How to Start Solar Panel Business in UK USA (Business Plan)

Solar Panel Business

Do you have these questions in your mind?

  • What is the Solar Panel  Business?
  • Is Solar Panel Installation a profitable business? 
  • Can you make money selling Solar Panel  Business? 
  • How much money will it take to get started? 

In this article, you will find answers to all your questions. So please grab a cup of coffee, and let’s get started.

Table of Contents

What is the Solar Panel  Business?

A solar panel business involves installing, maintaining, and repairing solar panel systems for the USA and UK residential, commercial, and industrial properties. Solar panel systems convert sunlight into electricity, providing a renewable and sustainable energy source for households and businesses. 


As the demand for renewable energy sources continues to grow, the solar panel business is becoming an increasingly important player in the clean energy industry. In addition to installing solar panels, solar panel businesses may offer related services such as energy audits, financing options, and monitoring systems to optimize energy efficiency.

The solar panel installation market has grown due to government incentives and increased awareness of renewable energy.

In the US, the solar panel installation market is the second-largest globally, with over 19 GW installed in 2020 alone, and Europe is the sixth-largest solar power market.

Solar Panel Installation Business

Define Types of Business Models in the Solar Panel Business

There are several types of business models in the solar panel industry, including:

  • Installation and Integration Model:
    This model involves installing solar panels on the roofs or premises of residential, commercial, and industrial customers. The installation company designs and installs the system, and the customer pays for the system, either upfront or through financing.

  • Power Purchase Agreement (PPA) Model:
    In this model, a third-party solar company installs solar panels on the customer’s premises. Then, it sells the power the panels generate to the customer at a fixed rate for a predetermined period.

  • Solar Leasing Model:
    Under this model, a solar leasing company provides a solar panel system to the customer, and the customer pays a monthly fee to the leasing company. The leasing company retains ownership of the system and is responsible for its maintenance.

  • Community Solar Model:
    This model involves installing an extensive solar panel system in a community, with individual customers subscribing to a portion of the power generated by the system. This allows customers who cannot install solar panels on their premises to still benefit from solar energy.

  • Solar Product Sales Model:
    This model involves selling solar-related products, such as solar panels, batteries, and inverters, to customers for self-installation or use by their installation teams.

  • Retail Model:
    The business sells solar panels and other equipment directly to consumers or businesses through a physical store or online platform.

  • Lease Model:
    The business leases solar panels to customers, who pay a monthly fee. This model allows customers to access solar energy without the upfront costs of purchasing equipment.

  • Power Purchase Agreement (PPA) Model:
    The business installs and owns the solar panels, selling the energy generated to customers through a long-term contract at a fixed rate.

  • Community Solar Model:
    The business installs solar panels in a central location and sells subscriptions to customers, who receive credits on their electricity bills for the energy generated by the boards.

  • Hybrid Model:
    The business combines two or more of the above models to offer customers a comprehensive range of services. For example, a company may sell solar panels through retail channels and offer lease options or PPAs.


Ultimately, the choice of business model will depend on the company’s goals, resources, and target market.

Solar Panel Installation Business

How to Start Solar Panel Business


1. Research and assess the solar market in your area:
Start by researching the demand for solar energy in your area. Check out the competition, and look for gaps in the market that you can fill.



2. Create a business plan:
Develop a solid business plan outlining your goals, target market, financial projections, marketing strategy, and other vital details.



3. Secure funding:
Determine the startup costs and find the funding sources to launch your business. This may include seeking investors, applying for loans or grants, or using your savings.



4. Obtain necessary permits and licenses:
Check the regulations in your state or country to ensure that you have all the necessary permits and licenses to operate your business.



5. Build a team:
Hire experienced professionals to help with the installation and maintenance of solar panels. This may include electricians, engineers, and salespeople.



6. Choose reliable suppliers:
Partner with reputable suppliers that provide high-quality solar panels and other necessary equipment.



7. Develop a marketing strategy:
Develop a comprehensive marketing plan to reach your target audience. This may include social media advertising, networking, and partnerships with other businesses.



