solar farm business plan

Solar Farm Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their solar farm business. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a solar farm business plan step-by-step so you can create your plan today.

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What is a Solar Farm Business Plan?

A business plan provides a snapshot of your solar farm business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Solar Farm

If you’re looking to start a solar farm, or grow your existing solar farms, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your solar farms in order to improve your chances of success. Your solar farm business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Solar Farms

With regards to funding, the main sources of funding for a solar farms are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a solar energy farm business.

The second most common form of funding for a solar farms is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will not fund a solar farms. They might consider funding a solar farms company with a locations across the country, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could never achieve such results.

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How to write a business plan for a solar farm.

Your business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your solar farm business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the type of solar farms you are operating and the status; for example, are you a startup, do you have an existing solar farms that you would like to grow, or are you operating a network of solar farms?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the solar energy industry. Discuss the type of solar farms you are running. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing strategy. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of solar farms you are running.

For example, you might operate one of the following types:

Crystalline Silicon Power Plant: this type of solar farms uses Crystalline Silicon PV technology.
Thin-Film Solar Power Plant: this type of solar farms uses cadmium telluride (CdTe) solar panels.

In addition to explaining the type of solar farms you operate, the Company Analysis section of your business plan needs to provide background on the solar farm business.

Include answers to question such as:

When and why did you start the solar farm business?
What milestones have you achieved to date? Milestones could include sales goals you’ve reached, number of new attractions, etc.
Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the solar energy industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the solar energy industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies industry trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the market analysis section:

How big is the solar farms industry (in dollars)?
Is the market declining or increasing?
Who are the key competitors in the market?
Who are the key suppliers in the market?
What trends are affecting the industry?
What is the industry’s growth forecast over the next 5 – 10 years?
What is the relevant market size? That is, how big is the potential market for your solar farms service. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your solar energy business plan must detail the customers you serve and/or expect to serve.

These are the main customers for the industry: Solar Power Utilities, and Federal Government.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of solar farms you operate. Clearly, commercial utilities would want different products and services, and would respond to different marketing tactics than government entities.

Try to break out your target market in terms of their location, and their wants and needs. With regards to location, include a discussion of the demand for solar energy for utilities’ renewable power portfolio standards. Because most solar farms primarily serve customers living in their same region, such information is usually available on local or county government websites.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your solar farm business faces and then focus on the latter.

Direct competitors are other solar farms projects.

Indirect competitors are other options customers may use that aren’t direct competitors. This includes traditional energy suppliers, other alternative energy providers, and other power plant contractors, such as fossil fuel and other renewable energy power plant contractors. You need to mention such competition to show you understand that not all energy needs will be met by a solar farms.

With regards to direct competition, you want to detail the other solar farms with which you compete. Most likely, your direct competitors will be solar farms located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

What types of customers do they serve?
What types of renewable energy technology do they use?
What is their pricing (premium, low, etc.)?
What are they good at?
What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

Will you use cutting-edge solar technologies?
Will you provide options or automations that your competitors don’t offer?
Will you make it easier or faster for customers to engage your services?
Will you provide better customer service?
Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a solar farm business plan, your marketing plan should include the following:

Product: in the product section you should reiterate the type of solar farms that you documented in your Company Analysis. Then, detail the specific services you will be offering.

Price: Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place: Place refers to the location of your solar farms. Document your location and mention how the location will impact your success. For example, is your solar farms located in a high-sunlight exposure area, or in a desert, etc. Discuss how your location might allow you to serve a greater volume of customers.

Promotions: the final part of your solar farms marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

Advertising in trade magazines
Attending trade shows
Attending networking events
Joining local organizations

Operations Plan

While the earlier sections of your solar energy business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your solar farms, such as researching and writing grants, maintaining solar panels, staying abreast of new technology developments, processing paperwork, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sign your 100 th contract, or when you hope to reach $X in sales. It could also be when you expect to purchase additional solar panels, or when you expect to launch a new solar farm location.

