Across neighborhoods from the West to the East Coast, more folks are turning to the sun for power. The shift toward solar energy and renewable systems is no longer a far-off trend—it's happening right here in our communities. We can see solar energy systems in action through rooftop panels on family homes or solar arrays powering local shops.
If you've been thinking about launching a business with staying power, one that does good and gives back, starting a solar company might just be your next move. It's a way to protect the planet, help your neighbors save on energy costs, and build a livelihood rooted in something meaningful, like energy sustainability.
This guide will walk you through how to start a solar power business step by step. From understanding your market to building your team, it's all here to help you shine a little brighter in your own backyard.
Step 1 – Research and plan your solar business
Before you file paperwork or buy equipment, you need a deep understanding of your market and the role your business will play in it. This step sets the foundation for a company that meets real needs in your neighborhood—and grows with purpose.
Understanding the solar market
Every successful local business starts with listening—to the market, the people, and the environment around you. A solar business is no exception. Start by looking at the different types of solar energy provisions: residential, commercial, and even nonprofit or government contracts. Understanding these segments will help tailor your solar panel business approach.
Do homes in your area have good roof space and sunlight exposure? Are local businesses looking to cut long-term costs and improve energy efficiency? These questions will help you figure out which direction to go as neighborhoods collectively figure out the role of solar power in sustainable development. You can also tap into insights from your neighborhood. What are neighbors chatting about on platforms like Nextdoor? Are there community-led green initiatives? Plug into those conversations and keep your ear to the ground because these will help your business grow.
Finding Your Niche
Not all solar businesses look the same, and that's a good thing. Some focus on installing panels, while others handle sales, consultation, or solar farm development. You might choose to specialize in battery storage, EV charging stations, or solar for older homes with unique electrical needs. Finding a niche in the solar panel business can significantly impact your success.
There’s a difference between target market vs. target audience, and recognizing this helps in developing a better plan. Here, you can narrow down where you can offer something distinct and something your neighbors actually need.
Maybe you have experience in construction, or you're passionate about tech. There's space in solar for a range of talents. Choose a path that plays to your strengths and feels like the right fit for the solar industry your community.
Step 2 – Establish your solar business
Once you have a clear direction, it's time to make your solar business official. That means choosing the right legal structure, securing licenses, and making sure you’re protected every step of the way.
Legal and licensing requirements
Once you've done your research, it's time to give your business some structure. That starts with deciding whether you want to set up your business as a limited liability company (LLC), a sole proprietorship, or a corporation.
Each structure comes with its own rules, tax benefits, and levels of liability. Many small solar businesses begin as LLCs for flexibility and protection, but it's worth chatting with a local business advisor or accountant to find what works for you.
Next, get familiar with the permits and licenses required in your area. These vary by state and may include contractor licenses, electrical permits, or solar-specific certifications. It's not always the most thrilling part of the process, but it's crucial for building trust with clients and keeping things running smoothly.
Business insurance and liability coverage
Solar work often involves rooftops, wiring, and high-powered equipment, so insurance isn't just a "nice to have." It's a must. Look into general liability insurance, workers' compensation (if you're hiring), and professional liability coverage. These policies protect not only your business but also your team and customers.
Step 3 – Building a strong team
You can’t grow a solar company alone. Whether you hire full-time employees or build a network of trusted partners, assembling the right team ensures you deliver consistent, high-quality service that builds your reputation block by block.
Hiring skilled professionals
It takes a team to bring projects to life—sales folks who can connect with customers, installers who know their way around rooftops, and project managers to keep everything running on time. As you build your crew, look for candidates with NABCEP (North American Board of Certified Energy Practitioners) certification or a strong background in electrical, roofing, or renewable energy work. This shows customers that your business meets high industry standards—and it sets your team up for success from day one.
Beyond credentials, seek people who care about the work. Passion, patience, and a desire to make a difference can't be taught, but they're often the heart of any great neighborhood business.
Partnering with local contractors
Even if you're not yet ready to bring on full-time staff, you can still build strong relationships by partnering with local contractors. Reach out to electricians, roofers, and general contractors in your area. Some may already be exploring solar energy systems on their own. A partnership can help you both grow your client base and deliver seamless service.
And don't forget to tap into Nextdoor's business pages to connect with trusted professionals in your area. These neighbor-to-neighbor referrals can build credibility and community around your brand.
Step 4 – Setting up financials and securing funding
A great idea still needs a financial plan. Setting up smart banking practices, managing cash flow, and tapping into solar incentives will help your business stay financially healthy from day one.
Business banking and accounting
Before you book your first project, it's important to separate your business finances from your personal ones. Set up a dedicated business bank account for your solar panel business. It'll make bookkeeping cleaner, taxes easier, and your business look more professional.
Next, consider accounting software or working with a local bookkeeper who understands the ins and outs of small businesses. Budget for startup expenses like equipment, marketing, insurance, and labor. And remember to account for slower months early on while you're building up your customer base.
You don't have to be a financial wizard—just keep things organized. That way, you'll manage cash flow effectively and avoid any unpleasant financial surprises.
