Renewable energy sector is the most fast-paced growing sector in India in recent years. India being the largest and the fastest growing economy in the world, the demand of energy is also high. However, energy generation in India increases environmental degradation, climate change, and pollution. To get rid of these issues, renewable energy sources have been adopted like hydropower, wind, and air.
Change in the energy generation practices has increased the business opportunity for entrepreneurs, and it has also corrected climate change. So, the renewable energy business is considered as the best opportunity, but it requires careful planning and market research to start a business. In this blog, we will take you through the steps required to start a successful business in renewable energy.
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Steps to Start a Successful Renewable Energy Business in India
If you are looking for a high profitable business, renewable energy business plans are good to go with. Follow the steps given below to start a business in the renewable sector.
Create a Business Plan
First important step is to make a proper solar panel business plan. A plan must include everything from investment, training, marketing strategies, sourcing raw materials, sales techniques, contacting manufacturers, and many more. To get a business loan form the investors, you will have to showcase this business plan to them to make their informed decisions.
Conduct a Proper Market Research
Proper Marketing Research is another most important point, you will be required to conduct research in every aspect of the solar business. It is essential to conduct a separate research for the equipment, marketing, contractors, suppliers, target audience, hiring, competitors, etc.
Legitimising and Authorising Business
It is important to start a solar business with complete formalities, so it is important for a solar business to register as a company. YOu can register the company as LLP, partnership, proprietorship, or sole public or private limited company under the Company’s Act 2013.
To register for taxes you will be required to apply for an Employer’s Identification Number, or get a company’s insurance to save your business from losses. To know about the more detailed licenses required to start an energy business, check the sections given below.
Connections with the Government’s Electricity Department
The government already supports commercial companies aiming to preserve the environment and conserve energy through solar energy. Consequently, they will save a lot of money and time by contacting electricity departments. Take advantage of any useful programs offered by the department to dealers or users. Building relationships with government agencies will always benefit your company and reduce the chances of serious problems.
Suitable Location for Solar Energy Generation
Your company’s chances of success are greatly influenced by location. Getting enough sunlight is even more important for a solar plant that relies primarily on its own beneficial location. Solar power plants should be located where the sun is frequently available.
Finance Management
It is very important to manage the finances for a business. Consider the factors given below to make a precise knowledge of the budget required in the business.
- Infrastructure
- Land or space
- Machinery, tools, and equipment
- Staff and employees
- Maintenance
- Marketing
- Training
- Raw materials
- Legal expenses
You must compulsorily hire the skilled and the most efficient workers as workers are considered as the key assets of a company. Though solar energy is a new concept in India, you will have to train them accordingly.
List of Renewable Energy Business Ideas
Except the power generation business, there are multiple other opportunities in the renewable energy business like you can start manufacturing equipment, parts, spare, and components required to generate energy. Given below is the list of other manufacturing renewable energy business ideas in India.
- Solar Water Pump
- Solar Cells
- Capacitors for Solar Application
- Photovoltaic modules/solar panels.
- Biomass Dryers
- Power inverters for use in Photovoltaic Power Systems
- Electrolyser for green hydrogen production
- Biomass Pelletisation and torrefaction plants
- Storage batteries for SPV Applications
- Solar Lanterns, Solar Home lights
- Wind Turbines and Generators
- Biomass Gasification Units
- Energy Storage devices such as high-energy lithium-ion and sodium-ion batteries, Redox Flow Batteries
- Biomass Briquette manufacturing machines
- Power Electronic devices such as voltage Converter, PV Inverters etc
Licenses Required if you have Business Ideas in Renewable Energy
Different renewable energy plans required different types of licenses. In the renewable energy industry there are many business opportunities. However, there are certain licenses, approvals, and documents required to start a business, so here is a list of some important licenses.
- GST Registration
- MSME Registration
- Permanent Account Number (PAN)
- Factory License
- Articles of Association and Memorandum of Association
- Registration with the REC
- Company Registration
- Fire NOC
- Pollution NOC from SPCB/PCC
- CEIG Approval
Final Words
India being the 2nd largest most populous country in the world, the demand of solar energy is also increasing. With the increase in the demand of solar energy the opportunities and the high growth potential is also increasing. Though the high demand of energy is from the industrial and the agricultural sector due to frequent power cuts. If you are planning a startup renewable energy business, this is the best time to establish a solar business in India.
Frequently Asked Questions
To start a renewable energy business in India, you are required to follow complete guidelines like first your need to do proper planning for your business, then under through a perfect market research, regulatory landscape, and technical aspects of clean energy production.
Renewable energy is the most efficient form of energy generation that uses natural resources like the wind, solar, and hydropower. It is considered as the best energy generation technique as it uses the products that are replenished at a higher rate than it is consumed.
Renewable energy affects a business in a good way, as it increases the profitability of their businesses and it also improves their commitment towards the environment. Renewable energy sources also improve the carbon footprint emission.
Indian Renewable Energy development Agency is responsible for renewable energy generation in India.