Management Team

To demonstrate your solar farms’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in renewable energy or in power generation. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in renewable energy and/or successfully running small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $1,000,000 on building out your solar farms, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $1,000,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a solar farms business:

Location build-out including design fees, construction, etc.
Cost of equipment
Payroll or salaries paid to staff
Business and liability insurance
Taxes and permits
Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your solar farm design blueprint or location lease.

Putting together a business plan for your solar farms company is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the solar farm industry, your competition and your potential customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful solar farms.

Solar Farm Business Plan FAQs

What is the easiest way to complete my solar farm business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Solar Farm Business Plan.

What Is the Goal of a Business Plan's Executive Summary?

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How to Start a Solar Farm Business in (2024): Step-by-Step Guide

Free Solar Farm Business Plan Template

Vinay Kevadia
January 3, 2024

10 Min Read

Startup costs: $829,000-$1.54 million
Industry trend: Emerging
Difficulty: High
Profitability: 5-30%
Time to build: 1-5 years
Commitment: Full-time

Introduction

The businesses worldwide are tapping into the clean energy markets and if you are someone looking for an exciting opportunity, solar farms are a perfect choice for you.

Over the past few years, the size of solar markets has grown faster than other energy sources. These businesses offer an excellent ROI and minimum maintenance once it’s all set to run.

Now, setting up a solar farm requires consideration of varying aspects such as location, licenses, marketing, equipment, and installation- the details that we will cover in the following blog.

Ready to dive in? Let’s get you answers to how to start a solar farm in clearly detailed steps.

How much money do you need to start a Solar Farm?

The average cost of starting solar farms in the US varies between $829,000-$1.54 million and more . These costs are heavily influenced by multiple factors such as costs, the amount of solar energy generated, the type of solar panels installed, and the grants received.

How profitable are Renewable Energy Solar Farms?

Absolutely, solar farms are profitable.

The largest and most consistent form of earnings for their solar panels business is through PPA (power purchase agreement).

Solar farms earn approximately $24 per MW by supplying power-generated solar energy to wholesale businesses. Moreover, these farms can get a solar investment tax credit of 30% against their cost to develop technologies.

Solar Farm Industry Highlights and Trends

The renewable energy sector is the most rewarding segment in the current marketplace. However, if you are starting a solar venture, here are a few highlights and trends from the industry you must consider:

Superior energy source: In comparison with other energy sources, solar farms have demonstrated the fastest growth rate in the energy sector making it a dominant player.
The growing prominence: According to SEIA , the solar industry will add 32 GW of new capacity by 2023 bringing a 52% increment in total energy capacity from 2022.
Affordable installation: The cost of solar installation has reduced drastically over the past few years owing to terrific innovations in the technology.
Solar panels optimization: After a solar panel reaches the end of its life, nearly 90-97% of materials can be recycled and reused for further use in other industries.
Global growth rate: Between 2023-2028, the global solar farm market is expected to grow at a CAGR of 18.5%.
Community solar farm: The small but promising community solar market offers exciting opportunities for small-scale entrepreneurs wanting to venture into this field. By 2030, CCSA targets generating 30 GW of community solar power.

Indeed, the field of solar enterprise is promising. However, let’s have a quick look at its cons as well.

Pros and Cons of Starting a Solar Farm

Wondering about the solar farm business benefits for your new project? Well, there are pros as well as cons to starting a farm business. Let’s quickly analyze the few.

Recurring revenue: Long-term regular income through power purchase agreements (PPA).
Low operating costs: The maintenance and operational costs are pretty low.
Incentives and schemes: Variety of government schemes in the solar farm sector.
High startup costs: The initial solar farm costs are extremely high-ranging up to millions.
Competition: Saturated with large-scale solar development ventures.
Regulatory challenges: A large number of government compliances and rules.

Now that you know the pros and cons of solar farms, let’s move further and decode a guide to starting a successful solar farm.

