Over the past decade, the solar energy industry has experienced an unprecedented boom both globally and in India, with the rise of the solar franchise in India being a key component of this growth. As the world shifts toward sustainable energy solutions, solar power has emerged as a dominant player, driven by falling technology costs, supportive government policies, and increasing environmental awareness.
In India, the government’s aggressive push toward renewable energy through schemqes like PM-KUSUM and subsidies under MNRE has made solar adoption more accessible than ever. This growing demand has opened the door for entrepreneurs and investors to enter the solar sector through solar franchises, offering a low-risk and scalable business model.
What makes a solar franchise so appealing is its ability to combine brand recognition, proven systems, and technical support minimizing the trial-and-error phase for new entrants. Instead of starting from scratch, franchisees benefit from an established product line, marketing assets, and training from industry experts. However, your success in this space largely depends on choosing the best solar company in India a brand that offers strong support, a reliable product portfolio, and long-term business viability.
20 Most Common Questions About Solar Franchises
With growing interest in clean energy, solar franchises offer a profitable path for entrepreneurs. Here’s a quick guide answering the top 20 questions covering costs, setup, licensing, profits, and more.
1. What is a solar franchise and how does it work?
A solar franchise is a business partnership where an individual or investor operates a solar business under the brand name and system of an established solar company. This model offers a structured path into the renewable energy industry, reducing startup risk through proven operations and ongoing support.
In a typical solar franchise setup, the franchisor provides technical training, marketing resources, and access to certified solar products. The franchisee is responsible for generating local sales, managing installations, and ensuring customer satisfaction through after-sales service. By combining the scalability of entrepreneurship with the backing of a trusted brand, solar franchises make it easier to enter the booming clean energy sector.
2. How much does it cost to start a solar franchise in India?
The solar franchise cost in India typically ranges from ₹50,000 to ₹25 lakhs, depending on the business model, location, and brand reputation. Smaller dealership or referral-based models require minimal investment, while full-scale franchises with installation teams and warehousing demand higher capital.
Several factors influence the overall cost:
- The franchise fee charged by the parent company
- Inventory and equipment requirements
- Regional demand and setup costs based on location
- Marketing, staffing, and training expenses
Before committing, it’s essential to evaluate both one-time and recurring costs to ensure long-term financial sustainability.
3. How profitable is a solar franchise business?
A solar energy business can be highly profitable, especially with rising demand for clean energy solutions across India. Most solar franchises begin to recover their investment within 12 to 24 months, depending on location, business model, and marketing efforts.
Profit margins typically range between 15% to 30%, with recurring revenue possible from maintenance services and upgrades. Tier 2 and rural markets offer excellent opportunities due to government subsidies, less competition, and growing adoption of rooftop solar systems. With low operational costs and high market potential, a well-managed solar franchise can generate consistent long-term income while contributing to sustainable development.
Wondering how much you can actually earn? This Franchise Partner Success Story offers real-world insight into how APN Solar partners are growing successful, profitable businesses with full support and minimal risk.
4. Which is the best solar franchise in India?
India has a growing number of reliable solar franchise options, but a few brands stand out due to their proven business models, nationwide presence, and strong customer support.
Some of the top solar franchise brands in India include:
- APN Solar – Known for affordable investment options, full technical training, and strong post-sales support.
- Tata Power Solar – Backed by the Tata brand, offering high-quality products and national credibility.
- Loom Solar – A fast-growing brand focused on digital sales and residential installations.
For a deeper comparison, check out our guide on the Top 10 Solar Franchise in India.
5. What is the difference between a solar franchise and dealership?
While both models offer entry into the solar business, they differ significantly in structure and control. A solar franchise operates under an established brand with defined systems, training, and marketing support, often involving a shared revenue model. In contrast, a dealership allows you to buy and sell solar products independently, retaining full control over pricing, branding, and operations.
