Solar Energy Company: A Detailed Report on Business Startup and Growth

This report details the business plan for a solar energy company, examining the financial aspects, operational strategies, and market analysis required for a successful startup. It explores the process of starting a solar power plant, including device descriptions, pricing models, and sales strategies. The report covers essential elements like business planning, legal entity formation, tax registration, and securing necessary permits and insurance. It describes the technology involved, including solar panels, batteries, inverters, and network infrastructure. The report further addresses pricing, the buying and selling process, company goals, leadership considerations, production aspects, market management, funding strategies, and profitability projections. It emphasizes the importance of understanding customer needs, providing accurate quotes, and offering excellent after-sales services. The company aims to become a leading solar energy provider, promoting renewable energy and environmental protection.

Running Head: SOLAR ENERGY COMPANY
Solar Energy Company
Name of the Student:
Name of the University:
Author Note:

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Executive summary
In this report it is discussed about the financing venture and funding growth of a new startup
company which is a solar power plant. Then it is discussed about the investment required, profit
in the business, device required, pricing of the product and service.

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Table of Contents
Solar Energy Company....................................................................................................................3
How to start the business?...............................................................................................................4
Device description...........................................................................................................................5
Price.................................................................................................................................................7
Buying or selling process.................................................................................................................8
Goals................................................................................................................................................9
Leadership......................................................................................................................................10
Production......................................................................................................................................11
Market and Management...............................................................................................................11
Funding..........................................................................................................................................12
Profitability....................................................................................................................................13
Reference list.................................................................................................................................14

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Solar Energy Company
The solar photo voltaic converts the sunlight into electricity which can produce electricity
to meet the large requirements. Solar power has wide range of application like from hoe use to
industrial use. It is capable of generating enough power which is sufficient for industrial use.
There is numerous benefit of using solar energy as it is pollution free, eco-friendly, save
electricity bill, low maintenance cost, durable and reliable. Currently solar power is one of the
most important renewal source of energy, which creates many opportunity for new business
startups. Solar energy is creating a great market opportunity in both the urban and rural areas.
UK is a sun reach country due its geographical locations, which increases the chance of giving a
boom to all the solar energy companies. UK is going to be the solar hub for many startup
companies if proper funding and planning is done (Rangan and Bijlani 2017). To create the
opportunity in the field of solar energy one has to be perfect from the installation, sales, service
and other related issues. There are many factors that are essential for the success of this company
like design, solar product quality, construction issues and many others. As more people, cities are
turning toward the usage of renewal source of energy, the solar energy industry are going to
grow at rate of 20 percent every year. While the technological advancement and government
interference toward the usage of renewal source of energy has lead to the improvement of
technology, reduction of cost of materials, providing subsidies and availability of solar power at
cheaper price (Lee, Shin and Kim 2019).
There are mainly three types of solar power plant which can be developed according to
the need and there are many factors which are needed to be considered before setting up a solar
power plant. So the three types of power plant are as follows:

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 On-grid system – This system is compatible with the AC power of the grid supply as it
supplies power directly from the solar power plant during the day time and if it is
insufficient that it allows the supply form the grid.
 Off-grid system – This system is an independent grid supply as it is useful when there is
no grid supply (Drnovsek, Cardon and Patel 2016).
 Hybrid system – This system is the combination of off-grid and on-grid system while
offering many advantages like it act as a backup power when needed and also generates
revenue when excess power is supplied to the grid.
How to start the business?
Solar business is conducted by after doing the site survey as the proper availability of sun
is also necessary for the production of the solar energy. To ensure that the new business performs
well few steps need to be followed which are as follows:
 Planning the business – It is essential for every entrepreneur to plan their business before
putting it into the existence. Which may includes the startup cost, ongoing cot, target
market, breakeven point and the name of the business.
 Forming a legal entity – Establishing a legal business entity is essential for any business.
 Registration for tax – Registration for the purpose of tax under the state is mandatory for
every newly business established (Foster, Ghassemi and Cota 2019).
 Opening a business bank account – Using the particular bank account for all business
related transaction is also necessary as personnel and business account cannot be mixed.
 Business accounting – Recording all the business related transaction including all
expenses and income from different sources of income is necessary to understand the

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financial performance of the business. While keeping the accounting information up to
date helps to simplify the tax filling process.
 Obtaining necessary permits and license – Every business need to acquire the necessary
permits and license before commencing any business operation. It includes state and local
business license, service agreements, certificate of occupancy and other required
documents.
 Getting business insurance – Insurance is necessary for every business to protect itself
from any uncertainties and it has been the essential part for meeting the legal requirement
of any business (Uzawa and Watson 2020).
 Giving a brand name – Giving a name and brand to the company is also necessary so that
it could be recognized and easily identifiable among all other competitor in the market.
 Establishment of website – Creating a website for the company is also necessary part of a
business as it help the customer to learn more about the product and all other product or
service available.
Device description
Electricity has been a vital necessity for domestic, industrial and commercial use.
Traditional method of generating electricity includes the hydropower plant, thermal and nuclear
power plant. With the advancement of technology we have the alternative of this sources like
wind energy and solar energy. These two sources are becoming the primary renewal source of
energy and can be used as a substitute of other source of energy. A popular method of making
electricity by using solar energy is by setting up a commercial solar power plant (Edenfield and
Andersson 2018). Solar power plant mainly comprises of solar panels to capture the solar