8. Install solar panels for customers: Install solar panels for customers, and provide ongoing maintenance and support services to ensure their satisfaction.



Starting a solar panel business can be a rewarding and lucrative endeavor. By following these steps, you can establish a strong foundation for your business and create a positive impact in the world. 

Solar Panel Installation Business

Pros and Cons of Solar Panel  Business

Pros of Solar Panel Business

  • Growing demand for renewable energy sources
  • Potential for high profitability and return on investment
  • Positive impact on the environment and society
  • Availability of government incentives and tax credits
  • Increasing affordability and accessibility of solar technology

Cons of Solar Panel Business

  • High initial investment costs and financial risk
  • Dependence on government policies and regulations
  • Seasonal fluctuations and unpredictable weather patterns
  • Limited storage capacity for excess energy production
  • Intense competition in the market.

Investment required to start a Solar Panel Business

The cost of starting a solar panel business can vary greatly depending on the size and scope of the business. However, here is a rough estimate of the one-time setup cost for a small to medium-sized solar panel installation business in the US & UK:

•   Business registration and licenses: $500-$1,000

•   Insurance: $1,000-$3,000

•   Equipment and supplies: $10,000-$50,000

•   Marketing and advertising: $2,000-$10,000

•   Office space and utilities: $5,000-$15,000

•   Working capital: $50,000-$100,000

The investment required to start a solar panel installation business can vary depending on various factors, such as the business size, location, type of business model, and specific services offered.

Starting a solar panel installation business typically requires a significant upfront investment in equipment, permits, and personnel.

1. Solar panels and other equipment:
This is one of the most significant expenses and can range from a few thousand dollars to several hundred thousand dollars depending on the scale of the business.

2. Installation costs:
This includes expenses such as labor, transportation, and site preparation.

3. Permits and licenses:
A solar panel installation business will need various permits and licenses to operate legally, which can cost several thousand dollars.

4. Marketing and advertising:
Promoting the business through various channels, such as social media and advertising, can also be a significant expense.

The total investment required to start a solar panel installation business can range from around $10,000 for a small, home-based operation to several hundred thousand dollars for a more significant, full-scale business.

Solar Panel Installation Business

Top US & UK cities to focus for Solar Panel Business expansion



  • London
  • Bristol
  • Manchester
  • Birmingham
  • Nottingham
  • Edinburgh
  • Sheffield
  • Liverpool
  • Glasgow
  • Southampton



  • Los Angeles, California
  • Phoenix, Arizona
  • San Diego, California
  • San Francisco, California
  • Denver, Colorado
  • Honolulu, Hawaii
  • Albuquerque, New Mexico
  • Las Vegas, Nevada
  • Boston, Massachusetts
  • New York, New York


Note: The rankings may vary based on different data sources.

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Solar Panel Installation Business

The list of Solar Panel Installation services

Here are some main products/services that can be offered in a solar panel business:

  • Solar panel installation for residential buildings
  • Solar panel installation for commercial buildings
  • Solar panel repair and maintenance services
  • Solar panel cleaning services
  • Battery backup systems for solar panel installations
  • Solar panel financing options for customers
  • Energy efficiency consulting services
  • Energy audits for buildings to assess energy usage and recommend solar panel systems
  • Solar panel monitoring services to ensure optimal performance and efficiency
  • Solar panel removal and reinstallation services for roof repairs or renovations
  • Solar panel education and training services for homeowners and businesses
  • Solar panel system design and engineering services
  • Solar panel system inspection and testing services
  • Solar panel sales and distribution for wholesale or retail customers
  • Energy storage solutions for excess solar energy production

A typical day in Solar Panel Maintenance Business
• Meeting with clients to discuss project details and provide estimates
• Creating design plans and blueprints for solar panel systems
• Ordering equipment and materials needed for installation
• Overseeing the installation process and ensuring safety regulations
• Testing and commissioning completed solar panel systems
• Maintaining and repairing existing solar panel systems
• Researching new technologies and staying up-to-date with industry trends
• Managing administrative tasks such as invoicing and record keeping
• Networking to build relationships with potential clients and suppliers

Solar Panel Installation Business

Any special license/permission required for Solar Panel Business 

1. Business license:
A general business license is required to operate any US and UK business.

2. Contractor license:
Depending on the state or local jurisdiction in the US, a contractor license may be required to perform certain types of solar panel installation work.

