By Liz Merry Because the solar industry is still relatively young, it isn't yet producing thousands of job openings every month and can sometimes be a tough field to break into. But wait! What if you are the employer you're looking for? In many areas, there's still an immense need for basic solar installation businesses. And, in many markets, we're beginning to see a need for businesses catering to post-installation needs. For example, a recent visual survey of my neighborhood uncovered a distinct need for photovoltaic (PV) panel pigeon protection. Let's use the "PVSkirt" as a solar business case study of how you might approach building your own solar business. First, what problem are you solving? Are pigeons a real problem for PV panels? Yes. They leave droppings on the roof and panels and peck at the system's wires. But if the system is flush-mounted, on a steep pitch or in an area without pests (flying or otherwise) the PVSkirt doesn't apply. So estimating consumer demand accurately is key to proceeding. Second, is your target market big enough? I live in California, where we are especially lucky to have California Solar Statistics, which provides solar sales data for the state. If your solar incentive program managers aren't yet offering this information, you might start the campaign to get them to do so. Who knows? The software for collecting and displaying the data might be your new product offering! A conservative estimate shows that my city has a likely build-out residential retrofit market of about 5,000 homes by 2020. So, if I'm selling my new PVSkirt to protect panels from pigeons, I could realistically sell to 20 percent of these homeowners and net $50 per system, bringing in $50,000 by 2020. A pretty small opportunity. You can build your own ballpark analysis of PV rooftop potential for any area by using census data about buildings. Aerial photos from Google maps can help you guesstimate the percentage of unshaded space in your area. You'll also need to learn about your customer utility rates and the policy landscape. A policy landscape report card was just updated at SolarPowerRocks.com, where you can rate how each state is progressing in building their solar market. As always, dsireusa.org is the go-to resource for the latest incentives data for both solar- and energy-efficiency systems. Third, who's doing this and should I partner up with them? The most successful solar companies are good at partnering. For the PVSkirt it might make sense to seek partnerships with a wholesale distributor or even another post-installation businesses, such as a company selling security equipment to prevent theft or automatic washing systems. Being an entrepreneur isn't easy, but this is a very ripe time to try it if: There are tons of guides and resources online about starting a small business. Start with the Small Business Administration. (SOAPBOX BREAK: Before you start a new solar business remember the solar industry prime directive: Do No Harm. There is still a low barrier of entry and low customer knowledge in many markets. Customer education is your best marketing strategy. Don't confuse a solid "business plan," which is based on providing value, with a "scamming plan," which is based on short-term speculation.) Do you have an idea for a new solar business? Tell us what problem it will solve and the value it will offer in the comments section below. |
