So you wish to invest in a solar energy business but not sure which specific opportunity to invest in.
This is one of the more difficult questions we at Solar Mango are asked. Not because of a lack of attractive business opportunities in the solar energy sector, but because of the wide canvas of opportunities available.
You see, there are solar energy business opportunities available in electrical, construction, manufacturing, O&M, education, support services, IT, finance and more.
In terms of type of business opportunity, solar energy presents business opportunities in manufacturing, services and to a relatively smaller extent, trading.
However, let us first state this: Unlike some risky sectors where you can make significant profits within a very short period of time (for eg., ecommerce or mobile apps), solar energy is not a get-rich-quick sector. Even though some sectors within solar are quite profitable, there are very few sectors that can provide you super-normal profits – an example of such a “select” opportunity could be the instance of developers who were lucky to sign long term power purchase agreements at very high tariffs before the utilities reverted to much lower tariffs. While you certainly should watch out for these select and attractive opportunities, please note these are quite rare.
The solar energy sector thus provides business opportunities with reasonable returns, but such returns are usually available for the medium-long term (5-25 years).
There are many solar business opportunities along the solar value chain, both in manufacturing and in services; however, not all opportunities suit all entrepreneurs. An analysis of the various segments of the solar PV value chain is recommended, with emphasis on competition, financial returns, and risks before deciding on entering a segment.
The diagram below provides an overview of the solar PV value chain:
Figure 1: Solar PV Value Chain
Overview of the business opportunities available in the solar energy sector
The Solar PV value chain represents all the stages, processes, and products involved in the solar PV sector, including manufacturing of materials, system integration, solar products manufacture, etc. As mentioned earlier, based on your business profile, some value chain components will be far more suitable to you than others. The table below gives an overview of the opportunities available to different kinds of businesses:
| Your Organisation | SOLAR MANGO Suggests | Key Drivers | Risk Assessment |
| Large enterprise capable of significant investment | Polysilicon | · Policy support/incentives
· Reliable low-cost power · Scale to achieve production economies |
High Risk – Low competition but high investments and long payback periods |
| Ingots & Wafers | · Policy support/incentives
· Reliable low-cost power · Scale to achieve production economies |
High Risk -Low competition but high investments and long payback periods | |
| Solar Cell | · Policy support
· Scale and technology to achieve production economies |
Medium-High Risk- Medium competition with high investment and long payback periods | |
| Large enterprise considering medium initial investment | Solar Glass | · Technology
· Price |
Medium Risk: Low-medium competition with medium investments and medium payback period |
| Solar Module (Thin-Film) | · Policy support
· Increased efficiency · Scale and technology to achieve production economies |
Medium-High Risk – Medium competition, technology risk present, medium-high investments and medium payback periods | |
| Solar Inverter | · Price
· Technology suited to Indian needs &conditions · Alliances with EPCs and system integrators |
Medium Risk – High competition with medium-high investment and medium payback periods | |
| EPC (utility scale) | · Cost-effective procurement
· Administrative expertise in getting approvals etc. · Subcontracting network |
Low-Medium Risk – High competition with low investment and short payback periods | |
| Developer/IPP | · Policy support
· Low-cost funding · Optimal power purchase tariff |
Low Risk – High competition with higher investment and payback period but good long term revenue prospects for specific projects | |
| SME seeking low investment business opportunities | Mounting Structures | · Design/customization suited to India
· Alliances with EPCs and system integrators |
Medium Risk -Low- Medium competition with low-medium investment and medium payback periods |
| System Integration for rooftop solar | · Cost-effective procurement
· Marketing/promotion · Differentiation of product/service |
Low-Medium Risk – High competition with low investment and short payback period, but low margins | |
| EPC (smaller projects) | · Cost-effective procurement
· Differentiation of product/service · Marketing/promotions |
Low Risk – High competition with low investment and short payback periods | |
| SME looking for innovative opportunities | Balance of System | · Product differentiation
· Alliances with EPCs and system integrators |
Medium Risk – High competition with medium investment and medium payback periods |
| Solar Products | · Product differentiation
· Government incentives, for certain product categories · Access to retail channels |
Medium Risk (depends on the product) – Medium competition with medium investment and medium payback periods | |
| Solar Module (Crystalline) | · Policy support
· Increased efficiency · Scale and technology to achieve production economies |
Medium Risk – High competition with medium investment and medium payback periods | |
| Start up seeking low-risk, minimal investment opportunity | EPC Subcontracting | · Cost-effective procurement
· Alliances with EPCs |
Low Risk – High competition with low investment and short payback periods |
| Industry Category | Opportunities in Solar Energy |
| Electrical & Electronics
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| Power Generation |
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| Construction |
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| Finance
|
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| Manufacturing – End Products
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| Manufacturing – Raw Materials |
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| Manufacturing – Components & Sub-components
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| Manufacturing – Machinery |
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| Emerging & Innovative Technologies
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| Testing, Instrumentation & Control
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| Onsite Services & Support
|
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| Education & Training |
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| Media & Marketing
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| IT & Software
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| Commercial and Legal |
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| Operation and Maintenance
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By the way, if you are really serious about reading a comprehensive guide on the topic of diverse solar energy business opportunities, you might want to purchase, Solar Profits, published by Solar Mango.