The key distinctions in control, investment, and long-term support are outlined in this detailed guide on Solar Franchise vs Own Solar Business.
6. How to start a solar franchise business in India?
If you’re wondering how to start a solar panel business through a franchise model in India, the process involves a few essential steps. Start with thorough market research to understand regional demand, available franchise brands, and pricing structures. Next, shortlist credible companies offering a solar franchise in India, and review their business models, training, and support systems.
Once selected, follow these key steps:
- Sign a franchise agreement with the parent company.
- Register your business entity and obtain GST and other legal approvals.
- Get empaneled with MNRE or state DISCOMs, if required.
- Adhere to SECI policies for installation quality and subsidy compliance.
- Set up your operations including sales team, marketing, and inventory.
Following this process ensures you’re legally compliant and operationally ready to enter India’s fast-growing solar market.
7. Do I need a license to run a solar franchise?
Yes, running a solar franchise in India requires specific licenses and certifications to ensure compliance with government and industry standards. Most states require registration with the local Distribution Company (DISCOM)Â for net metering approvals and grid connectivity. Additionally, many franchisors expect you to be empaneled with Ministry of New and Renewable Energy (MNRE) to qualify for government-backed installations.
For handling certified solar equipment, obtaining a Bureau of Indian Standards (BIS) certification is also recommended. These credentials build credibility, enable subsidy eligibility, and ensure safe, approved installations.
8. What are different types of solar business models?
The solar industry in India offers various business models, each catering to different levels of investment and operational involvement. The most common types include:
- EPC (Engineering, Procurement, Construction): Full-service providers managing large-scale projects.
- Distributor: Supplies solar products to local dealers or installers.
- OEM (Original Equipment Manufacturer): Produces solar components like panels and inverters.
- Installer: Handles residential or commercial system installations.
- D2C (Direct-to-Consumer): Sells solar kits directly to end-users online.
Each solar dealership business model offers different margins, risks, and scalability depending on your role in the value chain.
9. What training and support do franchisors provide?
Most solar franchisors offer comprehensive support to help new partners succeed. This typically includes technical training on solar products, system design, and installation procedures. Additionally, franchisors provide marketing assistance, such as branding materials, lead generation strategies, and digital promotions.
Many also support logistics handling product procurement, inventory management, and coordination with suppliers. This end-to-end support system helps franchisees focus on local sales and service while the brand manages backend operations, ensuring consistency and scalability.
10. What equipment do I need to run a solar franchise?
To operate a solar franchise, you’ll need access to essential solar hardware and installation tools. This includes:
- Photovoltaic (PV) panels
- Inverters (string or microinverters)
- Solar batteries for energy storage
- Net metering equipment for grid integration
Most franchisors supply these components directly or through authorized vendors, ensuring compliance with industry standards and installation quality.
11. Can I run a solar franchise from home?
Yes, many entrepreneurs start a solar franchise from home using a hybrid or remote consulting model. With digital tools and cloud-based CRMs, franchisees can manage leads, schedule installations, and handle customer service without a physical office.
Virtual site audits using satellite imagery or video calls are becoming common, especially in residential projects. As long as you have a strong local network and reliable vendor support, running a solar franchise remotely is both practical and cost-effective.
12. Is solar franchising suitable for rural and small towns?
Yes, solar franchising is especially well-suited for rural areas and small towns, where electricity access and energy costs are ongoing concerns. Government initiatives like PM-KUSUM and state-level solar subsidy programs have increased both awareness and affordability in these regions.
As demand for rooftop solar and off-grid systems grows, rural markets offer low competition and high potential for expansion making them ideal for first-time franchisees looking for long-term growth in the clean energy sector.
13. How do I market my solar franchise?
Marketing a solar franchise requires a mix of digital and local strategies. Start by optimizing your local SEO ensure your business appears in Google Maps, local directories, and solar-related searches in your service area. Social media platforms like Facebook and Instagram are effective for generating awareness and showcasing completed projects.
