A solar panel business can be integrated with a real estate business, which makes an excellent franchise opportunity. Whether you decide to venture into a solar panel or real estate franchise or both, it’s crucial to know the cost and profit margin involved in these businesses.
In this post, you’ll learn more about franchise opportunities for solar panel and real estate businesses, including the costs involved and profitability.
Solar Panel Franchise Opportunities
A solar panel franchise business would require a structured staff with knowledge and skills in electrical, construction, and solar energy. It’s suitable for individuals with excellent business skills, a background in construction, and learning and experience in electrical contract work. Learn more about getting started with franchising at the franchiseknowhow site.
Here are the typical duties and activities of a solar panel franchise business:
- Installation of solar panels, connections to the primary power grid, and back-up battery systems
- Contacting homeowners, business owners, and other potential customers for initial assessment or survey
- Finding rebates, grants, and special financing to those who want to enter the solar program
- Determining and calculating the required amount of potential solar energy of a particular location
- Scheduling installation crews
- Delivery of panels to the site
- Final survey and creating a checklist of completed installations
- Maintaining proper payroll and accounting procedures
- Developing potential customers for large solar panel installations and projects
- Maintenance and repair of existing solar panels
Cost and Profit Margin of a Solar Panel Franchise Business
If you’re looking at solar panel franchise opportunities, the minimum payment ranges between $100,000 to $350,000 to gain access to your assigned region. As you’ll notice, you need significant capital to obtain the first shipments of solar panels to be installed in homes or businesses. Without a franchise, expect to invest up to $500,000 for hiring a crew, marketing, and performing the first round of solar panel installations within a year.
Here are the popular solar panel opportunities or companies you might want to get a franchise or invest in:
- First Solar, Inc. or FSLR: The net profit reached 60% in 2017 and benefited from the administration of Trump because it is exempted from the tariff.
- SunPower Corporation or SPWR: The company is now considering expanding its production in the US and will soon acquire the best producer of high-quality solar panels in the US, SolarWorld Americas.
- Vivint Solar, Inc. or VSLR: It offers the lowest solar installation costs, expecting to show significant business growth because the residential solar industry continuously expands.
Real Estate Franchise Opportunities
By 2020, many energy analysts are expecting that the price of solar-generated electricity will be below or the same as the cost of power supplied in over half of the United States. Many organizations such as Apple, Intel, Kohl’s, Starbucks, and the National Hockey League have committed to source all power supply from renewables. Real estate businesses will even benefit from solar panel installations soon.
Here are some real estate franchise opportunities along with solar panel installation:
- Real estate builders and developers foresee solar panel installations as a great way to meet the “green criteria” for houses and buildings, thus reducing vacancy rates or increasing leasing rates.
- Many investors are willing to combine solar panel and real estate investment, making promising net profit margin from solar panel installation, maintenance, and repairs. For example, Point Energy, a solar panel company, works with real estate developers to push the envelope for solar innovation. Sharp Development and Hanover Page Mill Associates in California are examples of firms with leased solar offices, sharing best practices and strategies.
How to Work Out Profit Margin When Including Solar Panels to Real Estate Investments
You can use different strategies to manage your expenses of including solar panels on your real estate properties, such as using a gross lease, a modified gross lease or a full-service lease, wherein the landlord pays for all the utility costs and benefits from the lower prices to increase the profit margins on leasing arrangements. Also, you can institute a green lease or a green surcharge to create a “value” related to solar installation. You can also take advantage of the Property Assessed Clean Energy or PACE bonds so you can directly pass the operating expenses, including the property taxes, to your tenants.
Solar panel franchise opportunities may include conducting on-site surveys of potential solar panel installations, creating a solar plan for a specific location, working with real estate developers to incorporate solar panels to new properties, working with financing companies, and installing solar panel units in different communities. It’s possible to venture into the real estate franchise business, including solar panel installation, to benefit from lower utility bills and green leasing options.