Solar Panel Installation Business
सोलर पैनल इंस्टॉलेशन व्यवसाय · सोलर पॅनल इन्स्टॉलेशन व्यवसाय
Design, supply and install rooftop solar systems for homes, shops and small factories, and handle the net-meter and subsidy paperwork.
Investment
₹9.2 lakh
Profit a month*
₹37,000
- Space
- 300 sq ft
- Staff
- 3 + you
*Operating profit before the loan instalment in year 2, at the assumed sales level. Change the assumptions in the calculator below.
A rooftop solar installer surveys a customer's roof and electricity bill, designs a system, buys panels, an inverter and mounting structure from distributors, installs and wires it, and gets the net meter and subsidy processed with the electricity company. Home systems of 2 to 5 kW are the bulk of the work, with larger jobs for shops, schools and factories. The business needs trained technicians, tools and working capital, but no factory. Demand has grown strongly with the central rooftop subsidy for homes. The installer keeps a margin on each system, so income depends on how many kilowatts are installed each month. The hard parts are heavy price competition, money stuck between buying material and the customer's final payment, slow approvals at the electricity company, and service calls for 25 years of warranty promises.
Skills needed: Electrical knowledge (an electrician's or electrical contractor's licence is usually needed), solar design basics and safe work at height. Skill-council and supplier courses train solar installers.
Profit calculator
Change the numbers to match your town1 kW/day: Rooftop solar system, supplied and installed (per kW)
Total investment
₹9.15 lakh
Your own money
₹91,544
Subsidy
—
Bank loan
₹8.24 lakh
Mudra Tarun
A typical month in year 2
| Sales | ₹10,14,000 |
| Raw material & packing | −₹9,12,600 |
| Electricity | −₹580 |
| Salaries | −₹39,900 |
| Rent | −₹8,400 |
| Other running costs | −₹15,750 |
| Operating profit | ₹36,770 |
| Loan instalment (EMI) | −₹16,291 |
| You keep each month | ₹20,479 |
After the loan is repaid, the EMI becomes your income too. Your own salary is not counted as a cost: the profit is your income.
- Cash goes negative in some year: lower drawings, extend the tenure or raise own money.
- Year 1 shows a loss at the assumed utilisation. Banks look closely at year-1 viability.
Need this for a bank loan?
Turn these numbers into a full project report: cost of project, means of finance, 5-year profit and loss, balance sheet, repayment schedule, DSCR and break-even.
Make my project reportInvestment breakdown
| Machinery & equipment | Price |
|---|---|
| Installation tools: drills, crimpers, torque wrench, cutters | ₹60,000 |
| Test instruments: multimeter, clamp meter, earth and insulation testers | ₹40,000 |
| Safety harnesses, helmets, ladders and roof anchors | ₹30,000 |
| Laptop and design software | ₹60,000 |
| Office furniture, signboard and a small demo system | ₹80,000 |
| Used pickup for panels and structureadd-on | ₹3,50,000 |
| Machinery & equipment (without add-ons) | ₹2,70,000 |
| Vendor registration with the electricity company, including security deposit or bank guarantee | ₹50,000 |
| Electrical contractor licence and other registrations | ₹20,000 |
| Installer training and certification | ₹15,000 |
| Rent deposit | ₹24,000 |
| Brochures, website and launch advertising | ₹25,000 |
| Working capital 7 days of raw material, 15 days of credit to buyers, 1 month of expenses | ₹5,11,438 |
| Total project cost | ₹9,15,438 |
Typical market prices as of October 2026, from supplier listings. Prices vary by brand, capacity and city; always get 2–3 quotes.
Cost and margin per unit
| Rooftop solar system, supplied and installed (per kW) (per kW) | ₹ |
|---|---|
| Panels, inverter, structure, cables, earthing and net-meter costs at trade prices (assumed 90% of the bill) | 58500.00 |
| Material cost | 58500.00 |
| Selling price | 65000.00 |
| Margin before running costs | 6500.00 (10%) |
Capacity is about 39 kW a month, roughly thirteen 3 kW home systems. Published 2026 guides put installed home systems at about ₹55,000–85,000 a kW before subsidy. The 10% installer margin is an assumption; get distributor price lists and check what local installers quote. The home subsidy goes to the customer, not to you.
Space, power and staff
300 sq ft
Rented shop · rent ≈ ₹8,000/month
Small-town rent for an office with a store room. Vendor rules usually ask for a local office in the electricity company's area.
1 kW, single-phase
Bill ≈ ₹1,000/month at full capacity
3 staff + you
- 2 × Solar technicians / electricians: ₹14,000
- 1 × Helper: ₹10,000
Licences and registrations
Vendor registration for the rooftop solar programme
mandatoryWhen: Before installing subsidised home systems · Cost: Security deposit or bank guarantee as per the electricity company
Customers get the central home subsidy only through registered vendors. A published guide lists the requirements as an electrical contractor licence or equivalent, GST and PAN, a local office, a signed declaration and a deposit or bank guarantee. Confirm the current rules and amount on the national rooftop solar portal and with your electricity company.
Electrical contractor licence
mandatoryWhen: Before taking installation work · Cost: State fee
Issued by the state electrical licensing board. Requirements differ by state.
GST registration
mandatoryWhen: Before billing; vendor registration requires it · Cost: Free
Solar systems supplied with installation have their own GST treatment. Confirm with a CA.
Approved components only
mandatoryWhen: When buying · Cost: None for the installer
Subsidised systems must use panels and inverters that meet the government's approved lists and domestic-content rules. Buy from authorised distributors with invoices.