The complete list of opportunities classifies based on industry; for the solar energy sector is provided below.
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Ask Solar Mango
Have a solar energy related question o be answered at Solar Mango? Send it to ask@solarmango.com
Wow. Am from Electrical & power generation category & like to do work in a renewable energy development but as a fresher i want a proper guideline… how am proceed further?
I WANT TO DEAL WITH THE SOLAR PRODUCTS LIKE SOLAR PANELS,SOLAR INVERTERS FOR DIRECT LIGHTING AT HOMES AND OFFICES. LET ME KNOW HOW YOU AND YOUR FIRM CAN HELP ME.
THANKS
M/S MOHAN ELECRTICALS,
YAMUNA NAGAR, HERYANA
9416276226
I do web for a living and created this solar site SolarServiceGuy.com because I also do this as a hobby, but would love to work for a company per my skills via the web?
Thanks
Will
Hi Will. Glad to hear from you.
I will keep your request in our files and revert when the right opportunity arises
All the best!
Narasimhan
Solar Mango
I want to deal with solar panel, inverter and home light. let me know how can I start our solar power project.
sir
I am a aggriculturist and i am interested in working in rural and villages/
i am keenly interested in doing some type of bussiness in solar projects in western maharashtra
so pl. do the needfull
thanks
Hi !
having worked for around 20 years in Solar PV during inception stages of solar energy entry in India, now I like to represent some foreign company in PV Field. Please get me references, if any of your contacts is interested.
Hi Sohan,
It is very appreciable that you worked for 20 years in Solar PV from the inception stages…I have some references .Please you can contact me at 7054166001.Thanks..Vaibhav Gupta
I will like to join spreading business in India
pl do call 800700152
Hai Iam new to this field Iam looking for one new business so I got an idea about solar power production.actually Iam from mechanical side I don’t have knowledge on electrical field so I need a guidance about related courses&cost of investment,returns etc.
Become an installer thats what most companies are looking for. I’m going to set up a blog on my http://SolarServiceGuy.com site for this soon.
Thanks
SSG
I want business with solar system how i start this business and what’s recurrent for that. What bajet is minimum requirements
You need to check your state and local policy and start a business in that area. I’m going to set up something like this on my http://SolarServiceGuy.com for this.
hi good to see suport towards knowledge about this new industry we r also willing to produce solar lED light n solar cooker. India Solar Eenergy
Hello, I can offer you some exposure to your products on my site, http://SolarServiceGuy.com and Twitter, Facebook page.
I want start business with solar rooftop system, please guide me
PLEASE GUIDE ME ,WANT TO DEAL WITH THE SOLAR PRODUCTS LIKE ROOF TOPS, SOLAR PANELS,SOLAR INVERTERS FOR DIRECT LIGHTING AT HOMES,PARKS AND OFFICES AT NORTH-EAST INDIA.THERE IS HUGE SCOPE OF BUSINESS. LET ME KNOW HOW YOU CAN HELP OR GUIDE ME.