How to Start a Solar Energy Business (cost effectively)

We are at the dawn of a solar revolution in the United States. Every aspect of the solar industry is experiencing explosive growth. Triple digit expansion in solar photovoltaic cell manufacturing, to the need for solar sales associates, to the huge demand for solar system installers. Opportunities abound everywhere. The renting of a solar energy system for your home is a new, attractive twist to the idea of switching to renewable energy. With the adoption of a leasing or rental model for residential solar electric systems, an average homeowner can now go green at home as well as build a part-time, solar energy business. The following article outlines the step by step requirements needed to start solar energy business cost effectively.
solar energy now




Step 1 – Understa
nding the Solar Energy Business

Environmental entrepreneurs are charged with connecting with homeowners, educating them related to their alternative energy options, and providing them with the option to rent a solar electric system. By starting a solar energy business, a person becomes a solar energy consultant, making it possible for homeowners to adopt solar (PV) technology in a simple, investment-free way. No other solar rental program makes it so easy.

This type of renewable energy business entails no up-front fees to get involved but there are time investments related to educating yourself and in turn educating the American homeowner about residential solar electric systems. The rental of solar equipment is just getting started with much adoption and growth expected. Solar energy is now cost competitive with the utility prices and homeowners no longer have to make an upfront investment to switch to solar power. They can simply rent a system and perhaps build a solar energy business on the side.

To start a solar energy business, a person does not need to be a college graduate or a seasoned sales executive. All that is needed is the desire to make a difference and share the belief with others that solar power will make that difference.

Step 2 – Structuring of Your Solar Business

As a solar energy consultant, you are trained and supported by an experienced sales manager. The sales manager will support you in your initial days of solar energy industry education, sales cycle management, and how to effectively use the free sales tools. As you progress and begin to desire more responsibility, you can become a sales manager yourself by beginning to build your own marketing team.

Step 3 – Registering and Completing the Solar Energy Training

Registering online is just the first step to working towards managing your own solar energy business. Training is the second required step in the process. This small business opportunity demands detailed knowledge of the solar energy industry.

You do not need to become an electrician or solar energy system installer but you should work to understand the difference between fossil fuels and renewable fuels, to understand how the electricity grid works, and to understand how residential solar energy works. You must be properly trained in solar energy topics and related technology so that you have the confidence to pass on this knowledge.

Training tools are available to assist you with the required testing. Training tools, testing, and ongoing support is all free. It is also important to continually build your knowledge of the renewable energy industry. This solar energy business requires no investment on your part but it does stress training and the use of training tools because accurate knowledge breaks down barriers.

Step 4 – Receiving Solar Energy Business Support

This solar energy business is centered upon ongoing support and growth. It is necessary for solar energy consultants to process solar system sales or referrals. There are free sales cycle management (CRM) tools included with this business opportunity. The sales aids make it very simple to complete the processing and help homeowners to rental a solar energy system.

These tools are provided to help build your solar energy business:

* One-on-one training from your sales manager,
* Training resources, books, brochures,
* Internal and external corporate websites,
* Help desk and knowledge base (both support and training),
* and much more.

The solar energy business explained here has a great mission. Its grassroots goal is to spread the use of clean, renewable solar electric power as simply and as rapidly as possible. This opportunity has eliminated as many obstacles as possible to both the rental of solar electric systems for home owners as well as to entrepreneurs wishing to start a solar energy business.

The overall job of a solar energy consultant is to become ambassadors for positive change in the World of renewable solar energy. Solar energy is vital to the U.S. economy, energy security, and the environment. There is a simple choice to do the right thing. By helping America to rethink solar electric powerBusiness Management Articles, you can start your own solar energy business in a very cost effective way.

Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHOR

At Solargies (Solar Energies), our objective is to spread the adoption of renewable solar energy as rapidly as possible. Daniel Stouffer is writer and promoter of green energy. Learn about Renting a Solar Energy system at http://www.Solargies.com

great movie - solar energy breaktrough

This movie present new technological advances of Israeli scientists,working on solar energy power production. They present new kind of panel and a sophisticated method to generate energy. Israel is one of the leading companies of solar energy technologies, but the government failed to hold these technology innovations and use it to their own purposes.
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Israel should use the great skills of its scientists and lead the world forward toward a better solar future.

