How to Start a Solar Panel Business in India in 2025? Step-by-Step Guidance Offered

Starting a solar panel business in India in 2025, after the country surpassed 100 GW of installed solar capacity, is an ideal time to break into the market and achieve profits. The solar sector has grown by over 3,450% in the past decade due to rising energy demand and a strong government push through subsidies and schemes, such as the PM Surya Ghar Muft Bijli Yojana and net metering. But this growth has also brought intense competition. So, learning how to start a solar panel business the right way is more crucial than ever.

The right way to start a solar panel business begins by asking yourself the right questions. 

• Do you want to start small as a solar dealer and grow into a full-fledged EPC company over time?
• Do you have the capital and technical team to become a solar panel manufacturer? 
• Do you want to target rooftop solar panel systems for homes and housing societies or focus on commercial rooftop systems for businesses and industries? Or would you like to target both residential and commercial sectors?

Whether or not starting a solar business in India requires a considerable investment depends on what you want to do. For instance, if you want to start as a manufacturer or a solar installation company, you will need to secure funding or a loan to afford materials, manufacturing units, and a full-fledged team of engineers, designers, and sales representatives. 

In this blog, we’ll explain how to start a solar panel business from the bottom up, so even if you do not have a lot of capital and time to start this full-time, you can slowly make your way up. We will also explain why it’s a great time in India to start a solar panel business of your own and what kind of knowledge you should acquire about the latest solar panel technology to be successful at what you do. 

TL;DR Summary Box: Is a Solar Panel Business Profitable?

The solar business in India is booming in 2025, and the numbers make it clear why it’s a great way to earn. 

• Over the last 10 years, solar capacity has increased from 2.82 GW to 110.9 GW. In 2024-25 alone, India added a record 23.83 GW of solar power.
• Renewable energy now accounts for 22.2% of all the electricity we generate, up from 17.2% in 2014-15. 
• Projects worth 176.7 GW are already being built, and another 72 GW are in the bidding stage. 

All of this means one thing: there’s a huge and growing demand for people who can sell, install, or service solar systems. If you’re thinking about starting a solar business, this is honestly the best time to do it.

Here are the main topics we’ve covered in this blog in detail:

How to Start a Solar Panel Business in 15 Steps?

Starting a solar panel business needs systematic planning and execution across multiple phases. We’ve broken down a list of 15 practical steps into six clear phases, starting from research and planning to business launch. 

Here’s an overview of all six phases and 15 steps you can follow to start your own solar panel business in India:

Now, let’s see how you can execute these steps to start a solar panel business the right way.

Phase 1: Research and Planning 

Take 1-2 months to properly research and plan what you want to do. Based on your research, choose a business model and make a detailed business plan on how you will execute it in the real world. 

Here’s a clear breakdown of what you should do during phase 1, and how you should be doing it.

Phase 2: Legal Set-up and Funding

Take 2-3 months to properly execute phase 2 of starting a solar panel business in India. Start by registering your business, obtaining necessary licenses, and then secure funds.

Here’s a clear breakdown of what you should do during phase 2 of starting a solar panel business, and how you should be doing it.

Phase 3: Infrastructure and Team Building

Allow yourself 3 to 4 months to determine the best location for your business, hire the necessary personnel to execute your business plan, and source the equipment or services you intend to sell.

Here’s a clear breakdown of what you should do during phase 3 of starting a solar panel business, and how you should be doing it.

Phase 4: Technology Setup and Processes

Take at least 4 months to get this phase of setting up your solar panel business right. This will be the most practical execution phase, and you’ll need to decide which types of software and tools to use for key business aspects, such as customer tracking, lead management, and inventory management.

Here’s a clear breakdown of what you should do during phase 4 of starting a solar panel business, and how you should be doing it.

Phase 5: Marketing and Customer Acquisition

This is the phase where the business idea from your head will start spreading into the world, establishing you as a brand. 5 months of hard work is a safe timespan to ensure you build a solid online presence. 

Here’s a clear breakdown of what you should do during phase 5 of starting a solar panel business, and how you should be doing it.