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energies which is converted into DC power form the photovoltaic effect present in the solar cells.
Then DC electricity is stored in a battery which will be later on converted into AC output.
Solar power plant is suitable for both commercial and industrial usage if it is properly
planned and proper investment is made. For setting a solar power plant one has to consider the
following factors which are as follows:
 Output required – The first thing is to determine the load that is required to meet the
consumers need as it will determine the number of solar panels required. If it is going to
be used for home purpose than few numbers of solar panels will be enough but if it is
required for industrial use than there will be huge number of solar panel required.
Average daily load is required to be calculated to estimate the requirements. A single
solar panel can produce up to 300 watt in one hour so in eight hour it can produce 2.4kwh
per day which is sufficient to run normal household electrical appliance. But in case of
industrial or commercial use there is requirement of 100 solar panels to produce
electricity which will be enough for a day (Wadin, Ahlgren and Bengtsson 2017).
 Battery – The electricity generated from the solar panel is used to charge the battery that
is attached to the system. Mainly lead acid battery is used which are generally available
of different volt.
 Inverter – The solar panel generate DC power which is need to be converted into AC
power so that it can be used to run machinery and other household appliances. Here
inverter serves the purpose by converting the power which will match the voltage and
frequency that is required for different machine and equipments.
 Network – There is a requirement of proper network to ensure the flow of required
electrical power form the solar power plant to various electrical equipments. To create the

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network there is requirement of adequate cables, switches, fuses, earthen cables and other
protection devices.
Price
The cost of solar power is between $ 0.10 to $ 0.20 per kwh whereas the fossil fuel
electric is cost around $ 0.13. Prices are comparable but in future fossil fuel cost will keep rising
whereas the price of the solar energy will remain fixed. Price of the service will mainly depend
on the size of the project like for residential purpose it will cost around $15000 to $50000. And if
service is provides in installment system than it will cost around $200 monthly. By using solar
energy one has to make a onetime investment whose benefit will be received for a long period.
Most of the solar panels in the market are of high efficiency and especially the one of new
technology. Most of the government offers subsidies to encourage publics to use renewal source
of energy (Henn and Niermann 2020).
With the rising price of fossil fuels and decrease in the cost of buying and installing the
solar system has made the solar power energy as cost effective alternative. Either its home,
commercial or industrial use, all has received benefit from it. Initially installing solar energy
company or solar power system may look like a high investment but its advantage can be
obtained in the long run. Substantially energy saving from solar can be huge as the market data
shows that an average US commercial property owner can reduce up to 70 percent of their cost
by transferring to solar energy.

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Buying or selling process
To grow in the market solar company has to gather knowledge, experience, industry
contacts, right supplier and excellent after sale services. These factors will ensure the stability
and growth of the company (Patlitzianas 2011). The main thing to remember in solar business is
to meet the customer’s requirements as every individual has different requirements and here the
difference or situation is made or created for selling process.
 Identifying the customer for purchasing the solar system is essential as it is the best way
to produce revenue.
 Giving proper quotes to the client so that they will get the correct information for
making decision related to purchase. If the company does not provide accurate quote to
the customer at a reasonable amount than there is a chance of loss.
 Before approaching a customer one must have a proper knowledge about the solar
power, its usage, benefits and other. Many customer purchase solar power after doing
extensive research (Maycock and Wakefield 2019).
 Encouraging clients by showing different type of benefit they are going to get in the
current period and in future.
 Using quality solar equipment is the vital part of the any solar business as it will ensure
the longevity of the business.

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Goals
Solar Energy Company has the goal of making the solar energy as the substitute of other
non-renewal source of energy which could be easily accessible to all. It also aims to bringing a
clean and renewal source of energy in every house which will help in protecting the environment
(Jones and Bouamane 2012). Investing in solar energy is not only for the planet but also for the
human kind as they are going to face the extinction of the non-renewal source of energies in near