Six Easy Steps to Estimate Cost of a Solar Power System

Author: Cooler Planet

Solar power energy systems are not inexpensive. That said it's important to compare them within context of other types of home improvement projects. Home buyers and realtors view a solar photovoltaic or solar hot water heating system as a significant


Six Easy Steps To Estimate Cost of a Solar Power System

Solar power energy systems are not inexpensive. That said it's important to compare them within context of other types of home improvement projects. Home buyers and realtors view a solar photovoltaic or solar hot water heating system as a significant value-added improvement – similar to adding a deck or remodeling your kitchen. Plus unlike a deck or kitchen remodel, you also gain one-up on your power bills.

Solar power systems often get an additional financial boost as well: many jurisdictions and utilities across the USA offer attractive financial incentives to drive down the upfront capital costs associated with a solar power system.

Here are some foolproof ways to estimate the cost of a solar photovoltaic or solar thermal system and to figure out if a solar energy system makes sense for you. Let's start with a home photovoltaic (PV) system.

Step 1: Estimate your home's electricity needs

To get started, it's good to have a sense of how much electricity you use. You'll have a better point for comparison if you find out how many kilowatt hours (kWh) you use per day, per month, per year. Your utility bill should include that information.

Of course, the utility bill will also display your costs and many utilities include a graph that displays how your monthly energy use/cost varies throughout the year. That helps you estimate where your highest energy use is and at what time of year.

New Home Construction

If you are constructing a new home, then you'll need to estimate your demand based on the type of equipment you plan to install and your home's square footage. The pross call this "your load".

To figure out your anticipated load, create a table to record the watt use for each appliance. Each appliance – be it a water heater, electric light, computer, or refrigerator – should have a nameplate that lists its power rating in watts. Or you can get the information from the manufacturer's website.

Some labels list amperage and voltage only; to obtain watts multiply the two together (amperage x voltage = watts). In another column, record the number of hours each appliance is expected to operate. Then multiple the watts and hours together to estimate watt-hours used per day. Since it's hard to anticipate all electric loads (it may get tedious scouting out every toothbrush and mobile phone cell charger), you might want to add a multiplier of 1.5 to be safe.

Step 2: Anticipate the future

In 2005, average residential electricity rates across the USA ranged from about 6 to nearly 16 cents per kilowatt hour depending on where you lived. Average retail and commercial electricity rates have increased roughly 30% since 1999 and the upward trend will likely continue especially as costs for the coal and hydropower used to generate that electricity rise as well. So think about your home electricity needs and present and future cost in relation to one another.

Step 3: How much sun do you get?

The Florida Solar Energy Center has conducted a study to examine how a 2-kW photovoltaic system would perform if installed on a highly energy efficient home across the continental USA (http://www.fsec.ucf.edu/en/publications/html/FSEC-PF-380-04/).

The study accounted for all factors that impact a PV system's performance such as the temperature effect on the photovoltaic cells, the amount of sun peak hours in various regions, and the efficiency of inverter to convert solar derived energy from DC to AC.

As the study implies, solar photovoltaic systems work just about anywhere in the US. Even in the Northeast or in "rainy Seattle", a pv system can pencil out if designed and installed properly. In New York or New Jersey, a one kilowatt system should produce about 1270 kilowatt hours of electricity per year, in Seattle, a one kilowatt system should produce about 1200 kilowatt hours per year. In the Southwest, of course, those ratios will be much greater.

Solar contractors in your area can help determine the best size for your solar photovoltaic system.

Step 4: Size your system

In general, solar photovoltaic systems sized between 1 to 5 kilowatts are usually sufficient to meet the electricity needs of most homes. One advantage of grid-tied systems is that you can use solar PV to supplement or offset some of your electricity needs; therefore you can size your system to match your budget and always add to the system later if needed.

