How to Start a Solar Business in 2026: A Step-by-Step Guide for Entrepreneurs

November 26, 2024

Step by step process to start a solar business

The renewable energy sector in India is experiencing a gold rush. With the government’s aggressive target of 500 GW by 2030 and the massive rollout of schemes like PM Surya Ghar, the demand for solar is no longer a “future trend” it is an immediate market reality.

For entrepreneurs, this is the perfect entry point.

Whether you are looking to launch a dealership, a distribution hub, or an installation service, the market is wide open. This guide will navigate you through the strategic steps to build a profitable solar business and how to partner with industry leaders like Kondaas to fast-track your success.

Understanding the Solar Business Ecosystem

Before you invest, you must define your role. The solar industry offers multiple revenue channels:

  • Manufacturing: Producing panels (High Capital).
  • EPC (Installation): Designing and installing systems (Service-heavy).
  • Distribution: Moving bulk inventory from factory to market (Logistics-focused).
  • Dealership: Selling directly to homeowners and businesses (Sales-focused).

For most new entrants, Distribution and Dealerships offer the fastest Return on Investment (ROI) with manageable risk.

6 Strategic Steps to Launch Your Solar Venture

1. Draft a Strategic Business Plan

Don’t just write a plan; build a roadmap. Define your niche (Residential vs. Commercial), your target territory, and your financial runway. Are you a logistics expert suited for Distribution, or a sales expert suited for Dealership?

A clear plan is your key to securing bank loans and investor confidence.

2. Legal Registration & Compliance

Legitimacy is your currency in this industry. You must register your business as a legal entity Private Limited, LLP, or Proprietorship.

  • Why it matters: Corporate registration is mandatory to apply for government tenders, get MNRE empanelment, and secure GST registration.

3. Location & Infrastructure

Your location dictates your efficiency.

  • For Distributors: Prioritize warehousing near highway access to manage bulk shipments.
  • For Dealers: A high-visibility office or showroom helps build trust with walk-in customers.

4. Financial Planning

Solar is a working-capital business. You need funds for initial inventory, warehousing, and marketing. Secure your finances early through personal capital, MSME business loans, or venture funding.

5. Brand Authority & Marketing

In 2026, trust sells. Develop a marketing strategy that positions you as an Energy Consultant, not just a seller. Use digital platforms to educate your customers on ROI and government subsidies, building a brand story that promises reliability.

6. Quality Assurance & Standards

Never compromise on hardware. Ensure your products comply with BIS (Bureau of Indian Standards) and MNRE guidelines. Partnering with Tier-1 manufacturers ensures that a single bad batch doesn’t ruin your reputation.

Choosing Your Path: Distributor vs. Dealer

FeatureSolar DistributorSolar Dealer
Primary RoleThe Supply Chain Hub. You buy in bulk from manufacturers and supply to retailers.The Frontline. You sell and install solutions for homeowners/businesses.
Focus AreaLogistics, Inventory Management, B2B Sales.Customer Consultation, Installation, Service.
GoalBridging the gap between production and the market.Bridging the gap between technology and the user.

Partner with a Market Leader: The Kondaas Franchise Opportunity

Starting from scratch takes time. Partnering with a legacy brand takes you straight to the revenue stage. Kondaas invites serious entrepreneurs to join our network as authorized Channel Partners.

Here is how you can onboard:

Step 1: Initiate Contact

Reach out to us directly through the Kondaas website or contact our partner support team. Express your interest and specify the territory you wish to represent.

Step 2: Documentation & Verification

We maintain a high standard of compliance. Submit the following for verification by our State Head:

  • KYC: PAN Card and GST Registration.
  • Security: Submission of security cheques to safeguard commercial terms.

Step 3: Investment & Commitment

To ensure you are market-ready, we require a financial commitment to stock inventory.

  • Minimum Investment: ₹12 Lakhs + GST.
  • Purpose: This investment secures your Distributorship rights and ensures you have the stock required to service your dealers immediately.

Step 4: Financial Discipline

We operate with strict financial transparency to protect your business and ours.

  • Ordering: All stock orders are routed through our central coordination team.
  • Payment Modes: We accept Cheque, DD, RTGS, or NEFT.
  • Zero Cash Policy: To ensure complete accountability, no cash transactions are permitted.

Step 5: Growth & Secondary Sales

As a Distributor, your growth lies in your network. You are expected to follow our marketing schemes and actively drive secondary sales helping your local dealers sell more, which in turn moves your inventory.

6. Service & Support

Conclusion

The transition to renewable energy is the biggest economic shift of our lifetime. By entering the solar business now, you are not just starting a company; you are future-proofing your career. Whether you choose to build a manufacturing unit or partner with a trusted giant like Kondaas, the opportunities are limitless for those who plan well and execute with quality.

Ready to start?
Verify your documents, secure your capital, and join the solar revolution today.

Frequently Asked Question

1. What are the initial steps to start a solar business?

Conduct market research on local solar demand and competition. Create a business plan covering model (dealership/EPC), investment (₹2-50 lakhs), and target customers like Kerala homeowners. Register as MSME/private limited and secure office space with installation tools.

2. What skills or qualifications are required to start a solar business?

Electrical/renewable energy engineering knowledge for EPC/installation. Sales skills for dealerships. Training in solar design software (PVsyst) and MNRE safety standards. Hire certified technicians for compliance with Kerala KSEB requirements.

3. What are the legal requirements for starting a solar business?

GST registration, MSME/private limited company registration, shop establishment license. MNRE-approved vendor empanelment for subsidies. BIS/IEC certification for products. Comply with Kerala State Electricity Board (KSEB) net metering rules.

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