Phase 6: Business Launch and First Projects

It should take around 6 months for you to break into the business world during phase 6 of starting your own solar panel business in India. Start with family and friends, focus on rooftop solar for housing societies, and gather testimonials from satisfied customers. Additionally, build a channel for post-installation services to support your customers. 

Here’s a clear breakdown of what you should do during phase 6 of starting a solar panel business, and how you should be doing it.

What is a Solar Panel Business and Why Start One?

A solar panel business includes different commercial activities within the renewable energy sector. You could make a living by manufacturing solar panels, installing solar systems, providing maintenance services, or acting as dealers and distributors. 

All solar businesses capitalize on converting solar radiation into solar electricity using photovoltaic technology. You can choose between serving residential, commercial, or industrial customers who are looking to go solar to reduce their electricity bills.

Here are the main market advantages and the very reasons why starting a solar panel business in India in 2025 is very advantageous: 

• You will receive government support: You can get substantial subsidies, tax incentives, and policy backing through MNRE schemes.
• There’s a growing demand for solar amongst customers: Increasing awareness about sustainability and electricity cost savings has made solar very popular in India lately.
• There’s a diverse customer base to choose from: Residential, commercial, industrial, and agricultural market segments provide you with plenty of options to select your target audience.
• Financial assistance is available in multiple ways to start your business: You can get MSME loans, angel investment, or term loans.

What Are the Types of Solar Businesses You Can Start?

The best thing about starting your own solar panel business in India is that you have multiple options to choose from, including being a solar dealer, distributor, solar panel manufacturer, EPC company, or AMC service provider. The option you choose will directly impact the capital you would need to start the business. 

Here are the main solar business options that you can choose from and the basic requirements needed to succeed.  

What Are Some Funding Options for Your Solar Panel Business in India?

The government offers a subsidy to homeowners and housing societies installing rooftop on-grid solar systems in India to promote solar installation. Similarly, they also offer subsidies and support to entrepreneurs planning to break into the business. There are various schemes, such as MSME loans and the MNRE’s RE-RTD Scheme, to help more people start a solar panel business in India. 

Let’s check out the multiple funding options you can explore:

• MNRE’s RE-RTD scheme: It provides 50-70% financial assistance for research and development projects.
• MSME loans: These are collateral-free loans up to Rs. 5 crores
• Solar park schemes: They offer infrastructure support for setting up large-scale solar systems.
• Bank loans: These include term loans, working capital facilities, and equipment financing.
• Angel investors: These include individual investors interested in clean energy startups.
• Venture capital: Venture capitalists offer investment for business models with high growth potential.

What Licenses are Required for a Solar Panel Business in India?

Obtaining the proper licenses and registrations is mandatory to operate a solar business legally in India. While the exact licenses would depend on what business model you choose, here’s a list of mandatory licenses that all kinds of solar businesses must obtain:

• Company Registration: Private limited company, LLP, or proprietorship registration with MCA
• GST Registration: Goods and Services Tax registration for business transactions
• MSME Registration: Udyam registration for small and medium enterprises benefits
• PAN and TAN: Permanent Account Number and Tax Deduction Account Number
• Professional Tax: State-specific professional tax registration
• Shop and Establishment License: Local municipal corporation license for business operations

Solar Technology Details You Should Know to Succeed in the Solar Business in 2025

The current solar market in India is experiencing record growth because the government is popularizing solar on a mass scale by offering homeowners and housing societies a subsidy under the PM Surya Ghar Muft Bijli Yojana to install on-grid rooftop solar systems.  

As someone planning to start a solar business, you should be aware of the following details:

• Subsidy is offered only for residential purposes: There’s no subsidy provided for installing off-grid solar systems that are connected to a lithium battery bank instead of the utility grid, ground-mounted solar systems, or on-grid rooftop solar systems for commercial purposes. Only homeowners and housing societies that install on-grid rooftop solar systems for residential purposes are eligible for a subsidy if they choose made-in-India DCR modules.
• Polycrystalline solar panels are almost obsolete in India now: High-efficiency solar panels such as bifacial solar panels with mono-PERC half-cut solar cells have left older technologies behind. These panels are current favorites in the residential and commercial markets because they achieve efficiencies as high as 22.5%. Some future technologies to watch out for include TOPCon solar panels, perovskite solar cells, and multi-junction solar cells.
• MPPT solar inverters offer the best performance under partial shading: The MPPT algorithm has taken the solar world by storm. It ensures solar panels generate maximum possible output at any given point during the day. Such technologies have significantly improved the reliability of solar output in cases of partial shading.

