The short answer
Begin with residential rooftop solar in your own city. Get an electrical contractor licence, register as a vendor under the national rooftop scheme with your DISCOM or state nodal agency, and line up a reliable supplier of approved modules and inverters before you chase customers. Homeowners mostly decide on trust, so neat installations, honest savings estimates and real help with net metering win more work than the lowest price.
As a ballpark, a small rooftop installer with an office, tools, a used pickup and stock for the first few jobs needs roughly ₹13–30 lakh in a tier-2 city. A commercial and industrial installer with engineers, more vehicles and larger working capital often needs ₹60 lakh to ₹1.2 crore. This guide covers the models, registrations, costs, launch steps, operations, customers and tech.
Is a solar installation business right for you?
Rising power bills and government support for rooftop solar have homeowners, shops, schools and factories asking about panels. The PM Surya Ghar scheme gives households a subsidy for rooftop systems installed through registered vendors, so interest has spread from metros to smaller towns, and every new rooftop needs someone to survey, design, install, connect and maintain it.
It suits electrical engineers, electricians who want their own firm, and people from construction or electrical trading who already know suppliers. You need sound technical judgement on roof strength, shading and wiring, plus the patience to walk customers through forms and DISCOM inspections.
The hard parts: working capital locked up in panels and inverters, subsidy and net-metering approvals that take time, price competition from installers who cut corners, the safety of crews working at height, and warranty calls years after a job is finished.
Business models to choose from
| Model | How it works | Suits |
|---|---|---|
| Residential rooftop installer | Survey, design, supply and install small home systems, including subsidy and net-metering paperwork | New installers in any city or town |
| Commercial and industrial EPC | Larger rooftop or ground systems for factories, offices and warehouses | Firms with engineers and working capital |
| Opex or RESCO | You own the system on the client's roof and sell them the power under a long agreement | Well-funded firms; needs financing and solid contracts |
| Sub-contractor to larger firms | You install for an EPC company that wins the orders | Teams starting without a sales engine or capital |
| Operations and maintenance | Cleaning, monitoring and repairs for existing systems on contract | Low capital and recurring income |
| Solar pumps and off-grid kits | Pumps for farmers under government schemes, and off-grid systems for areas with weak supply | Rural and farming markets |
Many installers start with homes for volume and quick cash, then move into commercial jobs once they have engineers and a list of completed sites to show. Offer maintenance contracts from the very first job. Some installers later add EV chargers for the same commercial clients; see how to start an EV charging station.
Licences and registrations
| Registration | Why you need it | Where you get it |
|---|---|---|
| Electrical contractor licence | Solar wiring and grid connection are electrical work, done by a licensed contractor with qualified supervisors | State electrical licensing board or electrical inspectorate |
| Vendor registration under PM Surya Ghar | Lets you install home systems that qualify for the household subsidy | The national rooftop solar portal, with empanelment by your DISCOM or state nodal agency |
| Approved modules (ALMM) | Subsidised and many government-linked projects must use modules from the government's approved list | The Ministry of New and Renewable Energy's published list; confirm with your supplier |
| Net-metering applications | Each grid-connected system needs DISCOM approval and a bidirectional meter | DISCOM portal, filed on the customer's behalf |
| Safety inspection | Larger installations may need inspection before connection | State electrical inspectorate |
| GST registration | Solar supply and installation are taxable, and splitting goods and services needs care | GST portal |
| Shop & Establishment registration | Covers your office and staff under state law | State labour department or municipal body |
Udyam registration helps with bank finance and some tenders. Crews working at height need harnesses, training and insurance, which customers and larger contractors increasingly ask to see.
Empanelment rules, approved lists and subsidy processes are updated often, and each DISCOM runs its own process. Check the current requirements with your DISCOM, the state nodal agency and a CA. This is not legal advice.
What it costs to start
| Item | Small start | Larger setup |
|---|---|---|
| Office and store, with deposit and setup | ₹1–3 lakh | ₹5–10 lakh |
| Tools, testing instruments and safety gear | ₹1–2.5 lakh | ₹4–8 lakh |
| Vehicle (used pickup or van) | ₹3–7 lakh | ₹12–25 lakh |
| Working capital for panels, inverters and structures | ₹5–10 lakh | ₹25–50 lakh |
| Licences, empanelment and CA fees | ₹50,000–1.5 lakh | ₹1–3 lakh |
| Staff wages for three months | ₹2–4 lakh | ₹8–15 lakh |
| Website, CRM and design software | ₹30,000–1.5 lakh | ₹2–5 lakh |
| Launch marketing and a demo system | ₹50,000–2 lakh | ₹3–6 lakh |
| Rough total | ₹13–30 lakh | ₹60 lakh–1.2 crore |
Working capital is where solar firms get caught. You pay suppliers before the customer's final instalment arrives, and under the household scheme, as it currently works, the subsidy goes to the homeowner after inspection rather than to you. Take a solid advance, tie payments to milestones such as material on site, installation and the net meter, and keep a credit line for busy months.
