How to Start a Solar Panel Business in India: A Step-by-Step Guide for 2025

In recent years, India has emerged as one of the fastest-growing solar energy markets in the world. The country’s ambitious renewable energy targets, government subsidies, and rising electricity costs have created a golden opportunity for entrepreneurs to enter the solar panel business.

Whether you’re planning to become a solar dealer, distributor, installer, or manufacturer, the solar industry in India offers immense potential for long-term growth and profitability. This detailed guide will help you understand how to start a solar panel business in India — from understanding the market and business models to setting up operations, getting government support, and achieving success.

1. Understanding the Solar Industry in India

India’s solar energy sector has grown rapidly over the past decade, supported by initiatives like the National Solar Mission and PM Surya Ghar Muft Bijli Yojana. With over 80 GW of installed solar capacity as of 2025, the demand for solar panels, inverters, EPC services, and rooftop systems continues to rise.

The government aims to generate 280 GW of solar power by 2030, creating huge business opportunities for solar entrepreneurs. Moreover, the push for “Made in India” solar modules and rising awareness of green energy have opened new avenues for both large and small-scale businesses.

2. Types of Solar Businesses You Can Start

Before investing, it’s important to decide what type of solar business you want to start. Here are the most common models:

a. Solar Panel Dealership and Distribution

This is the easiest way to enter the solar industry. You can become an authorized dealer or distributor for reputed solar panel manufacturers in India and sell products such as:

• Solar PV modules (Mono PERC, Poly, or TOPCon)
• Solar inverters and batteries
• Mounting structures and accessories

It requires moderate investment and offers quick returns through commissions and sales margins.

b. Solar Installation and EPC (Engineering, Procurement, Construction)

If you have technical expertise, you can start a solar EPC business. This involves designing, installing, and maintaining solar power systems for homes, commercial buildings, or industrial clients.
EPC businesses earn through service fees and long-term maintenance contracts.

c. Solar Panel Manufacturing

This is a capital-intensive option, but it offers high profits in the long run. Setting up a solar panel manufacturing company in India involves purchasing advanced equipment, raw materials like solar cells and glass, and complying with DCR (Domestic Content Requirement) standards.

d. Solar Product Retail and E-commerce

You can start a retail or online store selling small solar products such as solar lights, lanterns, water pumps, solar chargers, and solar streetlights. It’s ideal for small-scale entrepreneurs.

e. Solar Consultancy and Training Services

If you have industry knowledge, you can provide solar energy consultancy, project design, or training services to businesses and individuals.

3. Research and Feasibility Study

Before starting your solar panel business, conduct a market analysis and feasibility study. Understand your target customers — whether they are homeowners, commercial buildings, or industries.

Here are some steps to follow:

• Analyze local energy consumption trends.
• Study the solar potential in your area (sunlight hours, roof types, grid conditions).
• Check competition from existing solar companies in India or local installers.
• Estimate setup costs, revenue potential, and payback period.

A clear understanding of demand and competition helps you design a practical business strategy.

4. Creating a Business Plan

A solid business plan is crucial for attracting investors, securing loans, and guiding your operations. Your business plan should include:

• Business Model: Dealership, EPC, manufacturing, or retail.
• Market Analysis: Demand, competition, and target audience.
• Financial Plan: Initial investment, working capital, profit margins, and ROI.
• Marketing Strategy: Online promotions, partnerships, and awareness campaigns.
• Team and Structure: Skilled engineers, technicians, and sales staff.
• Sustainability Goals: Focus on clean energy and environmental impact.
  

A well-prepared business plan not only helps you stay organized but also builds credibility with banks and investors.

5. Legal Requirements and Registration

Like any other business, a solar company must follow legal and regulatory requirements. You need to:

• Register your business under MSME or as a private limited company.
• Obtain a GST registration number.
• Apply for a shop and establishment license (if applicable).
• Secure BIS certification for solar products if you plan to manufacture.
• Comply with MNRE (Ministry of New and Renewable Energy) guidelines.
  

If you’re installing or selling solar panels, tie up with MNRE-approved vendors and ensure products meet quality standards.

