Financial Information Platform

How Can I Start a Solar Panel Business in Nigeria?

0 6
 

To speak of solar energy is to refer to a wide variety of products and services that can be offered to combat the epileptic power supply in Nigeria. But the truth is that, nowadays, it is very interesting to know how to start a solar panel business, since it is one of the most profitable services in this field. Why will it be? The fact is that these simple devices do magic and convert the energy provided by the sun into electricity to use in homes and businesses.

In fact, alternative energy is a hotly debated topic today as more and more people choose to live with greater awareness. Currently, solar energy is one of the most commercially exploited types of energy, thanks to the series of advantages offered by investing in this type of business. Would you be interested in doing it? Here we show you how!

Why start a solar panel installation business?

 

Professional Workers Placing Solar Panels On A Roof Of A House

 

 

Solar panel installation is the profession of the present time in Nigeria. It’s challenging to point to a place on Nigeria without epileptic power supply and to thwart that, there’s need for an alternative and since generators can’t guarantee an all-day supply without having to spend on petrol or diesel, solar powered panels  are the surest plug to get uninterrupted power supply.

Good thing is, Nigeria falls among the countries with sunny climates which makes solar technology and panels more efficient and cheaper. Without mincing words, solar installations make more sense. One of the benefits of looking into how to start a solar panel business is that you don’t need to be an electrician to start installing solar panels, however having the knowledge will make the process easier.

However, the staggering growth of solar energy is creating opportunities for many innovative companies, not just those that work on rooftops. Each solar project includes marketing, exploration, financing, a variety of sales and services, as well as installation.

It is essential that, in the process of starting a solar energy business, you are clear that investing in renewable energy is a good option to supply places without service, for productive farms that want to make their business profitable, or for offices that seek to reduce costs.

 

How profitable is the solar panel business in Nigeria

 

 

The field of solar panels is a rapidly growing field, with ever-increasing potential. The world is changing and the environmental footprint is shrinking on the global agenda; but how to get started in solar energy? Will it be profitable?

According to a study carried out by the University of Guadalajara, the operation of solar panels is quite profitable; In fact, these market-focused companies can double their initial investment, or even more, in as little as 6 years. The solar energy received is inexhaustible, renewable and non-polluting. Handling and storage for commercial use is profitable and safe for the environment and investors. Nigeria as a country is already fulfilling the prophecy. 

Without a doubt, your biggest expense when looking to start a solar panel business will be buying the material and your salary. You can control supply costs by purchasing large quantities of panels and using them for multiple jobs, lowering your cost per unit.

Another way to increase profits and profitability is to contact other solar contractors for subcontracting assistance. In this way, you can build strong professional relationships in your area and take on larger projects than you can handle.

 

How much budget is needed for a solar panel company?

 

For a solar panel business model, you will have to make a significant investment to install the first panels in a home or business. If you are looking for franchise opportunities, they require a minimum payment of #300,000 to #500,000 thousand naira, just to get to the selected area. And with a about N2,000,000 million naira, you should have the business running. 

Without a franchise, you are going to need an investment of up to #500,000 that will allow you to do initial marketing, hire a team, and make your first set of business solar panel accessories within a year.

However, the investment capital to start a complete solar panel installation business is very low compared to other businesses today, thanks to the low manufacturing cost of the panels. Also, it is very convenient to keep in mind that the number of additional installation services that the company can provide, such as maintenance or repair of these services, can make the return on investment faster.

10 steps to start a solar panel business in Nigeria

 

 

Solar panels are easy to buy, since, thanks to a simple structure and easily accessible elements, any engineer or technician familiar with the subject can assemble one. However, there are companies in this environment that specialize in the mass and direct production and distribution of these units.

So the key to getting started in solar is to research and choose a good provider that matches your business goals. Now, do you want to know how to start a solar panel installation business? Join us!

1. Know the business model

One of the most important steps in the process of how to start a solar panel business is to be clear about the daily operations in this type of business. These include the design of renewable energy systems and installation of solar panels, solar battery backup system, connection to the main grid, maintenance and repair of solar panels that were working in homes, offices and businesses, etc.

To start your business, it will be necessary to cover these areas:

  • Design of solar systems (commercial and residential)
  • Installation of solar panels
  • Solar battery backup and management
  • Electrical wiring and connections
  • Maintenance and repair of existing solar energy systems

2. Target a niche market

 

 

Planning is the key to success and choosing the right niche should remain one of the top priorities in the process of starting a solar panel business as if you want to stand out in the industry you need to define your offering and your customers. For example, you can offer:

  • Solar Tracking Panel Installation
  • Fixed Frame Solar Panels
  • Installation of solar panels on the ground
  • Solar panels on the roof

3. Identify your customers

 

To know how to start a solar energy business of this type, you should know that there is a large market for any company that is considering offering renewable energy systems through solar panels or photovoltaic cells. There are several types of customers you can target with your new business:

  • Residential customers: Installation of solar panels for homes
  • Commercial customers: Solar systems are suitable for businesses
  • Government: Social organizations and projects that need solar energy
  • Farms: An energy system without traditional electrical installations.