Building partnerships with local contractors, electricians, and real estate agents can help you tap into warm leads. Additionally, running online ad campaigns on Google and Meta can drive targeted traffic and generate qualified inquiries. Consistency and trust-building are key to long-term brand growth.
14. What are the risks or common mistakes in solar franchising?
While solar franchising offers strong potential, it’s not without risks. One of the most common issues is delayed customer payments, which can disrupt cash flow. Technical errors such as incorrect system sizing or poor installation can lead to customer dissatisfaction and service liabilities.
Another frequent mistake is partnering with unreliable vendors or low-quality product suppliers, which affects long-term brand reputation. It’s essential to vet suppliers, train staff thoroughly, and monitor financial health.
For a deeper look, explore Solar Business Mistakes in India that new franchisees should avoid.
15. What is the ROI period in a solar franchise?
The typical return on investment (ROI) for a solar franchise ranges from 12 to 24 months, depending on factors like business size, service area, and customer volume. Franchises in high-demand or government-subsidized regions may achieve faster ROI. Efficient operations, strong local marketing, and reliable after-sales service all contribute to shortening the payback period and building a profitable, long-term solar business.
16. Are there government subsidies available?
Yes, the Indian government offers several subsidies to promote solar adoption, which directly benefit solar franchise businesses. The MNRE (Ministry of New and Renewable Energy) provides up to 40% subsidy on residential rooftop solar systems under its national rooftop program.
In addition to central support, many states offer state-specific incentives, such as capital subsidies, net metering benefits, and faster approval processes. These subsidies not only reduce system costs for customers but also boost franchise sales, making solar solutions more accessible and attractive across urban and rural markets.
17. Can I sell solar products online with a franchise?
Yes, many solar franchises now support D2C (Direct-to-Consumer) sales through eCommerce platforms. As customer behavior shifts online, selling solar products like panels, inverters, and kits via your website or marketplaces has become a viable revenue stream.
Some franchisors provide integrated digital tools and order management systems, allowing you to manage leads, payments, and shipping seamlessly. Combining local installation services with online product sales can significantly expand your market reach and business potential.
18. What licenses and documents are needed?
To legally operate a solar franchise in India, you’ll need a few essential licenses and registrations. These include a business license from your local municipal authority and GST registration for tax compliance.
If you’re handling installations under government subsidy schemes, MNRE empanelment may also be required, especially for rooftop projects. Some states might ask for additional electrical contractor licenses or local DISCOM approvals. Having proper documentation builds trust and ensures smooth project execution.
19. What skills are required to run a solar franchise?
Running a successful solar franchise requires a combination of business and interpersonal skills. A strong background in sales and lead generation is essential to grow your customer base. Basic technical understanding of solar systems helps in communicating effectively with clients and installation teams.
Equally important are customer service skills, as long-term success depends on trust, transparency, and post-installation support. While prior experience in solar is helpful, franchisors typically provide training to bridge any knowledge gaps.
20. How to choose the right solar franchise for you?
Choosing the right solar franchise involves evaluating several key factors to ensure long-term success and profitability. Start by assessing your location urban areas may offer more competition, while rural regions provide untapped growth potential. Look for a franchise that offers strong training and operational support, along with transparent terms.
Consider the following checklist:
- Regional demand and market fit
- Franchisor support and onboarding process
- Expected ROI timeline and margins
- Brand authority and industry credibility
Selecting a reputable partner matters read this guide on How to Choose the Best Solar Company in India to make an informed decision.
Conclusion
A solar franchise offers a compelling opportunity to enter India’s fast-growing renewable energy sector with lower risk and strong demand. With government support, rising electricity costs, and growing environmental awareness, the market potential is only expanding.
Whether you’re targeting urban or rural regions, choosing the right franchise partner is crucial. Trusted brands like APN Solar provide the tools, training, and credibility needed to build a scalable business.
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