How to Start a Solar Farm: A Complete Guide

The solar farm industry is growing at a phenomenal rate with thousands of solar farms opening every year. This step-by-step guide will detail every process essential in setting up your own solar panel farm.

Table of Contents

Select a Solar Farm Business Type
Assess Your Competition and Target Market
Choose a Business Name
Prepare a Solar Farm Business Plan
Find a Suitable Location for Your Farm
Register Your Solar Farm
Obtain Necessary Licenses and Permits
Get Business Insurance
Get Necessary Equipment
Build a Team
Market and Launch Your Solar Farm

1. Select a Solar Farm Business Type

As the first step, determine the type of solar farm you want to start. The type of solar farm will dictate the requirement for licenses, location, equipment, and investment.

Usually, one of these two categories of solar farms exists in the solar industry:

Utility-scale Solar Farms

These solar power plants serve the wholesale utility companies which eventually sell the generated electricity to commercial, residential, and industrial customers.

The power generation at these solar power projects is extremely high producing at least 1 megawatt of electricity.

You will obviously need large solar panels installed, many acres of land, high voltage power lines, and investment to start utility-scale solar farms.

Community Solar Farms:

Also known as rooftop solar gardens or roofless solar, community solar farm eliminates the need to install solar panels on individual roofs. They resemble utility power plants, however, they are much smaller in size.

Community solar farms earn their revenue by leasing a part of their solar farm to individual buyers or offering subscription services to the community.

These solar farms are very popular in the solar industry. They supply energy to individual buyers in the form of electricity who are happier with a reduced electricity bill.

Community solar farms differ from the earlier one in terms of costs, complexity, and the target market.

Now, make your choice between utility and community solar farms before diving deep into the study of market research and analysis.

2. Assess Your Competition and Target Market

Create a solid foundation for your solar panel business by gathering extensive details on the solar industry, renewable energy segment, and your target market.

Good quality market research helps assess the target audience, competition, and emerging market trends to help you set up a well-proofed solar farm.

Try answering the following questions to form a comprehensive research:

Who will be your target audience? Will you serve some utility company, a specific energy industry, or residential households?
Who are your competitors? Identify the other solar farm businesses catering to your audience.
How much farmland will your idea require?
What is the cost of solar panels per acre?
How much investment is required to set up a farm and what is the ROI on solar farms?

This process will provide you with the innate understanding required to set up your solar power plant.

3. Choose a Business Name

Finalizing a business name is an equally important part of setting up your own solar farm. Pick a unique name that resonates with your solar business and get it registered with the state.

Ensure that the name is available in the domain selection and choose a DBA (doing business as) name.

Want a Unique Name for your Solar Farm?

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4. Prepare a Solar Farm Business Plan

A business plan is a must whether you plan to start a small community farm or a utility-scale solar project.

A comprehensive actionable plan includes detailed documentation of the following:

Executive Summary
Company Overview
Industry and market analysis
Products and services
Operations plan
Key management team
Marketing and sales plan
Financial plan

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5. Find a Suitable Location for Your Farm

The location is very important for solar farms to operate successfully. Start looking for agricultural or industrial land suitable for solar farms. The acreage of land depends on the scale of your operations.

A solar venture will require a minimum of 15-20 acres of land to build solar panels to generate solar energy. However, you can also buy a small portion of land on an existing farm to set up your community solar panels.

At this stage, you need to analyze the following aspects to source your ideal location:

Purchasing or renting the land for a solar panel farm.
Solar energy generation of your photovoltaic power stations.
Lease rental agreement- minimum of 50 years advisable

6. Register Your Solar Farm

Consult a tax specialist to determine the right form of business structure for solar farms. Ideally, LLC, partnership, or corporation are suitable entity forms for solar energy projects.

At this stage, also acquire the EIN number of your own solar energy business.

7. Obtain Necessary Licenses and Permits

Ensure further compliance by acquiring essential licenses and permits for your solar panel farms.

