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How to start a Solar energy business in Nigeria

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For a long time the solar energy industry has proven to be very profitable due to the lack of reliable energy supply in the country. In this article you will be taught how to begin your own solar energy company in Nigeria.

How to start a Solar energy business in Nigeria
How to start a Solar energy business in Nigeria

How do you define solar power?

In accordance with the Solar Energy Industries Association Solar power is energy derived from the sun, which is converted into electrical or thermal energy.

The solar energy source is by far the purest and abundant renewable energy source on the planet. Industries, offices, homes commercial facilities can use this energy to power many purposes.

Is the solar energy industry lucrative in Nigeria?

Yes, it’s. It’s a well-known fact that solar energy companies have a high profit margin in Nigeria because of the unstable power supply that exists within the nation.

In the beginning, it wasn’t so lucrative, as people believed that investing in solar power products was an indulgence that was reserved for the most wealthy.

In fact, a few Nigerians remain in that mindset until today. However , many are now aware about the long-term advantages.

Nowadays, solar energy business are today successful across Nigeria as well. You can earn many money from it.

How do you start a solar power business in Nigeria

Here’s a step-by step guide for starting your own solar energy company:

1. Pick a solar-related business area and concentrate on it

There are four different types you can select from when you start an energy-related business using solar power in Nigeria. The categories are presented below.

  • Manufacturing of inverters as well as additional solar products
  • Selling solar energy items (either via affiliates or a reputable distributor)
  • Installation of inverters as well as various other products for solar power
  • Repair and maintenance of inverters as well as the other components of solar energy
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2. Create your solar energy business in Nigeria

After you’ve done your research and have decided the solar energy venture you’d like to launch You should begin to make plans for how you will start your business.

You can choose to register with a sole proprietorship, or with a limited liability corporation.

If you do not have a registered solar energy company, you aren’t manufacturing (that’s certain). If you choose to get into repairs, sales, or installation it is still necessary to make connections with larger corporations than your own.

In order to do that you must establish your company’s identity to appear more professional and trustworthy. Additionally, customers will be able to have more confidence in you. Inverters cost a large quantity of dollars. Many people have saved money to purchase it for years.

When buyers decide to purchase, set up or fix an inverter,, you cannot expect them to buy from an individual whose company isn’t even licensed.

3. Make a business strategy that will help your solar power company

After deciding on a business type and having it registered then you must then write an outline of your business plan for your solar energy company.

Business plans are a piece of paper that outlines the goals and goals of your company. It will also outline strategies for achieving them.

Not only will this aid you reach the short-term and long-term goals of your company, but it will it will also help you secure agreements with bigger solar energy firms.

Additionally, a business plan can help you convince investors to fund investment capital for your venture.

4. You can get an office space or a physical address for your business.

This isn’t required for affiliate sales and installers. However, manufacturers of inverters or distributors and repairers do not have an option in this.

A majority of the daily activities required for their solar energy business to operate will need to be conducted in a workplace or an office.

5. Advertise your solar energy company and gain your first customers

Once you have made your choice about the physical address of the address The next step to do is start seeking customers.

Be aware that the customers you will have differ based on the kind of solar energy company you begin. Here are some tips to start your journey towards gaining customers.

  • You can do this by telling others about your actions
  • Working in conjunction with solar power companies
  • Through the use of social media advertisements
  • Search ads that are running and aimed at the area in which your business is situated
  • Pay influencers or celebrities to help promote your business
  • Do market research using Google and discover easy methods to attract customers for your specific solar energy company.
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There are a variety of solar energy business models that you can begin in Nigeria

Below are the various kinds of solar energy businesses that you could venture into:

1. Manufacturing of solar energy products

As a producer, you are among the most technological aspect of any company. It is in the middle of the chain. This means you will require significant capital investment, training and a license to begin your solar energy company.

Additionally, being manufacturing means you must maintain strict standards and adhere to the guidelines set by specific regulatory organizations.

Here are some solar energy manufacturing industry regulatory institutions and legislative bodies in Nigeria.

  • The Companies Allied Matters Act (CAMA), 2004
  • The Companies Regulations, 2012
  • Nigerian Electricity Regulation Commission’s Regulations for the Application for License (Generation, Transmission, System Operations, Distribution & Trading), 2010
  • Electric Power Sector Reform Act, 2005

2. Selling solar energy-related products

In this instance you’ll be either the distributor, or an online retailer. The good thing about this type of solar energy business is that it doesn’t need an enormous amount of capital to start, as does manufacturing.

It is enough to go to these businesses and discuss a price with them. After you have reached an agreement and you are ready to start searching for buyers.

If you’re an online retailer, you’ll receive everything you require to succeed, including images and specifications of each solar-powered product.

Then, you can start to recommend the products to prospective buyers. You can also share the products on social media sites and promote them.

If a potential buyer contacts you and offers the payment in part then you place an order through the manufacturing company with whom you have reached an arrangement with.

You’ll sell your product an item to the customer at a set price and then pay the supplier company, while conserving your profits.

If you’re not sure which direction to take or what solar energy business to go to Here are some solar companies to begin with.

  • Astrum Energy Solutions Ltd, Enugu
  • GreenPower Overseas Ltd, Lagos
  • Infinite Solar Solutions Nigeria Ltd, Abuja
  • Luminity Technologies And Gadgets, Lagos
  • Mpower S.E Nig Ltd, Abuja
  • BERSH (Solar House) Ltd, Lagos
  • Haipo Solar, Delta
  • Phlemin Integrated Global Ltd, Lagos
  • Frepower Technologies, Lagos
  • VPS Energy, Lagos
  • GEKEL Integrated Ventures Ltd
  • ICellPower Energy Ltd, Lagos
  • Orgone Technergy Ltd, Kaduna
  • Raph Mart Engineering Services Ltd, Lagos
  • Indra Power NG, Abuja

3. Help customers set up their solar products

There aren’t all solar energy companies that have additional employees who can move from house to home or climb up ladders for each customer.

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That means that the majority of customers of solar products will require assistance from someone to assist them in installing their inverter. Be aware that you must have understanding of electrical wiring and home wiring before you enter into the solar energy industry.

If you’re an electrical engineer who is able to climb up rooftops easily then you’re in good shape. It’s all you need to know the basics of solar inverters as well as other solar products.

After that, get together and negotiate the terms of a contract with vendors for solar products within your city. They will inform you when the buyer purchases an inverter that requires an specialist to set it up.

4. Repair and maintenance of solar energy equipment

Are you thinking the same thing I’m thinking? Electrical (and technology-related products generally) require regular maintenance, have faults develop or become damaged over time.

This type of solar energy business is often neglected in Nigeria. In reality, high-quality inverters will not have issues each day. However, remember that a single repair could bring in a huge revenue to your company.

If you have more than two repairs in the course of a week, you can calculate the amount of profit you will be. Don’t forget that you can also earn profit from a solar power company by helping users keep their batteries in their inverters and refilling.

In order to get into this kind of solar energy-related business in Nigeria it is necessary to have solid technical knowledge. You’ll have to sign up in the workshop of an engineer for inverters and study as a trainee or apprentice.

Note this type of solar energy business requires connections with suppliers and manufacturers. In this way, you could be contacted or suggested to customers who need solar inverter service.

Conclusion

You know everything you need to be aware of about you can start a solar-powered inverter business in Nigeria. We have explained how you can do it in five steps.

A solar energy company is highly lucrative in Nigeria since a lot of people in your situation are making millions of dollars from it. Additionally, you can pick from four different areas of interest making the whole idea seem more intriguing.

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