Exploring solar financing & incentives
One of the biggest advantages of running a solar business right now is the generous incentives available at both the state and federal levels. The Investment Tax Credit (ITC) is a major benefit, offering your customers a percentage back on their installation costs. Local utility rebates and renewable energy grants can also help cut down prices and encourage more homeowners to make the switch.
You can also offer financing options for your customers when possible. Partnering with solar lenders can make installations more accessible for neighbors who might not have the funds upfront. When you help people afford solar power, you're creating a long-term community impact that goes beyond simply making a sale.
Step 5 – Developing a sales & marketing strategy
Now that your business is ready to go, it’s time to connect with customers. A thoughtful marketing plan will help you build visibility, generate leads, and earn the kind of trust that turns first-time buyers into loyal advocates.
Building an online presence
Start with a clean, user-friendly website that showcases your services, credentials, and past projects. Add photos of your work, highlight local testimonials, and make it easy for visitors to get in touch. Don't forget to optimize your site with keywords like "solar installation near me" or "how to start a solar business" so your site appears when neighbors search online.
Next, get on platforms like Nextdoor, where local discovery happens daily. Claim your business page, post updates, respond to questions, and engage in conversations. This way, you can extend your marketing reach to connect with the right local audience and strengthen your neighborhood presence. But this is not just simple marketing for solar panel installations: you're building trust one comment at a time.
Local marketing & networking
Think beyond the screen, too. Host solar info nights at the local rec center. Partner with schools or farmers markets for green-themed events. Print door hangers or yard signs with your contact info and a neighborly message. You can also run sponsored posts or neighborhood ads through Nextdoor's business tools to reach verified local residents who care about supporting local professionals.
Solar panel marketing doesn't have to be loud or flashy. A few genuine conversations, a referral from a happy customer, or a heartfelt review can speak louder than any billboard.
Lead generation & customer outreach
There's no one-size-fits-all approach when it comes to finding leads. For some neighborhoods, door-to-door chats (with permission, of course) work wonders. For others, digital outreach through email or social media might be more effective.
Referrals remain one of the strongest lead sources—especially in tight-knit communities. Encourage your satisfied customers to share their experiences on platforms like Nextdoor, where word-of-mouth still reigns supreme. On this platform, you can fine-tune your outreach and understand who your message really resonates with.
Step 6 – Operations & execution
Delivering a great solar experience means getting the details right. From equipment sourcing to permitting and installation, your operations need to run smoothly to build trust—and fuel referrals.
Sourcing solar equipment & vendors
Now that your business is in motion, it's time to find reliable solar panel, inverter, and battery suppliers. Look for vendors with solid warranties, responsive customer service, and a track record of quality. You'll want to compare quotes, ask about delivery times, and read the fine print of every document to ensure that supplies will arrive on time for your projects.
Build relationships with your reps and check references when possible. A great supplier can feel like an extension of your team, helping you stay ahead on innovation and product availability.
Handling permits & installation process
Solar projects come with a paper trail. Depending on your location, you may need to submit designs, secure building permits, pass electrical inspections, and coordinate with utility companies.
It's a lot, but you can manage it with the right process. Create checklists and workflows for every project. Track timelines carefully and keep your customers updated along the way.
Clear communication, especially when delays happen, goes a long way in maintaining trust. It turns a stressful experience into a collaborative one and makes folks more likely to recommend you to their neighbors.
Step 7 – Scaling & growing your solar business
Once your business is up and running, growth comes down to consistency, service, and strategy. Expand your reach thoughtfully and build lasting relationships that continue to drive business long after the first installation.
Expanding service areas
Once your business is humming along in one neighborhood, you might consider expanding to nearby towns or cities. Look for areas with similar demographics, housing styles, or sustainability goals.
Diversify your offerings, too. Maybe you can add an EV charger installation, solar maintenance packages, or energy storage systems to meet new needs. Or, you can partner with homebuilders and real estate agents to offer solar solutions for newly constructed homes.
Start small and stay strategic. Growth doesn't have to mean going big fast. It means widening your circle, even if it's just one neighbor at a time.
Building long-term customer relationships
Providing solar service isn't just a one-time installation process—it's a long-term relationship. Keep checking in with your customers. Offer annual maintenance visits, help them understand their energy savings, and be available if issues arise.
Nextdoor is a great place to stay in touch with your clients. Post seasonal tips, answer questions in community threads, and celebrate local solar wins. You'll stay top-of-mind—and become the trusted go-to professional for solar energy systems in your area.
Promote sustainable solar power in your community through Nextdoor
A solar company paves the way for your neighborhood to invest in everybody's future. From doing the early research to installing your first panel and beyond, every step you take creates ripples across your community.
You've now got a clear roadmap on how to start solar company operations, from market research and team building to marketing, execution, and growth. And with tools like Nextdoor, it's easier than ever to build real relationships that power your business for the long haul.
If you're ready to take the leap and light the way for your community, don't do it alone. Claim your Nextdoor Business page to connect with local customers, spread the word, and grow your solar business one neighbor at a time.
Sources:
- CleanEnergy. Solar energy technology and its roles in sustainable development. https://academic.oup.com/ce/article/6/3/476/6606003.