Here is a quick checklist of licenses you need to apply for:

Local and state licenses
Environmental permits
Electrical permits
Grading and excavation permits
Land zoning permits

Now, depending on your particular project and the state guidelines, you may require special permits.

For instance, you will require an interconnection agreement with the utility company, if the solar power plant will connect to a local power grid.

8. Get Business Insurance

While we are discussing compliance, also acquire

solar company insurance for solar farms. A variety of risks and casualties engulf the renewable energy business.

Apart from the general liability insurance, consider getting an umbrella insurance to offer coverage against property, assets, and equipment damage in case of casualties and accidents.

9. Get Necessary Equipment

Make a list of solar equipment and solar facilities you will require to generate concentrated solar power in your solar farms:

Solar arrays/ Solar panels
Solar power grid
Energy storage equipment
Photovoltaic power structures (mounting structures)
Metering and monitoring equipment
Power output equipment
Solar technologies

The solar farm installation costs are quite high. However, you need professional help to undertake solar panel construction and make solar installations at your solar farms.

10. Build a Team

From solar installations to fitting power lines and solar panels construction; a lot needs to be done to set up an energy-producing solar plant. Build a team to look after the operations and construction at your solar farms.

Map out your hiring plan after considering the following positions:

Solar developers
Project managers
Technicians
Site inspectors
Data analysts
Administrative Staff

The need for employees varies depending on whether you plan to start a utility-scale solar farm or a community solar panels venture. Make your hiring plans accordingly.

11. Market and Launch Your Solar Farm

The millions on your solar farm investment can be realized only when you establish yourself as a solid brand in the market. Prepare the marketing plan for your utility-scale solar business covering the key aspects:

Sales strategy for your solar project
Website marketing
Print release
Local media coverage
Newsletters
Social media marketing

Identify the prevalent marketing practices of other solar farm developers and continue to experiment with different marketing mixes.

All ready to reach the skies with the success of your solar farms? Now, let’s take the first step and write a stellar business plan for your solar farm business.

An actionable plan will offer a roadmap to set up a successful business and will ensure that every aspect of the business is addressed appropriately.

Now download the Upmetrics sample solar farm business plan and use it as a reference point to build your business.

The Quickest Way to turn a Business Idea into a Business Plan

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Frequently Asked Questions

How much land do you need for a 1mw solar farm.

Research and studies indicate that a total of 6-8 acres of land is required to build a fully sustainable solar panel farm. This is to accommodate the farm with essential infrastructure and solar panels to generate solar power and electricity.

How long does it take to build a solar farm?

Depending on the complexity and size of your solar project, it can take anywhere between 18-60 months to build a solar project. Once the planning is perfected, the development takes around a year to complete.

What kind of maintenance is required for a solar farm?

Solar farms require very little maintenance since the solar panels are made of highly durable materials requiring minimum maintenance. However, regular cleaning and upkeep of inverters, pest control, weatherproofing, and electrical inspection will ensure minimum breakdowns in the long run.

What type of land is best suited for a solar farm?

Large open agricultural and industrial land with minimum vegetation and direct sun exposure are ideal for solar farms. Moreover, you will need a long stretch of land, a minimum of 6-8 acres to set up solar panels.

Can I build a solar farm on agricultural land?

Yes, you can. However, you need to pass a couple of environmental and zoning regulations to legally set up a compliant farm. Consult the experts to determine the suitability of the land.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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How to Start a Solar Farm Business

The solar industry experienced exponential growth during the last decade, making solar energy more affordable and increasing overall demand. As energy companies push to increase their investments in renewable energy, landowners face a unique business opportunity. Solar farms, also known as photovoltaic power stations, are large plots of land with rows of solar panels installed in a grid system. Land owners then sell the solar energy they generated back to the utility grid.