Profits from the solar panel business depend on three types of customers: vendors, locals, and farmers. You must plan your commercial strategy to attack each category or direct your efforts to a certain group of clients.

 

4. Choose the right place

 

 

Choosing a location for your business should be one of the most important decisions if you want to look into starting a solar panel business. The location you choose for your installation business has a direct impact on your operating costs, as well as your ability to serve customers.

Also, a good location for solar panel installation work should be a busy street where many people can see the store and easy access to parking. Ultimately, the site you choose must be legally acceptable for what you intend to do there.

 

5. Get certifications

 

Another step to know how to start a solar panel business in Nigeria is to obtain a professional certificate, which is the means by which a person demonstrates that they have the knowledge, experience and skills necessary to perform a particular job.

In the solar panel installation industry, having a professional certification gives your potential clients satisfaction because they are protected, which translates into an advantage to your business. 

 

6. Analyze the costs

 

 

If you are thinking how to start a solar panel business you can start from your parking lot and move to a better location as the business grows. The cost of starting a small solar panel installation business in your Nigeria varies but highlighted below are varieties you should be looking to learn.

  • Installation training and certification
  • Tools required
  • Legal aspect (commercial registration and insurance)
  • Equipment transport trucks
  • Marketing.

 

7. Buy the necessary tools

 

How to start a solar panel business in Nigeria without tools? It is impossible! So for sloped ceiling installations, most companies will need to wield a cordless drill and impact driver, a utility knife, and a soldering gun.

  • To install shelving:

After installing the structural supports, the installation of the supports and modules is the same with each different type of installation. Usually only one socket size is needed to install the entire bracket. Many manufacturers recommend a torque wrench for all bolts. The cordless reciprocating saw allows long rails to be attached to one side of the design and cut to fit once all units are installed.

  • Grounding:

All PV systems require equipment grounding, which can be done with a wire cutter, flathead screwdriver, and a drill to install the tabs. A small flat-head screwdriver allows you to tighten the grounding tabs on the back of ceiling-mounted units.

  • Cabling:

Although the connection of the serial modules does not require the use of tools, the removal of the modules may require connector-specific tools. The next step is to create a jumper cable, using a specialized crimping tool to insert the connector onto the cable to match the connector unit.

After establishing the initial positive and negative lengths of a string, the voltage should be checked with a multimeter. A tension test when each sequence is complete will verify proper fit and prevent problems later. 

 

8. Promote your solar panel business

 

 

One of the essential steps to follow with the list of how to start a solar panel business in Nigeria is to create a website where you can show the services you offer and everything related to your business.

In addition, you can also include customer testimonials with comments about your products and services, and of course, do not forget to post photos and videos of the projects you have done. This will give consumers confidence to buy from you.

You should advertise your solar panel business on digital media, industry magazines, influencers, YouTube channel, Facebook group, etc. Work on creative ideas to design your ads. After starting a business, you will be able to gradually reduce your advertising costs, as many customers will be acquired through word of mouth from other customers.

 

9. Hire a skilled team

 

Have you analyzed if your strategy of how to start a solar panel business is missing something? A work team! Your human resources will mobilize most of the activities, and knowing how to delegate tasks will be key to improving the process.

In addition, it is important that your employees feel that they have room to grow; by feeling a place to aspire to, there will be a better performance that benefits everyone.

Just as it is very important to take care of your employees, it is also important to have a good supplier. Cutting off the consumer’s shopping experience due to lack of inventory is one of the most frustrating mistakes that can exist; In addition, it lacks credibility, professionalism and loyalty.

 

10. Offer guarantees to your customers

 

 

Most people who buy solar panels know that they are an investment, so feeling that your money is not safe is counterproductive. Also, in this market, someone is likely to offer a better guarantee than you, because they know what a great ally they are.

When looking for how to start a solar panel business, another benefit of offering a guarantee is the prestige it gives to the brand. If you already have a good social network and a well-designed website, it will be very easy for you to position yourself in the market if you give a good guarantee; by doing this, you are confirming the quality of your product.

Final words

 

Running a solar panel business in Nigeria is not an easy task. Whether it’s a small local installer running one system a week on neighboring homes or a large installer running 500 systems a week across multiple states, logistics, engineering, finance, customer relations and project management are big challenges.

To successfully run a solar panel installation business, you need to be creative and ready to act. We already showed you a guide to start, so, do you dare?

Leave A Reply

Your email address will not be published.