10-Step Guide on How to Start Your Solar Panel Business in 2025

The solar industry continues its remarkable expansion in 2025.

Residential and commercial installations are at record highs across North America, thanks to federal tax solar incentives (extended through 2032) and a 35% drop in installation costs over the past five years.

This rising demand opens the door for new entrepreneurs. But if you don’t have a background in roofing, electrical work, or sales, starting out can feel like you’re climbing a mountain with no map.

One Reddit user summed it up best when they asked, “How hard would it be to start a small-time solar installation company?” No experience, just ambition and a plan to start with family homes.

The responses he got? A mix of blunt honesty, real advice, and a few reality checks.

Here’s the truth: Solar is a promising industry, but it’s also a skilled trade. It requires technical knowledge, permits, insurance, safety training, and hands-on problem-solving.

This guide won’t sugarcoat things or scare you off. It’s here to show you what it really takes to start a solar panel business. If you’re ready to learn, plan, and commit, it’s absolutely doable.

Let’s start.

Step 1: Choose Your Niche

Before you jump in, get clear on what kind of solar business you want to build. Solar is a wide field, and trying to do everything at once will only slow you down.

As one Reddit commenter put it, “If you understand the basic elements of running a business, you will automatically be in the top 50% of solar installers.”

But first, you need to decide what type of solar business you want to run.

Types of solar business

• Residential installation: This involves installing solar systems on homes, typically ranging from 4kW to 12kW. The solar sales cycle is shorter, but you’ll need to handle more solar projects to make a profit. 
• Commercial installation: Larger solar projects with bigger paydays, but longer solar sales cycles and more complex permitting. You’ll need more capital for equipment and larger crews. 
• Solar sales: If climbing roofs isn’t your thing, consider becoming a solar dealer. You’ll sell solar systems but outsource the installation to partner companies.
• System maintenance: As the installed base of solar panels grows, so does the need for cleaning, monitoring, and repair services. This niche requires less capital to start but demands technical knowledge.
• Solar + Storage: Adding battery storage systems to solar installations is a growing specialty. As one Redditor mentioned: “Battery management systems and all that are designed by electrical engineers. They are installed by licensed contractors.”
• Specialty services: Some companies focus on specific areas like ground-mounted systems, solar carports, or agricultural applications.

Choosing a niche is all about setting a clear starting point. It helps you market better, price your services properly, and figure out what tools and skills you actually need from day one.

Take a moment. Ask yourself: What do I want to do, and who do I want to help?

Step 2: Create a Business Plan

Once you’ve picked a direction, it’s time to sketch out your game plan (business plan). You don’t need a 40-page PDF with charts and forecasts. Just get the basics down:

• What exactly are you offering?
• Who are your ideal customers?
• What will you charge for your services?
• How much money will it take to get started and keep the solar business running month to month?
• And how will people even hear about you?

Answer these, and you’ve got a working business plan.

It might not seem like a big deal now, but a simple plan keeps you grounded. Plus, if you ever apply for a loan or need outside funding, a solid plan gives you credibility.

So yes, keep it lean. But write it down. Treat it like a compass. You don’t need every detail mapped out, but you do need to know which direction you’re headed.

Step 3: Register Your Solar Business

Now that you know what you want to do, it’s time to make it official.

Choose a business structure

Your choice affects your taxes, liability, and paperwork load:

• Sole Proprietorship: If you’re just testing the waters and want something simple, a sole proprietorship is the easiest way to go. But keep in mind that there’s no legal separation between you and your business. If someone sues the business, they’re suing you.
• Limited Liability Company (LLC): The sweet spot for most solar startups. An LLC separates your personal assets from business liabilities. This provides critical protection in an industry where installation errors could cause property damage or even fires.
• Corporation: More complex and costly to set up, but it offers the strongest legal protection and makes it easier to bring on investors or expand your business across multiple states. S-Corporations can provide tax credits once your business grows.

Once you’ve decided on the business structure, it’s time to do the other registration formalities.

Additional registration requirements

1. Pick a business name: Choose something memorable that reflects your services. Check that the name isn’t already registered in your state.
2. Register with state authorities: File the necessary paperwork with your Secretary of State or equivalent agency.
3. Get an EIN (Employer Identification Number): This federal tax ID number is free from the IRS website and lets you hire employees, open business bank accounts, and file taxes properly.
4. Open a business bank account: Keep your personal and business finances separate from day one.
5. Get insured: At a minimum, you’ll need general liability insurance. Consider adding professional liability, workers’ compensation (if you have employees), and commercial auto insurance.

It’s not the most exciting step, but it sets the foundation. Don’t cut corners on the legal setup. Proper registration builds customer trust and protects everything you work for.

Step 4: Understand Local Laws and Solar Regulations

Here’s the part a lot of new solar entrepreneurs underestimate: the rules.

Solar installation isn’t something you can just start doing. Every state (and often every city) has its own codes, permitting process, and license requirements. If you don’t follow them, you risk fines, delays, or having to redo work.