Learn how to start your own Solar Farm Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a solar farm business by following these 10 steps:

Plan your Solar Farm Business
Form your Solar Farm Business into a Legal Entity
Register your Solar Farm Business for Taxes
Open a Business Bank Account & Credit Card
Set up Accounting for your Solar Farm Business
Get the Necessary Permits & Licenses for your Solar Farm Business
Get Solar Farm Business Insurance
Define your Solar Farm Business Brand
Create your Solar Farm Business Website
Set up your Business Phone System

We have put together this simple guide to starting your solar farm business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

What are the startup and ongoing costs?
Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Business Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

Your state's business records
Federal and state trademark records
Social media platforms
Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your solar farm business?

Business name generator, what are the costs involved in opening a solar farm business.

Landowners should consider a number of factors when launching a solar farming business. You will need to gain permission from the local utility company to connect and run your solar project in parallel with the utility grid. The cost to gain permission to interconnect can run up to $30,000 in some states.

On a large scale, your solar farm should be a minimum of one megawatt — enough to supply energy to approximately 200 households. Installation costs for a one-megawatt farm typically total about $1 million. This includes land, solar equipment, office setup, payroll, and marketing.

For solar farmers with less start-up capital, leasing the land to a utility company is a more affordable option. The utility company you partner with pays the cost of installation and maintenance of the panels. While the profits are significantly lower with this option, so too are the initial expenses.

What are the ongoing expenses for a solar farm business?

Ongoing expenses for your solar farm include your mortgage, insurance, property taxes, licensing, and attorney and financial advisor fees. Those offering additional services beyond land leasing also must consider payroll costs, higher insurance expenses, travel costs, and continuing education fees.

Who is the target market?

It’s a common misconception that only utility companies require the services of solar farms. If you don’t want to lease your land to a utility company, consider approaching these other types of organizations:

Financial institutions
Manufacturers and distributors
Blue chip companies
Real estate developers and contractors
Public works departments
Sports facilities
Television stations

How does a solar farm business make money?

The most effective way to make money is by leasing the land to a utility company. They pay you an annual lease payment in exchange for the use of your land — for an agreed upon period of time.

A number of factors will influence the lease rate your land can yield, including its size and quality as well as market demand and local land prices. On average, farms yield between $500 and $800 per acre per month.

How much profit can a solar farm business make?

If your 100-acre land lease yields $700 per acre per month, your solar farm could yield $840,000 in annual revenue.

How can you make your business more profitable?

Solar farm business owners seeking to boost their profitability should consider using their annual profits to buy additional land. Continuing education and the proper certifications also could help a business owner expand their services, making them more valuable to current and potential clients.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your solar farm business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

Separates your personal assets from your company's assets, which is necessary for personal asset protection.
Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

Separate personal and business expenses by putting your business' expenses all in one place.
Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate an Solar Farm Business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a solar farm business

Solar farmers should proactively target potential clients with printed materials that outline the services they offer. They also should place ads in relevant online and print publications as well as maintain a strong social media presence to effectively spread the word about their business. Additionally, solar farm owners should consider attending local and international conventions, expos, and business fairs.

How to keep customers coming back

It’s always important to remember that word of mouth is your most valuable marketing tool. One angry customer, however, can cause cracks in the very foundation of your business. Prompt project bids, project installation, maintenance, and repair are critical to your business’ success.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

The ideal solar farmer owns a plot of land — preferably 25 acres or more. That land must receive plenty of sunlight, have stable soil, and possess the necessary infrastructure to connect the farm to the utility grid. Leasing land to an energy company is perfect for landowners seeking guaranteed income. This also ensures the maintenance of the property so a landowner can pass it on for generations.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a solar farm business?

After setup, a solar farm requires little work on your part. The utility company to which you lease the land will require full access to the property through a dedicated access road so its employees and construction crews may enter on an as-needed basis. Your role involves ensuring the land remains mowed and clean of debris. You also must maintain the fencing around your property to prevent wild animals and trespassers from entering.

What are some skills and experiences that will help you build a successful solar farm business?