What’s the Current Solar Panel Installation Cost in India?

Installing on-grid rooftop solar systems at homes in India in 2025 can cost homeowners somewhere between ~Rs. 90,000* in Lucknow for a 2 kW solar system and ~Rs. 5.62 lakh* in Bengaluru for a 10 kW solar system after they avail of a subsidy under the PM Surya Ghar Muft Bijli Yojana. 

*Please note: The above-mentioned solar panel price is indicative as of 29th August 2025 for the SolarSquare Blue 6ft variant. The final cost of installing an on-grid rooftop solar panel system at home depends on DISCOM charges, product variant opted for, panel type, inverter type, mounting structure height, type of after-sales service, savings guarantee, roof height, etc. Prices are subject to change. 

Here’s a tabulated snapshot of the estimated cost of installing on-grid rooftop solar systems in India with and without a subsidy under the PM Surya Ghar Muft Bijli Yojana:

*Please note: The above-mentioned solar plate price is indicative as of 29th August 2025 for the SolarSquare Blue 6ft variant. The final cost of installing an on-grid rooftop solar panel system at home depends on DISCOM charges, product variant opted for, panel type, inverter type, mounting structure height, type of after-sales service, savings guarantee, roof height, etc. Prices are subject to change. 

Despite an investment of a few lakhs, customers across India are still opting for solar because of the stunning ROI they receive. Let’s give you a small comparison between the cost of installing a rooftop solar system with SolarSquare in Nagpur vs the solar savings the customer receives in 25 years of the system’s life:

*Please note: The above-mentioned solar panel price is indicative as of 29th August 2025 for the SolarSquare Blue 6ft variant. The final cost of installing an on-grid rooftop solar panel system at home depends on your DISCOM charges, product variant opted for, panel type, inverter type, mounting structure height, type of after-sales service, savings guarantee, roof height, etc. Prices are subject to change. Additionally, while calculating savings, we have considered the annual tariff escalation at 3% and the annual degradation at 1%. The actual final savings from solar panel installation depend on the types of solar panels you’ve installed and their efficiency, intensity of sunlight your rooftop receives, orientation of the panels and tilt angle, the pollution level and weather conditions in your city, the temperature, shadow on the roof, impact of dirt/dust, and how well you maintain your panels after installation.

Conclusion 

Starting a solar panel business in India can be highly profitable, provided you choose the right approach from the beginning. While the initial investment may seem like a hurdle, the government offers funding options, such as MSME loans, to help new businesses get started. 

To increase your chances of success, select a business model that aligns with real market demand in your area. Focus on offering solar services that people need but aren’t easily available locally. This alone can give your business a strong head start.

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FAQs

Q1. How to choose a solar business model?

Ans. Evaluate your technical expertise, available capital, market preferences, and long-term goals. Assess your team's electrical, engineering, and project management capabilities. Match investment requirements with your funding capacity and risk tolerance. Consider local market conditions, competition, and regulatory environment.

Q2. How much does it cost to start a solar panel business in India?

Ans. This is extremely subjective and totally depends on what you want to start and at what scale. The investment can range from as low as Rs. 5 lakh to as high as Rs. 5 crores.

Q3. Is solar a good business in India?

Ans. Yes, solar is an excellent business opportunity in India because the government is targeting 280 GW of solar capacity by 2030. It would need skilled installers and manufacturers to attain that target.

Q4. What are the biggest challenges in the solar business?

Ans. The biggest challenges in the solar business are high setup costs, getting government approvals, finding trained workers, managing installation delays, and building trust with customers. On top of that, handling after-sales service and keeping up with changing technology can be tricky too.

Q5. Can I start a solar business without a technical background?

Ans. Yes, you can start with dealer/distributor business models that require less technical expertise. However, hiring certified electricians and engineers is essential if you want to become a solar panel installer in India. The technical knowledge demand would be even higher if you’re planning to become a solar panel manufacturer.