Licensing requirements

• You’ll likely need a building permit and an electrical permit for each job. 
• Some states also require a contractor’s license. In some cases, your solar business might need to hire or partner with someone who holds one.
• The North American Board of Certified Energy Practitioners (NABCEP) certification isn’t legally required everywhere, but it’s the gold standard in the solar industry. Customers and utility companies take you more seriously with this credential.

The bottom line is: Do your homework on local regulations before taking on your first job. It protects your solar business, keeps solar projects on track, and shows your customers you know what you’re doing.

Step 5: Get Trained and Certified

Even if you’re not planning to climb roofs or wire panels yourself, getting trained is still a smart move. 

Why? Because when you understand the technical side, you can lead solar projects with confidence, avoid costly mistakes, and speak the same language as your crew.

Essential training paths

• NABCEP certification: As previously said, this is the solar industry gold standard. There are several certification levels:
  • Solar PV Associate (entry-level knowledge)
  • Solar PV Installation Professional (for system installers)
  • PV Technical Sales Professional (for sales teams)
  • PV Design Specialist (for system designers)

Getting NABCEP certified requires training hours plus documented installation experience and passing an exam. Many solar customers specifically look for NABCEP-certified companies.

• Solar Energy International (SEI): Offers excellent online and hands-on training. Their beginner-friendly courses cover everything from basic solar principles to advanced system design.
• Community college programs: Many community colleges now offer solar installation certificates that combine classroom learning with hands-on experience.
• Manufacturer training: Many equipment manufacturers offer free or low-cost training on their specific products. These can be great supplements to more comprehensive education.
• OSHA safety training: Given the dual hazards of working at heights and with electricity, safety training isn’t optional. OSHA 10-hour construction safety training should be your minimum standard.
• Apprenticeship: Working for an established solar company before starting your own gives you invaluable real-world experience.

Basically, you don’t need a degree to start a solar business. But having the right training gives you a major edge. It helps you earn trust, protect your entire team, and get the job done right.

Step 6: Source Equipment and Suppliers

Building strong supplier relationships is crucial to your solar business success. The equipment you install directly impacts your customers’ long-term satisfaction and your warranty obligations.

Key equipment categories

• Solar panels: The most visible component of any system. Key considerations include:
  • Energy efficiency ratings (how much clean energy they produce per square foot)
  • Durability and weather resistance
  • Warranty terms (most quality panels offer 25-year performance warranties)
  • Aesthetic options (all-black panels cost more but look better)
  • Manufacturing location (some customers prefer American-made)
• Inverters: These convert DC power from panels to usable AC power. Options include:
  • String inverters (most affordable, but one panel issue affects the whole string)
  • Microinverters (more expensive but better performance in partial shade)
  • Solar power optimizers (middle-ground option paired with string inverters)
• Racking and mounting: These secure panels to the roof or ground:
  • Roof penetrating vs. ballasted systems
  • Rail vs. rail-less options
  • Ground-mount solar systems for properties with unsuitable roofs
• Batteries: If you’ll offer energy storage solutions:
  • Lithium-ion vs. other chemistries
  • AC vs. DC coupled systems
  • Indoor vs. outdoor rated options
• Balance of system: These less glamorous components include:
  • Electrical conduit
  • Wiring and connectors
  • Disconnects and combiner boxes
  • Monitoring systems

Finding reliable suppliers

• Wholesale distributors: Companies like CED Greentech, BayWa r.e., and Soligent specialize in solar equipment and offer technical support along with products.
• Direct from manufacturers: Once you have volume, you may be able to buy directly from manufacturers at better prices.
• Local electrical suppliers: For basic electrical components, local suppliers often offer better service and quicker availability.

What to look for in suppliers

Look beyond just the lowest price:

• Inventory availability: Nothing kills project timelines faster than backorders. Reliable stock matters.
• Product mix: Can they supply everything you need, or will you need multiple vendors?
• Credit terms: The best suppliers will offer 30-60 day payment terms once you establish a relationship.
• Technical support: When you encounter installation challenges, supplier tech support can save the day.
• Training resources: Many suppliers offer free training on new products.
• Warranty support: How easy is it to process warranty claims?

Start by contacting several suppliers, requesting catalogs and pricing, and asking about their contractor programs.

Building these relationships takes time. As your purchase volume grows, your leverage for better pricing and terms will improve.

Step 7: Hire and Train a Skilled Team

At first, you might wear all the hats: installer, sales, admin, you name it. That’s how a lot of solar businesses start. But as demand grows, you’ll need extra hands. 

Starting your crew

For your solar crew, you can’t hire just anyone; you’ll need the right people:

• Licensed Master Electrician: Either you need to be one or hire one. This person handles final connections and signs off on electrical work. One Reddit commenter suggested: “Contract out the electrical side until [you have] enough experience to go for [your] journeyman and then master.”
• Lead Installer: Coordinates the physical installation, including roof work, racking, and panel placement.
• Installation Helpers: Support the lead installer. These positions can be entry-level with proper training.
• System Designer: Creates custom solar designs based on site surveys and customer needs. Initially, this might be you.
• Sales Consultant: Develops leads and closes deals. In small operations, this is often the owner.
• Office Administrator: Manages paperwork, customer communications, and billing. This is typically the last role added.