What are some skills and experiences that will help you build a successful solar farm?

Utility workers will install and maintain the solar panels on your farm. You must only supply the land and possess basic negotiation skills to enter into a profitable lease agreement. A business background also would prove beneficial for farmers seeking significant long-term growth and expansion.

Solar farmers who wish to take a more hands-on approach will need to obtain the proper professional certifications. The North American Board of Certified Energy Practitioners® (NABCEP® ) and the Solar Energy Industries Association® (SEIA) are both excellent resources for farmers planning to install, maintain, and repair their farm’s solar panels.

What is the growth potential for a solar farm business?

The solar industry is expected to experience record growth in the next decade, offering significant profits for landowners. Farm owners looking to expand their businesses and increase profits need only invest in additional land that meets the criteria set by utility companies.

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For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a solar farm business?

Carefully consider all your options. Learn the risks and anticipate the challenges you may face along the way. Before entering into a lease agreement, have a professional review all the documents to ensure you understand what’s expected from you and what insurance coverage you’ll need.

How and when to build a team

The level of support you require will depend on the scope of your business. Landowners who lease their land will need little more than the guidance of an attorney and a financial advisor.

Solar farmers installing their own panels or offering services to community members will need a much larger support team, including mechanical and/or electrical engineers with the proper certifications, an accountant, an attorney, and administrative staff. Because your team members must interact and consult with clients, they should possess strong interpersonal and communication skills.

Useful Links

Real world examples.

Innovative Solar Systems
Origis Energy

Additional Sources

Solar Farm Supplier: Harvest Solar

Have a Question? Leave a Comment!

Knowledge Base

13 thing to consider when writing a business plan for a solar farm 2.

Solar farms are the energy source of the future. According to research , the solar energy market is expected to more than double by 2024. Turning your solar farm business idea into reality will demand a plan that portrays and explains your vision and mission. That formal document is known as a business plan. All you need to do is learn how to write one.

A well-written business plan can benefit you in several ways. You’ll prove that you have thought out this idea down to every detail, show how the idea can be realized, and attract investors. So, if you want to build a strong foundation for the realization of your solar farm business, you’ll need to dedicate yourself to writing a spotless business plan. Luckily, we’ve got you covered.

Here are the 13 crucial things you should take into account when writing a business plan for a solar farm.

The Language of your Business Plan

As a formal document, a business plan needs to be clear, focused, and relevant. You’ll need to set and use appropriate language and tone throughout the entire document.

That means you’ll need to apply these simple rules:

use ordinary, everyday language
don’t use jargon
avoid overly technical terminology
don’t use poetic language
be straightforward

To put it simply, you should opt for simple and inviting language. For example:

Our business goal is to become one of the top solar farms in the United States. Our plans include collaboration with leading solar panel manufacturing companies that will help us comply with the high standards of the leaders in the solar industry.

The Length

There is no strict rule on how long the business plan should be. It all depends on your intent.

The length can vary from a single page to a multi-page document. Adapt the content to the purpose.

For example, venture capitalists will probably expect a detailed plan. However, if you want to start with an outline and make updates regularly as you come to an agreement with the other party, a lean plan will suffice.

Therefore, don’t feel obliged to fill the pages with words if your entire plan can fit on just a couple of pages. Instead, focus on value and information, and make sure every word you include in your business plan counts.

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Executive summary

Now, we can discuss the actual elements and sections of your business plan. The first one is your executive summary.

As you may have guessed, this section needs to summarize the key points of your business plan. The executive summary should lead the investors (for example) into the story, and make them interested in reading the whole document.

Concisely explain:

your reasons for creating the plan
what makes you the right business for investment, collaboration, etc.
why are you so passionate about this plan?
what makes you think it will be a huge success?

If you plan to present the business plan to different readers (e.g. investors, bankers, or customers) adapt the summary to their interest in your business. The executive summary should clarify why reading your plan is worthy of their time.

If you nail this section, you’ll up your chances for sealing the deal.