6. Investment and Funding Options

The investment for starting a solar business depends on your business type:

• Solar dealership: ₹2 lakh – ₹10 lakh
• EPC business: ₹10 lakh – ₹50 lakh
• Manufacturing unit: ₹1 crore – ₹10 crore (depending on capacity)

You can explore funding options such as:

• Government subsidies and schemes like PM Surya Ghar Yojana and Kusum Yojana.
• Bank loans and renewable energy finance programs.
• Private investors or venture capital.
• Partnerships with established solar panel companies.

7. Choosing Reliable Solar Panel Suppliers

If you’re starting as a dealer, distributor, or EPC contractor, partnering with trusted solar panel manufacturers in India is crucial. Always choose suppliers that provide:

• High-efficiency solar modules (Mono PERC, TOPCon, or Bifacial)
• Long warranties (25 years or more)
• After-sales support
• Competitive pricing

Some leading solar panel manufacturers in India include Bluebird Solar, Adani Solar, Tata Power Solar. Partnering with reliable brands helps build trust with customers and ensures long-term business stability.

8. Setting Up Infrastructure and Equipment

For a solar EPC or installation business, you’ll need:

• Office space or service center
• Installation tools and safety equipment
• Transportation for site visits
• Computers with solar design software (like PVsyst or Helioscope)
• Skilled manpower (engineers, electricians, and technicians)

If you’re manufacturing, you’ll need additional infrastructure such as:

• Solar cell tabbing and stringing machines
• Laminators and framing machines
• Testing and quality control labs
• Storage and packaging units

9. Hiring and Training Staff

A successful solar business depends on skilled and motivated employees. Hire people who have experience in:

• Electrical or renewable energy engineering
• Solar system installation and maintenance
• Sales and marketing
  

Also, provide regular training programs on solar technology, customer service, and safety standards. MNRE or skill development centers offer various solar technician training programs across India.

10. Marketing and Branding Strategy

Once your business is set up, focus on building a strong market presence. Here’s how:

a. Build an Online Presence

Create a professional website showcasing your products, services, and past projects. Optimize it for SEO with keywords like solar panel for home, solar rooftop system, and solar companies in India.

b. Use Social Media Marketing

Promote your solar business on LinkedIn, Facebook, Instagram, and YouTube. Share informative posts, installation videos, and customer testimonials.

c. Participate in Solar Exhibitions

Join renewable energy expos, trade shows, and local events to showcase your products and network with potential clients.

d. Partner with Builders and Businesses

Collaborate with real estate developers, schools, hospitals, and industries for solar installations.

e. Offer After-Sales Services

Maintenance and warranty services increase customer trust and generate repeat business.

11. Government Subsidies and Support

The Indian government offers several solar subsidies and schemes to promote renewable energy. As an entrepreneur, you can benefit from:

• PM Surya Ghar Muft Bijli Yojana – Provides subsidies up to 78,000 INR for rooftop solar systems.
• Kusum Solar Yojana – Encourages farmers to install solar pumps with financial assistance.
• State-level subsidies – Additional incentives in states like Kerala, Uttar Pradesh, Gujarat, and Maharashtra.
  

By aligning your business with these schemes, you can attract more customers and offer affordable solar solutions.

12. Challenges in the Solar Business

While the solar industry offers high potential, it also comes with certain challenges:

• Price competition from established brands
• Delays in government approvals
• Need for skilled labor
• Seasonal demand fluctuations
• Awareness gaps among rural consumers
  

However, with strong marketing, reliable partnerships, and excellent customer service, these challenges can be easily managed.

13. Future Scope of Solar Business in India

The future of the solar industry in India is bright. With rapid technological advancements like TOPCon, HJT, and bifacial modules, solar power is becoming more efficient and affordable.

Additionally, the government’s focus on net metering, smart grids, and energy storage systems will further boost demand for solar installations. Entrepreneurs who enter the market now can benefit from the growing shift towards sustainable and renewable energy solutions.

Conclusion

Starting a solar panel business in India is one of the most promising opportunities in today’s renewable energy landscape. With the right planning, partnerships, and marketing strategies, you can build a profitable and impactful venture that contributes to India’s clean energy future.

Whether you choose to become a solar dealer, EPC provider, or manufacturer, success depends on quality, trust, and customer satisfaction. The solar revolution has just begun — and those who invest today will lead tomorrow’s energy transformation.