Starting a solar company is no small feat, but with the right strategy, team, and mindset, you can create a thriving business. Drawing from my experience co-founding a solar business in late 2024, this guide will walk you through how to start a solar company and key lessons learned during our first three months. If you’re thinking about starting a solar company, these tips will help you avoid common pitfalls and build a strong foundation for success.
Our Journey: The Early Days
We launched our solar company in October 2024 with three founders:
- Santiago Correa: Four years of experience in solar sales and installations.
- Dujon Barnett: Five years of expertise in solar installations and maintenance.
- Myself: A web developer and marketer with five years of experience.
At the time, Santiago and Dujon were subcontractors for another solar company, but work was inconsistent, and money was tight. I proposed starting our own business by subcontracting for multiple solar companies. Using Google Maps and Google Sheets, I compiled a list of 40 local solar companies and spent four hours cold-calling them. Some requested a website, so I built one in a day. Within weeks, we secured contracts with two solar companies for maintenance subcontracting. That was the beginning of our journey.
Overcoming Initial Challenges
Our first project was tough. One of our clients primarily required solar pool heater maintenance, an area we had little experience in. We quickly adapted by downloading materials, watching YouTube tutorials, and learning on the job. The first three weeks were chaotic, and failure felt imminent at times. However, persistence and teamwork pulled us through, and we came out stronger and more knowledgeable about the industry.
Key Lessons for Starting a Solar Company
1. Keep Expenses Low
One of the biggest advantages of starting small is the ability to maintain low overhead. Avoid taking on unnecessary expenses like additional vehicles, employees, or office space until absolutely necessary.
We learned this the hard way by hiring too many people too soon. Fortunately, the extra hires either didn’t show up or left shortly after, allowing us to realize that our core team of three field workers and one marketer was enough. Keeping lean operations gave us the flexibility to weather bad weeks and still stay profitable.
2. Choose Business Partners Carefully
The right team can make or break your business. Early on, we brought on a partner who specialized in solar pool systems. It seemed like a great fit until they failed to show up on our first day. Their lack of commitment and other red flags made it clear that they weren’t a good match.
In contrast, our current team works seamlessly:
- Santiago: Smart, dedicated, and excellent with clients.
- Dujon: Hardworking and reliable, always putting in his best effort.
- Mitchel: Our employee, consistently punctual and diligent.
Choose partners and team members who complement your strengths, share your work ethic, and are genuinely good people.
3. Budget Wisely
When running a business, especially one with employees, budgeting becomes critical. Here’s what worked for us:
- Prioritize Essentials: Invest in functional, affordable tools and vehicles. A reliable $10,000 truck beats a $50,000 one if it strains your budget.
- Save for Taxes and Emergencies: Allocate money for taxes, unforeseen expenses, and slow periods.
- Avoid Unnecessary Spending: Focus on growth essentials instead of flashy purchases.
Financial discipline ensures you can cover expenses, save for the future, and provide stability for your team.
Building for the Future
Three months in, our solar company is steadily growing. We’ve learned how to adapt to challenges, manage resources effectively, and build a team that works well together. Starting a solar business isn’t easy, but with careful planning and determination, it’s possible to create something sustainable and profitable.
Final Thoughts on How to Start a Solar Company
If you’re considering starting a solar company, focus on building a strong foundation:
- Start small and keep costs low.
- Assemble a reliable team.
- Manage your finances responsibly.
The solar industry has enormous potential, and with the right approach, you can carve out a successful niche. Whether you’re subcontracting or targeting residential customers directly, success comes from planning, adaptability, and hard work.
Take it one step at a time, and you’ll be amazed at what you can achieve.