Products and services

After you finish introducing yourself and your business, you should move on to the actual products and services that your solar farm is going to offer.

Write down what you offer and how your products and services align with your goals. You should be very specific about:

the amount of energy your solar farm will produce (monthly, yearly, etc.)
the number you plan to reach with the growth of your solar farm
your ideas on the expansion of your products and services
your expectations for returning the investment

You can also portray your products’ reliability and efficiency by comparing the costs of traditional energy producers with your solution. Or, you could differentiate your products from what other renewable energy producers offer.

Make sure that you list everything your business will provide. For example:

supply of power
solar panel installation
solar panel repair and maintenance

The more details you provide, the more professional you’ll come across as. They need to see you’ve thought this through to the smallest details, and you’ll leave nothing unplanned.

Market analysis of Your Solar Farm

Another thing that potential investors or partners will want to know is whether or not there’s a need for a solar farm on the market you’re targeting. That means that you should add proof that you’ve done a thorough market analysis.

To achieve that, you’ll need to elaborate on the main factors of the market you’ve analyzed:

industry analysis
predictions for the renewable energy sector
demand for your services (customers’ needs and requirements)
for whom your solar farm will generate electricity (e.g. government entities, individual customers, organizations, etc.)
3rd-party analysis of your solar farm’s potential

Show them that you know the market well enough and you’ve gathered the data necessary for making an appearance on it.

Without this data, your business plan may seem like just another shot in the dark.

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Competitors

A marketing plan depends largely on the competition you have on the target market. And, without analyzing the competitors, you won’t be able to predict the potential success of your business plan.

That means you need to provide an analysis of your competitors. That includes reflecting on your unique value proposition. In this section, you should form the advantages of your solar farm in two aspects:

how your business will stand out among competitive solar farms, large hydroelectric utilities, or wind turbine farms
how your solar farm will gain market share from traditional well-established energy suppliers?

Cover your strategy to stand out, offer something new, and get the attention of the people your business will depend on. You need to show you understand the current trends and competitors on the market and have a clear idea of how to deal with them.

Target Customers

Next, you’ll need to elaborate more on the specific target group of people or businesses that you’ll try to win over. You need to show you’ve analyzed them and gathered enough information that will help you understand their needs.

So, in this section, you’ll need to define your target customers. You could divide them into several different target groups such as:

government entities
large businesses
enterprises
individual customers

For example, you can share that you’ll engage in a direct marketing approach and offer different packages to different clients that suit their budget, industry, and demand.

Make sure to show you’re ready to take on any target group and have specific strategies to reach their attention and offer them exactly what they need.

It’s impossible to launch and maintain a solar farm on our own. You’ll need to surround yourself with professionals who’ll make a great team and help you make this business plan a success.

Make sure to include them in your business plan.

Write about your organizational structure and list the following:

key employees
their responsibilities
the hierarchy of management
team organization
specific tasks they’ll cover

It would be a great addition to this business plan if you already had specific people in mind for different positions in your team. If so, make sure to include concise, professional biographies of key personnel to prove their expertise in that field.

This will give additional points to your plan and make it seem much more professional.

Describing your objectives and milestones will prove that you don’t only have a vision – you have a thought out plan. Create a roadmap that showcases your targets as well as approximate deadlines.

That means you should further elaborate n:

phases of your plan’s development (preparation, realization, assessments, et.)
details and timeframes for each of the phases
steps you plan on taking to achieve different goals you’ve set

If you’ve already covered some relevant steps such as obtained certification with the North American Board of Certified Energy Practitioners , list that as well. The readers of the business plan should be aware of your accomplished milestones.

Financial plan

Every business plan needs to cover the budget. You have to show that you’ve got the numbers for your solar farm figured out, and you’ve calculated all the details for your financial plan.