These are indicative ranges for planning, not quotes. Equipment prices move with the market and with the terms your suppliers offer.
Step by step: from idea to first customer
- Learn the work: if you are not an electrical engineer, partner with one or hire a qualified supervisor, and spend time on someone else's installations first.
- Get the electrical contractor licence in your state, and register the business for GST.
- Apply for vendor registration under the rooftop scheme with your DISCOM or state nodal agency.
- Pick suppliers of approved modules, inverters and mounting structures, and agree credit terms and warranty support in writing.
- Build a survey checklist: roof type and strength, shading through the day, sanctioned load, meter position and the customer's recent bills.
- Prepare honest proposals showing system size, expected generation, estimated savings, the subsidy process and the payment schedule.
- Train your crew in safe work at height, earthing, cable routing and tidy finishing.
- Put up a demo system on your own roof or a willing friend's, so prospects can see the work and the monitoring app.
- Handle the paperwork for customers: subsidy portal entries, the net-metering application and inspection dates.
- Hand over properly: show the inverter display and app, explain cleaning, and give the warranty documents.
- Call back after the first bill to check savings match the proposal, and ask for a review.
Running it day to day
Mornings are for site work, because roofs get dangerously hot by early afternoon across much of India. A typical week mixes surveys, a few installations, DISCOM visits and follow-ups on pending subsidy and net-metering files. Evenings go to proposals and calls with homeowners who saw a neighbour's panels and want a price.
- Pipeline: track each lead from enquiry to survey, proposal, advance, installation, net meter and subsidy release. Files stall when nobody owns the next step.
- Stock: order material per job where you can, and hold a small buffer of common parts.
- Quality: photograph every stage, check earthing and fastener torque, and keep wiring neat. Those photos become your portfolio.
- Service: respond quickly to drops in generation; most turn out to be dust, a tripped breaker or an inverter error.
- Cash: chase milestone payments on time, and match supplier credit to your customers' payment cycle.
Getting your first customers
Solar sells through neighbours. One well-installed rooftop on a busy street prompts questions from the houses around it, so make every early job one you're proud to point at. A Google Business Profile with photos of real installations and reviews from homeowners helps people searching for installers nearby.
- Housing societies and RWAs: offer a free session on the scheme and subsidy; one meeting can lead to many surveys.
- Electricians and builders: they get asked about solar all the time, and a referral fee keeps your name in their mind.
- Small businesses: shops, clinics and schools with high daytime bills see the savings quickly.
- WhatsApp follow-ups: send the proposal, a short video of a similar installation and the payment milestones on chat. Our WhatsApp for business guide has more.
- Referral rewards: thank customers who send neighbours your way with a free cleaning visit.
The tech you need
On day one you need a simple website with your registrations, completed installations and a savings calculator, a Google Business Profile, GST billing (see our billing software guide) and a shared sheet for leads. Later, a lead pipeline tool, a survey app for site photos and measurements, and a customer portal for warranty and service requests make it easier to grow.
The main need is a strong business website that turns visitors into survey requests. Our concept build Voltride is an EV scooter, not a solar product, so treat it as a loose match: its website configurator works much like a rooftop savings calculator, and its service technician app and owner dashboard map onto site surveys and system monitoring. For lead follow-up, see a shared inbox and CRM, or send us a brief for a fixed quote.
See the app a solar installation business runs on
We designed and built this concept end to end, every side of it, so you can open it and try it before you plan your own. Our business website page covers the features, timeline and what moves the cost.
Questions people ask
What licence do I need to start a solar installation business?
You need an electrical contractor licence from your state's electrical licensing board or inspectorate, because solar wiring is electrical work. To install subsidised home systems, you also need vendor registration under PM Surya Ghar with your DISCOM or state nodal agency. GST and Shop & Establishment registration complete the basic list.
How much money do I need to start a solar business?
Roughly ₹13–30 lakh for a residential rooftop installer in a tier-2 city, covering an office, tools, a used vehicle, wages and stock for the first few jobs. A commercial and industrial installer in a metro often needs ₹60 lakh to ₹1.2 crore, mostly as working capital for larger orders.
How does the rooftop solar subsidy work for installers?
The household subsidy under PM Surya Ghar is applied for through the national portal and, as the scheme currently works, is paid to the homeowner after installation and inspection, not to the installer. Your job is to be a registered vendor, use approved equipment and handle the paperwork well so customers receive it without delay.
Do I need to be an engineer to run a solar business?
No, but you need qualified people. Electrical work must be done under a licensed contractor with qualified supervisors, and system design needs someone who understands loads, shading and grid connection. Many founders from sales or trading backgrounds partner with an electrical engineer and handle customers, suppliers and paperwork themselves.
How do solar installers find customers?
Mostly through referrals and visible work. A neat installation on a busy street, reviews on your Google Business Profile, talks for housing societies and tie-ups with electricians and builders bring steady enquiries. Follow up quickly on WhatsApp with a clear proposal, because homeowners usually compare two or three installers before deciding.
