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With any B-Plan Purchase
425 Page Capital Directory
Through Apr. 30


Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2017


Solar Panel Installation Service SWOT Analysis

 

Strengths

 

Solar panel installation services are experiencing a boom, and they will continue to do so for a substantial period of time. Within the United States and abroad, demand for solar panels among homeowners and commercial property owners is rising substantially. The benefits of having solar panels is substantial. First, it eliminates the need for a monthly utility bill. Second, many energy companies allow property owners that have solar panels to sell excess energy back to them for an income stream. This allows buyers of solar panels to generate profits immediately once they are installed. As such, solar panel installation services are able to remain profitable at all times. Given the unique nature of these businesses and the experience required to obtain an electrical contracting license - the barriers to entry are moderately high. The costs associated with starting a new solar panel installation service range from $25,000 to $250,000 depending on the size of the market. The gross margins from the sales of solar panels are moderate, but the installation fees carry gross margins in excess of 80% depending on whether or not independent contactors are used.


Weaknesses

 

This is a relatively new industry, and startups are being launched in every market. The operating costs associated with this business are moderately high, but if demand wanes - operations can be scaled down very quickly. There is a level of uncertainty with solar panel installation businesses as property owners depend on tax credits in order to make the transaction profitable. However, demand has remained high in markets where tax credit offerings have expired.

 

Opportunities

 

The potential to expand these types of businesses is expansive. The best method for expanding this type of business is to work with municipalities for their ongoing demand for solar panels. Many cities throughout the United States have committed to using green energy moving forward. As such, these ongoing contracts provide solar panel installation services will highly predictable streams of high margin income. These companies can also develop relationships with housing development companies in order to fulfill large orders.

Threats

 

As stated earlier, this is a relatively new and expanding industry. As such, many threats are unknown. Solar panel technology is rapidly changing, and a number of new companies have entered this market. These are issues that are going to need to be faced by businesses that install these panels.


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