Here’s what you need to show:

cost analysis and profitability plan need to show that your solar farm is a worthy investment
considering that a solar farm asks for significant upfront costs, justify those costs
calculate how much time you’ll need to get to a point of investment return
calculate how your income will grow over time
list potential funding sources like government grants or bank loans

Explain your plan for a cost structure that will lead to a positive cash flow. Also, specify how the solar farm will be financed before it starts bringing income.

Your financial plan will be the most interesting point for some people, so make sure you show your professional side in this section.

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Include Solid Proofs

Everything that you cover in your business plan needs to be supported with solid proof. You can’t just ask the investors to trust you for it. You need to show them you’ve done your homework.

Therefore, make sure to include:

case studies
market research studies

Show credible data that you used to construct your plan and make sure that it comes from trustworthy and reliable sources.

This way, your business plan will be solid and effective. It will show your professionalism and will give you the integrity you need.

Finally, you have to make sure your business plan is accurately written and 100% polished. You don’t want to allow any mistakes to find their way into your final version of the business plan.

This is important because potential investors, partners, or any other professional involved in this process will be disappointed to see:

a grammar mistake
weak punctuation
spelling errors

Therefore, make sure to edit and proofread the plan before you finalize it.

You can even hire professional editors or writers from writing services such as TrustMyPaper and TopEssayWriting to help you out. They’ll spot and correct any type of mistake, inconsistency, or confusion.

Don’t settle for anything less than perfect.

Concluding Thoughts

Even though the business plan needs to be modified to your specific needs, the above-mentioned insights will push you in the right direction. Take your time to craft a business plan that will present your solar farm in the best light.

Bear in mind that a business plan can be a live document. It can be changed and rearranged for different purposes. Therefore, always make sure that the plan you write will resonate with the people who’ll read it.

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COMMENTS

Solar Farm Business Plan Template [Updated 2024]
What is a Solar Farm Business Plan? A business plan provides a snapshot of your solar farm business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans. Why You Need a Business Plan for a Solar Farm
Solar Farm Business Plan Template (2024)
Written by Dave Lavinsky. Solar Farm Business Plan. You’ve come to the right place to create your Solar Farm business plan. We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their solar farms.
Solar Farm Business Plan
Use this solar farm business plan template when starting a solar energy farm. This document gives an overview of your current business and your growth plans for the future. Our free business plan sample will help you set out your goals for your solar farm and the strategies you’ll use to meet those expectations. . 1.
Solar Farm Business Plan: Guide & Template (2024)
If you are planning to start a new solar farm or energy business, the first thing you will need is a business plan. Use our sample Solar Farm Business Plan created using Upmetrics business plan software to start writing your business plan in no time.
How to Write a Business Plan for a Solar Farm
How to Write a Business Plan for a Solar Farm. Hugo Britt. 2/3/2022 | 5 min read. Subscribe. Writing a business plan forces solar farm operators to focus on the details of the business, understand the risks, and establish a roadmap for future growth. It can also be used to attract and secure funding. The document should include the usual ...
How to Start a Solar Farm Business in (2024): Step-by-Step Guide
Free Solar Farm Business Plan Template. Download Template. Vinay Kevadia. January 3, 2024. 10 Min Read. Fast Facts. Startup costs: $829,000-$1.54 million. Industry trend: Emerging. Difficulty: High. Profitability: 5-30% Time to build: 1-5 years. Commitment: Full-time. Introduction.
How to Start a Solar Farm Business
Start a solar farm business by following these 10 steps: Plan your Solar Farm Business. Form your Solar Farm Business into a Legal Entity. Register your Solar Farm Business for Taxes. Open a Business Bank Account & Credit Card. Set up Accounting for your Solar Farm Business. Get the Necessary Permits & Licenses for your Solar Farm Business.
13 Thing to Consider When Writing a Business Plan for a Solar
Solar farms are the energy source of the future. According to research, the solar energy market is expected to more than double by 2024. Turning your solar farm business idea into reality will demand a plan that portrays and explains your vision and mission. That formal document is known as a business plan.