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future. So this company provides the option or the substitute of non-renewal energy. In the
beginning it will not be easy to run business in this filed at high profit as consumers need to
provide the knowledge and support to install solar system and its benefit they are going to get.
Last but not the least is to take all necessary steps to get the best return of the investment. With
all the business ideas Solar Energy Company wants to be the leading solar company in the
market within five years and will be competing with other international companies.
Leadership
Every business success relies on the good leadership as the leadership skill help to make
proper decisions, have a clear goal and performing for reaching the goal of the business. There is
no characteristic which will define a good leader but motivating people toward the goal of the
business involves skills and knowledge which requires years to develop. A leader can come from
any area of business but for a successful business there is always the requirement of a strong
leader with strong quality. Management and leadership are two different things as they have
separate role to perform. A leader inspires, encourage and motivate to achieve the goal whereas
manager needs to deal with the actual operation of the business. Every business requires both
leader and manger and sometime they could be the same person but having different role. A
leader can only inspire a team for success but a manager ensures that the work must be carried
out (Richter 2013).
For creating a successful solar energy business owner need to have a proper
understanding of all the market condition so that he or she can use it for the greatest effect on the
business. It will also help in generating new contracts for developing the new business and its
brand. A good managerial skill is also necessary to keep the business steady and growing while

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minimizing the cost or expenses by providing quality service to the customers. A good leader has
to be an all rounder so that he can manage the business and remains flexible while taking
decisions related to the business. This industry is changing rapidly due to the advancement of
new technology and to stay in this market owner has to take necessary decisions.
Production
Production consists of all necessary activities to provide the organization all products and
services. To provide one step solution for the consumers by the company there is requirement of
highly qualified staffs and engineers who will help to design the system, structure requirement
for the business, high quality solar equipments for both the factory and the site installation.
Proper communication structure is also needed so that a proper communication can be made
between the employer and employee and with the customers (Stobaugh and Yergin 2013). A
maintenance department is also needed who will give backup when needed during any kind of
breakdown. So this business requires skilled and structured staff of construction, electrician,
engineers and few peoples of basic understanding of science and solar energy. So the team is
composed of 1 engineer, 5 installation staff, 2 drivers, 1 electricians and 3 maintenance staff.
Market and Management
By focusing on educating the customers about the solar system and giving them a clear
idea about all the information required to know as this business depends on the trust of the
customers. Solar energy are now being used in home, office , hospital and even in many
industries so targeting the proper area is essential for giving an initial boost to the company.
Solar panels are highly visible product when it is installed in any home or business, so to get new
customer one has to provide discount rate to give a growth to the business and gaining

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reputation. One can also donate by doing a free service by providing solar equipment to the local
schools or parks; it will also increase the goodwill of the company.
After launching the business, market is need to be hold by contacting housing
communities, providing door to door sale, advertising in the company website and in different
social media channels (Strupeit and Palm 2016). Managing the business could be by scheduling
the installations, getting new contracts, managing the equipments and other inventory. With the
increase in business there will be need of more staffs and they need to be trained for the job.
Proper marketing campaign is also needed so that more people get to know about it and the
benefit they will get from it for a long term period. Managing a solar business means managing
any kind of contract, retail and service related business where accurate accounting process is also
needed to run the business smoothly.
Funding
Solar energy sector has become extremely dynamic for it’s become easy for the new
startups to get financed from different financial institution. Government also supports this
initiative of using renewal energy which made the process of financing this type of business easy
(TANŢĂU and Regneală 2014). There will be requirement of initial investment of $ 100000 to
$500000 to start a solar business. For funding this business there are many modes of financing
which are as follow:
 Domestic financing – It includes all essential banks and non-banking financial institution
who lend fund at marginal high rate of interest. But some government banks are lending
fund for this type of project at low rate of interest. Domestic loans are generally provided
for a term period of 7 to 10 years whereas few banks provide 15 years of term period.

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 Non-banking financial companies – These companies provide funds for projects which
are related to the infrastructural, power sector and other related types of projects.
 Renewal energy development agency – This are non-banking financial institution
controlled by the government provides term loan for renewal and thermal energy
projects. They provide fund to support more than 70 % of the cost of the project at the
minimal rate of interest (Yoxen, 2014).
Profitability
Solar energy has been the prime topic by the scientist as the present condition of non-
renewal source of energy is getting depleted at a rapid rate. In future condition is going to be
worse without a source of energy and this is going to be creating the opportunity for renewal
source of energy companies. Soon solar energy is going to change the future source of power. In
present there is huge scope for producing solar energy and for those also who are thinking of
setting new business as the source and resources are abundant. While the future of solar energy is
also bright as many number of solar projects are in-line and it is estimated that it is going to
produce more than 1500 GW of electricity from the solar energy (Halab and Al-Otaib 2015).
Profit by operating a solar business mainly depends on the number of solar panel
installation done. Initially there will be low amount of profit margin but in long term it will give
huge amount of profit. In case of residential purpose for gaining profit there is requirement of
getting new customers or contracts while in case of commercial purpose it will give huge profit
at once. Buying the solar equipments in large amount may help to reduce the cost and it will
create a good relationship with the supplier.

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