3. Building permits:
 In the US and the UK, building permits are required for any construction work, including solar panel installations.

4. Electrical permits:
Electrical permits may be required for any electrical work associated with solar panel installations.

5. Zoning and land use permits:
Depending on the location, zoning and land use permits may be required to ensure the solar panel installation meets local regulations and requirements.

6. Environmental permits:
Depending on the location, environmental permits may be required to ensure that the solar panel installation complies with environmental regulations and requirements.

It’s essential to research and understands the specific licenses and permits required in the area where you plan to operate your solar panel installation business. This can help ensure you act legally and avoid potential legal issues or fines.

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Checklist of essential equipment required for Solar Panel Business

Here is a list of critical equipment needed for a Solar Panel business:

  • Solar Panels
  • Inverters
  • Batteries
  • Mounting Systems
  • Electrical Wires and Connectors
  • Transport Vehicles such as a truck or van
  • Ladders or scaffolding for installation and maintenance
  • Tools such as screwdrivers, wrenches, pliers, wire strippers, crimping tools
  • Safety Equipments including gloves, safety glasses, hard hats, and safety harnesses
  • Test Equipment including multimeters, clamp meters, and insulation testers
Solar Panel Installation Business

Some Top in Solar Panel Companies in USA & UK 

Some important key roles in a solar panel business include:


  • SunPower

  • Tesla

  • Sunrun

  • Vivint Solar

  • Canadian Solar


  • Solarcentury

  • IKEA Solar

  • Ecotricity

  • Sharp Solar

  • Solar Plants


The solar panel installation business is promising in the US and the UK. With a growing demand for renewable energy and a push toward carbon neutrality, the industry has grown tremendously in recent years.


Starting a solar panel installation business requires significant investment, specialized equipment, and a thorough understanding of the regulatory landscape. However, with a suitable business model, marketing strategy, and commitment to customer satisfaction, a solar panel installation business can be a profitable and rewarding venture that helps promote sustainability and energy independence.

Want to Save Time in your Business Launch?

  • How to Create a Business Plan
  • What is Market Research, USP, Niche & Positioning
  • How to find a suitable name for your business
  • How to create your brand image (Logo + Branding)
  • How to Register Your Business
  • How to Register for Taxes
  • How to get Licenses / Permits
  • How to Open a Business Bank Account
  • How to Get Business Insurance
  • Which Payment Processing Terminal (POS) to buy
  • How to get Funds for your Business
  • How to do Sales & Marketing – Offline & Online
  • Why have a Website / Blog / Social Media
  • How to build & train your Dream Team
  • How to provide Excellent Customer Service
  • Buying an Old Business Vs Franchisee Vs Own Brand from Scratch

Handpicked inspirational Youtube videos for you

How to Start Solar Panel Business with Full Case Study? – [Hindi] – Quick Support  – YT Channel ‘Quick Support’

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A. Solar panels can last for 25-30 years or more, depending on their quality, maintenance, and usage.

A. Yes, you may need permission from your local authority or homeowner association to install solar panels on your property.

A. The amount of space required for a solar panel system depends on its size and capacity. Typically, a 5 kW system requires around 350 square feet of roof space.

A. The energy production of a solar panel system depends on its capacity, location, and weather conditions. On average, a 5 kW system can produce around 7,000-8,000 kWh of energy per year.

A. The cost of a solar panel system varies based on its size, quality, and installation costs. On average, a 5 kW system can cost around $10,000 to $15,000 in the US, and around £6,000 to £8,000 in the UK.

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