Want to Run a Profitable Solar Business in Texas? Here’s What You Need to Know.

1. Is Texas a Good State to Start a Solar Company?

If you want to start a solar business in Texas, there’s never been a better time. Since 2017, Texas has ranked within the top 10 solar states in the US, with enough solar energy to power upwards of 1 million homes

And with 5 Texas cities in the list of the 20 biggest cities in the United States, there is ample opportunity to start a profitable solar business because you’ll have ample people to serve.

Not to mention the tax benefits of starting a business in Texas.

2. How does the Solar Tax Credit Work in Texas?

Currently, the federal government is offering a 26% solar tax credit for solar systems installed on Texas homes by December 31, 2022. Additionally, there is a property tax exemption on the added home value, and homeowners can sell their excess energy back to the grid. All of this makes it a win-win for homeowners and should be part of your value proposition when selling solar installations in Texas.

3. What Texas Electricity Companies Offer Solar Buyback Programs?

Texas is a deregulated state, meaning that consumers can choose their own power companies (another value proposition when selling solar panels to Texas home and business owners). Here are our top 5 picks for companies that offer solar buyback program in Texas.

4. Can an HOA in Texas Prohibit Solar Panels?

In Texas, a homeowners association cannot prohibit solar panels from being installed. However, according to state law, HOAs can still restrict where and how solar panels are installed. 

5. Do I Need a License to Sell Solar in Texas?

In the state of Texas, anyone installing solar panels (or offering to install a solar system) for any business or home is required to have a current Texas Electrical Contractor’s License from the Texas Department of Licensing and Regulation (TDLR).

Additionally, any person who actually completes the installation must be a licensed electrician.

6. How Can I Start a Solar Company in Texas?

Starting a solar business in Texas is no easy undertaking. Business acumen and an understanding of the nuances of the industry are key if you want your solar company to be successful. 

Here are some basic steps to help you get your bearings:

• Develop your business plan. Where do you want to start your business? What markets do you want to serve? Will you be selling commercial solar, residential solar, or both?
• Make it all legal. Register as a lega, register for any Taxes you will need to pay, and obtain the proper permits for starting a solar company.
• Get insurance for your solar business. It’s something no one ever wants to have to use, but it’s absolutely necessary. .
• Set up your foundations. Create your systems, processes, and training modules for every department of your business.
• Hire your team. Your team steers the ship, and your company will only be as strong as your team. Hire wisely.
• Develop your brand. Establish yourself as the go-to solar provider in your area through digital and traditional marketing strategies
• Set yourself up to scale. As business grows, you need to be prepared to handle it if you want your business to be sustainable.

7. Is There More Money in Residential or Commercial Solar?

Both residential and commercial solar are profitable, and how profitable your company is depends on several factors. 

Residential solar generates less revenue than a commercial solar project, but there are far more residential solar prospects than business prospects. 

And, it’s important to understand that selling commercial solar and selling residential solar are two different skill sets. Don’t expect residential solar developers to be excellent commercial sales professionals if they don’t have previous experience.

8. How Can I Win MORE Solar Projects in Texas?

Winning more solar projects depends on three things: your acquisition strategy, your SOPs, and your sales team. Each of these factors works together. If you have leads but dont know how to handle them, leads get lost. If you have leads and know how to handle them but your team doesn’t know how to close, you lose the deal. And if your SOPs are seamless and you have great closers but no leads, there’s nothing to close.

Your solar company needs to be airtight in these three areas if you want to run a profitable solar company in Texas.

Launch, Grow, and SCALE Your Solar Business 

At the AJC Group, we help solar CEOs and entrepreneurs just like you launch, grow, scale, and REVOLUTIONIZE their residential or commercial sales companies. If you’re interested in jumping into the world of solar, or you’re an established company looking for solar sales training in Texas, contact a member of our team.