Also as a side note, here's a rule of thumb to remember to help you estimate the physical space your PV system might need: one square foot yields 10 watts. So in bright sunlight, a square foot of a conventional photovoltaic panel will produce 10 watts of power. A 1000 watt system, for example, may need 100 – 200 square feet of area, depending on the type of PV module used.

Step 5: Know your rebates

Many states and local jurisdictions offer rebates, tax credits and other types of incentives to homeowners for installing residential photovoltaic and solar domestic water systems. To view a comprehensive database of the incentives available for renewable energy visit http://www.dsireusa.org.

At the Federal Level, you can take advantage of a 30% tax credit (of up to $2,000) for the purchase of a residential solar system at least until December 31, 2008.

Step 6: Run the numbers

Although the cost for a solar PV system will depend on the size of the system you intend to install, your electricity rate, the amount of kilowatt hours you expect to generate, and the state/local rebates/tax credits that may be available, the formulas for calculating the returns are pretty much the same.

For those who appreciate having the formulas, use the ones listed below to do a quick ballpark estimate of how much a solar photovoltaic system might cost you.

Retail Price for Solar Photovoltaic System
+ Building Permits
- $2,000 Federal Tax Credit
- State or Local Tax Credit or Rebate
- Utility Rebate or Other Incentive
= Net Investment

Kilowatts of electricity generated from PV per year
x Kilowatt hours used per year
= Annual Kilowatt energy from the PV system

Annual Kilowatt energy from the PV system
x Current Residential Electricity Rate
= Annual $$ Saved

Yearly Excess PV Energy Produced
x $$ credit applied per watt
= Annual Value from Net Metering

Of course, a more accurate assessment can be made by a pro. Work with a solar power contractor to size and price the right system for you. As is true with any major purchase, don't hesitate to ask for several bids from different contractors.

Many solar power providers will provide you with a comprehensive estimate. Helpful information to know includes:

- Total cost to make the system operational (labor cost for design and installation and equipment costs)
- Equipment (Make and Model)
- Warranty info
- Permit costs, if needed
- Tax, where applicable
- Federal tax credits
- State or local jurisdiction tax credits or rebates
- Utility rebates
- Expected Renewable Energy Certificates or Net metering credits
- Expected operation and maintenance costs
- Projected savings

Solar Thermal (also called Solar Hot Water)

Solar thermal systems capture the sun's energy to heat water and are one of the most cost-effective renewable energy systems. They are used to heat hot water tanks and/or a heating system. A solar pool heating system is another type of solar thermal system designed specifically to heat a pool or hot tub.

Generally it's worth investigating the economic viability of installing a solar hot water system if you have an electric water heater with utility rates of at least 5 cents per kilowatt hour and have tax credits or rebates available. (It may even be worth changing out a gas-powered water heater if your costs are at least $8/million BTU).

The formulas for costing out a solar water heater system are similar to estimating the cost for installing solar PV system. Many solar energy professionals can help you determine what system might work best for you.

Heating Your Swimming Pool with Solar Power

Although few jurisdictions provide financial incentives for using solar energy to heat a swimming pool or hot tub, in general, using solar power to heat your pool is a "no-brainer" from a return on investment standpoint.

The electricity used to heat a pool during the swimming season often amounts to the same amount of energy that homes-without-pools consume over a year. Combining a solar thermal system to generate heat for the pool with a solar thermal pool cover to retain the heat generated can further maximize efficiencies and extend your swimming season.

Most installers recommend that a solar collector used to heat a pool is sized at roughly half the square footage of your pool surface area. Solar thermal panels typically last 10 – 20 years and come with a 10-year warranty.

How long it takes to break even on the cost of your solar power pool system depends on where you live. In California or other parts of the Southwest, you'll break even in 1 to 3 years but places as "far north" as Canada, a solar pool heating system pencils out over a slightly longer period of time.

About the Author:
Find more solar panel and solar power information at Cooler Planet.