And here’s something most new solar business owners overlook: create simple SOPs (standard operating procedures) early on. 

Developing clear processes

Document your installation process step by step. Create checklists for each phase:

• Pre-installation site assessment
• Material preparation
• Roof preparation
• Racking installation
• Panel mounting
• Electrical wiring
• Inverter installation
• System testing

These standard operating procedures ensure quality even as you grow. They also make training new team members much easier.

Step 8: Invest in the Right Tools and Software

The right tools save time, reduce errors, and make your solar business more professional. Here’s what you’ll need:

Physical Tools

Installation tools:

• Quality drill/drivers (with spare batteries)
• Torque wrenches (critical for proper racking installation)
• Wire strippers and crimpers
• Multimeters and clamp meters
• Solar panel lifting equipment
• Fall protection gear
• Ladders and scaffolding

Measurement tools:

• Solar pathfinder or sun eye (measures shading)
• Infrared camera (identifies hot spots in existing electrical systems)
• Roof measuring tools
• Angle finder (for roof pitch)
• Current clamps (measure actual electricity usage)

Don’t skimp here; quality tools pay for themselves through faster installations and fewer callbacks.

Software solutions

The digital side of your solar business is just as important as the physical:

• Design Software: Programs like Aurora Solar, PVsyst, or HelioScope let you create professional system designs, predict renewable energy production, and visualize installations for customers.
• Proposal Software: Tools like Energy Toolbase or SolarReviews help create polished proposals with financing options.
• Project Management: Keep installations on track with software like FieldCamp, which handles scheduling, team coordination, and client updates automatically using AI. This prevents the common problem of “getting too busy to stay organized.”
• Route Planning: Tools like Upper help optimize travel between job sites. It’s particularly critical when you’re doing multiple installations or service calls daily. Such software helps in saving time and fuel costs.
• CRM Systems: Customer relationship management software like HubSpot or specialized solar CRMs track leads, follow-ups, and customer interactions.
• Accounting Software: QuickBooks, Xero, or Wave handle invoicing, expense tracking, and financial reporting.
• Mobile Apps: Look for software with good mobile options so your team can access and update information from job sites.

A Reddit user who runs a successful solar business added: “Troubleshoot problems (much harder than install), get tools and equipment, vehicles. Deal with customers who don’t pay appropriately and learn the legal side of the business.”

Good software helps with all these challenges, giving you a professional edge and making your life easier.

Step 9: Set Up Your Pricing and Payment Structure

Pricing your services can feel tricky at first. You don’t want to scare potential customers off, but you also can’t afford to run on razor-thin margins.

Start by doing the math. What’s your cost per job? Think materials, labor, permits, travel, and the time it takes to get the job done right. Then add a healthy margin that’s enough to cover overhead and still leave room for growth.

Now make it easy for potential customers to say yes. Not everyone has the cash upfront, so offer flexible payment options:

• Cash (some customers prefer it simple)
• Financing plans (partner with a lender if needed)
• Leasing (they pay monthly, you keep ownership)
• PPAs (Power Purchase Agreements) (customers pay only for the energy they use, not the system)

Clear, flexible pricing builds trust and gets you more “yes” responses.

Step 10: Market Your Solar Business

If no one knows about you, the phones won’t ring, no matter how good your work is. So, create an effective marketing strategy.

Start close to home. Get your name out in your own city, your own zip code. People love hiring local. Here’s how you get on their radar:

Build your online presence

• Build a website that shows who you are, what you do, and why it matters. Add photos of your work, testimonials from real customers, and a clear way to contact you.
• Get listed on Google Business Profile and local directories. These show up when people search for solar companies near them.
• Run local ads on social media platforms: Google, Facebook, Instagram, even Nextdoor. Start small, test what works, then grow from there.

Local marketing tactics

• Offer referral bonuses. Happy customers and their positive reviews can be your best marketers.
• Connect with contractors, electricians, and realtors. They often work with homeowners and can send leads your way.
• Set up booths at community events like home shows, farmers markets, and sustainability events.
• Use yard signs. Place them at active installation sites with homeowner permission.
• Try vehicle branding: Turn your work vehicles into moving billboards with professional wraps.

And when you talk about solar, don’t just focus on the solar cells or the specs. Talk about savings, reliability, and helping the planet. That’s what people care about.

Conclusion

Starting your own solar business might feel like a challenging task at first instance. But, when you break it down, it’s just one step at a time. Get trained, build a strong team, choose the right tools, and focus on serving your local community with honesty and quality work.

As you grow, the right systems will make a huge difference. From managing jobs to planning routes, tools like Upper can help you stay organized and save hours each week. Try today for Free! This will help you spend more time building your business and making solar simple for your customers.

You don’t need to have it all figured out on day one. Just start. The demand is here, the opportunity is real, and there’s room for you to make a real impact.