Shop and Establishment registration
mandatoryWhen: Within the period your state sets after opening · Cost: Small fee; varies by state
Udyam registration
recommendedWhen: Before applying for a loan · Cost: Free
Apply only on udyamregistration.gov.in.
How it works
- Visit the site; check the roof, shade, sanctioned load and a year's electricity bills.
- Size the system, quote in writing and help the customer apply on the rooftop solar portal.
- After feasibility approval, take an advance and buy the material.
- Fix the structure, mount panels, install the inverter, wire and earth the system.
- Test, apply for inspection and the net meter, and follow up until it is fitted.
- Hand over documents and warranties; help the customer claim the subsidy; collect the balance.
Loan route
Mudra loan (Tarun)
Own money ₹91,544 · Loan ₹8.24 lakh · EMI ≈ ₹11,342
The loan includes a cash-credit limit of ₹3.37 lakh for stock and credit to buyers. Only interest is paid on it; the EMI is on the remaining term loan.
No collateral, no subsidy.
How Mudra worksPMEGP (new units)
Subsidy ₹1.37 lakh (general, urban) to ₹3.2 lakh (special category, rural). EMI ≈ ₹8,140–₹4,938.
Own money 5–10%. Applicant must be at least 8th pass for this project size. Subsidy is held as a 3-year deposit, then adjusted against the loan.
How PMEGP worksAssumes 10.5% interest, 5 years including a 6-month moratorium. PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.
No collateral and no third-party guarantee (covered by the Credit Guarantee Fund for Micro Units).
Who buys and how to sell
Buyers
- Home owners with their own roof
- Housing societies (common areas)
- Shops, clinics, schools and petrol pumps
- Small factories and cold stores
- Farmers (solar pumps under separate schemes)
Ways to sell
- References from installed customers
- Local demonstrations and housing-society meetings
- Tie-ups with electricians, builders and bank loan desks
- Listing as a registered vendor on the rooftop solar portal
- Social media with photos and bill savings of real installations
Season: Enquiries rise before summer, when electricity bills are highest; roof work slows in the monsoon.
Competition: Many registered vendors, national solar brands and their dealers. Clean installation, honest generation estimates and fast paperwork bring references.
Risks and how to handle them
Price undercutting leaves almost no margin
Do not win jobs with substandard structure or cable; sell on workmanship, service and paperwork handled.
Cash stuck in material while approvals and payments are delayed
Take staged payments, buy against confirmed orders and keep a working-capital buffer or limit.
Net-meter and subsidy delays blamed on you
Explain the timeline at the start and track every application with the electricity company.
Falls and electric shock during installation
Use harnesses and anchors on every roof, isolate DC circuits and never work alone at height.
Warranty claims years later
Use reputed brands with local service, keep serial numbers and set aside part of each job for service.
Tips from the trade
- The numbers on this page assume material and customer credit are financed by a cash-credit limit, not the term loan; you can switch this in the calculator.
- Start with small home systems; move to commercial jobs once you can fund the material.
- Annual cleaning and maintenance contracts add steady income from every system you install.
- Banks now lend to home owners for rooftop solar; knowing the loan process helps close sales.
Questions people ask
How much is the subsidy on rooftop solar for homes?+
Under the central home rooftop scheme, published figures are ₹30,000 a kilowatt for the first two kilowatts and ₹18,000 for the third, up to ₹78,000 in all. It is paid to the home owner and only for systems installed by a registered vendor. Commercial systems are not covered. Check the national rooftop solar portal for current terms.
Does the installer make the panels?+
No. Panels, inverters and structures are bought from manufacturers and distributors. The installer's work is design, installation, electrical safety and paperwork.
How much investment is needed to start a solar panel installation business?+
About ₹9.15 lakh for a small unit: ₹2.7 lakh for machinery and equipment, ₹1.34 lakh for set-up costs and ₹5.11 lakh as working capital (stock, credit to buyers and one month of expenses). Prices as of October 2026.
How much profit can a solar panel installation business make per month?+
At 40% of capacity, sales are about ₹10.1 lakh a month and operating profit about ₹36,770 before the loan instalment. After an EMI of about ₹16,291, the owner keeps about ₹20,479 a month until the loan is repaid. These are estimates; your prices, rent and sales decide the real figure.
Can I get a Mudra loan or PMEGP subsidy for solar panel installation?+
With a project cost of about ₹9.15 lakh, the bank loan of about ₹8.24 lakh falls under Mudra Tarun. Mudra has no subsidy. As a new unit you may instead apply under PMEGP, where the subsidy is 15–35% of the project cost (up to about ₹3.2 lakh here for a special-category applicant in a rural area). PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.
What licences are required for solar panel installation?+
Mandatory: Vendor registration for the rooftop solar programme, Electrical contractor licence, GST registration, Approved components only, Shop and Establishment registration. Depending on your set-up you may also need: Udyam registration.
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Sources
- Vikram Solar: solar panel installation cost per kW in India 2026
- SurgePV: PM Surya Ghar 2026, subsidy, eligibility and guide for installers
- Credence Solar: solar panel installation cost in India 2026
- Yara Solar: rooftop solar cost in India (2026 guide)
- Udyam Registration
Prices as of October 2026. Prices here come from online listings and published guides and have not yet been confirmed with local suppliers. Profit figures are estimates from the assumptions above, not a promise of income.
Spotted an outdated price? Tell us. Data for this page: HowIndiaEarns.