost-effective to buy a franchise since all processes had already been carried- everything about the business had been tested out.
If you would want to eventually sort for buying a franchise, I would advise you to research the best solar franchise opportunity.
SOLAR FARM BUSINESS PLAN EXAMPLE
Here is a sample business plan for starting a solar energy farm.
The solar farm business is a very profitable venture, attracting budding entrepreneurs who see investment opportunities. However, for some, it goes beyond just wanting to invest.
The problem faced by these types of investors is how to write a good solar farm business plan.
This article comes to the rescue, providing such groups of people with a solar farm business plan to work with.
By carefully following this small solar farm business plan sample, they can easily replicate the format, while sticking to their unique business idea through proper brainstorming.
We start with the table of contents;
- Executive Summary
- Products and Services
- Vision Statement
- Mission Statement
- Market Analysis/Trends
- Target Market
- Competitive Advantage
- Publicity and Advertising Strategy
- Sources of Income
- Sales Projection
- Payment Channels
Solar Power Solutions Inc. is a solar farm business to be located in the heart of Detroit.
With services that encompass installation of solar power, manufacturing of solar parts, including panels and batteries plus the sale of all solar power installation components, we are complete solutions solar business.
However, we will also be offering services that include maintenance and servicing of solar installations as well as repair of faulty installations.
Products and Services
The products and services available at Solar Power Solutions Inc. include thin-film solar power plant construction, solar energy supply, and installation of solar power clients. Apart from these, other products include the manufacture of solar panels. Services include the provision of training services for clients interested in learning the art of solar manufacturing.
Our vision at Solar Power Solutions Inc. is the establishment of a total solar farm solutions company where every aspect of the business, from the manufacture, down to installations and sale of parts is covered and provided by us.
While ensuring that only the very best of services are offered, we will be guided by service excellence, passion, and dedication to achieve our main goals.
To be among the top four solar farms offering superior solar power solutions to clients at competitive prices. We will strive to ensure that this is achieved within the first two years of commencement of business.
The solar industry continually continues to receive high attention due to its clean way of generating electricity. This is coupled with the fact that it has received support from governments and continues to grow popular among its users.
Another aspect of its growth is the recent drop in solar panel costs due to new construction technologies, coupled with more manufacturers coming into the Solar business, creating an environment for competition, thus benefitting the end-users immensely through a reduction in installation costs and other associated charges.
With its rising popularity among individuals and corporate bodies, the use of solar energy has also come with the need for maintenance and repairs, apart from new clients being introduced to this powerful option. The need for companies that offer these maintenances and repairs as well as manufacturing services is on an increasing rise.
Hence some of our target markets include corporate organizations like banks, telecoms companies, and financial institutions such as insurance houses.
Others include hotels, sports facilities, advertising agencies, media outlets, hotels, and printing press including all types of businesses that depend on electricity to run their business.
The competitive advantage we have over other similar businesses is our diverse workforce configuration. Hiring only the best hands with high skills and experience in solar power solutions, we will be driven by high professionalism.
Attractive remuneration packages will be provided to our workforce to ensure they are highly motivated.
Publicity and Advertising Strategy
We will be adopting highly effective publicity and advert strategies that will include the use of local and TV stations to showcase our services. Other strategies will include using the internet as an effective marketing tool through the building of a website showcasing all our products and services. Social media will also be deployed to ensure that knowledge of our services gets to the widest audience possible.
Sources of Income
Our income will come mainly from the products and services rendered by us. Some of these products include the sale and distribution of solar power components, monitoring services, solar installation, replacement, and repair services, and also the training of program organized for people interested in learning about solar power, its manufacture, and installations.
With research carried out by us, we have concluded that based on the current market information; our revenue potential will rise considerably. We will be witnessing robust growth within the first three years of commencement of operations.
This is briefly shown in the chart below;
- First Year $530,000
- Second Year $880,000
- Third Year $2,100,000
With several solar power services being provided by us, we have come up with easy and convenient payment options our clients can choose from.
This will effectively erase the problem caused by a few payment options which do not provide the needed variety to adequately cater to the needs of our clients.
Some of the payment channels we will be using include the use of the POS machine for payments, acceptance of cash payments, mobile money transfers, credit card payments, cheques among others.
This is a solar farm business plan sample, with basic information that must be available in any good solar farm business plan.
It helps the entrepreneur to easily write his unique plan while using some of the guidelines offered in this article.
It is believed that proper usage, will be an invaluable tool in writing a good solar farm business plan.